According to a recent report published by Allied Market Research, titled, “Luxury car Market by Vehicle Type and Fuel Type: Global Opportunity Analysis and Industry Forecast, 2019-2026,” the global luxury car market size was valued at $495.7 billion in 2018, and is projected to reach $733.2 billion by 2026, registering a CAGR of 5.2% from 2019 to 2026.
Presently, Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the Asia-Pacific luxury car market share in 2018 and is anticipated to exhibit a remarkable growth during the forecast period.
Leading luxury car manufacturers are in a close competition, in terms of sales of luxury vehicles in the U.S. luxury car market. For instance, luxury car manufacturer, Mercedes-Benz outsold BMW AG, a major player in market, for second consecutive month in November 2019 by surpassing BMW with 2,508 vehicles. Leading providers of new and pre-owned vehicles in Canada are entering luxury cars market in Canada, which, in turn, is anticipated to boost the luxury car market in Canada. For instance, HGregoire, a company operating in new and pre-owned vehicle business entered the Canada luxury cars market with the opening of HGregoire INFINITI Laval.
Major players in the luxury car market in the UK are incorporating new carbon neutral luxury car factory, which, in turn, is anticipated to propel the market in the UK. For instance, Bentley Motors, a leading luxury car brand, incorporated UK' first carbon neutral luxury car factory. In addition, the factory’s electricity requirement is met by renewable energy resources. In addition, Luxury vehicle manufacturers in France are launching new range of luxury cars, which is anticipated to propel the growth of the market in France. In addition, on March 5, 2019, Bugatti, a French automaker, unveiled the world’s most expensive luxury vehicle at Geneva International Motor Show in Switzerland.
Leading automobile manufacturers are entering the China luxury car market, which in turn is anticipated to drive the market in this country. For instance, Hyundai, a South Korean multinational automotive manufacturer is planning to launch Genesis, Hyundai’s luxury vehicle division in China, which is expected to boost the luxury cars market in China. In addition, automotive giants operating in the luxury cars market in Japan are introducing new models of luxury vehicles with advanced features. For instance, on October 8, 2019, Toyota Motor Corporation announced its plans to release its new luxury car “Granace” in Japan.
Factors such as rise in demand for luxury vehicles and increased demand for comfortable driving experience propel the growth of luxury car market. However, high cost of luxury cars is anticipated to hinder the market growth. Further, production of electric luxury cars provides a remarkable growth opportunity for players operating in the luxury car market.
Key Findings of the Study
- On the basis of vehicle type, the sports utility vehicle segment is anticipated to exhibit a remarkable growth during the forecast period.
- On the basis of fuel type, the electric segment is anticipated to grow at the highest CAGR during the forecast period.
- Region wise, North America is the fastest growing region, followed by Europe, Asia-Pacific, and LAMEA.
The key players analyzed in this report are Volkswagen AG, Daimler AG, Lexus, Infiniti, BMW AG, Volvo Car, Audi AG, Aston Martin Lagonda, Tesla, and Ferrari N.V.