BMW remained the leading luxury car brand in the United States in 2020. BMW sold about ******* cars in the United States in 2020 and reached a luxury car market share of about **** percent. U.S. luxury car market share in 2020, by key marque There is something majestic about luxury vehicles. From the glass panel roofs and the LED headlights to the leather-trimmed seats and powerful engines, these automobiles are built with the finest of materials, giving each driver the feeling of uniqueness. Regarding the overall luxury car market, the leading premium car brands include BMW, Lexus, and Mercedes-Benz. The source excludes Tesla because the company does not provide model sales by country. Tesla is among the leading car brands in the United States with deliveries of more than ******* units in 2020, including some ****** Model S cars, one of the leading electric vehicle models based on sales in the United States. In 2020, the global market for luxury cars was sized at almost *** billion euros. Market segmentation Oftentimes, the luxury car market is broken down into the following segments: premium compact vehicles, mid-size luxury cars, high-end luxury cars, ultra-luxury cars, as well as luxury SUVs and crossover models. The boundaries between these categories are blurred and vary between regions. However, the price is largely defined as the major criterion for classifying luxury vehicles.

The North America Market Report is Segmented by Vehicle Type (Sedan, SUV/Crossover, and More), Drive Type (Internal Combustion Engine (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).

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 Luxury Car Market size was valued at USD 654.79 billion in 2023 and is projected to reach USD 1044.59 billion by 2032, exhibiting a CAGR of 6.9 % during the forecasts period. High-quality cars are identified based on such characteristics as quality, comfort, performance and technology of luxurious cars in the market. Luxury cars are products aimed at the elites given the fact that they are perceived as noble assets, rare items and products with better performing abilities on the road. Applications include passenger, commercial rental, limousine and leasing, to a focus clientele seeking luxury, status and advanced automotive technology. Out markets include luxury cars, luxury SUVs, sports cars and electric cars due to changing consumer tastes and advance in the environment for sustainable development. The trends that are prevalent in the current market of luxury cars are Self-driving features, Hybrid/Electric vehicles, bespoke styling and lightweight materials and sustainable powertrains. Also, digital connectivity is making driving a luxurious car even more luxurious and improving infotainment systems are pushing innovation and competition in the manufacturing of luxury cars across the world.

In financial year 2024, ************* had the largest market share in the luxury car segment in India, at ** percent. It was followed by *** at ** percent. During the same year, the total sales of luxury cars in India reached **** thousand units.

The global luxury car market, valued at $482.74 billion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 6.56% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, rising disposable incomes in emerging economies, particularly in APAC regions like China and Japan, are significantly increasing the demand for premium vehicles. Secondly, technological advancements, including the integration of advanced driver-assistance systems (ADAS), electrification, and connectivity features, are enhancing the luxury car ownership experience, attracting a broader customer base. The shift towards electric vehicles (EVs) within the luxury segment presents both opportunities and challenges. While EV adoption is increasing due to environmental concerns and government incentives, the higher initial cost of EVs compared to traditional internal combustion engine (ICE) vehicles remains a restraint. The market is segmented by product type (executive luxury cars and super luxury cars) and propulsion system (ICE and EV). Competition is fierce, with established automakers like Mercedes-Benz, BMW, and Audi vying for market share alongside emerging EV players like Tesla and luxury brands such as Ferrari and Aston Martin. These companies employ various competitive strategies, including technological innovation, branding, and strategic partnerships, to maintain their market positions. Regional variations in growth rates are expected, with APAC anticipated to lead due to its expanding middle class and increasing preference for luxury goods. Europe and North America will also continue to hold substantial market share, driven by established consumer demand. The industry faces risks including global economic fluctuations, supply chain disruptions, and the ongoing transition to sustainable mobility. The luxury car market’s success hinges on the ability of manufacturers to balance technological innovation with the preservation of their brand's heritage and exclusivity. The increasing focus on sustainability and the integration of advanced technology necessitate strategic investments in research and development. The rise of subscription services and new mobility solutions could also transform the way luxury cars are accessed and utilized. While the market faces challenges, its growth trajectory is undeniably positive, with continued opportunities for established players and emerging entrants to carve out their niche. Market leadership will likely depend on the successful navigation of evolving consumer preferences, technological advancements, and global economic conditions.

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%.

Between 2015 and 2018, Ferrari was remarkably more popular in Asia than in Europe or the Americas. Over this period, it lost ***** percent of the European luxury car market and *** percent of the American one. In 2018, the Italian car brand accounted for more than a quarter of the luxury car market in Asia. With a market share *** percent larger than in the traditional markets of Europe and America, Ferrari was filling the demand for luxury cars among new affluent individuals in Asia. When looking at the sales volume, the number of shipments made to Asian countries amounted to about ********* of the shipments made worldwide. A global status-symbol In total, Ferrari shipped about ***** road vehicles in 2018. Ferrari’s decision to keep low production volumes was dictated by the desire to maintain a reputation for exclusivity among its customers. In 2018, their range of road cars encompassed only ***** models: of these, sports cars accounted for ********** of the global shipments. Domestic popularity The domestic sales volume of Ferraris amounted to less than **** ******* units in 2018: Italy was the third European market, after the United Kingdom and Germany. In Italy, the brand is considered a national icon, as reflected by the buzz it generates on social media: on Facebook, Ferrari is the most talked-about automotive brand in the country.

The European Luxury Cars Market report segments the industry into Vehicle Type (Hatchback, Sedan, Sport Utility Vehicle, Multi-purpose Vehicle), Drive Type (IC Engine, Electric), and Country (Germany, United Kingdom, France, Spain, Italy, Russia, Netherlands, Denmark, Sweden, Belgium, Switzerland, Rest of Europe). Get five years of historical data alongside five-year market forecasts.

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.

In 2023, Tesla was the leading luxury car brand in the United States, recording luxury sales of around 650,100 units. It edged out its main competitor, BMW, which recorded estimated sales of over 351,600 luxury vehicles.
The U.S. luxury market
Luxury cars represented an estimated 6.8 billion dollars in revenue in the U.S. in 2022, with a projected growth in 2023. The U.S. were the leading market for luxury automobiles worldwide, with a market size over twice the revenues generated by the luxury car market in Germany, the second largest market for the segment. Despite the revenues generated by the luxury market, the U.S. represented less than a quarter of BMW’s regional automobile sales in 2023, 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 79 percent, Toyota’s subsidiary Lexus was the first most reliable car brand for car owners in late 2023. Lexus was also second in overall consumer satisfaction that same year, followed by Tesla. However, the importance of buying luxury cars, motorcycles, or bicycles in the U.S. was relatively low, with 19 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 Luxury Car Market size was valued at USD 1.05 USD Trillion in 2023 and is projected to reach USD 2.11 USD Trillion by 2032, exhibiting a CAGR of 10.5 % during the forecast period. Luxury cars are the achievement of automotive engineering, design, and craftsmanship, offering an exceptional driving experience, unparalleled comfort, and cutting-edge technology. Luxury cars are typically equipped with the latest safety features, technology integrations, and performance components. In luxury cars, high-quality parts, including expensive interior materials, driving pleasure, and cabin comfort, are the key ingredients. Luxury cars provide more than just a stunning vehicle: better service, exclusivity, and others. Luxury car manufacturers are continually improving cutting-edge technology and innovative features in their vehicles to enhance performance, comfort, safety, and connectivity. Features such as advanced driver assistance systems, autonomous driving capabilities, infotainment systems, and luxury amenities appeal to selective consumers and drive demand for luxury cars. Key drivers for this market are: Increasing Demand for Forged Products in Power, Agriculture, Aerospace, and Defense to Drive Industry Expansion. Potential restraints include: Economic Downturn and Uncertainty Hinders the Market Development. Notable trends are: Rising Adoption of Automation in Manufacturing to Drive 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.

The Report Covers Asia-Pacific Luxury Car Market and it is Segmented by Vehicle Type (Hatchback, Sedan, SUV), by Drive (IC Engine, Electric), and Country.

The global luxury vehicle market, valued at $946.6 million in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.1% from 2025 to 2033. This expansion is driven by several key factors. Increasing disposable incomes in emerging economies, particularly in Asia-Pacific, fuel demand for premium vehicles. A rising preference for SUVs and crossovers, offering a blend of luxury and practicality, further contributes to market growth. Technological advancements, such as the integration of advanced driver-assistance systems (ADAS) and electrification, are enhancing the appeal of luxury vehicles, attracting a new generation of buyers. Furthermore, the ongoing expansion of financing options, including leasing and loans, makes luxury car ownership more accessible. However, the market faces challenges including economic downturns, potential supply chain disruptions, and growing concerns about environmental sustainability, demanding manufacturers adapt to evolving consumer preferences and regulatory landscapes. The competitive landscape is intensely saturated, with established players like Mercedes-Benz, BMW, Audi, and Lexus vying for market share alongside emerging electric vehicle (EV) manufacturers like Tesla. Regional variations in growth are expected. North America and Europe are anticipated to maintain significant market shares, while rapid growth is projected from the Asia-Pacific region, driven by the expanding Chinese and Indian markets. The segmental breakdown shows a strong preference for SUVs/Crossovers, reflecting the global trend towards versatile and spacious vehicles. The shift towards electric and hybrid powertrains will significantly impact market dynamics in the coming years, prompting manufacturers to invest heavily in research and development to meet evolving consumer demands for sustainable luxury transportation.

The global luxury car market size was valued at more than USD 695.82 billion in 2024 and is expected to register a CAGR of around 6.8%, exceeding USD 1.64 trillion revenue by 2037. Sports Utility Vehicle (SUV) segment is estimated to dominate 57% share by 2037, driven by high demand for SUVs globally, surpassing sedans in market share, with a continued trend expected in the future.

The global performance car market is experiencing robust growth, driven by increasing consumer demand for high-performance vehicles, technological advancements in engine technology and electrification, and a rising affluent population with disposable income. The market, estimated at $150 billion in 2025, is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated market value of $280 billion by 2033. Key drivers include the introduction of hybrid and electric performance vehicles, enhancing fuel efficiency and reducing emissions while maintaining exhilarating performance. Furthermore, advanced driver-assistance systems (ADAS) and connected car features are adding significant value and driving sales. However, the market faces restraints such as stringent emission regulations, particularly in Europe and North America, and the increasing cost of raw materials impacting production costs. Market segmentation reveals strong performance across various vehicle types, with electric vehicles gaining significant traction. Key players like Tesla, Porsche, and BMW are leading the innovation in electric performance cars, while established players such as Toyota, Honda, and Volkswagen are also investing heavily in hybrid and electric powertrains for their performance lines. The market is geographically diverse, with North America and Europe holding significant market shares, however, the Asia-Pacific region is witnessing rapid growth due to expanding economies and increasing car ownership. Competition is fierce, with both established automakers and emerging electric vehicle manufacturers vying for market share, leading to continuous innovation and the development of even more advanced and exciting performance vehicles in the coming years. The ongoing trend towards personalization and customization further fuels market growth, enabling manufacturers to cater to specific consumer preferences.

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.