Global Watch & Clock Industry Market Potential and Trends

Global Watch & Clock Industry Market Size and Potential

Slower Global Market Growth, Switzerland and Japan Dominate the Mid-to-High-End Market

According to data from Statista and relevant institutions, the global retail market for watches reached approximately $80.76 billion in 2023. In 2024, market growth is expected to slow slightly, with an estimated total market size of $79.81 billion. However, from 2024 to 2028, the industry is projected to maintain a stable compound annual growth rate (CAGR) of 3.52%, indicating significant future growth potential.

The latest data from the Federation of the Swiss Watch Industry shows that despite a 2.2% year-on-year decline in Swiss watch exports in October 2024 (down to 2.34 billion Swiss francs, approximately 19.24 billion RMB), exports to the United States and Japan—the two largest importers of Swiss watches—grew by 11% and 20%, respectively. This suggests that despite global economic fluctuations, certain markets maintain strong purchasing power, particularly for high-end watch brands.

Regarding market competition, Switzerland, Japan, and China are the key players in the global Watch & Clock Industry. Switzerland, known as the "Kingdom of Watches," dominates the high-end market with a strong brand reputation and premium pricing. Leading brands include Rolex, Swatch Group, Richemont, LVMH, and Patek Philippe, with the top four watch groups controlling over 75% of the Swiss watch industry. Switzerland produces more than half of the world's watches, with 95% of its output exported. In 2023, Swiss watch exports reached a record high of 26.7 billion Swiss francs (approximately 212.8 billion RMB), marking a 7.6% year-on-year increase. The number of exported units also grew by 7.2% to 16.9 million watches. The top five export destinations were the U.S., Mainland China, Hong Kong, Japan, and the U.K.

Japan's watch industry is renowned for technological innovation, particularly in quartz technology, securing a notable share of the mid-range market. Seiko, Citizen, and Casio are its flagship brands. In 2023, Japan’s total watch sales (including exports) reached 49.9 million units, down 4% year-on-year. However, total sales revenue increased by 9%, reflecting a strong price advantage.

China's watch market has shown steady growth in recent years, particularly in production capacity and exports. While Chinese brands mainly focus on the mid-to-low-end market, they are gradually improving their competitiveness and expanding into the mid-to-high-end segment.

Traditional Mechanical Watches Retain Their Charm, While Smartwatches See Rapid Growth

The global Watch & Clock Industry is diversifying and becoming more segmented. On one hand, traditional mechanical, quartz, and electronic watches continue to hold a significant market share. For example, the mechanical watch market is projected to reach $28.7 billion in 2024. As a symbol of craftsmanship and fashion, mechanical watches remain highly valued worldwide. Similarly, the quartz watch market was valued at approximately $9.34 billion in 2023 and is expected to grow at a CAGR of 4.37%, reaching $11.97 billion by 2029, according to research by Bezels Consulting.

On the other hand, the market for smartwatches presents enormous potential, with rapid expansion. According to Canalys, global smartwatch shipments reached 18.5 million units in Q3 2024, accounting for the majority of the 52.9 million wearable wrist devices sold during the period. TechInsights predicts that as technology giants, traditional fashion brands, and watch manufacturers—along with new entrants from China and India—continue to invest in the market, the global smartwatch industry will maintain a CAGR of 5% from 2023 to 2029. The Asia-Pacific region is expected to become the largest market for smartwatches in 2024, with its share increasing to 47% by 2029.

High-End Watches Remain Popular, While Entry-Level Watches See High Shipment Volumes

According to Morgan Stanley’s 2023 annual report on the Swiss Watch & Clock Industry, luxury and top-tier watches dominate global sales. The top 10 Swiss watch brands by revenue in 2023 were Rolex, Cartier, Omega, Audemars Piguet, Patek Philippe, Richard Mille, Longines, Vacheron Constantin, Breitling, and Tissot. The top three brands (Rolex, Cartier, and Omega) alone accounted for 30% of the market share.

In terms of sales volume, strategic adjustments and targeted consumer positioning have allowed brands to achieve stable growth. Tissot, Longines, and Rolex ranked as the top three in unit sales, with Vacheron Constantin entering the top 10 for the first time. These rankings indicate that brands such as Longines, Tissot, and Vacheron Constantin are excelling within their respective market segments.

Prospects

Despite a slowdown in overall market growth, the global Watch & Clock Industry remains poised for long-term expansion, driven by steady demand for luxury mechanical watches and the rapid rise of smartwatches. Switzerland continues to dominate the high-end market, Japan remains a leader in mid-range and quartz watch technology, and China is emerging as a competitive player in production and exports. With ongoing technological advancements and market diversification, the Watch & Clock Industry is set to experience sustained development in the coming years.