2023 Luxury Watch Market Predictions: An Exciting Year for Watch Enthusiasts
2023 is said to be the year for watch enthusiasts. Several exciting factors have been noted that we will discuss in further detail. Following are all the major highlights reported regarding the watch industry for 2023.
- Luxury watch industry revenue
- Top performing countries
- Watch sales predictions for 2023
- The comeback of dress watches
- Two-tone watches
- Other trends
Luxury Watch Industry Revenue
The global watch industry reported a total revenue of $71.1 billion in 2022. This number is expected to increase to revenue of $75.7 billion in 2023. The global watch market is expected to witness an annual growth rate of 4.4% between 2023 and 2026.
Top Performing Countries
China, Hong Kong, the United States, Switzerland, and France were among the top watch-buying countries in the world. The majority of revenue generated in the global watch market is from China. In 2023, China is expected to contribute $17.8 billion in revenue.
Another nation that has been on the rise in the luxury watch segment is the UAE. Especially, the sales have skyrocketed for Rolex in Dubai. It’s not just the retail market that is booming but also the pre-owned luxury watch market.
The United Arab Emirates contributed $1.4 billion in global watch revenue in 2022. This amount is expected to grow anywhere between $1.7 to $2 billion in 2023.
Watch Sales Predictions for 2023
Experts suggest that 60% of global watch sales in 2023 will come from the non-luxury watch segment. Over the last 10 years, smartwatches have become very popular.
Technology companies like Apple, Samsung, and Garmin are known to produce some of the most advanced wristwatches. With mobile connectivity and many features to use, the international watch industry will see a majority of sales from this sector.
Having said that, the value of luxury watches will continue to rise as more and more people become aware of their investment benefits. While most people invest in real estate and bonds, others buy luxury watches to diversify their portfolios.
The Comeback of Dress Watches
Dress watches were all the hype in the early 2000s. However, over time its trend diminished, with more and more people leaning towards chronographs and pilot watches.
The sector of fashion is evolving. Hence, the market is drawn towards retro styling, increasing the demand for dress watches. Therefore, 2023 is expected to be the reincarnation of dress watches for all top luxury watchmakers.
Two-tone Watches
Two-tone Rolex watches in UAE have seen a slight growth in sales lately. Similar to dress watches, two-tone watches were all hype back in the day. But since then, the preference for watch styles has evolved. People have started to prefer monochrome watches. But this is changing.
The trend for dual-tone watches is slowly gaining traction. Therefore, collectors are excited to see a new range of two-tone watches for 2023.
Other Trends
Over the last 50 years, many different watch industry factors have been observed. These factors have been carefully studied and are worth mentioning to make resourceful predictions for 2023.
- Case Material: Stainless steel is the most used material in luxury watches. Although its usage has been slightly reduced as compared to the early 70s, watch brands are gradually increasing its usage.
- Dial Color: The most commonly used dial colors are black, white, gold, blue and grey. Of all these colors, black is the most famous version. However, its usage has also been reduced as compared to the earlier years. In recent years, watchmakers have adapted to using an array of colors in the dial. Offering customers more varied options.
- Case size: 41 mm to 43 mm are the most popular preference of case sizes. Many luxury watchmakers offer these case sizes across their different models. 2023 will see more brands coming on board with similar case size specifications.
Factors That Have Impacted the Market Value of Watches
Since 2020, the global watch industry has been impacted by different events. Two of these events have had a significant impact on the watch market. The following are the two major factors that have caused the value fluctuations and instability in the watch industry.
- Covid 19
- Russia-Ukraine War
Covid 19
The pandemic has had a drastic impact on the watch industry. Everything from sourcing and production to distribution was disrupted, causing a significant price fluctuation.
However, 2022 has been a year of recovery for most brands. Brands like Rolex have stated that they will strengthen their supply chain and improve their overall production and distribution process.
Russia-Ukraine War
On February 24th, 2022, Russia invaded Ukraine. It led to a major downfall in the global market, causing its impact on the luxury watch segment. Just like other premium goods, watches have a dip in value due to the war.
Expectations from Rolex in 2023
Rolex is expected to launch several new models and variants in the coming year. The brand has also stated that it will not be increasing the price of Rolex watches in 2023. This decision comes as a result of rescission-related predictions.
Despite price hikes in 2022, Rolex has continued to showcase an upwards trajectory of sales. Therefore, with consistent prices and an increase in supply, 2023 is expected to be a major year for Rolex sales.
Invest in the Top Luxury Watches
The luxury watch market predictions for 2023 look solid and positive. We will witness growth in both retail and secondary markets. Similarly, many countries, including the UAE, will see a rise in sales of luxury watches.
Many renowned brands like Rolex, Audemars Piguet and Patek Philippe have shown an upward trend in sales, especially in the pre-owned market. The price for used Rolex watches in the UAE is also attractive, drawing the attention of collectors worldwide.
If you are new to the practice watch collection and are looking for the finest watches to invest in, check out our collection of luxury watches.
