Luxury Electric Vehicles Global Market Report 2024

The luxury electric vehicles market size has grown rapidly in recent years. It will grow from $178 billion in 2023 to $212.26 billion in 2024 at a compound annual growth rate (CAGR) of 19.2%. The expansion observed in the historical period can be credited to several factors, including government incentives promoting electric vehicles, the initial adoption by environmentally conscious consumers, an increase in environmental awareness, the development of charging infrastructure, and the overall expansion of the luxury automotive market.

The luxury electric vehicles market size is expected to see rapid growth in the next few years. It will grow to $404.71 billion in 2028 at a compound annual growth rate (CAGR) of 17.5%. The anticipated growth in the forecast period can be attributed to several factors, including sustained government support and incentives, a wider range of available luxury electric vehicle models, the expansion of fast-charging networks, a rising consumer preference for sustainable transportation, and the integration of autonomous driving features. Key trends expected in the forecast period encompass customization options for luxury electric vehicles, the incorporation of advanced infotainment systems, the adoption of artificial intelligence in vehicle management, the development of luxury electric SUV models, and collaborations between luxury car manufacturers and technology companies.

The anticipated growth in the luxury electric vehicle market is expected to be propelled by the implementation of environmental safety standards and regulations. Environmental, health, and safety regulations provide guidelines on various issues relevant to all business sectors, and their enforcement plays a crucial role in reducing greenhouse gas emissions and fostering the adoption of vehicle electrification. As an illustration, in April 2023, the United States Environmental Protection Agency enacted regulations aimed at significantly reducing hazardous air emissions from light-duty and medium-duty vehicles, starting with the model year 2027. These regulations aim to advance clean car technology, diminish climate pollution, enhance public health, and offer financial benefits to drivers through reduced fuel and maintenance costs. Consequently, the implementation of environmental safety standards and regulations emerges as a driving force in the luxury electric vehicle market.

The rapid development of infrastructure is poised to contribute significantly to the growth of the luxury electric vehicle market. Infrastructure, encompassing both physical and organizational structures necessary for societal or industrial operations, is a critical determinant of economic growth. Investments in infrastructure are essential for fostering economic development. The construction of charging infrastructure is particularly pivotal for market expansion as it enhances the convenience of owning an electric vehicle and alleviates concerns about limited driving range. For instance, in 2022, the Indonesian government committed to investing $430 billion in public infrastructure development by 2024. Additionally, in March 2022, the South African government, through the Department of Public Works and Infrastructure, announced the National Infrastructure Plan 2050 (Nip 2050) Phase I to enhance critical infrastructure development in the country. The rapid pace of infrastructure development serves as a significant driver in the luxury electric vehicle market.

Product innovation emerges as a key trend gaining traction in the luxury electric vehicle market, with major companies directing their efforts towards developing innovative products to reinforce their market positions. An illustrative example is AB Volvo, a Sweden-based manufacturer of luxury cars, trucks, buses, and construction equipment, which, in June 2023, introduced the EX30 fully electric small SUV. Featuring a twin motor performance option, this model combines an NMC battery with a second e-motor, delivering an all-wheel-drive capability and generating 315kW (428hp). The EX30 achieves impressive acceleration from 0 to 100 km/h in 3.6 seconds and incorporates an updated version of the Volvo Park Pilot Assist tool, capable of managing various parking scenarios.

Strategic partnerships represent another significant focus for major companies in the luxury electric vehicle market. A strategic partnership involves a collaborative arrangement between two or more businesses, often formalized through contracts. For instance, in July 2023, Aston Martin, an England-based manufacturer of luxury sports cars, entered into a strategic partnership with Lucid Group, Inc., a US-based manufacturer of electric luxury sports cars. This collaboration includes a strategic supply arrangement wherein Lucid supplies certain powertrain components to Aston Martin for both initial and future battery electric vehicle (BEV) models.

In July 2021, Mercedes-Benz, a Germany-based luxury electric car and commercial vehicle manufacturer, acquired YASA Limited for an undisclosed amount. This acquisition aims to offer consumers unparalleled driving experiences by providing the highest power densities and class-leading efficiency in compact sizes and weights. The collaboration with YASA Limited, a UK-based manufacturing company specializing in luxury electric vehicles, underscores Mercedes-Benz's commitment to advancing electric vehicle technology and delivering exceptional driving experiences to users.

Major companies operating in the luxury electric vehicles market report are Toyota Motor Corporation, Mercedes-Benz, Bayerische Motoren Werke AG, Ford Motor Company, Volkswagen AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Kia Corporation, Audi AG, AB Volvo, Porsche AG, Tata Motors Ltd., Lexus, Lincoln, Rolls-Royce, Cadillac, Infiniti, Maserati, Nio Inc., Bentley, Aston Martin, Lucid Group Inc., Genesis, Byton, Rimac Automobili, Automobili Pininfarina GmbH, Rivian, Canoo


Asia-Pacific was the largest region in the luxury electric vehicle market in 2023. The regions covered in the luxury electric vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the luxury electric vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of luxury electric vehicles include Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Fuel Cell Electric Vehicles (FCEVs), and hybrid models. Plug-in hybrid electric vehicles incorporate an electric motor that operates on electricity and is recharged externally through a socket. Various battery types, such as lead-acid and lithium-ion, are utilized, each with different ranges catering to high-end luxury and mid-range luxury segments. Luxury electric vehicles are designed in various forms, including cars, buses, vans, and trucks, and find applications in both personal and government sectors.

The luxury electric vehicles market research report is one of a series of new reports that provides luxury electric vehicles market statistics, including luxury electric vehicles industry global market size, regional shares, competitors with a luxury electric vehicles market share, detailed luxury electric vehicles market segments, market trends, and opportunities, and any further data you may need to thrive in the luxury electric vehicles industry. This luxury electric vehicles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The luxury electric vehicles market consists of sales of electric sports utility vehicles (SUV), and sedans. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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