PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565699
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1565699
The Luxury Electric Vehicles Market was estimated at USD 1,62,145.2 million in 2023, growing at a CAGR of 18.00% between 2024 and 2032.
A luxury electric vehicle is often a high-end automobile with abundant amenities and aesthetics powered by an electric motor that draws energy from a battery and can be recharged externally. Luxury electric vehicles are frequently more expensive than ordinary autos, but they provide superior comfort, aesthetics, and performance.
Luxury Electric Vehicles Market- Market Dynamics
Impact of Rapid Infrastructure Development on the Luxury Electric Vehicle
Rapid infrastructural development is predicted to drive future growth in the premium electric vehicle industry. Infrastructure refers to the fundamental physical and organizational structures and facilities required to run a society or industry. Infrastructure investments are critical to economic growth and development. The development of charging infrastructure is crucial for market growth since it promotes the convenience of owning an electric vehicle while also reducing range anxiety among purchasers. For instance, in 2022, the Indonesian government committed to investing $430 billion in public infrastructure development by 2024. Furthermore, in March 2022, the South African government's Department of Public Works and Infrastructure presented the National Infrastructure Plan 2050 (Nip 2050) Phase I, which intends to reinforce and build the country's critical infrastructure. As a result of rapid infrastructure development, the luxury electric vehicle market is growing.
Luxury Electric Vehicles Market- Key Insights
Our research analyst estimates that the global market will develop at a CAGR of approximately 18.00% from 2024-2032.
According to Propulsion Types segmentation, the battery electric vehicle sector held more than 65% of the global market share.
According to Vehicle Type segmentation, in 2023, cars dominated the overall market
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Luxury Electric Vehicles Market is divided into three segments: Propulsion Type, Vehicle Type, and Region.
The market is divided into three divisions based on Propulsion Types: BEV, FCEV, and PHEV. The battery electric vehicle sector dominated the global market, accounting for more than 65%. Rising environmental concerns and government efforts to enhance electric car penetration globally are propelling the battery electric vehicle segment forward in the global market. Furthermore, the increasing tendency of vehicle manufacturers to produce a wide range of electric vehicles with advanced technologies pertaining to artificial intelligence and the Internet of Things (IoT) is helping the expansion of the market.
The market is segmented into four segments according to Vehicle Type: Cars, Vans, Trucks, and Buses. In 2023, cars dominated the whole market. The segment's share is attributed to the greater integration of advanced technologies such as e-torque vectoring plus technology, as well as systems such as virtual cockpit plus, advanced driver assistance, infotainment system, advanced lighting system, and others in the next luxury electric car.
Luxury Electric Vehicles Market- Geographical Insights
Geographically, this market is distributed over Asia Pacific, North America, Europe, Latin America, the Middle East, and Africa. These regions are further segmented according to the countries bringing commerce.
In 2023, the Asia-Pacific region dominated the premium electric vehicle sector. The region's dominance is likely to continue during the forecast period, thanks to increased government investment in battery charging infrastructure and hydrogen fuelling stations in growing countries like China and India. For example, the Chinese government is increasingly focused on replacing existing fleets with hydrogen fuel cell vehicles. The goal is to have one million fuel-cell electric vehicles on the road and 1,000 hydrogen fuelling stations by 2030. As a result, government actions are likely to boost the market penetration of battery-electric and fuel-cell electric luxury vehicles.
North America is predicted to experience a significant CAGR between 2023 and 2032. The region's high-paying clientele is responsible for its rapid expansion. Consumers in the region began to spend more on comfort, entertainment, and luxury, resulting in an increase in sales of luxury electric car variants over economy cars. Furthermore, the government tax credit for electric car purchases encourages customers to prefer luxury electric automobiles over gasoline and diesel vehicles on the market.
The competitive landscape of the luxury electric vehicles market is comprised of established market players such as automotive giants and new-age startups. Heavy investments in electric technology and widening luxury EV portfolios make AB Volvo, Tesla, Inc., YD Auto Co., Ltd* , Volkswagen AG, and BMW AG look for their piece of the market. As such, Tesla continues to hold the top slot with new models and brand loyalty while traditional auto manufacturers gain quickly on the current electric wave through high-performance luxury EVs that harmoniously fit in sustainability and state-of-the-art technology, while new entrants such as Rivian and Lucid Motors disrupt this status quo with such unique features and aesthetics in designs. This competitive dynamic is pushing forward battery innovation, as well as performance and luxury features, to serve consumers in the growing luxury EV segment ultimately.
In April 2022, BYD Auto Co., Ltd. introduced the Han EV series, which offers a wide range of vehicles from mid-level to luxury sedans. The series comprises both battery-electric and plug-in hybrid automobiles. The company's luxury electric vehicles incorporate innovative technologies, which improve safety features, overall vehicle performance, and comfort. Furthermore, the vehicle series is fitted with ultra-safe blade batteries, which decreases the danger of a fire even if the vehicle is severely damaged.