How big is the luxury car market?
The global luxury car market size was valued at USD 1. USD 1. USD 2. CAGR of 10. Asia Pacific dominated the global market with a share of 62. The global personal luxury goods market, valued at USD 410 billion in 2024, is projected to reach USD 526 billion by 2030, growing at a CAGR of 4.Dior, Gucci and other luxury brands in crisis as sales slide. The personal luxury fashion market is losing its luster. Recent sales figures show that the industry, which proved resilient after pandemic lockdowns, is slowing down.Luxury cars tend to depreciate faster, with some models losing around 50% of their original value in the first 3 years. Regular cars, on the other hand, lose around 30%-35% in the first three years.Studies predict that by 2030, up to 50 percent of today’s global luxury brands will disappear or be irrelevant. Key factor driving consumers away from luxury brands is the growing demand for exclusivity and personal connection, an expectation that many luxury brands have failed to meet.An uncertain and slower-growing global economy is the main driver of this decline. The luxury sector is highly sensitive to economic cycles – when times are good, consumers have more disposable income and are more willing to invest in luxury items such as high-end watches, designer shoes, handbags, or fine jewelry.
Is the luxury market declining?
Rising luxury consumer detachment was reflected last year, as the luxury market declined 1% at current exchange rates to $418 billion (€364 billion) – or remained flat at constant rates. Yet, most telling was that the luxury market lost some 50 million customers over the last two years. According to our data, Gen Z and millennials are purchasing the largest share of luxury items – averaging 16 and 14 items per year, respectively – representing a significant market opportunity for high-end merchants.Key Market Trends & Insights The Asia Pacific dominated the luxury goods market with a revenue share of 39. The luxury goods market in China accounted for the highest revenue share in 2024. In terms of product, the apparel segment accounted for a share of 25.The global luxury market is expected to grow between 1% to 3% annually from 2024 to 2027, according to a new report called ‘State of Luxury: Fashion’ from McKinsey.Personal luxury goods (fashion, leather goods, jewelry), which are the core of the sector, experienced their first contraction in 15 years, with spending declining by 2% in 2024 to €363 billion ($412 billion), mainly due to a drop in demand from Generation Z (those born after 1997), who are more price-sensitive.
What are the emerging markets for luxury cars?
Countries such as China, India, and Japan are leading this growth trajectory, supported by rising consumer demand for advanced and environmentally friendly vehicles. China was the largest automobile market based on new passenger car registrations, recording close to 25. It was followed by the United States and Europe. China was also the leading passenger car producing country in 2023.
What is the luxury car market outlook for 2025?
Summer 2025 is shaping up to be a buyer’s market for luxury cars, with several high-end models expected to see steep price drops. Lauren Fix, automotive expert at Car Coach Reports, explained that high inventory, slowing demand for electric vehicles and shifting consumer preferences are driving down prices. Traditionally, India’s luxury car market was centred around Delhi, Mumbai, Bangalore, and other metropolitan cities. However, 2024 has seen a major shift in consumer demand, with high-end brands expanding into emerging economic hubs like Indore, Surat, Lucknow, and Coimbatore.