The US luxury automotive market is on the verge of a remarkable expansion, projected to exceed $200 billion by 2035, according to Boston Consulting Group’s first comprehensive data-backed study. Currently valued around $110 billion, the market is expected to grow at a compound annual growth rate (CAGR) between 5% and 7% over the next decade.
The study breaks down the market into three key segments:
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Luxury vehicles priced between $100,000 and $170,000 dominate this space, currently worth $80 billion, with an expected growth rate of 6% to 8% CAGR, potentially reaching $140 billion to $165 billion by 2035.
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Ultra-luxury segment ($170,000 to $500,000) is valued at roughly $25 billion today, growing at 3% to 5% CAGR, anticipated to hit $35 billion to $40 billion.
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Hyper-luxury vehicles costing over $500,000 remain a niche but steadily expanding sector, worth about $5 billion, forecast to climb to $6 billion to $7 billion by 2035.
This growth is backed by evolving consumer preferences embracing advanced technology, bespoke personalization options, and a hunger for exclusivity. The report incorporates data from S&P Global forecasts and the duPont Registry Group, offering insights for manufacturers, dealers, and luxury lifestyle brands.
Brands with engineering precision, performance heritage, and design exclusivity are expected to lead the market’s future momentum. The luxury auto industry not only reflects shifting high-end consumer aspirations but also shapes broader automotive trends through technological innovation and handcrafted excellence.
For stakeholders in the luxury vehicle ecosystem, this BCG report provides a data-driven roadmap revealing lucrative growth opportunities and guiding strategic investments as the US luxury auto market accelerates.
