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

The Luxury Car Market, Encompassing Premium, High-End, Elite, Upscale, Prestige, Lavish, Plush, Extravagant, Deluxe, and Superior Cars, is Experiencing A Shift From Sedans To SUVs Due To Increasing Disposable Incomes and Enhanced Luxury Features. Despite Potential Hurdles Like Import Tariffs, The Trend of Electric Cars is Gaining Momentum, Driven by Environmental Concerns and Fuel Prices. The Market, Segmented by Vehicle Type, Drive Type, and Geography, Sees Significant Growth in the Asia-Pacific Region. Key Players Include Mercedes-Benz, Bmw, Volkswagen Group, and Tesla.

Luxury Car Market Size

Luxury Car Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 738.63 Billion
Market Size (2029) USD 967.65 Billion
CAGR (2024 - 2029) 5.55 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Luxury Car Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Luxury Car Market Analysis

The Luxury Car Market size in terms of Equal-5.55 is expected to grow from USD 738.63 billion in 2024 to USD 967.65 billion by 2029, at a CAGR of 5.55% during the forecast period (2024-2029).

The luxury car market has experienced robust growth in 2022, driven by key factors such as the expanding affluence of the global population, especially in emerging markets, where rising disposable incomes propel an increasing number of consumers to consider luxury cars. Furthermore, technological advancements, including innovations in electric and autonomous vehicles, are reshaping the landscape, attracting tech-savvy consumers seeking cutting-edge automotive experiences.

The luxury car market is experiencing a surge in electric and hybrid models, with major players investing heavily in research and development to meet the demand for eco-friendly alternatives. Connectivity features such as IoT capabilities, AI-driven interfaces, and autonomous driving technologies are becoming standard, elevating the driving experience.

However, economic uncertainties and stringent emission standards pose challenges for the luxury car market. Fluctuations in the global economy and environmental concerns can impact consumer confidence and influence purchasing power. In addition, an increase in import tariffs is expected to hinder the growth of the luxury car market. For instance, in India, cars with CIF (Cost, Insurance, and Freight) value over USD 40,000 incur a 100% customs tax, while those under USD 40,000 face a 60% import duty.

Based on these ongoing developments, the luxury car market is expected to continue its positive growth trajectory during the forecast period.

Luxury Car Market Trends

SUVs will be the Leading Segment in the Luxury Car Market

SUVs have emerged as the leading segment in the luxury car market. This growth could be attributed to several factors shaping the landscape of the luxury automotive industry. Luxury SUVs have gained significant traction, offering a combination of versatility, advanced technology, and a perceived sense of safety and prestige.

Luxury SUVs are becoming increasingly appealing to a broad range of consumers, including families and young professionals. The market has responded positively to the combination of performance, comfort, and practicality that these vehicles offer, making them a popular choice among luxury car buyers.

The elevated driving position and robust build of SUVs contribute to a sense of security, which resonates well with consumers seeking both safety and luxury in their vehicles. In addition, the incorporation of the latest technological features, such as advanced infotainment systems, driver assistance technologies, and connectivity options, has further enhanced the appeal of luxury SUVs.

Regional variances also play a key role in shaping the market for luxury SUVs. For instance, North America and China have shown a strong inclination for luxury SUVs. In China, the popularity of large SUVs among high-net-worth individuals has been particularly significant. While luxury sedans have historically held a significant market share in Europe, there is a growing shift toward luxury SUVs, reflecting changing consumer preferences and lifestyle choices.

Furthermore, factors such as economic conditions and environmental concerns also influence the dynamics of the luxury SUV market. Economic prosperity in certain regions has led to increased sales of larger and more expensive SUV models. Moreover, the rise of electric and hybrid SUVs addresses growing environmental consciousness among consumers, contributing to the overall evolution of the luxury car market.

As the automotive industry places greater emphasis on sustainability, automakers are investing heavily in electric vehicle technology, offering luxury SUVs with zero-emission capabilities. For instance:

  • In November 2023, India’s largest luxury auto brand, Mercedes-Benz, launched the GLE LWB SUV and AMG C43 4MATIC sedan. The company launched the face-lifted version of the GLE SUV in India at a starting price of INR 96.40 lakh (ex-showroom) across three variants. The SUV has made its debut alongside the C43 AMG 4Matic sedan, with a price tag of INR 98 lakh (USD 117937.12).

The market studied is expected to witness further transformations in the coming years, particularly with the emergence of electric luxury SUVs.

Luxury Car Market - Average Price of Luxury Cars in Asia-Pacific, In Thousand USD, 2016-2022

North America is the Largest while APAC is the Fastest Growing Market

North America, encompassing the United States and Canada, remains the largest market for luxury cars, contributing significantly to the industry's overall revenue. The United States, in particular, has been a key driver of luxury car sales, with a robust economy and a substantial population of wealthy consumers. In 2022, the region generated revenue of over USD 7000 million from luxury cars. The United States alone generated revenue of over USD 6000 million in 2022.

The demand for luxury vehicles in North America has been fueled by factors such as high disposable incomes, a culture emphasizing automotive prestige, and a strong preference for larger luxury SUVs. High disposable incomes enable consumers to indulge in premium automotive offerings.

While North America leads in terms of overall market size, Europe, with its rich automotive heritage and a strong presence of luxury car manufacturers, holds substantial significance. European consumers often favor luxury sedans and sports cars, contributing to the diverse global luxury car market landscape.

The Asia-Pacific region, driven by the economic growth of countries such as China and India, is increasingly becoming a significant player in the luxury car market. The region is expected to be the fastest-growing market during the forecast period. In recent years, the number of HNWIs and UHNWIs has grown significantly in China and India. The expanding middle and upper-middle-class populations in these regions have led to a surge in demand for luxury vehicles, as they are perceived as status symbols. Automakers involved in the luxury car business have also started increasingly focusing on these markets, seeing their high growth potential. For instance:

  • In August 2023, Audi launched its new electric duo, the Q8 e-tron and e-tron Sportback in India. The Q8 e-tron range is available in two trims with 95kWh and 114kWh battery packs, respectively.

Overall, in the coming years, North America’s dominance will be challenged by regions like APAC and Europe, with their growing high-income groups investing heavily in luxury cars.

Luxury Car Market: Luxury Car Market, Revenue Share (%), 2022

Luxury Car Industry Overview

The luxury car market is consolidated with a small number of players. Mercedes-Benz, BMW, Volkswagen Group, and Tesla hold the major share of the market studied.

The key players are engaged in continuous product launches and R&D investments, highly driven by advanced technology, more comfort, growing investment in EV technology, and improved living standards worldwide. For instance:

  • In April 2023, JLR announced its plans to accelerate its transition to become the world’s leading modern luxury car manufacturer through its Halewood plant in the United Kingdom. The plant will become an all-electric production facility.
  • In September 2023, Lotus unveiled Emeya, the company’s first four-door hyper-GT, in New York City.

Luxury Car Market Leaders

  1. Jaguar Land Rover Automotive PLC

  2. Volkswagen Group

  3. Tesla Inc.

  4. Mercedes-Benz Group AG

  5. BMW AG

*Disclaimer: Major Players sorted in no particular order

Luxury Car Market Concentration
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Luxury Car Market News

  • November 2023: Nio revealed the launch of a major product on Nio Day in December. It was a CNY 1 million (USD 140 thousand) luxurious electric sedan to compete with the Maybach S class in China.
  • September 2023: Toyota Motor Corporation unveiled a new luxury Century model. The new model was to be launched by the end of 2023. The new model of the Century would be fully customizable on a global basis.
  • January 2023: BMW launched its much-awaited i7 sedan in India. Based on the flagship 7-Series, the i7 would go up against Mercedes Benz’s EQS, which was introduced in 2022. While Mercedes Benz has localized the assembly of its EQS sedan, BMW will introduce the i7 as a fully built-up unit (FBU).

Luxury Car Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

      1. 4.1.1 Rising Demand for Comfortable Driving Experience and Vehicle Safety is Driving the Market

      2. 4.1.2 Increasing Number of High Net Worth Individuals (HNWI) and Ultra HNWIs Drives Demand

    2. 4.2 Market Restraints

      1. 4.2.1 High Initial Cost of Ownership is a Challenge

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value - USD billion)

    1. 5.1 Vehicle Type

      1. 5.1.1 Hatchback

      2. 5.1.2 Sedan

      3. 5.1.3 Sports Utility Vehicles (SUV)

      4. 5.1.4 Multi-Purpose Vehicles (MPV)

      5. 5.1.5 Other Vehicle Types (Sports, etc.)

    2. 5.2 Drive Type

      1. 5.2.1 Internal Combustion Engine (ICE)

      2. 5.2.2 Electric and Hybrid

    3. 5.3 Vehicle Class

      1. 5.3.1 Entry-level Luxury Class

      2. 5.3.2 Mid-level Luxury Class

      3. 5.3.3 Ultra Luxury Class

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. South America

        2. Middle East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Mercedes-Benz Group AG

      2. 6.2.2 BMW AG

      3. 6.2.3 Volvo Group

      4. 6.2.4 Volkswagen Group

      5. 6.2.5 Jaguar Land Rover Automotive PLC

      6. 6.2.6 Fiat Chrysler Automobiles

      7. 6.2.7 Ford Motor Company

      8. 6.2.8 FAW Car Company

      9. 6.2.9 Hyundai Motor Group

      10. 6.2.10 Tesla Inc.


    1. 7.1 Adoption of Autonomous Driving Technology in Luxury Cars to be a Key Trend

    2. 7.2 Battery-Electric Vehicles (BEVs) will be Dominant Across all Luxury Segment



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Luxury Car Industry Segmentation

Luxury cars are equipped with better performance capabilities, lavish interiors, and all the latest safety and technology features.

The luxury car market is segmented by vehicle type, drive type, vehicle class, and geography. By vehicle type, the market is segmented into hatchbacks, sedans, SUVs, MPVs, and other vehicle types. By drive type, the market is segmented into internal combustion engines and electric and hybrid. By vehicle class, the market is segmented into entry-level luxury class, mid-level luxury class, and ultra-luxury class. By geography, the market is segmented into North America, Europe, Asia-Pacific, and rest of the world. The report offers the market size in value terms in USD for all the abovementioned segments.

Vehicle Type
Sports Utility Vehicles (SUV)
Multi-Purpose Vehicles (MPV)
Other Vehicle Types (Sports, etc.)
Drive Type
Internal Combustion Engine (ICE)
Electric and Hybrid
Vehicle Class
Entry-level Luxury Class
Mid-level Luxury Class
Ultra Luxury Class
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East and Africa
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Luxury Car Market Research FAQs

The Luxury Car Market size is expected to reach USD 738.63 billion in 2024 and grow at a CAGR of 5.55% to reach USD 967.65 billion by 2029.

In 2024, the Luxury Car Market size is expected to reach USD 738.63 billion.

Jaguar Land Rover Automotive PLC, Volkswagen Group, Tesla Inc., Mercedes-Benz Group AG and BMW AG are the major companies operating in the Luxury Car Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Luxury Car Market.

In 2023, the Luxury Car Market size was estimated at USD 697.64 billion. The report covers the Luxury Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Luxury Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The SUV segment is driving the demand for the luxury car market, due to rising disposable incomes and the expansion of tangible luxury offerings in vehicles.

Luxury Cars Industry Report

The global luxury car market is on the brink of substantial growth, fueled by a shift towards electric and hybrid vehicles as consumer demand for eco-friendly options surges and manufacturers expand their electric vehicle (EV) portfolios. This market is buoyed by technological advancements and an emphasis on fuel efficiency. Luxury vehicles stand out due to their exclusive features and customization options, with SUVs becoming increasingly popular for their blend of luxury and practicality. A significant trend in the propulsion segment is the move towards sustainability, witnessing strong growth across North America, Europe, and Asia Pacific, with the latter region leading the charge due to economic growth and rising incomes. Key industry players are continuously innovating to keep pace with the evolving demands of the market, indicating a dynamic future outlook. Statistics for the Global Luxury Car Market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Global Luxury Car analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.

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