Mechanical Watch Market Report 2026

The mechanical watch market size has grown steadily in recent years. It will grow from $45.3 billion in 2025 to $46.64 billion in 2026 at a compound annual growth rate (CAGR) of 3%. The growth in the historic period can be attributed to craftsmanship heritage, luxury goods consumption growth, brand legacy value, collector demand, mechanical movement innovation.

The mechanical watch market size is expected to see steady growth in the next few years. It will grow to $51.48 billion in 2030 at a compound annual growth rate (CAGR) of 2.5%. The growth in the forecast period can be attributed to wealth growth in emerging markets, premium gifting culture, digital brand storytelling, direct-to-consumer channels, sustainable luxury materials. Major trends in the forecast period include growing demand for luxury mechanical watches, revival of traditional watchmaking, customization and limited edition models, increased interest in heritage brands, expansion of online watch retail.

The rising demand for luxury goods is expected to propel the growth of the mechanical watch market going forward. Luxury goods refer to high-quality products that are not essential for everyday use but are associated with superior craftsmanship, exclusivity, and prestige. The growing interest in luxury items is driven by increasing wealth, higher disposable income, and the aspiration for social status and prestige linked to such products. This demand enhances the appeal and success of mechanical watches by highlighting their craftsmanship, exclusivity, status value, and potential as investment pieces. For example, in December 2024, the U.S. Bureau of Labor Statistics (BLS) reported that average annual consumer spending rose by 5.9% in 2023, increasing by more than $4,300 from 2022 to reach $77,280. Therefore, the rising demand for luxury goods is contributing to the expansion of the mechanical watch market.

Major companies operating in the mechanical watch market are prioritizing the development of innovative products, such as automatic self-winding systems that allow watches to maintain their power reserve by converting the wearer’s wrist movements into energy, eliminating the need for manual winding while ensuring accurate mechanical performance. An automatic self-winding system is a mechanism in a mechanical watch that winds the mainspring automatically using wrist motion, allowing the watch to run continuously without daily manual winding. For example, in September 2025, Ulysse Nardin, a Switzerland-based luxury watchmaker known for its innovative mechanical timepieces, launched the Freak X Crystalium, a limited-edition model featuring a mechanical flying carousel movement with an automatic self-winding system. The Crystalium hour disc, crafted from crystallized ruthenium, rotates to display hours while the movement bridge serves as a minute hand, creating a fully visible and dynamic time display. The watch also incorporates advanced materials and technology, including a silicon balance wheel, to provide precision, durability, and a distinctive horological experience.

In August 2023, Rolex SA acquired Bucherer AG to strategically strengthen its presence in the luxury watch retail market. This acquisition underscores Rolex's commitment to maintaining its long-standing partnership with the renowned retailer and reinforces its position in the mechanical watch industry. Bucherer AG, known for its significant presence in luxury watches and jewelry, adds value to Rolex's portfolio and enhances its market position.

Major companies operating in the mechanical watch market are Pobeda LCC, Rolex Watch U.S.A. Inc., Citizen Watch Co. Ltd., Seiko Watch Corporation, FOSSIL GROUP Inc., Cartier International SNC, TAG Heuer, Piaget SA, OMEGA SA, Le Petit-Fils de L.-U. Chopard & Cie S.A., Jaeger-LeCoultre SA, Vacheron Constantin SA, Blancpain SA, Bulova, Tissot SA, Hublot, Montres Tudor SA, Invicta Watch Group, Oris SA, Hamilton International Ltd., Bell and Ross, PATEK PHILIPPE SA, Kairos Watches Inc., IWC International Watch Co. AG, Charles-Hubert Paris.

North America was the largest region in the mechanical watches market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the mechanical watch market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the mechanical watch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The mechanical watches consist of sales of automatic watches, manual wind watches, moon phase watches, skeleton watches, and Ethos watches. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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