Mechanical Watch Market Analysis

Mechanical Watch Market Analysis

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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.