Luxury Car Market to Exhibit a CAGR of 10.5% Between 2023-2030; Electric and Hybrid Technologies to Drive Market toward Eco-friendly Future

The global luxury car market size was valued at USD 1.05 trillion in 2022. The market is projected to grow from USD 1.17 trillion in 2023 to USD 2.55 trillion by 2030, exhibiting a CAGR of 10.5% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Luxury Car Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (SUV, Sedan/Hatchback, Sports/Super Luxury Cars), By Propulsion (Electric/Hybrid, ICE), By Component (Drivetrain, Interior, Body, Electronics, and Chassis), and Regional Forecast, 2023 – 2030”.

Elite car manufacturers are responding to the growing demand for environment-friendly vehicles by prioritizing the development of electric and hybrid technologies. They are introducing all-electric models or hybrid versions of their existing models to meet the need for eco-friendly transportation.

Supply Chain Disruptions Impact Car Manufacturing Amidst Pandemic

The COVID-19 pandemic led to temporary closures or reduced operations in the automotive manufacturing sector worldwide, resulting in supply chain disruptions due to lockdown measures. The market experienced production delays, leading to limited availability of luxury vehicle models.

Lucid Air Receives Prestigious Luxury Vehicle of the Year Award

Lucid Air, renowned for its impressive Electric Vehicle (EV) range, was honored as the luxury vehicle of the year at the esteemed 2023 New York International Auto Show. The luxury electric car emerged victorious among a list of 16 luxury vehicles competing for the prestigious award.

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/luxury-car-market-104453

OEMs Embrace Electric and Hybrid Models in Response to Environmental Demands

Luxury car Original Equipment Manufacturers (OEMs) are actively developing all-electric models or hybrid variants of their existing models to meet the increasing demand for eco-friendly transportation. This industry trend aligns with the objective of reducing carbon emissions and transitioning toward cleaner energy sources. As an illustration, Cadillac introduced an all-electric ultra-luxury SUV in October 2022, equipped with a range of advanced features such as adaptive air suspension, active rear steering, magnetic ride control 4.0, Advanced All-Wheel Drive (AWD), active roll control, active rear spoiler, ride-focused tires, and 5-link front and rear suspension.

However, high net-worth individuals may postpone their purchases during economic downturns, which may hinder the luxury car market growth.

Competitive Landscape

Key Players in the Market Compete on Multiple Fronts to Establish Differentiation

In the market, major players employ unique selling propositions and strategies to differentiate themselves from competitors. These key players compete based on design, performance, technology, brand reputation, customer service, and pricing. Leading companies, such as Mercedes-Benz, BMW, Audi, Lexus, and others, are at the forefront of this competitive landscape, continually striving to offer distinct offerings to their discerning customers.

Notable Industry Development: 

• February 2023 – Toyota Motor Corp. announced that it will launch two new luxury vehicles during the next fiscal year 2024. The company will launch an SUV, the Toyota Century, and a luxury minivan version of Lexus brand, the Lexus LM.

List of Key Players Profiled in the Report:

• Mercedes Benz (Germany)


• Audi (Germany)


• BMW (Germany)


• Lexus (Japan)


• Porsche (Germany)


• Jaguar Land Rover (U.K.)


• Cadillac (U.S.)


• Maserati (Italy)


• Volvo (Germany)


• Genesis (South Korea)

Further Report Findings:

• North America, specifically the U.S., benefits from a considerable disposable income and a substantial number of ultra-high net worth individuals. This establishes a substantial consumer base with the financial capacity to invest in luxury vehicles, thereby expanding the luxury car market share.


• In Europe, the market thrives due to the prominence of renowned automotive brands such as BMW, Mercedes-Benz, Audi, and Rolls-Royce. These prestigious brands contribute to the robust demand for luxury segment cars, consequently fueling market expansion in the region.


• By vehicle type, the market is divided into SUV, sedan/hatchback, and sports/super luxury cars. SUVs dominate the market due to their practical functions and unparalleled driving experience.


• Based on component, the market is divided into drivetrain, interior, body, electronics, and chassis. The electronics segment leads due to implementation of IoT, development in ADAS technology, digital services, and autonomous driving technology.


• By propulsion type, the market is segmented into electric/hybrid and ICE.

Report Scope & Segmentation