Global Luxury Watch Market

The popularity of luxury watches worldwide has resulted in an increase in watch prices all over the world. In fact, several other factors have contributed to the price variations. Many countries have shown a substantial rise in value, while some have seen a decline in prices. In this article, we delve into the details of the global luxury watch market, emphasizing the UAE watch market.  

An overview of the international luxury watch market

Luxury watches have become more than just a simple commodity or fashion accessory. Collectors and enthusiasts are buying luxury watches as a part of their elaborate investment portfolio. From Rolex watches to Patek Philippe and more, the luxury watch market has many brands to choose from. 

In 2021, the global luxury watch market was estimated to be valued at around $39.36 billion. A 5% compound annual growth has been observed in 2022 and is projected to continue at the same pace till 2030. One factor contributing to the rise in the value of luxury watches is the introduction of new watches by top brands. 

Another notable aspect is that most luxury watchmakers use precious metals in their watches, making them highly valuable. These watches are desired by collectors leading to an increase in demand. 

Factors that impact the luxury watches industry

Like any other industry, many different factors impact the luxury watch industry. These components may be both internal and external in nature. Following are some of the significant elements that influence the price variations and value of the international luxury watch market. 

  • Covid 19 pandemic
  • Change in lifestyle 
  • Lucrative investment

Covid 19 pandemic

Since 2020, the global watch industry has been severely affected by the pandemic. The entire supply chain was disrupted, causing a supply shortage and delayed production. 

Luxury watches are known to have precious metals and top-quality materials. These materials are relatively difficult to source and were even more challenging during the pandemic. Brands like Rolex have faced delays in production due to a lack of required raw materials. 

This has resulted in a supply shortage in the market, causing a hike in demand and an increase in retail prices. Similarly, many other brands have also faced a shortage of supplies and production delays. 

With 2023 just around the corner, watchmakers are gradually recovering from the consequences of Covid 19. 

Change in lifestyle 

Post the pandemic, the lifestyle and choices of consumers have shifted. A large population of the world has become investment oriented rather than savings oriented. Therefore, these individuals are constantly on the lookout for different assets to invest in. 

Apart from real estate, luxury watches have seen a spike in demand. Many investors and collectors are pouring in millions of dollars, building a new collection or expanding their current portfolio. Therefore, this sudden rise in demand for luxury watches has impacted their value all over the world. 

Lucrative investment

Everything from the materials used to the fit and finish of luxury watches is simply top-notch. Hence, these watches are expensive to purchase. Despite having a high price tag, luxury watches are still in demand and constantly growing. 

Brands Rolex, Cartier, Patek Philippe and Audemars Piguet have witnessed a growth in sales and demand due to the quality of their watches. These watches, if maintained, can remain in pristine condition for an extended period of time. Also, most of these brands have limited-run models and are highly exclusive. Therefore, the value of such timepieces appreciates over time. 

With more and more people realizing the potential of luxury watches and the value they can bring over time, the demand for them has exponentially increased.

Luxury watch market in UAE

The United Arab Emirates has grown to become one of the largest, most famous luxury watch markets in the world. The region has a large number of authorized stores of top brands. 

Another segment of the UAE luxury watch market that has seen rising popularity is the pre-owned watch market. Many renowned collectors are known to deal with high-end timepieces in the region. 

It was reported that the UAE generated about $1.46 billion in revenue through the luxury watch industry. The sector is expected to rise at an annual rate of 2.82% CAGR. Experts predict that this rate will continue through 2027. 

One of the main reasons why the UAE has become so popular with luxury watches is because of the large population of high-net-worth individuals. The region has also observed a large number of tourists purchasing luxury watches. Dubai continues to show positive growth and is said to be one of the fastest-growing markets for luxury watches. 

United States luxury watch market and projections

The United States is one of the largest consumers of luxury watches. It was valued at $2.5 billion in 2020 and $3.2 billion in 2021. As per experts, the market for luxury watches in the U.S. is expected to grow at an annual rate of 6.7% CAGR.

Global watch market distribution

The global watch market has further been distributed into mechanical and electronic watches. In the year 2021, electronic watches dominated the industry, acclimating 69.15% of the market share. The international market value for luxury watches was valued at $39.4 billion in the same year. 

Electronic watches, or digital watches as they are known, have multiple features, which is what people are drawn to today. These watches also offer a great degree of customization. However, electronic watches are not necessarily the watches that are meant for collection. 

Luxury watches: A growing market

The global luxury watch market is expected to grow to a $62.5 billion industry by 2030. At the rate at which the industry has grown so far, this prediction is pretty close to reality. Hence, this is the perfect time for investors to look into the luxury watch industry. 

If you are looking for the best deals and the most attractive watch prices, the Dubai luxury watch sector is the one to look out for. You also have the option of the secondary market, which includes an extensive collection of luxury watches. 

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