Luxury Car Market – 2024 Industry Analysis

A robust predicted growth from $582.19 billion in 2023 to $632.68 billion in 2024 indicates that buyers still crave the opulent, high-performance designs found in the luxury car market.

However, the question remains, “How much is this market expected to grow in the coming years?”

The luxury car market is projected to soar at a compound annual growth rate of 7.7% and reach approximately $850.93 billion by 2028. Experts attribute much of this growth to subscription-based ownership models, evolving sustainable luxury trends, and new global economic trends.

In this guide, we’re going to take a deeper look at the luxury market and explore some of the main factors fueling its expansion.

Luxury Car Market By Size

Take a look at our luxury car market analysis for more insight into how demand differs from region to region.

Our analysis covers everything from the largest market size in Europe to growing markets in Africa and Oceania.

Region	Projected Revenue 2024	Best Selling Brands/Cars	Typical Buyer Profile
North America	$6.88 billion	Tesla, BMW Mercedes-Benz (Mercedes EQS)	Affluent professionals and families (especially in the luxury SUV market)
Europe	$7.53 billion	BMW, Mercedez-Benz, Audi (Audi e-Tron)	High net-worth individuals and corporate fleets​​
Asia-Pacific	$3.7 billion	Lexus, BMW, Mercedez-Benz	Affluent class and business tycoons
Middle East	$1.6 billion	Rolls-Royce, Bentley, Mercedes-Benz	Royalty and high-ranking officials
Oceania	$145 million	Mercedes-Benz, BMW, Audi	Professionals and executive buyers
South America	$1.2 billion	BMW, Mercedes-Benz, Audi	Affluent families and business leaders
Africa	$436 million	Volkswagen, Mercedes-Benz	Elite class

Luxury Car Market Segmentation

The luxury car market can be split into two main segments — vehicle type and drive type.

Vehicle Type

In the vehicle type segment, the market is classified into sedans, SUVs, sports cars, coupes, and convertibles.

Sedans still hold the largest share of the global market at just under 50%.

However, SUVs are on the rise, forecasted to grow at an expedited CAGR from 2024 to 2030.

This likely prompted Porsche to launch its new luxury SUV, the Porsche Macan.

Drive Type

On the drive type side, we have three main categories, including internal combustion engines (ICE), electric vehicles (EV), and hybrids.

Internal combustion engines are currently dominating the market, with manufacturers like BMW, Mercedes-Benz, and Audio controlling the majority share.

However, over the next ten years, experts expect to see a sharp decline in this segment.

This is especially likely as many major luxury car manufacturers switch their focus over to electric vehicles.

Top Luxury Car Companies Leading the Industry

As the global luxury car market continues thriving in its entirety, a few companies continue to lead the pack today.

Rolls-Royce

Rolls-Royce is one of the most active bespoke luxury car brands on the market, focusing first and foremost on personalization.

When the company introduced the Spectre, the first all-electric car from Rolls-Royce, in 2023, it kickstarted the plan to deliver solely electric cars by 2030.

The brand also made record-breaking sales in 2023, delivering 6,032 motor cars worldwide.

The UK economy reports that the brand brings in over £500 million annually, and, to this day, the Cullinan SUV is the best-selling model.

Ferrari

Ferrari is probably the most popular and prestigious image most people get when they think of luxury cars.

Since 1947, the Italian luxury brand has continued to innovate, building pieces of art with incredible performance power.

The company experienced significant sales growth in 2023, delivering 13,633 vehicles worldwide and bringing in $6.63 billion with 22.38% growth.

The 488 continues to be its top-selling model.

Lamborghini

Lamborghini builds some of the most impressive luxury vehicles in the luxury car market, offering high-performance Italian manufacturing alongside Ferrari.

The brand reported pretty outstanding results in 2023, delivering a record 10,112 cars with a turnover of €2.66 billion. The Urus continues to be Lamborghini’s best-selling model.

Bugatti

When many luxury buyers think of ultra-powerful engines and handcrafted construction, they think of Bugatti.

The Bolide is often touted as the most “beautiful hypercar on Earth.” While specific financial details are unavailable, the brand’s revenue is projected to reach $97 million by 2024.

Because they provide a “tailormade” experience, there is no best-selling model.

However, they’ve begun putting energy into marketing the DIVO, which is a modern take on coachbuilding.

McLaren

McLaren Automotive is another luxury brand known for pushing the boundaries of speed and luxury in the automotive industry.

The brand turned just over $426 million in 2023 and is among the brand’s range of super- and hypercars.

Among these, the advanced hybrid Artura stood out.

Aston Martin

While most famous for its association with the James Bond film series, making DB5 a classic symbol of sophistication, Aston Martin is now lining the streets with high-performance models like the DBX707 and the special-edition V12 Vantage.

The DBX is, by far, its best-selling model, which will likely account for much of the brand’s projected revenue for 2024, which is expected to be around $691 million.

Bentley

Bentley is synonymous with luxury, and with exquisite interiors and several tank-like builds, the brand’s models are statement-giving.

In 2023, Bentley’s sales revenue reached $1.22 billion, an 11.7% increase from 2022, with the Bentley Bayaga leading the pack, making up nearly 44% of sales.

Porsche

Porsche is a bit more accessible than other luxury car brands, yet is still known for its high-performance sports cars.

In 2023, Porsche demonstrated significant growth with $43 billion in revenue, while the 911 and Taycan were its two best-selling models.

Luxury Car Market Distribution Channels

The luxury car market is made up of several distribution channels, all of which are evolving to include both traditional and emerging points of sale.

Franchised Dealerships

Franchised dealerships are made up of two separate channels, including brand-owned boutiques and authorized dealerships.

Brand-owned boutiques provide a higher-end, personalized buying experience, catering directly to luxury consumers.

There is a considerable shift toward this channel, as luxury buyers want a more customer-centered approach.

Traditional franchised dealerships are playing less and less of a role, especially with data ownership conflicts and difficulties in building a seamless omnichannel experience.

Emerging Channels

The shift towards online car buying is accelerating at a rapid pace. In fact, more than 40% of high-end vehicle customers prefer purchasing online, which tracks, as it aligns with the ever-growing desire for a digital and direct-to-consumer retail experience.

In the same manner, subscription models are gaining traction as an alternative to traditional car ownership, especially for younger consumers.

Several OEMs offer subscription models, including Porsche, BMW, Audi, Lexus, Land Rover, and Mercedes-Benz.

Volvo expects that nearly 50% of its vehicles will be sold on a subscription basis by 2025.

Luxury Car Market Drivers

Growing Affluent Population

One of the main drivers of the luxury car market is the increasing number of ultra-high-net-worth individuals.

With the increasing disposable incomes and personal wealth of consumers, there’s a growing demand for advanced technology and premium features in high-end automobiles.

Not only is this emerging demographic shifting the demand status, but it also has the likelihood of enhancing the sales potential of these luxury brands.

Shifting Demographics Toward Emerging Economies

In China and India, we’re beginning to see a surge in younger, high-net-worth individuals.

According to experts, these countries are seeing an 85% surge in millionaires, many of whom are becoming key consumers of luxury products like premium vehicles.

Manufacturers are now turning their focus to these regions and tailoring their new models to the specific demographic.

Desire for Status and Exclusivity

Beyond tech, transportation, and comfort, luxury vehicles offer a sense of status and exclusivity.

Owning a high-end vehicle is often associated with prestige and high social standing, tapping into the human inclination toward distinction.

When consumers purchase luxury goods, they want the kind of performance and aesthetic that reflects their social status and personal success.

Technological Advancements

From electric powertrains to advanced infotainment systems, there are several technological advancements driving the automotive industry.

High-end consumers looking for the latest automotive technology, such as autonomous driving, connectivity, or eco-friendly features, look to luxury vehicles.

The next-gen technologies are predicted to have a significant increase in sales in the SUV market, in particular, by 2032.

Trends in the Luxury Car Market

Let’s take a look at the six major trends in luxury vehicles to see what we can expect during this growth period over the next year.

Rising Demand for SUVs and Crossovers in the Luxury Segment

With the same symbolic appeal as luxury cars, the market is beginning to see a rising demand for luxury SUVs and crossovers.

These vehicles offer more practicality with off-road capabilities, greater cargo space, and the same luxury and performance that consumers expect from high-end brands.

To capture this segment of buyers, more and more luxury auto manufacturers expanding their SUV and crossover offerings.

Increasing Focus on Electrification and Hybrid Powertrains

Electrification is another key trend in the luxury car market, especially as more buyers prioritize environmental concerns and opt for premium technology integrations.

Luxury brands are starting to invest heavily in electric powertrains to meet tightening emission regulations, and green-leaning consumers are here to meet them at the ends of the assembly lines.

Personalization and Customization Options Gaining Traction

Customization and personalization are two of the most important factors for luxury car buyers.

In fact, many luxury buyers expect these factors, especially from brands that offer extensive bespoke options.

Consumers can now tailor their vehicles to their exact preferences and specifications, whether they’re looking for unique color palettes, premium infotainment connectivity, or advanced engine systems.

Integration of Advanced Driver Assistance Systems (ADAS)

Advanced driver-assistance systems (ADAS) are slowly becoming the standard in the luxury vehicle market, as they provide drivers with the latest technology, including adaptive cruise control, lane-keeping assist, and automatic braking.

Many of these features go beyond comfort and convenience, providing an additional level of safety for concerned drivers.

Subscription Services Becoming a New Avenue for Luxury Cars

Up until now, the market has been dominated by two purchasing options — leasing and buying.

However, many luxury car brands have developed new subscription programs, giving consumers access to a wider range of luxury vehicles for flexible monthly fees.

Buyers who don’t want to make a long-term commitment to their vehicles can take advantage of this model.

Growing Emphasis on Sustainability in Production and Materials

The growing focus on sustainability can be seen everywhere in luxury marketing today, and in the luxury car market, many new buyers have an expectation of corporate responsibility and eco-friendly manufacturing adaptions.

The changing zeitgeist has forced automobile manufacturers to reduce their environmental impact with new production methods and an increase in sustainable materials.

Final Thoughts

With a shift in emerging markets and an ever-growing desire for status and exclusivity, the luxury car market will be in good standing over the next decade.

From the push toward electrification to the considerable shift in eco-friendly marketing, many auto brands must find a way to tap into evolving trends to maintain visibility.

This is where Mediaboom comes in.

Get in touch with us today to learn how we can create a targeted strategy for your luxury car brand.