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.

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 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:

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.

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.

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%.

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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.

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The market in Europe is experiencing significant growth, w

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.

Luxury Car Market size was valued at USD 1.3 trillion in 2024 and is projected to reach USD 2.12 trillion by 2030. Along with a CAGR of around 10.28%.

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.

Over the forecast period until 2029, the number of vehicle sales is forecast to exhibit fluctuations among the ten segments. Concerning the ten selected segments, the segment Chrysler has the largest number of vehicle sales with ****** vehicles. Contrastingly, ALPINA is ranked last, with ** vehicles. Their difference, compared to Chrysler, lies at ****** vehicles. Find further statistics on other topics such as a comparison of the average price in Kyrgyzstan and a comparison of the revenue by make in Brazil. The Statista Market Insights cover a broad range of additional markets.

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%.

The global luxury car market is experiencing robust growth, driven by increasing disposable incomes in emerging economies, a rising preference for premium vehicles, and technological advancements leading to enhanced features and performance. The market, valued at approximately $350 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This growth is fueled by several key factors. The consistent introduction of innovative electric and hybrid models by leading manufacturers like Tesla, BMW, and Mercedes-Benz is capturing a significant portion of the market share, attracting environmentally conscious and technologically savvy consumers. Furthermore, the ongoing expansion of luxury car brands into emerging markets, especially in Asia-Pacific and the Middle East, is contributing to the overall market expansion. The trend towards personalization and customization of vehicles further fuels demand, allowing consumers to tailor their luxury cars to their specific preferences. However, several challenges restrain the market’s growth trajectory. Economic downturns and fluctuations in currency exchange rates can significantly impact luxury car sales, as these vehicles represent a significant investment. Stringent emission regulations and increasing fuel costs are also pushing manufacturers to innovate, which can affect overall profitability in the short term. The rising cost of raw materials and supply chain disruptions pose additional challenges. Segment-wise, the High-End Luxury and Near-Super Luxury Vehicles segment holds the largest market share, followed by Performance Luxury Vehicles and Ultra Luxury Vehicles. Geographically, North America and Europe currently dominate the market, though rapid growth is observed in the Asia-Pacific region, fueled by China and India's expanding affluent classes. The dominance of established players like Mercedes-Benz, BMW, and Jaguar Land Rover is being challenged by the emergence of Tesla and other new entrants who are leveraging technological innovation to compete effectively. The long-term forecast anticipates a continued upward trend, particularly as sustainability and technology integration further shape the luxury car landscape.

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 global luxury car market is experiencing robust growth, driven by increasing disposable incomes in emerging economies, a preference for premium experiences, and technological advancements in vehicle features and sustainability. The market, estimated at $500 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching approximately $900 billion by 2033. This expansion is fueled by several key factors: the rising popularity of electric and hybrid luxury vehicles catering to environmentally conscious consumers; the introduction of innovative in-car technologies enhancing comfort, safety, and connectivity; and the growing demand for personalized luxury experiences, leading to bespoke vehicle customization and exclusive services. High-end luxury and near-super luxury vehicles currently dominate the market share, although performance luxury vehicles are witnessing substantial growth, driven by younger, affluent buyers seeking high-performance capabilities. Regional variations in market performance are significant. North America and Europe are currently leading the luxury car market due to established affluent consumer bases and a well-developed automotive infrastructure. However, the Asia-Pacific region, particularly China, is demonstrating exceptionally rapid growth, fueled by a burgeoning middle class and increasing vehicle ownership. The market faces challenges including supply chain disruptions, semiconductor shortages, and the increasing regulatory scrutiny of emissions standards. Nevertheless, the long-term outlook for the luxury car market remains positive, with continued technological innovation and evolving consumer preferences poised to shape its future trajectory. Key players such as Mercedes-Benz, Land Rover, Tesla, BMW, Jaguar, Lexus, and Maserati are fiercely competing for market share through product diversification, strategic partnerships, and aggressive marketing campaigns.

Get key insights on Market Research Intellect's Luxury Cars Market Report: valued at USD 550 billion in 2024, set to grow steadily to USD 800 billion by 2033, recording a CAGR of 5.2%.Examine opportunities driven by end-user demand, R&D progress, and competitive strategies.

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.

Discover the latest market analysis on the booming luxury vehicle market, projected to reach $963.6 million by 2033 with a 6.2% CAGR. Explore key trends, regional insights, and competitive landscapes for brands like Mercedes-Benz, BMW, and Tesla. Learn about the growth of SUVs, electric vehicles, and the future of luxury car sales.

Global Luxury Car market size 2021 was recorded $573.611 Billion whereas by the end of 2025 it will reach $719.4 Billion. According to the author, by 2033 Luxury Car market size will become $1131.56. Luxury Car market will be growing at a CAGR of 5.825% during 2025 to 2033.

In 2024, the United States ranked first by revenue by make in the 'Luxury Cars' segment of the passenger cars market among the 5 countries presented in the ranking. United States' revenue by make amounted to ************ U.S. dollars, while Germany and Russia, the second and third countries, had records amounting to ************ U.S. dollars and ************ U.S. dollars, respectively.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Luxury Cars.