Watchmaking Statistics and Trends for 2024: Consumer Behavior Analysis

Written by: Maz P
Updated on:
Watches

In the intricate world of watchmaking, time is not just a measurement but a showcase of fine craftsmanship, fashion, and the evolution of timepieces throughout history. From the humble origins of pocket watches to the sophistication of modern timepieces, the art of watchmaking continues to transform. In this era of advanced technology where gadgets are almost an extension of ourselves, it could be easy for traditional timekeepers to lose their place.

Surprisingly, the watch industry continues to thrive and behind the scenes, there are many fascinating watchmaking statistics and trends that reveal the pulse of the watchmaking world. These numbers highlight the passion and dedication of watchmakers and evolving customer preferences as well as the impact of technology and the modern world on the industry. There is no doubt that the numbers shape the present and future of horology and here, we’ll unravel the fascinating insights that make the world of watchmaking a journey of artistry and precision.

How Has The Watchmaking Industry Changed?

The watchmaking industry has undergone a dramatic transformation over the centuries. Not only has the industry needed to adapt to the ever-changing needs and preferences of consumers, but it has also had to embrace technological advancements. From humble beginnings as mechanical pocket watches to the introduction of smartwatches, the evolution of watchmaking has been a fascinating journey.

Historically, watchmaking was a labor-intensive process carried out by skilled artists who meticulously crafted each timepiece by hand. Whilst there are still select brands that offer this phenomenal intricacy and craftsmanship, as the years go by, there are fewer watches crafted exclusively by hand. In the 19th century, mass production techniques were introduced leading to a significant increase in watch production resulting in greater accessibility to the general public. The assembly line approach streamlined the manufacturing process making watches more affordable and available to a wider audience.

The 20th century witnessed another pivotal moment in watchmaking with the introduction of electronic and quartz movements. Quartz technology revolutionized the industry, providing unparalleled accuracy and eliminating the need for manual winding. Quartz watches quickly gained popularity and dominated the market due to their affordability and precision.

As technology continued to advance, the dawn of the digital age brought about yet another transformation in watchmaking. The 1970s saw the emergence of the first digital watches featuring LED or LCDs. These digital timepieces not only displayed the time but also incorporated additional functionalities such as alarms, calculators, and even games.

In recent years, it is the rise of smartwatches that has disrupted the traditional watch industry. Smartwatches combine the functions of a traditional timepiece with various smart features such as fitness tracking, notifications, and mobile connectivity. This blend of technology and horology has attracted a new generation of consumers who seek versatile and connected timekeeping devices.

Despite these advancements, mechanical watches have maintained their allure and appeal to collectors. The craftsmanship, intricacy, and heritage associated with traditional watches continue to captivate enthusiasts whilst social media has also played a role in the watch maintaining its position as a status symbol.

How Has Social Media Affected the Watchmaking Industry?

76% of consumers have been influenced by social media to make a purchase
#watchfam has over 6.2m posts

Whilst traditional watches could have easily gotten lost with the introduction of both digital and smartwatches, these classic timepieces maintain their popularity. In the modern world, there is no doubt that social media has played a huge part in this.

Social media has had a huge impact on the watch industry, transforming both the way consumers engage with timepieces and how brands market their products. Watches have long been regarded as status symbols, representing luxury, sophistication, and a sense of accomplishment. Social media platforms, particularly Instagram, have provided a virtual stage for people to showcase their prized possessions and lifestyle choices.

Instagram has become a spotlight for watch enthusiasts and collectors to flaunt their horological acquisitions. Owning a luxury watch is no longer just about telling time, it has become a form of self-expression and a means of conveying your taste and success. Feeds enthusiastically share images of the latest watch purchases, ‘wrist shots’, and watch collection displays collecting likes, comments, and admirers from other users of the platform.

There is no doubt that Instagram is a social media platform where users seek validation from others through these posts and stories. It is a classic case of ‘keeping up with the Jones’ but taken to another level.

Brands have recognized the power of social media in influencing consumer behavior and have strategically utilized platforms like Instagram to create an aspirational aura around their products. A staggering 76% of consumers have purchased a product after being influenced by social media1. By collaborating with influencers, celebrities, and watch enthusiasts, brands can amplify their reach and foster a sense of desirability around their timepieces. Hashtags such as #wristshot, #watchfam, and #watchaddict have become community-building tools where like-minded watch lovers can find each other.

Social media has also enabled direct communication between brands and consumers. Watch companies engage with their audience through interactive posts, stories, and lives providing exciting insights into their craftsmanship and behind-the-scenes. This transparent and interactive approach creates brand loyalty and a sense of belonging within the watch community enticing consumers to stick with their brand.

However, as a result of social media, the watch industry has also faced challenges. Due to the extreme purchase desire created through social media and the accessibility to market to consumers, counterfeit watches are more prevalent. This has led to a rise in fraudulent sales and poses a threat to brand authenticity. Additionally, the influence of social media can lead to impulse purchases due to the pressure to keep up with trends that may not align with sustainable consumer practices.

Despite a handful of downsides, on the whole, social media has transformed the watch industry. It has reshaped how consumers perceive and interact with timepieces, elevating their position as a status symbol to another level. Watches have become more than just functional accessories, they have become a visual representation of identity and success that are part of the modern culture of desire and sharing.

How Are Customers Using Watchmakers?

There are less than 25,000 active watchmakers in the world

Throughout history, watchmakers have had a huge role in all areas from design and creation to repair and maintenance. Yet with the evolution of technology and mass production, some of these traditional roles are in decline. Year after year, fewer watchmakers have an active role in the creation process due to machines taking over this role.

More commonly, watchmakers in the 21st century focus predominantly on the repair and maintenance side of the industry rather than the creation side. As a result, fewer people are training as watchmakers and there are less than 25,000 watchmakers still working across the globe with many drawing close to retirement age2.

One brand that continues to craft every watch by hand is Rolex. Arguably one of the most prestigious watch brands on the planet, Rolex retains its reputation for fine craftsmanship and exclusivity due to the fact the brand continues to be made by hand. Each Rolex watch takes an entire year to be made and for that reason, there are limited amounts of each watch in circulation.

Rolex watches are highly sought after and can be extremely difficult to obtain. It would be incredibly easy for Rolex to mass produce their timepieces but this option would reduce the exclusivity of the brand and the craftsmanship of the watches.

Aside from the few brands that handcraft their watches, most watchmakers in the industry are in a repair and maintenance role. This is the predominant way in which customers make use of watchmakers. Whether it’s a vintage heirloom or a modern luxury watch, customers turn to watchmakers to restore their timepieces to their former glory.

Watchmakers possess the technical knowledge and precision to disassemble, clean, and reassemble intricate watch movements to ensure optimal functionality. Regular servicing and maintenance by skilled watchmakers is vital to preserve the longevity and condition of watches. This ensures they retain their value and become potential heirlooms for future generations.

Watchmakers are also sought after for customization and personalization services. Some customers desire unique watch designs that reflect their style and watchmakers can tailor timepieces to meet these preferences. Watchmakers can showcase their artistic talents to create one-of-a-kind pieces for their clientele with the most popular personalizations being engravings, custom dials, and bespoke straps.

What Is The Watchmaking Industry Worth?

The watch industry is currently worth a staggering $75.75 billion
The industry has a projected annual growth of 4.44%

Whilst COVID-19 hit the industry hard due to difficult financial times, it has appeared to have recouped a lot of its losses and continues to grow on a global scale. As of 2023, the global watch industry is estimated to be worth US$75.75 billion in revenue with a projected annual growth rate of 4.44%3. This significant value reflects the popularity and demand for watches across the globe.

From luxury timepieces to affordable fashion watches, consumers continue to appreciate watches as both functional accessories and symbols of status and style. The industry’s steady growth is fueled by factors such as technological advancements, design innovations, and evolving consumer preferences. With such promising growth projections, the watch industry remains a vibrant and evolving sector within the broader world of luxury goods and fashion.

By 2025, the watch industry is expected to be worth around $117.8 billion4.

What Are The Most Popular Watch Brands?

Rolex is ranked #6 on the 2023 Global RepTrak 100
Patek Philippe is the third most popular watch brand globally

The watch industry features an incredible range of reputable and popular brands, each with its distinct style and heritage. Whilst there is an incredible range of affordable watches on the market, it is the luxury brands that retain the highest popularity.

Rolex, without a doubt, stands as the most recognized and desirable watch brand globally ranking as the number one watch brand in 84 countries5. Renowned for its precision, craftsmanship, and iconic designs, Rolex has earned its place as a symbol of luxury and success. The brand is also currently #6 on the Global RepTrak 100 which ranks the world’s most reputable brands6. This shows that not only is Rolex the most prestigious watch brand, but it is also one of the most outstanding brands across all industries.

Omega is another highly regarded brand, famous for its association with space exploration and as the official timekeeper of the Olympic Games. Omega’s timepieces are favored for their durability, reliability, and classic elegance. Meanwhile, TAG Heuer has also solidified its position in the industry by combining precision engineering with avant-garde design. Known for its sports watches and chronographs, TAG Heuer appeals to a more adventurous clientele.

Patek Philippe is another luxurious watch brand that is highly sought after. The brand is celebrated for its intricate complications and exquisite craftsmanship. Catering specifically to the connoisseurs and collectors, Patek Philippe timepieces are often considered heirloom pieces and the brand ranks third most popular worldwide5.

In the same realm, Audemars Piguet is another sought-after watch brand due to its rich heritage, innovative craftsmanship, and iconic designs. AP produces limited edition timepieces, resulting in exclusivity and desirability whilst their commitment to handcrafting each watch further elevates their reputation as a symbol of luxury and sophistication.

Ultimately, the most popular watch brands vary year-on-year based on individual tastes and preferences. As the industry continues to evolve, new contenders emerge but established brands such as Rolex continue to captivate watch enthusiasts worldwide.

What Are The Current Trends In The Watch Industry?

83% of watchmakers are male
The luxury watch market is expected to grow 60% by 2030
It is estimated there will be 224 million smartwatch users by the end of 2023

The Watchmakers Of The World

When looking at the demographics of the world’s active watchmakers, the industry typically falls under traditional gender roles with 83.3% of watchmakers in the US male7. Over the last decade, this has remained relatively consistent. In 2010, 81% of watchmakers were male meaning there has been a 2% decline over the last 12 years in the number of female watchmakers.

The average age of watchmakers in the US is 44 with 61% of active watchmakers currently over the age of 407. Whilst there are still many years left before many of these watchmakers retire, there is also an urgent need for younger talent to train up ready to take their place.

Luxury Watches Are On The Rise

Whilst the luxury watch industry has always been incredibly popular, over the last several years, this market has continued to rise. In recent years, luxury watch brands have become more desirable than ever and it is thought that social media has played an incredible role in this. It is estimated that the luxury watch market will grow by 60% between now and 20308.

In the 21st century, status is highly admired but also flaunted. For this reason, it is no surprise that more individuals than ever are in the market to purchase a luxury watch and that this market in the watch industry is positively booming.

Smartwatches Continue To Rise

Beneficial for aspects of life such as fitness and keeping in touch, smartwatches continue to rise in popularity. It is predicted that by the end of 2023, there will be 224 million smartwatch users globally9. With incredible features that traditional timepieces cannot offer, it is no surprise that many seek a smartwatch in a world where we heavily rely on gadgets and a staggering 54% of smartwatch users prefer the Apple Watch9.

As the years go by, this technology becomes more affordable and therefore has greater accessibility to the general public. Whilst this has had some minor impact on the traditional watch industry, smartwatches have not had a dramatic effect. Those who have always purchased and admired traditional timepieces continue to do so whilst newer collectors continue to enter the world of luxury watches thanks to social media.

Many who use a smartwatch also continue to use traditional watches. Whilst smartwatches are great for the purpose they serve, traditional timepieces are more of a fashion accessory and status symbol. For this reason, smartwatches and mechanical watches can live harmoniously for the foreseeable future.

Color Is In

In the 1950’s, white was the color of choice for the decade but since the 1960’s, black has made up 40% of the market share10. However, recent years have seen color burst in popularity with vibrant dials a rising trend. From vibrant blues to captivating greens and soothing pastels, colored watch dials have gained immense popularity amongst fashion-forward enthusiasts.

These expressive hues add a touch of uniqueness and individuality to wristwatches making them stand out in a sea of traditional designs. The rise of colored dials has redefined watch fashion offering a refreshing departure from the conventional white and black faces. Whether it’s a bold statement or a subtle accent, colored dials have captured the hearts of watch enthusiasts making them

Resale Value

23% of watches are purchased as an investment or for resale11. The importance of diversifying investments is a huge topic of conversation in the 21st Century and many see classic luxury timepieces as a great long-term investment. There is no denying that this is an incredible option for diversifying your portfolio with mechanical watches increasing 12% and quartz increasing 13% between 2021 to 202211.

As with any investment, the value of your timepieces can go up as well as down but there is no doubt that investing in watches is a highly lucrative way to strengthen your investment portfolio.

Whilst watches are purchased for investment purposes across the globe, it is most prevalent in Asia where the population in this corner of the globe strongly recognizes the money-making potential of watches. A staggering 57% of brands are also considering launching NFTs11 as 40% of consumers are interested in this as an investment opportunity. NFTs are soaring in popularity and it would therefore be naive for brands not to consider this as an opportunity.

Online Sales

Whilst in-person purchasing continues to reign, online purchasing is on the rise. Although only 15% of luxury watches are purchased online presently, this is expected to double by 2030. Offline sales will continue to dominate for a long time to come, however, Millennials and Gen Z prefer to make purchases online and this will only increase as the new generations enter the watch market. This is the case for both new and pre-owned timepieces as the younger generations prefer to shop in e-commerce space.

If you think I’ve missed anything or have anything to add, please comment below.

AUTHOR

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I started WatchmakingTools to share my passion and knowledge with those already bitten by the watchmaking bug. I’ve often spent hours searching online for answers on a specific issue, and even though there is a wealth of information out there, it hasn’t always been very useful, hence why I wanted to share my own findings.

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