Luxury Car Global Market Report 2024

The luxury car market size has grown strongly in recent years. It will grow from $582.19 billion in 2023 to $632.68 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. The growth observed in the historical period within the luxury car industry can be attributed to several contributing factors. These include economic prosperity and an affluent consumer base, the impact of globalization leading to market expansion, the significance of brand prestige and established heritage, evolving lifestyles and urbanization trends, and the emergence and growth of new markets.

The luxury car market size is expected to see strong growth in the next few years. It will grow to $850.93 billion in 2028 at a compound annual growth rate (CAGR) of 7.7%. Anticipated growth in the upcoming forecast period within the luxury car sector can be credited to several driving factors. These encompass the surge in electrification and sustainable luxury practices, the advent of subscription-based ownership models, the influence of global economic trends, heightened emphasis on in-car connectivity and entertainment features, and shifts in regulatory frameworks and emission standards. Additionally, major trends projected for this forecast period include the integration of digital technology to enhance customer experiences, advancements in autonomous driving technology, continual innovations in safety and comfort features, ongoing developments in design and engineering aspects, and the emergence of digital showrooms and virtual experiences. These trends are poised to significantly shape and impact the luxury car industry in the upcoming period.

The anticipated growth in the luxury car market is driven by the increasing trend of electric luxury vehicles. Electric luxury vehicles, exclusively powered by battery-stored energy and equipped with electric traction motors, are gaining popularity due to heightened environmental awareness and a growing desire for cutting-edge technology and innovation in the luxury automobile segment. This surge in demand for electric luxury cars serves as a primary driver for the overall growth of the luxury car market. For example, in January 2023, Tesla Inc., a leading US-based automobile company, reported production and delivery totals exceeding 439,000 for the Model S/X and over 405,000 for the Model 3/Y (luxury electric vehicles) in the fourth quarter. The annual increase of 40% in vehicle deliveries to 1.31 million in 2022, coupled with a 47% rise in manufacturing to 1.37 million, exemplifies the remarkable impact of the growing trend of electric luxury vehicles on the luxury car market.

A key factor propelling the growth of the luxury car market is the increasing disposable income. The rise in disposable income is typically associated with an improved economy, leading to higher wages, salaries, and increased healthcare expenditure. This increase in disposable income has a positive influence on luxury car sales as consumers gain greater purchasing power, enabling them to afford high-end vehicles as a form of discretionary spending. In August 2023, according to the Bureau of Economic Analysis, a US-based government agency, disposable personal income experienced a growth of $7.3 billion (less than 0.1 percent) in July 2023. This upward trajectory in disposable income contributes significantly to the growth of the luxury car market, as consumers are better positioned to invest in premium vehicles.

Technological advancements emerge as a key trend gaining momentum in the luxury car market, with major companies actively incorporating new technologies to bolster their market positions. An exemplary instance is the December 2022 launch by Bayerische Motoren Werke AG (BMW), a Germany-based automobile company, of the XM SUV. Distinguished as the first M vehicle to integrate plug-in hybrid powertrain technology, the XM SUV boasts a potent combination of a 4.4-liter twin-turbo V8 engine and an electric motor, producing 489 hp and 800 pound-feet of torque. This innovative powertrain is coupled with an 8-speed automatic transmission utilizing the M xDrive system, effectively distributing power to all four wheels. BMW's introduction of the XM SUV underscores the industry's commitment to advancing technology within luxury vehicles.

Major companies in the luxury car market are prioritizing product innovation, particularly in the realm of hands-free driver assistance technology. This technology enables vehicles to execute specific driving tasks without direct manual control by the driver. A notable example is the October 2022 launch by Cadillac, a US-based luxury vehicle company, of the CELESTIQ. Recognized as the world's first all-electric ultra-luxury sedan, the CELESTIQ represents the most technologically advanced Cadillac ever. It combines innovative technology with personalized, handcrafted artistry and features advanced all-wheel drive, adaptive air suspension with magnetic ride control, active rear steering, and Cadillac's inaugural active roll control. Additionally, the vehicle incorporates the ClimateSense individualized four-zone microclimate system. The introduction of such hands-free driver assistance technology exemplifies the industry's dedication to meeting evolving consumer demands and enhancing market presence through cutting-edge innovations in luxury cars.

In March 2022, Bayerische Motoren Werke AG, a prominent German luxury vehicle manufacturer, acquired Alpina Burkard Bovensiepen GmbH & Co. KG. This undisclosed acquisition aimed to bolster BMW's standing in the luxury car segment, specifically focusing on enhancing vehicle performance. Alpina Burkard Bovensiepen GmbH & Co. KG, also based in Germany, is renowned for its production of exclusive and high-performance automobiles.

Major companies operating in the luxury car market report are Volkswagen Group, Toyota Motor Corporation, Stellantis N.V., Mercedes-Benz Group AG, Ford Motor Company, BMW AG, Honda Motor Co Ltd., Hyundai Motor Group, Tesla Inc., Nissan Motor Co. LTD, Audi AG, Kia Corporation, Renault Group, Continental AG, Tata Motors Limited, Volvo Car Corporation, Mazda Motor Corporation, Subaru Corporation, Jaguar Land Rover Automotive PLC, Rolls-Royce plc, Ferrari N.V., Aston Martin Lagonda Group Limited, Acura, Brilliance Auto Group, Aiways.

Asia-Pacific was the largest region in the luxury car market in 2023. The regions covered in the luxury car market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the luxury car market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

These luxury vehicles encompass several types, including hatchbacks, sedans, sports utility vehicles (SUVs), and multi-purpose vehicles (MPVs). Hatchbacks are characterized by an additional rear door that can be lifted for convenient loading of cargo. Within the luxury car category, vehicles are typically classified into entry-level luxury, mid-level luxury, and ultra-luxury segments. They utilize various propulsion systems such as internal combustion engines (ICE) and electric powertrains, employing fuel types such as gasoline, diesel, and electric energy.

The luxury car market research report is one of a series of new reports that provides luxury car market statistics, including luxury car industry global market size, regional shares, competitors with a luxury car market share, detailed luxury car market segments, market trends and opportunities, and any further data you may need to thrive in the luxury car industry. This luxury car market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The luxury car market consists of sales of luxury SUV or crossover, full-size luxury sedan, mid-size luxury and compact luxury cars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.


The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.