Europe Luxury Car Market Size (2024 - 2029)

The market size of the European luxury car sector is currently significant and is projected to experience considerable growth over the next five years. The COVID-19 pandemic has had a negative impact on the market, with lockdowns and shutdowns leading to a decrease in production and sales. However, the easing of restrictions post-pandemic has seen some luxury brands register increased sales. Over the medium term, factors such as growing awareness of the benefits of luxury cars and increased demand for a comfortable driving experience are expected to propel market growth. The rise of SUVs is also contributing to this growth, with their flexibility, driveability, and ease of cabin access making them increasingly popular. Key countries, including Germany and the United Kingdom, are anticipated to play a prominent role in the market due to strategies such as product launches and expansion by key players.

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Market Size of Europe Luxury Car Industry

Europe Luxury Car Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 9.00 %
Fastest Growing Market Europe
Largest Market Europe
Market Concentration Medium

Major Players

Europe Luxury Car Market Major Players

*Disclaimer: Major Players sorted in no particular order
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European Luxury Cars Market Analysis

Currently, the European luxury car market is valued at USD 157.3 billion currently and is expected to reach USD 229.25 billion over the next five years, registering a CAGR of 9% during the forecast period.

The COVID-19 pandemic has negatively impacted the market as lockdowns and shutdowns of manufacturing facilities of major OEMs resulted in a decrease in production and sales of luxury cars across the region. However, a few luxury brands, such as Porsche, Lexus, and Jaguar, registered increased sales in Q1 2020 compared to Q1 2019 owing to ease in restrictions post-pandemic. Moreover, according to the Society of Motor Manufacturers and Traders (SMMT), UK passenger car sales decreased by 14.3% to 243,479 units in March 2022. Year-to-date sales decreased by 1.9%, with 417,560 cars registered in the first three months of 2022.

Over the medium term, growing awareness about the benefits of luxury cars and the attractive appearance of the vehicle is encouraging high millennial youth, and such factors are expected to propel demand in the market. Increased demand for a comfortable driving experience and growing penetration of electric mobility is anticipated to contribute to rising luxury car adoption over the forecast period.

Some of the reasons for the rise of SUVs include flexibility, payload-carrying ability, driveability, commanding view from the driver's seat, and ease of cabin access. Most of the latest SUVs come under the crossover category, which are larger, more bulbous cars rather than the pickup truck-based sports utilities. Several European luxury car launches have taken the segment to witness elevated sales bar. For instance, in May 2022, Hyundai announced that it would soon launch three Genesis luxury EVs in the European market. The company's flagship premium genesis G80 and SUV GV80 were expected by the end of June 2022 in Europe.

Germany, the United Kingdom, and several other key countries are expected to have a prominent role in the market owing to rising developments by key players across the country and their strategies, such as expansion, product launches, and others.

European Luxury Cars Industry Segmentation

A luxury car provides increased levels of comfort, equipment, amenities, quality, performance, and associated status compared to moderately priced cars. The European luxury car fleet includes high-range cars that provide excellent comfort and carry the most reliable design and material. Players, including Porsche, Ferrari, BMW, and Mercedes-Benz, are carrying dominating hands in selling these luxury cars.

The European Luxury Car Market is segmented by Vehicle Type (Hatchback, Sedan, Sport Utility Vehicles, and Multi-Purpose Vehicles), Drive Type (IC Engine and Electric), and Country (Germany, United Kingdom, France, Spain, Italy, Russia, Netherlands, Denmark, Sweden, Belgium, Switzerland, and Rest of Europe). The report offers market size and forecast for the Europe Luxury Car market in Value (USD billion) for all the above segments.

Vehicle Type
Hatchback
Sedan
Sport Utility Vehicle
Multi-purpose Vehicle
Drive Type
IC Engine
Electric
Geography
Germany
United Kingdom
France
Spain
Italy
Russia
Netherlands
Denmark
Sweden
Belgium
Switzerland
Rest of Europe

Europe Luxury Car Market Size Summary

The European luxury car market is currently experiencing significant growth, with an expected increase in market value over the next five years. This growth is primarily driven by the increasing awareness of the benefits of luxury cars, including their attractive appearance and the comfortable driving experience they offer. The market has also been positively impacted by the growing penetration of electric mobility, which is anticipated to contribute to the rising adoption of luxury cars. However, the COVID-19 pandemic has negatively affected the market, with lockdowns and shutdowns of manufacturing facilities leading to a decrease in production and sales. Despite this, some luxury brands have seen increased sales due to the easing of restrictions. The market is also witnessing a shift in consumer preference towards SUVs, with most European luxury brands moving towards crossover SUVs to boost sales figures. This trend, which started in the US, has now spread to Europe and Asia, with brands like Nissan, Hyundai, Kia, Mazda, Mitsubishi, Jaguar, Lexus, Porsche, Maserati, and Volvo leading the way. The rise in SUV production is also linked to emission norms in the EU, which allow heavier cars to have higher emissions. Key automakers in Europe are therefore focusing on launching luxury SUVs to meet demand. Furthermore, countries like Germany and the United Kingdom are expected to play a prominent role in the market due to rising developments by key players and their strategic moves such as expansion and product launches.

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Europe Luxury Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD Billion)

    1. 2.1 Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 Sport Utility Vehicle

      4. 2.1.4 Multi-purpose Vehicle

    2. 2.2 Drive Type

      1. 2.2.1 IC Engine

      2. 2.2.2 Electric

    3. 2.3 Geography

      1. 2.3.1 Germany

      2. 2.3.2 United Kingdom

      3. 2.3.3 France

      4. 2.3.4 Spain

      5. 2.3.5 Italy

      6. 2.3.6 Russia

      7. 2.3.7 Netherlands

      8. 2.3.8 Denmark

      9. 2.3.9 Sweden

      10. 2.3.10 Belgium

      11. 2.3.11 Switzerland

      12. 2.3.12 Rest of Europe

Europe Luxury Car Market Size FAQs

The Europe Luxury Car Market is projected to register a CAGR of 9% during the forecast period (2024-2029)

BMW AG, Tesla Inc., Mercedes-Benz Group AG, Audi AG and Volvo Cars are the major companies operating in the Europe Luxury Car Market.

Luxury European Cars Market Report Snapshots

European Luxury Cars Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)