USD 461.24 Billion
Luxury Vehicles Market Size, Share, Growth Analysis, By Propulsion Type(Internal Combustion Engine (ICE), and Electric), By Vehicle Type(Hatchback, Sedan, and Sport Utility), By Fuel Type(Petrol and Electric), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG25A2229 |
Region:
Global |
Published Date: April, 2024
Pages:
222
|Tables:
87
|Figures:
69
Luxury Vehicles Market Insights
Global Luxury Vehicles Market size was valued at USD 461.24 Billion in 2022 and is poised to grow from USD 483.84 Billion in 2023 to USD 709.42 Billion by 2031, growing at a CAGR of 4.9% in the forecast period (2024-2031).
Luxury cars are popular with buyers simply because of their entertainment system, built-in swing seats and safety features. Luxury cars are known for their luxurious features and finishes. Luxury items are seen as less exclusive, unique and special to enhance life. As a result, these companies are competing more than ever to establish strong brands. With the rise of manufacturers, the public’s perception of automotive models plays an important role in their purchasing decisions. Some luxury brands like BMW, Mercedes-Benz and Lexus must change their values and attitudes in line with changing societal norms that affect consumer sentiment.
One of the major factors driving the growing market is the tightening of vehicle emission norms across the globe due to increased government attention on environmental protection and consequently that, there is a growing demand for environmentally friendly and sustainable transport such as electric vehicles. In addition, governments of various states offer many subsidies and incentives to these car owners. Also, with the rise in disposable income and personal wealth, consumer preference shifts towards luxury goods. The market is expanding due to technological advances such as the Internet of Things (IoT) and real-time reporting solutions in all EV charging station systems.
Luxury cars are almost obligatory status symbols for high-net-worth individuals, as these are more expensive than other cars. In addition, the developing world is witnessing a remarkable increase in luxury car sales. Moreover, the demand for luxury vehicles is increasing due to rising incomes and changing consumer needs. In addition, improvements in the economy saw many luxury car manufacturers see an increase in sales. For instance, Audi India delivered 4,187 units by 2022, a growth of 27% in year-on-year sales. Moreover, global sales of luxury car manufacturer, Porsche is 309,884 units in 2022, up 3% from sales in 2021. Furthermore, luxury car sales growth is much faster than the overall market so this increase in demand for luxury automotive in developing countries is expected to boost market growth.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Internal Combustion Engine
Fastest Growth
Electric
Growth Rate
4.9% CAGR
Global Luxury Vehicles Market ($ Bn)
Country Share for North America Region (%)
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Luxury Vehicles Market Segmental Analysis
Based on propulsion type, the market is segmented into internal combustion engine (ICE), and electric. Based on vehicle type, the market is segmented into hatchback, sedan, and sport utility. The global luxury vehicles market is segmented by fuel type, vehicle type and region. By fuel type, the market is segmented into petrol and electric. By vehicle type, the market is segmented into hatchback, sedan, and sport utility vehicles. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Analysis by Propulsion Type
Based on propulsion type, the market is segmented into internal combustion engines (ICE), and electric. The internal combustion engine segment accounted for the largest revenue share of 70.2% by 2022 and is estimated to expand at a CAGR of 6.5% during the forecast period IC engine vehicles with easy availability, low cost of and ownership and increasing performance drives this sector.
The electric segment is likely to expand at the fastest CAGR of 7.8% throughout the forecast period. This can be attributed to government efforts to accelerate decarbonization, and policy supports such as tax breaks, local grants, fiscal incentives, & relaxation of procurement restrictions According to the International Energy Agency, electric vehicle sales in Europe grew 65% annually by 2021 to 2.3 million vehicles.
Analysis by Vehicle Type
Based on vehicle types, the market is segmented into hatchbacks, sedans and sports cars. The sporting goods segment recorded the largest revenue share of 57.6% by 2022 and is expected to register 7.3% CAGR during the forecast period The growth of the segment can be attributed to consumers want more sports cars due to many factors such as comfort, perceived safety, practicality and style.
The hatchback segment is expected to expand at the second highest CAGR of 6.8% during the forecast period. Increasing consumers’ disposable income, new model launches and accessibility to credit re driving the segment’s market, Japanese luxury car brand Acura announced its 2023 Acura Integra sporty compact hatchback in 2023.
Global Luxury Vehicles Market By Propulsion Type (%)
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Luxury Vehicles Market Regional Insights
North America dominated the market and accounted for about 35.0% of the total revenue. It could be argued that the rise in consumption in the US. is due to market development. The regional market is growing due to the strong presence of important market players, increased disposable income and increased expenditure on mobility. Important players in the industry include Tesla, General Motors and Ford Motors. North America includes the US, Canada, and Mexico. Furthermore, the entry of new players in the market and the addition of new luxury car dealerships in the region are expected to fuel its growth Increased network due to increased competition due to the increasing importance of new players is expected to drive market growth. Major automakers are launching new luxury electric vehicles, which are expected to boost players in the global luxury vehicles market in North America.
Asia-Pacific is the fastest growing market. Currently, China has the highest growth rate among all developing countries in the Luxury Vehicles Market. Luxury brands such as Audi, Mercedes-Benz, BMW, Lexus and Volvo have consistently shown growth in the Chinese Luxury Vehicles Market. Domestic luxury car dealers sold 277,000 vehicles in April 2020, up 11.1% from April 2019, according to the China Automobile Dealers Association. In April 2020, luxury cars accounted for 18.7% of their sales, up from April and an increase of 0.4% over market share in March.
Moreover, the demand for luxury SUVs in the country is growing rapidly and is expected to continue during the forecast period, as additional space and comfort are being offered to Audi, BMW and Mercedes are planning to equip new luxury models will be available in the country at affordable prices.
Global Luxury Vehicles Market By Geography
- Largest
- Fastest
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Luxury Vehicles Market Dynamics
Drivers
Increasing Demand for Electric Luxury Cars to Augment the Luxury Vehicles Market Growth
- The global luxury vehicles market is developing quicker because of the growing technological improvements like the Internet of Things (IoT) and actual-time information answers being incorporated into all-EV charging station systems for electric luxury cars. Leading producers are also growing ultra-modern clever mobility technologies, such retina popularity, self-sustaining using, and private voice assistance. The global luxury vehicles market increase is multiplied by way of the upward thrust in demand for top class and upscale vehicles further to a growth in automobiles powered by way of diesel engines. Additionally, a rise in passenger vehicle sales added on by way of client preference for superior motors are one of the key luxurious vehicle market traits. The luxury automobile market additionally benefits from the enlargement of the automotive enterprise, a boom in investments, and rising disposable income.
Increasing Collaboration Between Companies to Fuel Growth of the Luxury Vehicles Market
- Intense market competition across the globe due to increasing globalization and increasing demand for automobiles has contributed to the growth of the global luxury vehicles market. This has encouraged many companies to adopt innovative strategies to improve customer driving experience, and for Luxury Vehicles Market share to increase as per their reputation. Thus, the increasing number of intercompany collaborations is positively impacting the global luxury vehicles market share globally.
- Also, the pre-owned global luxury vehicles market continues to grow as owners often sell these cars after a year or two of use for upgrades and modifications, creating a market does share increase. These factors will be in the global luxury vehicles market in the coming years. The size is expected to increase further.
Restraints
High Construction and Maintenance Costs
- Luxury cars are more expensive compared to traditional cars, due to their advanced luxury features such as quality parts and expensive consumables use in it plus the cost of a car with luxury options and features is higher than a normal spec car. Luxury cars have many features that give drivers exceptional range, prestigious prices and high levels of performance, safety and security. It is equipped with high quality curtain airbags, anti-lock braking system, standard stability control, traction control and side and front airbags. Luxury cars are made of the highest quality materials. For example, the luxury Ferrari 458 Italia Sport is equipped with a V-8 engine.
Economic Fluctuations and Uncertainty
- The global luxury vehicles market is sensitive to economic fluctuations, including the recession and global economic uncertainty. During a recession, consumers may share car make buying beauty or choosing cheaper options. Economic instability could affect consumer confidence and spending, affecting demand for luxury and expensive cars.
Stringent Environmental Regulations
- Increasing environmental concerns and regulations pose challenges for luxury car manufacturers. Stringent emission standards and fuel economy requirements call for the integration of environmentally friendly technologies, such as hybrid and electric vehicles Should luxury car brands balance performance and luxury sustainability to meet regulatory requirements without compromising their core identity.
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Luxury Vehicles Market Competitive Landscape
The global luxury vehicles market is fragmented and highly competitive. Many global and local companies play an important role in the growth of the market. Key industry players are focusing on product development, new product launches, and geographic expansion to gain more market share.
Top Player’s Company Profiles
- Ferrari S.p.A
- Bugatti Automobiles
- Rolls-Royce Motor Cars
- Daimler AG
- Automobili Lamborghini S.p.A.
- Koenigsegg Automotive AB
- Aston Martin Lagonda Limited
- Bentley Motors Limited
- Horacio Pagani S.p.A
- Dr. Ing. h.c. F. Porsche AG
- Toyota Motor Corporation
- Tesla, Inc.
- General Motors
Recent Developments
- In October 2022, Mercedes-Benz, Stelantis, Siemens and TotalEnergies agreed to jointly build three gigafactories in Europe to help produce electric vehicles
- In June 2022, Ferrari planned to expand production facilities across Italy. With this expansion, the company expands its luxury car portfolio across the country.
- In June 2021, Mercedes-Benz introduced the Mercedes Maybach GLS 600, the first SUV to carry the Maybach brand.
- In May 2022, electric car manufacturer Lucid Group plans to launch a luxury sedan in Europe. The company is expected to launch its Lucid Air Dream Edition P and R sedans in limited numbers in Germany, the Netherlands, Switzerland and Norway.
Luxury Vehicles Key Market Trends
- Inclination towards Electric Luxury Vehicles to Fuel Luxury Vehicles Market Growth: The electric segment is expected to grow significantly during the forecast period. The segment is expected to rise due to the move by governments across the world to impose limits on vehicle emissions, due to increasing environmental protection concerns. Consequently, environmentally friendly and sustainable forms of transportation such as electric vehicles are increasingly needed. Governments are also offering enhanced subsidies and incentives to these car owners, which is expected to further drive the global luxury vehicles market. During the forecast period, Asia-Pacific is expected to be one of the leading regions among all regions, having one of the largest automotive markets in the world. Several large companies in this region have influenced the region's great market growth. Luxury automakers in Asia-Pacific have benefited from the ever-growing population in countries such as India and China. Within Asia-Pacific, the Chinese Luxury Vehicles Market has a high growth rate. The lower costs and tax advantages associated with integrated sales in many areas are attributed to increased production volumes in these areas.
Luxury Vehicles Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
The global market is pushed by increasing disposable earnings, growing urbanization, and developing consumer aspirations for luxury lifestyles. Luxury motors are characterised through their premium craftsmanship, modern technology, and extraordinary emblem identity, with manufacturers constantly innovating to meet evolving patron demands. Major gamers inside the market include renowned brands inclusive of Mercedes-Benz, BMW, Audi, Lexus, and Rolls-Royce, amongst others. These manufacturers compete fiercely to offer a various variety of luxurious vehicles, SUVs, and excessive-performance motors, frequently incorporating advanced features like self reliant using capabilities, hybrid and electric powered powertrains, and connectivity answers.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 461.24 Billion |
| Market size value in 2031 | USD 709.42 Billion |
| Growth Rate | 4.9% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| 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:-
|
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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 Vehicles 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 Vehicles 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 Vehicles 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 Vehicles 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 Vehicles Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Luxury Vehicles 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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