Mechanical Watch Market - By Movement Type (Automatic and Manual), By Strap Material (Leather, Stainless Steel, Nylon, and Others [Rubber etc.]), By Case Size, By Shape, By Consumer Group, By Price, By Distribution Channel Forecast 2024 – 2032

Mechanical Watch Market Size

Mechanical Watch Market size was valued at around USD 59.2 Billion in 2023 and is anticipated to register a CAGR of 5.2% between 2024 to 2032. Driven to several reasons, including rise of disposable income in developed and developing nations, consumer spending on luxury segment boosts the demand in high end mechanical watch. Furthermore, manufacturers are launching the limited-edition model creating a sense of urgency and desirability, further driving the overall mechanical watch sales. 
 

There are two different types of mechanical watch movements such as automatic and manual movements. Automatic movements are powered by a rotor, also called an oscillating weight or mass, that spins as you move. This motion winds and powers the watch. They are also called self-winding movements. Manual movements are powered as user wind them by turning the crown. Manufacturers are now designing mechanical watch with advanced sealing techniques that further improve design and enhance water resistance.
 

While smartwatches have gained considerable popularity, mechanical watch industry have faced challenges. The primary challenge lies in differentiating products from smartwatches. Traditional watches rely on craftsmanship, precision engineering, and timeless designs to appeal to consumers. Additionally, the rapid pace of technological advancements poses a challenge for traditional watchmakers. This poses a threat to the traditional watch industry, which relies on the appreciation of mechanical movements and the artistry associated with traditional timepieces. Furthermore, water and moisture pose a significant threat to mechanical watches. This is because they can potentially penetrate the case and damage the movement.
 

Mechanical Watch Market Trends

Vintage-inspired watches are an emerging trend in the mechanical watch industry. These timepieces, with their domed crystals, aged leather straps, and retro-style numerals, represent timeless appeal with a hint of nostalgia. Vintage-inspired timepieces evoke nostalgia while exemplifying current craftsmanship. Watchmakers are adding sustainable materials, such as ocean-bound plastics, into their products. This provides customers with a combination of premium builds, quality, and brand recognition, as well as the optimism connected with sustainable goods. This elevates luxury watches beyond status symbols, allowing for new degrees of self-expression through timepieces.
 

Mechanical Watch Market Analysis

Based on the movement type, the market can be segmented into automatic and manual. The mechanical watch with automatic movement type segment held 68% of the total market share in 2023 and is anticipated to grow at a CAGR of 5.4% during the forecast period. An automatic movement refers to a self-winding mechanical watch, where the action of the wearer's wrist generates the energy to power the watch. The watch's mainspring, or the primary power source, is wound by a rotor that spins when the watch is worn, making a battery unnecessary.
 

On the other hand, A manual movement, frequently called a hand-wound movement, is the oldest type of watch movement made. It requires daily winding to work. Manual movements are the most traditional movements and are usually found in very conservative, expensive, and collectable watches. Furthermore, buyers are looking for customizable alternatives such as engravings and distinctive dial patterns. The combination of manual movements with contemporary technology, such as smart capabilities or hybrid features, is appealing to a proficient in technology audience.
 

Based on strap material, the global mechanical watch market is categorized into leather, stainless steel, nylon, and others. The mechanical watch with stainless steel strap segment held 56% of the total market share in 2023 and is anticipated to grow at a CAGR of 5.4% during the forecast period. stainless steel, on the other hand, is noted for its strength and durability while still having a sleek and classy appearance. Stainless steel is extremely resistant to scratches, corrosion, and tarnish, ensuring that your watch remains in outstanding condition over time. Stainless steel is also hypoallergenic, making it suitable for individuals with sensitive skin.
 

On the other hand, Leather straps have a more classic appearance and are considered by many to be one of the most comfortable types of watch straps due to leather's built-in softness. Leather straps not only soften with time to fit to the curvature of the wrist, but they also develop a distinct patina that improves their beauty. Nylon has emerged as a highly durable material for wristwatch straps, particularly in hot and humid climates. Nylon straps are strong, pleasant to wear, and water resistant. They are a more flexible watch material and are simple to clean.
 

US dominated the North America mechanical watch market with the market share of around 78% in 2023 and anticipated to grow with a CAGR of around 5.1% during forecast period. Rising disposable income and customer spending on luxury high product are driving the overall demand for mechanical watch in North America.
 

Over the past year, the younger generation has acquired a significant share in the luxury watch industry. Their average spend on a watch was USD 10,870, with millennials spending almost half that amount. On the used watch market, the younger generation spends between USD 7,500 and USD 10,000. Surprisingly, Gen Z purchases an average of 2.4 new watches every year and 1.43 pre-owned watches. According to Statistics Canada the national statistical office, the average Canadian household spent USD 2,303 on clothing and accessories, the accessories category included watches and jewellery (USD 125 on average) and accessories (USD 117).
 

As a result, it is anticipated that the rising disposable income and customer spending on luxury high product in countries such as US and Canada are boosting the mechanical watch demand during the forecast period.
 

North America: In terms of the country, the US dominating with the overall market share of around 78% in the North America mechanical watch market. The United States has a robust luxury market, fueled by high disposable incomes and a preference for premium products. Increasing e-commerce and direct-to-consumer methods broaden access to high-end watches, attracting younger buyers.
 

On the other hand, Canada market expressing notable growth rate of around 4.6% in 2023. Rising disposable income in the middle and upper classes fuels demand for commodities such as mechanical watches. Canadian customers are increasingly affected by worldwide fashion trends, creating a desire for one of a kind and fashionable mechanical watch.
 

Europe: The Europe mechanical watch market with the market share of around 37% in 2023 and anticipated to grow with a CAGR of around 5.5% during forecast period. Increased disposable income in various European countries allows customers to invest mechanical watches. There is a growing interest in collecting antique and limited-edition watches, particularly among enthusiasts in countries such as the UK and Italy.
 

In terms of country, Germany is dominating the Europe mechanical watch market in terms of market share of around 24% during the 2023. There is a rising interest towards high end mechanical watch in the country further boosting the overall market growth.   
 

On the other hand, the UK is experiencing notable growth in market and anticipated to grow at 5.3% CAGR during the forecast period. UK has a rich tradition of watchmaking with the focus on handcrafted production. UK culture has a significant impact on fashion and lifestyle, with watches seen as essential products that enhance personal style.
 

Asia Pacific: The Asia Pacific Mechanical Watch market with the market share of around 29% in 2023 and anticipated to grow with a CAGR of around 5.2% during forecast period. The growing popularity of vintage and retro trends has contributed to an upsurge in demand for mechanical watches, particularly among young customers who recognize the visual and emotional significance of possessing a piece of history.
 

In terms of country China is dominating the Asia Pacific market in terms of market share of around 33% during the 2023. According to a report by the Federation of the Swiss Watch Industry (FHS), mainland China and Hong Kong combined spent over USD 5.49 billion (5 billion Swiss francs) on watches in 2023, meaning luxury consumers in greater China are the biggest customers when it comes to the USD 29.3 billion (26.7 billion franc) watch exports business.
 

On the other hand, India is emerging as a fastest growing country for the mechanical watch market in terms of CAGR of 5.3% between 2024 to 2032. Rising disposable income and rise of e-commerce platform across the country boosting the overall market. Endorsements from celebrities and influencers increase the exposure and desirability of luxury watch companies, generating consumer interest.
 

Mechanical Watch Market Share

Key players involve in the mechanical watch industry are Rolex, Seiko Holdings Corporation, Casio, The Swatch Group Ltd, Fossil Group accounting market share of 15-20% in 2023. Innovative designs, materials, and features are helping manufacturers to set themselves apart. Manufacturers invest in research and development to create innovative movements and materials, enhancing accuracy, durability, and design, which attracts discerning consumers. Companies adopt various pricing strategies, from luxury pricing to more affordable options, to target different market segments and consumer demographics.
 

Mechanical Watch Market Companies

Major companies operating in the mechanical watch industry include:

• Casio
• Fossil Group 
• GIRARD-PERREGAUX
• Hermes
• IWC Schaffhausen  
• Patek Philippe SA
• Rado Watch Co Ltd
• RGM Watch Co.
• Richemont SA
• Rolex
• Seiko Group Corporation 
• Tag Heuer
• The Swatch Group Ltd
• Timex Group B.V.
• Titan Company Limited
   

Mechanical Watch Industry News

• In July 2024, Rolex has unveiled its latest collection of timepieces offering a fresh interpretation of its iconic models. The Oyster Perpetual GMT-Master II makes a bold statement with its first-ever presentation in Oystersteel paired with a Cerachrom bezel insert in grey and black ceramic. The other two watched in its latest collection includes oyster perpetual day-date and perpetual 1908.
   
• In June 2024, Swatch launched three new Bio ceramic MoonSwatch watches. The three new non-limited Bio ceramic MoonSwatch models that include mission on earth lava, polar lights and desert pay tribute to our magnificent planet.
   
• In April 2024, IWC Schaffhausen introduced its new Portugieser collection at Watches and Wonders in Geneva. Portugieser collection including the new Portugieser Perpetual Calendar 44, Portugieser Automatic 42, Portugieser Automatic 40 and Portugieser Chronograph. All watches in the new Portugieser collection feature intricately crafted dials, finished with 15 layers of transparent lacquer, and are powered by IWCmanufactured movements.
   
• In April 2024, Hermès launched its watch offering with a new integrated bracelet sport watch for women. Available in steel or two-tone steel and rose, with or without diamonds, and with bracelet or rubber strap.
   
• In March 2024, RGM introduces the Model 500-WT World-Time as a sport watch that is also ideal for travel when using the 24-hour GMT hand and World-Time bezel. To help ensure durability, the watch has two case-back gaskets, a 2mm thick sapphire crystal, and a high-quality screw-down crown.
   
• In November 2023, as part of the partnership with luxury carmaker Aston Martin, Girard-Perregaux unveiled a second co-creation from its quintessential Bridges collection. The bridges, now made of titanium instead of gold, were redesigned to provide extra three-dimensionality and visually lightened.
   

The mechanical watch market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) (Million Units) from 2021 to 2032, for the following segments:

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Market, By Movement Type, 2021 – 2032

• Automatic
• Manual   

Market, By Strap Material, 2021 – 2032

• Leather
• Stainless Steel
• Nylon
• Others (Rubber etc.)

Market, By Case Size, 2021 – 2032

• Up to 35 mm
• 35 mm - 40 mm
• 40 mm - 45 mm
• Above 45 mm

Market, By Shape, 2021 – 2032

• Rectangular
• Round
• Square

Market, By Consumer Group, 2021 – 2032

• Men
• Women
• Unisex           

Market, By Price Range, 2021 – 2032

• Low
• Medium
• High/Premium

Market, By Distribution Channel, 2021 – 2032

• Online
  • E-commerce Websites
  • Company-owned Websites
• Offline
  • Mega Retail Stores
  • Specialty Stores
  • Others (Independent Stores, etc.)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA