What's Happening?
A recent study conducted by Boston Consulting Group in collaboration with duPont Registry Group forecasts significant growth in the U.S. luxury and exotic car market. The market, currently valued at approximately
$110 billion, is expected to expand to between $180 billion and $215 billion by 2035. This growth is driven by a compound annual growth rate of 5 to 7 percent for vehicles priced at or above $100,000. The study highlights a faster growth rate for used luxury vehicles compared to new ones, attributed to high new car prices and an increasing supply of used vehicles. The report also notes changing consumer preferences, with a shift towards digital platforms for purchasing and a growing interest in experiential brand engagements.
Why It's Important?
The projected growth of the luxury car market underscores the increasing influence of high-end vehicles within the broader luxury lifestyle ecosystem. This expansion presents significant opportunities for automakers, dealers, and marketplaces to adapt to evolving consumer preferences. The shift towards digital purchasing and experiential marketing indicates a need for industry players to innovate in their sales and engagement strategies. The growth in the used luxury car segment also suggests a potential shift in consumer behavior, where buyers are more inclined to seek value in the secondary market. This trend could impact new car sales and influence how manufacturers and dealers approach inventory and pricing strategies.
What's Next?
As the luxury car market evolves, industry stakeholders are expected to focus on enhancing digital engagement and creating unique brand experiences to capture consumer interest. Automakers and dealers may invest in developing robust online platforms and expanding their digital marketing efforts. Additionally, there could be an increased emphasis on creating lifestyle-oriented events and experiences that resonate with luxury car buyers. These strategies will be crucial for maintaining competitive advantage and capturing market share in a rapidly growing and changing market.
