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The luxury vehicle market share is expected to increase by 3251.30 thousand units from 2022 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.45%.
This luxury vehicle market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers luxury vehicle market segmentation by type (passenger cars and commercial vehicles) and geography (Europe, APAC, North America, MEA, and South America). The luxury vehicle market report also offers information on several market vendors, including Bayerische Motoren Werke AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Mercedes Benz AG, Nissan Motor Co. Ltd., Stellantis NV, Tata Motors Ltd., Tesla Inc., and Zhejiang Geely Holding Group among others.
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The integration of advanced safety technologies in luxury cars to gain higher safety ratings is notably driving the luxury vehicle market growth, although factors such as the decline in the automotive industry due to global semiconductor chip shortage may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the luxury vehicle industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Luxury Vehicle Market Driver
The integration of advanced safety technologies in luxury cars to gain higher safety ratings is one of the key drivers supporting the luxury vehicle market growth. The automotive industry in the country is witnessing the development of safety technologies, which are making luxury vehicles safer and more reliable on roads. SUVs are known for reliability combined with the fuel efficiency and comfort of cars. The high fatality rates due to the growing number of accidents have pushed automotive OEMs to incorporate new safety features to make the crossovers safer to drive. The penetration rate of such advanced safety systems, such as emergency brake assist, lane departure warning system, and others, is found to be higher in sedans compared with SUVs. Such safety technologies are being introduced in crossovers on a larger scale will positively impact the market growth during the forecast period.
Key Luxury Vehicle Market Trend
The growing adoption of luxury EVs is one of the key luxury vehicle market trends that is contributing to the market growth. For instance, in November 2021, the Australian government announced plans to encourage people to buy EVs. In Q4 2021, seven new electric car models arrived or were supposed to arrive in Australia. These EVs include five from European vendors ? Mercedes-Benz, Volvo, and BMW, plus Polestar, and two come from Asian vendors, the Hyundai Ioniq 5 and the Lexus ux300e. Since April 2021, BMW iX, an EV, is also available in three variants, at $135,900. The major challenges associated with the adoption of EVs are the high cost and limited range of these vehicles. To eliminate these challenges, the vendors are expected to invest more time and energy in R&D and come up with better models of EVs, which will drive the growth of the luxury vehicle market during the forecast period.
Key Luxury Vehicle Market Challenge
The decline in the automotive industry due to the global semiconductor chip shortage is one of the factors hindering the luxury vehicle market growth. For instance, the entire car industry is amid a severe parts shortage forcing carmakers to halt production and slash exports to Australia. Also, vendors such as Toyota were one of the worst affected in 2021, and thus, production slowed down in Australia. Moreover, Australian new-car buyers are being urged to get in the queue and order early to avoid delays, as data reveals the global semiconductor shortage could continue for 2022 as well. Moreover, the semiconductor chip shortage faced by American and European key vendors would negatively impact the market in focus during the forecast period.
This luxury vehicle market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the luxury vehicle market as a part of the global automotive market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the luxury vehicle market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the luxury vehicle market encompasses successful business strategies deployed by the key vendors. The luxury vehicle market is fragmented and the vendors are deploying growth strategies such as quality, price, service, brand image, distribution, and marketing to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The luxury vehicle market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the luxury vehicle market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global automotive market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by Type
Customer landscape
Geographic Landscape
Vendor Landscape
Vendor Analysis
Appendix
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