For years, the luxury watch market seemed to favor larger cases. Sports watches, chronographs and modern tool watches frequently appeared in sizes above 40mm, creating a bold presence on the wrist.
In 2026, however, the direction is changing.
Smaller luxury watches are becoming increasingly visible across the industry, with brands returning to case sizes around 36mm to 39mm. The trend is not simply about vintage styling. It reflects a broader change in how collectors think about comfort, versatility and long-term wearability.
From oversized watches to balanced proportions
Large watches remain popular, particularly in the sports-watch category.
However, many collectors are now looking for watches that can move easily between different occasions.
A 37mm or 38mm watch can work with casual clothing, business attire and more formal outfits without feeling oversized.
This versatility has made smaller cases particularly attractive to collectors who want one luxury watch that can be worn regularly rather than kept primarily for special occasions.
Why collectors are returning to 36mm–39mm
One reason is comfort.
A smaller case usually sits closer to the wrist and can feel less intrusive during daily activities. The reduced dimensions can also make the watch easier to wear for people with smaller or medium-sized wrists.
But comfort is only part of the story.
Collectors are increasingly paying attention to proportion. A well-designed 37mm watch can sometimes appear more refined than a larger model because the dial, bezel, hands and indexes have more balanced visual relationships.
This has encouraged brands to revisit case dimensions that were once considered traditional.
Vintage watches are influencing modern design
The renewed interest in smaller watches is closely connected to vintage collecting.
Many important watches from the 1950s, 1960s and 1970s were significantly smaller than today's typical sports watches.
As vintage watches have become increasingly influential among collectors, their proportions have also started appearing in contemporary models.
The result is an interesting combination: modern movements and materials inside cases that visually recall an earlier generation of watchmaking.
Smaller does not mean less sophisticated
Another misconception is that a smaller watch must have simpler technology.
Modern manufacturing has changed that equation.
Brands can now place automatic movements, advanced escapements, high-performance materials and complicated functions into relatively compact cases.
This means collectors no longer have to choose between wearing a technically sophisticated watch and wearing a smaller watch.
The challenge has instead shifted toward miniaturization.
The importance of movement size
Reducing case diameter also creates technical challenges for watchmakers.
A smaller case generally requires careful consideration of movement dimensions, dial proportions, hand length and power-reserve requirements.
If the movement is too large for the case, the watch can become visually unbalanced.
If the movement is too small, the design may require additional structural solutions.
This is why compact luxury watches can involve just as much engineering as larger models.
Are 40mm watches becoming outdated?
Not at all.
There is still strong demand for watches around 40mm and above, particularly among enthusiasts who prefer a stronger wrist presence.
The current trend is better understood as a diversification of sizes rather than a complete rejection of large watches.
Instead of every new model becoming bigger, brands are giving collectors more choices.
That is particularly important in today's luxury market, where buyers increasingly want watches that fit their individual style rather than simply following one dominant trend.
Why the trend could continue
The return of smaller watches is unlikely to disappear quickly.
Luxury watch collecting is becoming more diverse, with vintage pieces, independent watchmakers and modern sports watches all competing for attention.
Smaller cases offer another way for brands to differentiate their products.
For collectors, they also provide something increasingly valuable: wearability.
A watch can have an impressive movement and strong heritage, but if it is uncomfortable to wear, it may spend most of its life inside a watch box.
The renewed interest in 36mm–39mm watches suggests that the industry is beginning to place greater emphasis on the relationship between technical performance, design and everyday use.
The future of luxury watches may be about choice
The biggest change in 2026 may not be that small watches are replacing large watches.
Instead, luxury watchmaking is becoming less dependent on a single preferred size.
Some collectors will continue to choose large sports watches. Others will prefer compact dress watches or vintage-inspired designs.
The important point is that modern watchmaking is once again making room for different proportions.
And for many collectors, that may be the most interesting development of all.
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