Luxury Car Market Trends | Industry Analysis, Size & Forecast Report

Dataset updated: Jun 27, 2024

Dataset authored and provided by: Mordor Intelligence

License: https://www.mordorintelligence.com/privacy-policy

Time period covered: 2019 - 2029

Area covered: Global

Variables measured: CAGR, Market size, Market share analysis, Global trends, Industry forecast

Description: The Luxury Car Market size is estimated at USD 738.63 billion in 2024, and is expected to reach USD 967.65 billion by 2029, growing at a CAGR of 5.55% during the forecast period (2024-2029).

Quantitative Units: Revenue in USD Billion, Volumes in Units, Pricing in USD

Segments Covered: 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, sport utility vehicles, multi-purpose vehicles, and other vehicle types (sports, etc.). 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.

Regions and Countries Covered: North America, Europe, Asia-Pacific, and Rest of the world

Market Players Covered: Key Players Include Mercedes-Benz, BMW, Volkswagen Group, and Tesla.

In 2024, the global market for luxury cars was estimated at around *** billion euros, an estimated increase of around *** percent year-on-year. That same year, the global luxury market was put at around **** trillion euros. Global luxury car market size The luxury car segment is one of the most dynamic sources of revenue growth in the global luxury goods market. This segment is primarily driven by rising demand from increasingly affluent buyers in emerging markets. In 2020, the luxury car market contracted amid the outbreak of the coronavirus pandemic in key markets worldwide. The market effectively rebounded in 2021, despite grappling with the global chip shortage. Three years later, in 2024, the United States was the leading luxury automobile market worldwide, amounting to revenues of around * billion U.S. dollars. Electrification of luxury cars In an attempt to appeal to the more environmentally conscious group of buyers, a fair share of the luxury car fleet is projected to become more ‘eco-friendly’. Luxury electric vehicles such as the battery-powered models offered by Tesla are set to drive growth in the luxury car segment. At the same time, luxury SUVs are also expected to attract a new group of customers. High-end automobiles are expected to combine connectivity and ergonomics. However, smart vehicles require improved infrastructure, particularly in urban areas. As a result, there is a growing number of cities providing the infrastructure that is needed for the implementation of connected car programs.

The global luxury car market size is projected to grow from USD 27.8 billion in 2025 to USD 103.5 billion by 2033, exhibiting a CAGR of 17.9%.
Report Scope:

The global luxury car market size was valued at USD 483.84 Billion in 2024. The market is expected to grow at a CAGR of 4.90% during the forecast period of 2025-2034 to reach a value of USD 780.65 Billion by 2034. Luxury automakers are increasingly investing in biometrics and predictive health monitoring systems, offering advanced safety and wellness features that are redefining customer expectations in high-end vehicles.

The market is entering a transformative era, where electrification and sustainable innovation are reshaping growth patterns, boosted by the rapid adoption of premium electric vehicles. As per the luxury car market analysis, Europe reported a 148% surge in F-segment electric luxury car registrations between 2021 and 2022, reflecting a significant consumer shift toward zero-emission performance. Similar momentum is visible in Asia, where China continues to dominate luxury EV sales, supported by subsidies under the government’s New Energy Vehicle program.

North America is also steering growth, with the United States offering tax credits up to USD 7,500 for luxury electric cars under the Inflation Reduction Act, encouraging high-income buyers to make sustainable choices. India is also pacing up its share, crossing 50,000 luxury units for the first time in 2024, spurred by Mercedes-Benz’s expanding EV line-up, influencing the overall luxury car market growth.

In 2024, the number of vehicle sales by make in the 'Luxury Cars' segment of the passenger cars market worldwide was modeled to stand at ******* vehicles. Between 2013 and 2024, the figure dropped by ****** vehicles, though the decline followed an uneven course rather than a steady trajectory. The number of vehicle sales by make is forecast to decline by ****** vehicles from 2024 to 2029, fluctuating as it trends downward.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Luxury Cars.

The North America Luxury Car Market Report is Segmented by Vehicle Type (Sedan, SUV/Crossover, and More), Drive Type (ICE, Battery-Electric, and More), Price Band (Premium 50k–100k USD, Upper-Premium 100k–200k USD, and More), Sales Channel (Franchised Dealer, Direct-To-Consumer, and More), and Country (United States, Canada, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

The European Luxury Car Market Report is Segmented by Vehicle Type (Hatchback, Sedan, and More), Powertrain Type (ICE, and More), Price Range (USD 45, 000-100, 000, USD 100, 001-200, 000, and Above USD 200, 000), Ownership Model (Outright Purchase, Finance/Lease, and More), and Country. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

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Luxury Cars Market Size 2025-2029

The luxury cars market size is valued to increase USD 232 billion, at a CAGR of 6.8% from 2024 to 2029. Rising demand for luxury SUVs will drive the luxury cars market.

Major Market Trends & Insights

North America dominated the market and accounted for a 39% growth during the forecast period.
By Product - Executive luxury car segment was valued at USD 442.00 billion in 2023
By Propulsion - IC engine-based vehicles segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 63.41 billion
Market Future Opportunities: USD 232.00 billion
CAGR from 2024 to 2029 : 6.8%

Market Summary

In The market, a significant trend emerging is the increasing preference for SUVs, with sales demonstrating a steady upward trajectory. According to the latest market intelligence, the luxury SUV segment accounted for over 30% of the overall market share in 2020. This shift can be attributed to the growing demand for vehicles that offer a blend of comfort, performance, and practicality. Another notable development is the entrance of electric luxury car models, which are gaining traction due to their eco-friendly appeal and advanced technology. The market's evolution is further influenced by various factors, including increasing disposable income, changing consumer preferences, and stringent emission regulations. Despite these positive indicators, the market faces challenges such as rising production costs and taxes on high-end vehicles, which can impact profitability. Nevertheless, market players continue to innovate and invest in research and development to cater to evolving consumer needs and expectations. In conclusion, the market is witnessing a dynamic transformation, driven by factors such as the growing popularity of SUVs and the adoption of electric vehicles. These trends, coupled with ongoing challenges, create an intriguing landscape for market participants to navigate and thrive in.

What will be the Size of the Luxury Cars Market during the forecast period?

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How is the Luxury Cars Market Segmented ?

The luxury cars industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductExecutive luxury carSuper luxury carPropulsionIC engine-based vehiclesElectric vehiclesVehicle TypeHatchbacksSedansSports Utility Vehicles (SUVs)Multi-purpose Vehicles (MPVs)OthersHatchbacksSedansSports Utility Vehicles (SUVs)Multi-purpose Vehicles (MPVs)OthersGeographyNorth AmericaUSEuropeFranceGermanyItalySwitzerlandUKAPACChinaIndiaJapanSouth KoreaRest of World (ROW)

By Product Insights

The executive luxury car segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with a focus on advanced technologies and innovative design. Three German manufacturers, Audi, BMW, and Mercedes-Benz, dominate the executive luxury car segment, accounting for four out of five global sales. These companies invest heavily in manufacturing automation systems, drivetrain engineering, and chassis engineering, utilizing lightweight materials and high-performance braking systems for improved vehicle dynamics. Powertrain electrification and electric vehicle technology are key areas of investment, with many manufacturers offering hybrid powertrains and fuel efficiency optimization. Exhaust emission control and passive safety systems are also prioritized, ensuring vehicles meet stringent regulations. Ergonomic design principles and infotainment systems integration enhance the driving experience, while automotive cybersecurity measures and vehicle connectivity technology provide added peace of mind. Aerodynamic optimization techniques and suspension system design contribute to vehicle performance metrics optimization. Rolls-Royce, a BMW brand, represents the pinnacle of super luxury cars. The market is a dynamic and competitive landscape, with ongoing activities in tire performance characteristics, transmission technology, engine performance tuning, and predictive maintenance systems.

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The Executive luxury car segment was valued at USD 442.00 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 39% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Luxury Cars Market Demand is Rising in North America Request Free Sample

The market in Europe is experiencing significant growth, w

Luxury Car Market size is expected to be worth around USD 1286.2 Billion by 2033, from USD 660.0 Billion in 2023, growing at a CAGR of 6.9%.

In 2024, Tesla was the leading luxury car brand in the United States, recording luxury sales of around 600,000 units. It edged out its main competitor, BMW, which recorded estimated sales of nearly 371,400 luxury vehicles. The U.S. luxury market Luxury cars represented an estimated 8.5 billion dollars in revenue in the U.S. in 2024. The U.S. were the leading market for luxury automobiles worldwide, with a market size nearly twice the revenue generated by the luxury car market in Germany, the second largest market for the segment. Despite the revenue generated by the luxury market, the U.S. represented less than 20 percent of BMW’s regional automobile sales in 2024, while the brand was one of the market leaders in the country. The luxury car segment also made up some 5.3 percent of the total U.S. light vehicle market demand as of June 2022, dwarfed by the crossover segment which held almost half of the market. Car owners view luxury brands positively Luxury automotive brands are amongst the automotive brands perceived as most reliable by car owners. At 65 percent, Toyota’s subsidiary Lexus was the second most reliable car brand for car owners in late 2024. Lexus was also first in overall consumer satisfaction that same year, followed by Subaru. However, the importance of buying luxury cars, motorcycles, or bicycles in the U.S. was relatively low, with 18 percent of the respondents in a recent survey citing the products as a type of luxury goods they spent their earnings on.

Global Luxury Car market was valued at USD 502.46 Billion in 2024 and is expected to reach USD 703.91 Billion by 2030 with a CAGR of 5.78%.

The global luxury car market size surpassed USD 751.52 billion in 2025 and is projected to grow at a CAGR of around 9.2%, reaching USD 1.81 trillion revenue by 2035, driven by the rising number of mega-high-net-worth individuals across the world.

The China Luxury Car Market Report is Segmented by Vehicle Body Style (Hatchbacks, Sedans, and More), Powertrain Type (Internal Combustion Engine Vehicles and Electric Vehicles), Brand Origin (Domestic Chinese Brands and Foreign Brands), and Sales Channel (Authorized Dealerships, Company-Owned Stores, and Online Direct-To-Consumer). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Luxury Car Market size was valued at USD 600.04 Billion in 2024 and is projected to reach USD 1469.84 Billion by 2031, growing at a CAGR of 11.85% during the forecast period 2024-2031.

Global Luxury Car Market Drivers

Economic Drivers: Distribution of Wealth and Income: Markets for luxury cars do well in nations where a sizable portion of the population has high incomes. An increase in wealth and disposable income allows the wealthy to purchase luxury cars. Global demand for luxury cars has increased due to economic expansion in emerging nations.

Growth and Economic Stability: Stability in the economy raises customer confidence and stimulates expenditure on upscale products, such as automobiles. On the other hand, as buyers become more frugal with their discretionary income, economic downturns can have a detrimental effect on the sales of luxury cars.

Interest rates and Financing Options: Consumers can more easily purchase luxury vehicles when interest rates are low and financing terms are attractive. To make the purchase of a luxury car easier for high net worth individuals, financial institutions frequently provide customized loan and leasing options.

Technological Drivers: Leading the automobile business in integrating state-of-the-art technologies are luxury car makers. Significant draws include attributes like cutting-edge infotainment systems, novel safety features, and the ability to drive autonomously. The cycle of constant innovation keeps customers interested and increases demand.

The India Luxury Car Market Report is Segmented by Vehicle Type (SUV, Sedan and More), Drive Type (IC Engine, Hybrid and More), Price Range (INR 20 L- 50 L, INR 50 L - 80 L and More), Sales Channel (Company-Owned Showrooms, Authorized Dealerships/Franchise and More) and Region. The Market Sizes and Forecasts are Provided in Terms of Value (USD).

At *** million vehicle deliveries, BMW was the leading luxury car brand worldwide. Meanwhile, Volkswagen delivered around *** million vehicles under its Audi brand in 2024. Global luxury car market The global luxury car market is one of the most valuable luxury markets within the luxury goods industry. The global market size for luxury cars is expected to have grown from *** billion euros in 2010 to *** billion euros in 2024. Much of the growth is attributed to the increasing consuming power of emerging markets such as China. That said, mature markets such as the United States remain important target countries. In 2024, the U.S. luxury car market recorded around ***** billion U.S. dollars in revenue, making it the largest market worldwide. Luxury car market in the United States BMW was second in the ranking for the luxury car market in the U.S. in 2020, with luxury car sales of some ******* units. Mercedes-Benz, Lexus, and Audi are the runner-ups. The three German luxury car brands - Stuttgart-based Mercedes-Benz, Munich-based BMW, and Ingolstadt-based Audi - are among the leading brands in the U.S. luxury car market. They are also in the top four luxury brands globally.

The luxury car market is booming, projected to reach $810 billion by 2033 with a 6.56% CAGR. Discover key trends, leading companies (Tesla, BMW, Mercedes-Benz), and regional market analysis in this comprehensive report. Explore the impact of EVs and emerging technologies on this high-growth sector.

Middle East luxury car market size reached USD 20,699.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 31,254.6 Million by 2033, exhibiting a growth rate (CAGR) of 4.68% during 2025-2033. The rising construction of modern cities with expanded road networks, continuous growth in the travel and tourism industry, and increasing road safety concerns among the masses represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional and country levels for 2025-2033. Our report has categorized the market based on vehicle type, fuel type, and price range.

The China luxury car market size was valued at USD 195.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 351.0 Billion by 2033, exhibiting a CAGR of 6.70% from 2025-2033. The China luxury car market share is driven by rising disposable incomes, growing demand for premium features, and a preference for status symbols. Technological advancements, government incentives for new energy vehicles, and expanding dealership networks further fuel market growth.

The North American luxury car market, valued at approximately $150 billion in 2025, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 6% through 2033. This expansion is fueled by several key drivers. Rising disposable incomes amongst high-net-worth individuals in the US, Canada, and Mexico are significantly boosting demand for premium vehicles. Technological advancements, including the integration of advanced driver-assistance systems (ADAS), electrification, and enhanced infotainment features, are further enhancing the appeal of luxury cars. The preference for SUVs and crossovers within the luxury segment is also contributing to market growth, driven by their versatility and practicality. However, the market faces headwinds such as fluctuating fuel prices, potential economic downturns impacting consumer spending, and the increasing cost of raw materials impacting vehicle manufacturing. The competitive landscape is highly concentrated, with established players like Tesla, BMW, Mercedes-Benz (represented by Daimler), and others vying for market share. Electric vehicle adoption within the luxury segment is expected to accelerate, driven by government incentives, increasing consumer awareness of environmental concerns, and technological advancements leading to enhanced EV performance and range. Geographic segmentation reveals that the United States constitutes the largest portion of the market, followed by Canada and Mexico. The “Rest of North America” segment represents a smaller, but growing market. The segmentation of the market reveals distinct trends. The SUV segment is dominating sales within the luxury car market, driven by its spaciousness and perceived value. While internal combustion engine (ICE) vehicles remain dominant currently, the electric vehicle (EV) segment within the luxury car market is showcasing rapid growth and is poised for substantial market share gains over the forecast period. This transition is particularly noticeable in the United States, where government policies and consumer preferences are accelerating EV adoption. Competition among manufacturers is intensifying, with each company focusing on unique selling propositions such as innovative technology, superior performance, and exclusive design features to maintain their market positioning. Strategic partnerships, technological innovation, and a focus on sustainable practices will be crucial for success in this dynamic market. Looking towards 2033, the North American luxury car market is anticipated to reach a substantial size, driven by the continued adoption of electric vehicles and the overall growth of the luxury consumer market. Notable trends are: Rise in electrification of vehicles.