USD 536.25 billion
Luxury Car Market Size, Share, Growth Analysis, By Fuel Type(Petrol and electric), By Vehicle Type(Hatchback, sedan, and sport utility vehicles), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25C2071 |
Region:
Global |
Published Date: February, 2024
Pages:
242
|Tables:
61
|Figures:
77
Luxury Car Market Insights
Luxury Car Market size was valued at around USD 536.25 billion in 2019 and is expected to reach a value of USD 992.95 billion by 2031, at a CAGR of 9.2% over the forecast period (2024-2031).
Luxury vehicles are favored by consumers for their entertainment systems, built-in seat massagers, and automatic safety measures. Luxury automobiles are known for their high-quality components and finishes. The luxury car market is currently undergoing sociological changes due to contemporary lifestyles and the use of the latest technology. Luxury brands appear less distinct, exclusive and differentiated to enhance the quality of life. As a result, these brands are competing harder than ever to establish a strong brand identity. Public perceptions of a vehicle's brand image play an important role in their purchasing decisions as product quality increases. Some luxury brands, including BMW, Mercedes-Benz, and Lexus, need to change their values and ideals to match changing social norms that affect consumer sentiments.
A key driver of the growing market is the tightening of car emission norms across the globe due to increased government attention towards environmental protection. As a result, the demand for eco-friendly and sustainable means of transportation like electric cars is increasing. Additionally, governments of various nations are providing more subsidies and incentives to these car owners. Additionally, consumer preferences are shifting towards luxury brands as disposable income and personal net worth increase. The market is expanding due to increasing technological developments such as the Internet of Things (IoT) and real-time information solutions in all EV charging station systems.
The device gives real-time information on the availability of available parking spaces and locates nearby charging stations. The high cost of these luxury automobiles and almost related products in lower vehicle categories, such as those supplied in luxury vehicles, as well as higher import duties, are restricting the Luxury Car Market growth. Also, the growing trend toward luxury electric vehicles, as well as the most recent research and development initiatives, are increasing revenue potential. The growing environmental concerns will also drive the growth of the market.
US Luxury Car Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Electric
Fastest Growth
Electric
Growth Rate
9.2% CAGR
Global Luxury Car Market ($ Bn)
Country Share for North America Pacific Region (%)
Country Share for Aisa Pacific Region (%)
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Luxury Car Market Segmental Analysis
Global luxury car market is segmented on the basis of fuel type, vehicle type and region. By fuel type, the market is segmented into petrol and electric. By vehicle type, market is segmented into hatchback, sedan, and sport utility vehicles. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Luxury Car Market Analysis by Fuel Type
In 2020, the petrol segment had the highest revenue share of more than 45.0%. Despite rising gasoline prices, demand for gasoline-powered vehicles remains strong. Key automakers have ceased production of diesel vehicles, and electric vehicles have yet to be marketed globally. Also, petrol cars are less expensive and easier to maintain than other types. Because of these traits, gasoline-powered vehicles are still commonly used and purchased.
The electric segment is expected to grow at the highest CAGR of 14.8% during the forecast period. Electric vehicles use cleaner fuel, reducing pollutants and greenhouse gas emissions. Major players aim to phase out traditional fossil fuel car production and instead focus on electric vehicle production, which is contributing greatly to the segment's rapid expansion. For example, Hyundai Motor Company intends to introduce fully electric vehicles by 2025 and phase out gas-powered vehicles by 2030. Also, as announced on November 6, 2020, Bentley Motors Limited intends to use plug-ins on fully electric vehicles by 2030.
Luxury Car Market Analysis by Vehicle Type
The sedan segment accounts for a major share of the global market due to the high sales and production of luxury sedans. Due to increased customer demand for luxury SUVs, the market for sport utility vehicles is expected to grow at an exponential rate over the forecast period.
Global Luxury Car Market By Fuel Type
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Luxury Car Market Regional Insights
In 2020, North America dominated the market and accounted for about 35.0% of total revenue. The increased consumption in the United States can be attributed to the market's growth. The regional market is growing due to the strong presence of important market participants, increased disposable income, and significant spending on passenger cars. Key players have a wide supply and distribution channel in the region, which adds to the higher consumption of luxury cars. The region's significant players include Tesla, General Motors, and Ford Motors.
Asia Pacific is expected to grow at a CAGR of 7.2% during the forecast period. The regional market is driven by China's strong growth in luxury car consumption. Due to favorable economic growth, China's luxury car imports have increased year-on-year. Rising disposable income, spending on luxury goods and penetration of key companies are all likely to fuel the market expansion. For example, on 14 January 2021, the Volkswagen Group announced the establishment of a new regional parts distribution plant in Malaysia at the port of Tanjung Pelepas.
Global Luxury Car Market By Region
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Luxury Car Market Dynamics
Luxury Car Market Drivers
Increasing Use of Electric Luxury Vehicles
- With growing concern for the environment and environmental protection, governments around the world are tightening vehicle emission requirements. As a result, there is an increasing need for ecologically friendly and sustainable transportation, such as electric vehicles. Different governments are also providing bigger subsidies and incentives to these car buyers. For example, the United Kingdom government is offering a USD 7600 tax credit for each electric vehicle. Also, as disposable income and net worth of individuals increase, end-user preference for luxury products is gradually increasing.
Increasing Pre-Owned Luxury Car Demand
- According to car dealers, the demand for pre-owned luxury vehicles is constantly increasing because owners usually sell these vehicles after one or two years of ownership in order to upgrade to better models and modifications. To satisfy rising demand, the used luxury vehicle market is becoming more organized, with easier access to finance, reduced entry pricing, and annual maintenance contracts. For instance, Maruti Suzuki's True Value in India does a technical check and offers a two-year warranty along with other advantages. Due to the strong degree of customer confidence, this will also lead to an increase in pre-owned luxury car sales. All of these factors would contribute to the widespread adoption of luxury vehicles.
Luxury Car Market Restraints
High Product Cost
- Luxury vehicles are significantly more expensive than normal vehicles due to their luxurious and modern features, such as high-quality parts and pricey materials. Furthermore, the cost of producing cars with deluxe amenities and options is higher than the cost of producing cars with universal features. Furthermore, because luxury car sales are very limited, a big portion of the selling price is utilized to pay for development, making these sorts of cars more expensive. As a result, the high cost of luxury vehicles is expected to hamper the market growth.
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Luxury Car Market Competitive Landscape
The global luxury car market is fragmented and highly competitive. Numerous global and local companies play a significant role in the market growth. Key industry players are focused on product developments, new product launches, and geographical expansions to gain a significant amount of market share.
Luxury Car Market Top Player’s Company Profiles
- Tesla Inc. (US)
- Mercedes-Benz Group AG (Germany)
- General Motors (US)
- AUDI AG (Germany)
- Kia Motors Corporation (South Korea)
- Groupe Renault (France)
- Groupe PSA (France)
- SAIC Motor Corporation Limited (China)
- Tesla (US)
- Daimler AG (Germany)
- BMW AG (Germany)
- Hyundai Motor Company (South Korea)
- BYD Company Ltd. (China)
- Continental AG (Germany)
- TOYOTA MOTOR CORPORATION (Japan)
- Nissan Motor Co., LTD. (Japan)
- Volkswagen AG (Germany)
- AB Volvo (Sweden)
- Honda Motor Co., Ltd. (Japan)
Luxury Car Market Recent Developments
- In October 2022, Mercedes-Benz, Stellantis, Siemens, and TotalEnergies agreed to a joint venture to build three gigafactories in Europe to support electric vehicle manufacturing.
- In June 2022, Ferrari planned to expand vehicle manufacturing plants across Italy. The company increased its premium vehicle portfolio across the country as a result of this expansion.
- In June 2021, Mercedes-Benz launched the Mercedes-Maybach GLS 600, the first SUV ever to carry the Maybach brand name.
- In January 2021, Mercedes-Benz India announced that it will be bringing 15 products to the Indian market. The new GLA, the AMG GT Black Series, and the A-Class Limousine were among the car models slated to make their debut in 2021.
Luxury Car Key Market Trends
- Consumer inclination toward luxury car companies is increasing as true luxury offerings in vehicles expand and personal disposable incomes increase. This is one of the primary drivers of market expansion. In addition, as environmental concerns develop many countries' regulatory bodies and environmental organizations are tightening emission standards. As a result, there is a global increase in demand for sustainable and eco-friendly transportation such as electric luxury vehicles. The market is also driven by the growing adoption of pre-owned luxury cars due to easy financing, cheap entry prices, and annual maintenance contracts. Leading manufacturers are developing next-generation smart mobility technologies such as personal voice assistance, autonomous driving, and retina recognition. They have also invested heavily in research and development (R&D) activities to integrate artificial intelligence (AI) and machine learning (ML) technologies, creating a favorable impact on the market.
Luxury Car Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global luxury car market analysis, due to the increasing customer demand for luxury SUVs, the sport utility vehicle market is expected to grow at an exponential rate during the forecast period. In 2021, North America dominated the market and accounted for about 35.0% of total revenue. The increased consumption in the United States can be attributed to the growth of the market. The regional market is growing due to the strong presence of key market participants, rising disposable income, and substantial spending on passenger cars. Vehicles are significantly more expensive than regular cars due to their luxurious and modern features, such as high-quality parts and expensive materials, which hampers the market growth.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 536.25 billion |
| Market size value in 2031 | USD 992.95 billion |
| Growth Rate | 9.2% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
| Historical Year | 2019 |
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Luxury Car Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Luxury Car Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Luxury Car Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Luxury Car Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Luxury Car Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Car Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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