Luxury Electric Vehicle (EV) Market Size - By Vehicle Type (Sedans, SUVs & Crossovers, Sports Cars), Propulsion Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), Growth Prospects, Regional Outlook & Forecast, 20

Luxury Electric Vehicle (EV) Market Size - By Vehicle Type (Sedans, SUVs & Crossovers, Sports Cars), Propulsion Type (Battery Electric Vehicle, Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), Growth Prospects, Regional Outlook & Forecast, 2023 - 2032

Luxury Electric Vehicle (EV) Market size is poised to record over 8% CAGR from 2023-2032, driven by the rising investments in charging infrastructure.

Of late, a large number of luxury automakers, government bodies and private entities are focusing on expanding fast-charging networks for enhancing the convenience for EV owners. For instance, in October 2022, Manchester-based EV charging network Be.EV secured an £110m investment from Octopus Energy Generation for adding 1,000 charging points throughout the U.K. The growing emphasis on the expansion of electric vehicle portfolios to cater to diverse consumer preferences for luxury vehicles will also enhance the market outlook.

The luxury EV industry is segmented into vehicle type, propulsion type, and region.

In terms of vehicle type, the market share from the SUVs & crossovers segment will witness appreciable growth from 2023-2032 owing to their versatility, spaciousness, and perceived safety. The changing consumer lifestyles, including the rising preference for outdoor activities, family-oriented transportation, and the strong desire for vehicles to offer utility and comfort are driving the demand for SUVs and crossovers. The growing popularity of mid-size SUVs, compact SUVs and full-size SUVs as well as crossover vehicles to cater to different purposes and customers will boost the segment expansion.

Based on propulsion type, the luxury fuel cell electric vehicle industry is expected to expand exponentially from 2023-2032. The growth can be attributed the increasing prominence of luxury fuel cell electric vehicles (FCEVs) as a greener alternative to conventional internal combustion engine vehicles to deliver zero emissions at the tailpipe. The ongoing advances in fuel cell technology for enhancing the efficiency, range, and reliability of luxury fuel cell EVs will also prove favorable for the industry development.

Regionally, the Asia Pacific luxury EV market size is projected to record a noteworthy CAGR through 2032 due to the heightened environmental awareness and concerns regarding air pollution in densely populated urban areas. Several governments in the region are introducing incentives and subsidies for promoting the adoption of EVs. The robust investments in charging infrastructure along with the rising number of tax benefits and rebates will also influence the regional industry growth.