Luxury Electric Vehicle Market: Current Analysis and Forecast (2024-2032)
Emphasis on Propulsion Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, and Fuel Cell Electric Vehicle); Vehicle Type (Cars, Vans, Buses, and Trucks); and Region/Country
Luxury Electric Vehicle Market Size & Forecast
The Luxury Electric Vehicle Market was valued at approximately USD 150.6 Billion in 2023 and is expected to grow at a robust CAGR of around 15.3% during the forecast period (2024-2032) owing to the increasing consumer demand for eco-friendly transportation, technological advancements, and government incentives for electric mobility.
Luxury Electric Vehicle Market Analysis
Rising demand for emission-free, air combating fuel efficient, and technologically advanced vehicles is driving the growth of the luxury electric vehicle in the market. In addition, the increasing consumer inclination towards entertainment, safety, and comfort features has positively impacted the market growth. Besides, the growing number of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) in the emerging economies of the Asia Pacific region has propelled the demand for luxury electric vehicles.
The automotive industry is currently undergoing a significant transformation, particularly in the luxury segment, due to the emergence of electric vehicles (EVs). The following are some of the reasons that influence this change: Firstly, there is a rising trend in emission of Greenhouse gases in the world hence consumers of luxury cars are in search of environmentally friendly transport systems. Secondly, the very high rates of technological growth of electric cars, their batteries, and the development of new options for battery charging have made such segments of electric vehicles stable and attractive to a wide range of consumers. Lastly, there are trends such as the shift to features, connectivity, and new emotive higher-end, luxury mobility experiences that align well with characteristics that define luxury EVs.
Luxury Electric Vehicle Market Trends
This section discusses the key market trends influencing the luxury electric vehicle market segments as identified by our research experts.
Battery Electric Vehicle Transforming Industry
The battery-electric vehicle segment accounted for the largest share of the market. An increase in environmental consciousness, as well as different governments’ initiatives aimed at the growth of electric vehicle imports worldwide, is also contributing to the battery electric vehicle segment increase in the world market. Besides, the higher tendency of car makers to develop various types of electric vehicles with the incorporated artificial intelligence and IoT features also fuels the growth of the segment. For instance, one of the key industry players Audi AG intends to release the 2023 Audi e-tron® GT car in 2023, equipped with Matrix-design LED headlights, X-frame trim, and laser lights.
Asia Pacific is Expected to Grow with Significant CAGR During Forecast Period
Asia Pacific is expected to grow with a significant CAGR during the forecast period. The region is expected to maintain its position over the forecast period owing to rising interest from the government in developing battery charging stations and hydrogen fueling stations in developing countries including China and India. For instance, the recent target set by the Chinese government is the development and sale of hydrogen fuel cell vehicles to replace current fleets. They set an ambitious target, with a target of one million fuel-cell electric vehicles on the road and 1,000 hydrogen fueling stations to be installed by 2030. Consequently, the government’s actions are to boost battery electric and fuel cell electric luxury derivatives penetration into the market.
Luxury Electric Vehicle Industry Overview
The luxury electric vehicle market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Tesla Inc., AB Volvo, BYD Auto Co., Ltd., Ford Motor Company, Hyundai Motor Company, Volkswagen AG., BMW AG, Toyota Motor Corporation, Kia Corporation, and Audi AG.
Luxury Electric Vehicle Market News
For instance, in April 2022, BYD Auto Co., Ltd., has launched the Han EV series, which includes a wide range of vehicles from mid-level vehicles to luxury sedans. The series includes both battery-electric vehicles and plug-in hybrid vehicles.
In 2024, Kia India also launched the EV9 luxury electric SUV today. Entering the country in a completely built-up (CBU) avatar, the Kia EV9 will take on the Mercedes-Benz EQE and the BMW iX. For reference, the EV9 is Kia’s most expensive vehicle and also the most sophisticated vehicle the carmaker has ever developed
Luxury Electric Vehicle Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global luxury electric vehicle market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Luxury Electric Vehicle Market Analysis (2022-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Luxury Electric Vehicle market were the three major steps undertaken to create and analyze the adoption of Luxury Electric Vehicle in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Luxury Electric Vehicle market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Luxury Electric Vehicle market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the luxury electric vehicle market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, such as propulsion type, vehicle type, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Luxury Electric Vehicle market. Further, we conducted factor analysis using dependent and independent variables such as propulsion type, vehicle type, and luxury electric vehicle market regions. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Luxury Electric Vehicle market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above three steps, we arrived at the current market size, key players in the global Luxury Electric Vehicle market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the luxury electric vehicle market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global luxury electric vehicle market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global luxury electric vehicle market. Data was split into several segments and sub-segments after studying various parameters and trends in the propulsion type, vehicle type, and regions of the global Luxury Electric Vehicle market.
The main objective of the Global Luxury Electric Vehicle Market Study
The current & future market trends of the global luxury electric vehicle market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the Luxury Electric Vehicle market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of propulsion type, vehicle type, and regions.
- Define and analyze the regulatory framework for the Luxury Electric Vehicle
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the Luxury Electric Vehicle market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
- Company profiles of the Luxury Electric Vehicle market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry
Frequently Asked Questions FAQs
Q1: What is the global luxury electric vehicle market's current size and growth potential?
Q2: What are the driving factors for the growth of the global luxury electric vehicle market?
Q3: Which segment has the largest share of the global luxury electric vehicle market by propulsion type?
Q4: What are the emerging technologies and trends in the global luxury electric vehicle market?
Q5: Which region will dominate the global luxury electric vehicle market?
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