Premium vehicles - luxury car market size worldwide 2010-2023

In 2023, the global market for luxury cars was estimated at around 635 billion euros, an estimated increase of around 12.2 percent year-on-year. That same year, the global luxury market was put at around 1.38 trillion euros.

Global luxury car market size

The luxury car segment is one of the most dynamic sources of revenue growth in the global luxury goods market. This segment is primarily driven by rising demand from increasingly affluent buyers in emerging markets. In 2020, the luxury car market contracted amid the outbreak of the coronavirus pandemic in key markets worldwide. The market effectively rebounded in 2021, despite grappling with the global chip shortage. Two years later, in 2023, the United States were the leading luxury automobile market worldwide, amounting to revenues of nearly 6.8 billion U.S. dollars.

Electrification of luxury cars

In an attempt to appeal to the more environmentally conscious group of buyers, a fair share of the luxury car fleet is projected to become more ‘eco-friendly’. Luxury electric vehicles such as the battery-powered models offered by Tesla are set to drive growth in the luxury car segment. At the same time, luxury SUVs are also expected to attract a new group of customers. High-end automobiles are expected to combine connectivity and ergonomics. However, smart vehicles require improved infrastructure, particularly in urban areas. As a result, there is a growing number of cities providing the infrastructure that is needed for the implementation of connected car programs.