Luxury Watch Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Luxury Watch Market Trends and Insights

Increasing demand for collectible and investment-grade pieces

The demand for collectible and investment-grade luxury watches is driven by the concentration of wealth in key markets, such as the United States. The country leads globally with 22.7 million individuals having a net worth of over USD 1 million, far surpassing any other nation, as reported by the World Population Review in 2025^{[1]Source: World Population Review, "High Net Worth Individuals by Country 2025", worldpopulationreview.com}. Both brands and the secondary market are formalizing vintage trading and certified pre-owned programs, offering benefits such as two-year warranties that provide buyers with confidence and help maintain higher valuations. Record-breaking auction sales, like the CHF 31 million Patek Philippe Grandmaster Chime, set price benchmarks for rare and complex watches, establishing them as alternative investment assets. Investments by specialist funds and family offices in rare watch collections, along with advancements in authentication technology that reduce misinformation, are making luxury watches appealing.

Influence of social media and celebrity endorsement

The impact of social media and celebrity endorsements is a key factor driving the growth of the global luxury watch market. According to the World Bank, 71% of the global population was using the internet in 2024, making platforms like Instagram, TikTok, and YouTube highly influential^{[2]Source: World Bank, "Individuals Using the Internet (% of Population)", data.worldbank.org}. These platforms transform celebrity appearances and influencer posts into immediate demand signals, influencing consumer preferences and driving resale activity. For example, when Rafael Nadal wore the Richard Mille RM 27-05, it led to a sharp rise in online searches and inquiries in the secondary market within hours. Micro-influencers with follower counts between 50,000 and 200,000 often achieve better engagement and conversion rates than traditional advertising. This has encouraged luxury watch brands to collaborate with these influencers, launch limited editions, and create digital content that highlights the craftsmanship and technical details of their products.

Product innovation in terms of raw material and design

Innovation in materials and design is playing a significant role in shaping the luxury watch market. Brands are increasingly utilizing advanced materials and distinctive designs to enhance the performance, comfort, and sustainability of their watches while upholding the high standards of luxury craftsmanship. For instance, IWC has developed Ceratanium, a material that combines the lightweight properties of titanium with the hardness of ceramic. Similarly, Audemars Piguet uses forged carbon, which reduces weight while ensuring durability, and Hublot has introduced Magic Gold, a material known for its exceptional scratch resistance. These advancements allow luxury watchmakers to meet consumer demands for durable, wearable, and environmentally responsible products. Brands are focusing on innovative designs to attract new customers. For example, Timex launched its Aston Martin watches in September 2024, blending automotive-inspired styling with high-quality watchmaking. 

Growing interest in vintage and pre-owned luxury watches

The demand for vintage and pre-owned luxury watches is growing rapidly as more collectors and enthusiasts look for rare, discontinued, or limited-edition timepieces. These watches are sought after for their uniqueness and ability to retain value over time. High-net-worth individuals and younger buyers are turning to secondary markets to purchase these heritage models, which are no longer available through traditional retail channels. Certified pre-owned programs, supported by luxury brands, along with advancements in authentication technology and the rise of digital resale platforms, are making the process of buying pre-owned watches more trustworthy and transparent. For instance, in July 2025, Helios Luxe introduced the Swiss heritage watch brand Auguste Reymond to Indian consumers. This move expanded access to classic timepieces and highlighted the growing demand for traditional watchmaking in emerging luxury markets, such as India. 

Proliferation of counterfeit Products

Proliferation of counterfeit products is a major restraint on the luxury watch market as high-quality replicas produced using Computer Numerical Control (CNC) machining and 3D printing increasingly blur the line between genuine and fake timepieces, especially across online and peer-to-peer resale channels where verification is weaker, forcing brands to invest more in digital certificates, micro-engraving, and hologram rehauts to protect authenticity. The scale of this challenge is reflected in recent enforcement actions, with United States Customs seizing more than USD 186 million worth of counterfeit luxury jewelry and watches in Louisville in July 2025, followed by another 2025 seizure of over 50 fake luxury watches with a real value exceeding USD 6 million at Cincinnati/Northern Kentucky Airport, underscoring how widespread illicit trade continues to undermine consumer confidence and legitimate luxury watch sales.

Rising smartwatch adoption challenges traditional timepiece sales

The growing popularity of smartwatches is posing a significant challenge to traditional wristwatch sales. Smartwatches are becoming the preferred choice for many consumers, especially younger and tech-savvy individuals. These devices have experienced rapid adoption, with 85% of Americans owning smartphones and 31% owning smartwatches as of 2024, according to PubMed Central^{[3]Source: PubMed Central, "Assessment of Ownership of Smart Devices and the Acceptability of Digital Health Data Sharing", pmc.ncbi.nlm.nih.gov} . This trend underscores the profound integration of wearable technology into everyday life. Smartwatches offer a wide range of features that go beyond simply telling time. They include health tracking, fitness monitoring, mobile payment options, notifications, and app connectivity, making them highly practical for daily use. These functionalities appeal to modern consumers who prioritize convenience and versatility. As a result, many potential buyers who might have previously considered purchasing an entry-level mechanical or fashion watch are now opting for smartwatches instead. 

Segment Analysis

By Product Type: Digital Watches Gain Traction amid Mechanical Strength

Quartz and mechanical watches remain the dominant segments in the luxury watch market as of 2025, holding 63.58% of the total market share. These watches are highly valued for their traditional craftsmanship, timeless designs, and the emotional connection they create with buyers. Many consumers, especially collectors and high-net-worth individuals, view these timepieces as symbols of status and sophistication. Their ability to retain or even increase in value over time makes them a preferred choice for those seeking both luxury and investment potential. This enduring appeal ensures that traditional watches remain the cornerstone of the luxury watch market.

Meanwhile, digital and hybrid luxury watches are steadily gaining popularity, driven by the growing demand for smart features combined with stylish designs. This segment is projected to grow at a CAGR of 6.45% through 2031, as more consumers seek watches that offer functionalities like fitness tracking, connectivity, and convenience for daily use. Hybrid models, which blend classic aesthetics with modern technology, are particularly appealing to younger buyers who value both tradition and innovation. These watches cater to a wide range of needs, from lifestyle to wellness, making them a versatile choice. This trend highlights how technological advancements are influencing the luxury watch market while complementing the enduring charm of traditional craftsmanship.

By End User: Women’s Segment Outpaces Men’s Growth

In 2025, men remained the primary consumers in the global luxury watch market, contributing 51.67% of the total revenue. This dominance is largely due to the popularity of sports-oriented and complex models, such as the Rolex Submariner and the Patek Philippe Aquanaut. These watches are favored for their advanced features, durability, and the prestige they bring to their owners. Sports and professional models hold strong resale value, making them a preferred choice among male buyers. As a result, men’s collections continue to be the most significant and profitable segment in the luxury watch industry.

Meanwhile, the women’s luxury watch segment is growing rapidly and is expected to achieve a compound annual growth rate (CAGR) of 6.72% through 2031. Brands are shifting their focus from traditional jewelry-style designs to creating watches with larger case sizes, sportier looks, and advanced mechanical movements, which were previously exclusive to men’s collections. This change reflects a growing interest among women in both the technical performance and aesthetic appeal of luxury watches. As more female consumers seek watches that combine functionality with style, the women’s segment is becoming a crucial driver of growth in the global luxury watch market.

By Distribution Channel: Online Platforms Chip Away at Store Dominance

In 2025, offline retail outlets remained the leading sales channel in the global luxury watch market, contributing 66.84% of total sales. High-value purchases, such as luxury watches, often require a physical shopping experience. Customers prefer visiting stores to try on watches, ensure proper wrist fitting, and interact directly with knowledgeable sales advisors. Boutiques and authorized dealers also offer additional benefits, including authenticity guarantees, after-sales services, and personalized customer relationships. These factors make physical stores a preferred choice for buyers of premium timepieces.

Meanwhile, online sales channels are growing steadily and are projected to expand at a 7.34% CAGR between 2026 and 2031. Digital platforms are becoming increasingly reliable as brands like Rolex enhance their Certified Pre-Owned programs and companies like Richemont integrate platforms like Watchfinder into their operations. These advancements make it easier and safer for customers to buy and sell luxury watches online. As trust in online transactions increases, e-commerce is gradually capturing a larger share of the luxury watch market, offering convenience and accessibility to a broader audience.

Geography Analysis

The Asia Pacific region remains the largest market for luxury watches in 2025, accounting for 41.58% of global revenue. This dominance is driven by rising wealth, a growing community of collectors, and strong cross-border shopping activity. Major markets, including China, Japan, Singapore, Hong Kong, and India, are key contributors to this growth. Factors such as increasing tourism, currency fluctuations, and evolving consumer preferences further drive demand for luxury timepieces. The region remains the primary growth engine for the global luxury watch industry, driven by its robust economic and consumer dynamics.

South America is rapidly becoming the fastest-growing market for luxury watches, with sales projected to grow at a 7.85% CAGR during the forecast period. An expanding affluent population, improved access to credit, and the growing presence of luxury brands in urban centers fuel the region's growth. Countries such as Brazil, Mexico, Chile, and Colombia are experiencing a surge in interest in high-end watches. The expansion of luxury boutiques and a rising appreciation for premium goods are further driving this trend. South America presents significant opportunities for global watch brands to tap into untapped demand and expand their market presence.

Europe, North America, and the Middle East and Africa remain critical regions for luxury watch sales, even as growth slows in these mature markets. These areas benefit from strong tourism, established retail networks, and a high concentration of wealthy consumers. Cities such as Geneva, Paris, Milan, London, Dubai, and Riyadh serve as major hubs for luxury watch transactions. While these regions provide stability and consistent high-value sales, they complement the faster growth seen in emerging markets like Asia Pacific and South America, ensuring a balanced global market performance.