Description

Discover the latest luxury car market trends and how they are impacting the US luxury car industry! Our US Luxury Car Market Analysis 2023 is packed with valuable insights on consumer attitudes, luxury car market size US, luxury car US market forecast and segmentation, and US luxury cars market volume. With this report, you’ll have the knowledge to stay ahead of the competition and keep your business growing!

US Luxury Car Market Analysis: Current Market Landscape

Economic influences, e.g. inflation, coupled with supply chain disruptions across the broader automotive market, and limited inventories, raised barriers for consumers looking to purchase vehicles from the mainstream market.

However, luxury brands found themselves slightly more immune to these impacts, and US luxury car market share remains elevated, with further growth expectations as ownership among consumers is estimated to increase by 2027. This US luxury car market growth will be largely driven by Gen X, Millennial, and Gen Z consumers – furthered by these consumers’ interest in electrified offerings. Moving forward, luxury brands will want to ensure they are highlighting the availability of electrified offerings.

US Luxury Car Market Trends: What Consumers Want and Why

Despite fragile economic circumstances and unfavorable conditions impacting the broader automotive market, over half of consumers who are planning to purchase a vehicle within the next three years are considering purchasing a luxury brand. While some of this may be aspirational, growth of the luxury car market size US can still be expected according to Mintel’s luxury cars US market forecast.

Interest in the US luxury car market is largely driven by consumers’ increasing interest in premium offerings and electric options as well luxury brands’ greater immunity to supply chain disruptions resulting in greater inventory availability and offerings when compared to the mainstream automotive market. Self-indulgence, and other emotional factors also drive consumers’ interest in luxury brands, e.g. consumers’ preference for nicer things, luxury vehicles’ status symbol, and their belief that they deserve it.

  • US Luxury Car Market Consumer Behavior: Despite the uncertainty within the economic landscape, 58% of consumers who plan to purchase a vehicle within the next three years are considering going after luxury vehicles.
  • Luxury Car Market Trends: 30% of consumers currently own a luxury vehicle. This percentage exceeds pre-pandemic levels.
  • US Luxury Car Market Opportunities: 85% of consumers are thinking about purchasing a hybrid or electric vehicle, indicating that the availability of financial subsidies when purchasing is an important factor.

Luxury Cars US Market Forecast and Opportunities

The broader automotive market continues to rebound and sustain growth. The continuous introduction of electrified offering continues to push the US luxury car market – and mainstream market alike – forward.

Going forward, it will be important for brands to understand current consumer perceptions across the industry and the factors that are most important to them. Therefore, brands must continue to educate consumers on the benefits and offerings to hold on to their US luxury car market share.

Especially younger consumers’ interest represents opportunity for the growth of luxury car market size US. Millennials and Gen Z are key in the luxury cars market segment in the US – both in terms of current ownership and future consideration. Brands and retailers will want to ensure that they are highlighting their technology and sustainability in an effort to appeal to this target audience.

To discover more US Luxury Car Market Analysis, read our US Perceptions of Cars Market Report 2022, or take a look at our extensive Automotive Market Research.

Quickly Understand the US Luxury Car Market

  • How are current economic conditions impacting the US luxury car market on the luxury car market?
  • Ownership and consideration of luxury cars in the US.
  • Luxury car brand purchase motivators and barriers.
  • Consumers’ perceptions of select luxury car brands.
  • Attitudes toward luxury car brands.

Covered in this Report

Products: Domestic and imported luxury vehicles.

Brands: Acura, Audi, BMW, Cadillac, Genesis, Infiniti, Lexus, Lincoln, Mercedes-Benz, Tesla, Volvo, Pacsun, Formula1, AirConsole, and more.

Expert Insights into the Luxury Cars Market Segment in the US

This report, written by Gabe Sanchez, Automotive Analyst, delivers in-depth commentary and analysis to highlight current luxury car market trends, revenue in luxury cars market segment in the US, and adds expert context to the numbers.

Despite economic challenges and overall conditions in the automotive market, consumers still crave self-indulgence and see luxury brands as a reward for their hard work and something they deserve. Therefore, they are drawn to them by their desire for finer things. As luxury brands continue to both introduce all-electric offerings and reach out to growing consumer segments, it will be crucial for them to maintain and improve positive perceptions among consumers to drive future growth of the US luxury cars market volume.

Gabriel Sanchez, Automotive Analyst
Gabe Sanchez
Automotive Analyst

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas:
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Total US unit sales and forecast of select luxury car brands, at current prices, 2017-27
                  • Figure 2: Luxury cars outlook, 2023-28
                • Opportunities and challenges
                  • Consumer confidence drives consumers to be more critical of their spending
                    • Educate consumers through in-person and virtual efforts
                      • Leverage social and environmental causes to drive appeal
                        • EV tax credits available for limited vehicles
                          • Appeal to growing consumer segments through CPO offerings
                            • Key consumer insights
                              • Luxury vehicle ownership remains elevated
                                • Millennials, Gen X are among the most interested in luxury car brands
                                  • Self-indulgence is a key motivator among consumers considering a luxury brand
                                    • Consumers perceive luxury brands as stylish, cutting edge and safe
                                      • Aspects of affordability and value turn consumers away from luxury brands
                                      • Market Size and Forecast

                                        • Select luxury automakers have high potential for growth, pending exterior impacts
                                          • Figure 3: Total US unit sales and forecast of select luxury car brands, at current prices, 2017-27
                                          • Figure 4: Total US unit sales and forecast of select luxury car brands, at current prices, 2017-27
                                      • Market Factors

                                        • Consumer confidence is increasing, but remains supressed – causing consumers to remain critical of their spending
                                          • Figure 5: Consumer Sentiment Index, 2007-23
                                        • Market conditions drive up the cost of new and used vehicles
                                          • Figure 6: Consumer Price Index, new vehicles and used vehicles, 2017-22
                                        • Gas prices raise concerns among consumers
                                          • Figure 7: US gasoline and diesel retail prices, 2007-22
                                        • EV tax credits eligible for some brands, models
                                        • Competitive Strategies and Market Opportunities

                                          • Mercedes-Benz leverages sports portfolio to drive interest in all-electric models
                                            • Figure 8: Mercedes-Benz leverages sports sponsorships to drive appeal
                                          • A$AP Rocky Collaborates with Mercedes-Benz for PacSun
                                            • Figure 9: Mercedes-Benz partners with A$ap rocky, PacSun
                                          • Audi enters Formula 1
                                            • Figure 10: Audi to enter formula 1 from 2026 season
                                          • AirConsole to bring gaming titles to BMW Vehicles
                                            • Figure 11: BMW Group partners with AirConsole to bring in-car gaming
                                          • Cadillac enters ultra-luxury
                                            • Figure 12: Cadillac leverages electrification to enter ultra-premium segment
                                          • Tesla aims to drive interest through partnerships
                                            • Position CPO as an entry point to premium offerings
                                            • The Luxury Car Consumer – Fast Facts

                                              • Luxury Car Ownership and Consideration

                                                • Luxury car ownership maintains growth
                                                  • Figure 13: Luxury vehicle ownership, 2019-22
                                                • Millennials demonstrate the strongest interest in luxury vehicles
                                                  • Figure 14: General Motors partners with Netflix to showcase its electrified vehicles
                                                  • Figure 15: Luxury vehicle ownership and consideration, by generation, 2022
                                                • Ownership and consideration increase with income
                                                  • Figure 16: Luxury vehicle ownership and consideration, by household income, 2022
                                                • LGBTQ+ consumers own and seek luxury car brands
                                                  • Figure 17: Luxury vehicle ownership and consideration, by LGBTQ+ status, 2022
                                              • Luxury Brand Purchase Motivators

                                                • Consumers seek to treat themselves
                                                  • Figure 18: Luxury brand purchase motivators, by generation, 2022
                                                • Lower-income consumers are driven by aspiration
                                                  • Figure 19: Luxury brand purchase motivators, by household income, 2022
                                                • Multicultural consumers look to luxury brands as an achievement
                                                  • Figure 20: Luxury brand purchase motivators, by race and Hispanic origin, 2022
                                              • Luxury Brand Purchase Barriers

                                                • Affordability, value present a challenge for luxury car brands
                                                  • Figure 21: Luxury brand purchase barriers, by generation, 2022
                                                • Female consumers are highly critical of affordability, fit with lifestyle
                                                  • Figure 22: Luxury brand purchase barriers, by gender, 2022
                                                • Hispanic consumers indicate an interest in luxury brands, despite affordability challenges
                                                  • Figure 23: Luxury brand purchase barriers, by Hispanic origin, 2022
                                              • Luxury Brand Perceptions

                                                • Luxury brands perform well in perceptions of style, safety and technology
                                                  • Figure 24: Mercedes-Benz highlights availability of personalization
                                                  • Figure 25: Mercedes-Benz highlights commitment to recycled materials
                                                  • Figure 26: Volvo reaches consumers through Fotografiska museum exhibit
                                                  • Figure 27: Volvo highlights its history of safety innovation
                                                  • Figure 28: Luxury brand perceptions, 2022
                                                • Female consumers are more critical of safety
                                                  • Figure 29: Mercedes-Benz highlights a commitment to equality though safety
                                                  • Figure 30: Luxury brand perceptions, by gender, 2022
                                                • Tesla perceived as most cutting edge across generations
                                                  • Figure 31: Sony Honda Mobility unveil the AFEELA prototype at CES
                                                  • Figure 32: Luxury brand perceptions, by generation, 2022
                                              • Attitudes toward Luxury Car Brands

                                                • Luxury brands perceived as high maintenance, irresponsible purchase
                                                  • Figure 33: Attitudes toward luxury car brands – Cost, by generation, 2022
                                                • Black consumers identify luxury brands as high maintenance, but see value
                                                  • Figure 34: Attitudes toward luxury car brands – Cost, by race and Hispanic origin, 2022
                                                • Status symbol, self-indulgence at the core of consumer beliefs
                                                  • Figure 35: Mercedes-Benz appeals to consumers’ interest in self-indulgence
                                                  • Figure 36: Attitudes toward luxury car brands – Feelings, by generation, 2022
                                                • Female consumers are more critical of luxury brands
                                                  • Figure 37: Attitudes toward luxury car brands – Feelings, by gender 2022
                                              • Appendix – Data Sources and Abbreviations

                                                • Data sources
                                                  • Sales data
                                                    • Forecast
                                                      • Consumer survey data
                                                        • Abbreviations and terms
                                                          • Abbreviations

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