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

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).

The luxury car market is fragmented and highly competitive. Numerous 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. 'Ford Motor Company (US)', 'Jaguar Land Rover Automotive PLC(U.K.)', 'Volkswagen Group (Germany) ', '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)'

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.

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 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.

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.