Research Support Specialist, USA
The global luxury cars market size is expected to reach USD 22.2 billion by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 6.7% from 2021 to 2028. The market growth is credited to the increasing disposable income, rising spending on passenger cars, a shift in consumer preferences, globalization, and expansion of the key players. Technological developments and improvements and frequent product launches are likely to propel the market growth over the forecast period. Additionally, joint ventures and partnerships are likely to fuel the market growth. For instance, on December 1st, 2021, General Motors announced a joint venture with POSCO Chemicals to build a factory in the U.S. that will focus on the process of Cathode Active Material (CAM), a key battery material for electric vehicles.
The Covid-19 outbreak negatively impacted the mass market, including luxury cars. Due to the Covid-19 restrictions and lockdown, halted trade activities resulted in the shortages of semiconductors and other car components along with the supply chain. This impacted the production and manufacturing process, thereby slumping the global market for luxury cars. However, the market is expected to recover in the coming years due to a swift increase in car sales owing to post-pandemic relaxations and vaccination progresses.
Electric-based luxury cars are anticipated to register the highest CAGR of 14.8% over the forecast period. Developments in the electrical vehicles sector with enhanced functionality and luxurious interior and exterior are expected to attract more consumers, thus driving the market for luxury cars. Key players in the market are keen on phasing out conventional fossil fuel cars and focusing on electric vehicle production. For instance, Hyundai Motor Company, Bentley Motors Limited, General Motors plan to go all-electric in the next decade.
Europe held the second-largest revenue share in 2020. Higher consumer spending on passenger cars, the prominent presence of key players, and higher disposable income are contributing to the regional market growth. Stellantis NV, Volkswagen, BMW, Volvo Car Corporation, and Renault are some of the key players headquartered in European countries. Higher penetration of luxury electric cars in the region compared to the others is also positively impacting the market growth.
The report “Luxury Cars Market Size, Share & Trends Analysis Report By Fuel Type (Petrol, Diesel, Electric), By Region (North America, Europe, Asia Pacific, CSA, MEA), And Segment Forecasts, 2021 - 2028” is available now to Million Insights.
Million Insights has segmented the global luxury cars market on the basis of fuel type and region: