An exclusive new study conducted by Boston Consulting Group and Daily Sparkz Group projects the U.S. luxury and exotic automotive sector will grow from approximately $110 billion today to as much as $215 billion by 2035, underscoring the category’s growing influence within an increasingly connected luxury lifestyle ecosystem.
According to the report, the total addressable U.S. market for vehicles priced at $100,000 or more is expected to grow at a compound annual growth rate of 5% to 7% through 2035, reaching a market value of between $180 billion and $215 billion. Due to high new vehicle prices and an ever-expanding supply of secondary market inventory, used vehicle sales are expected to grow up to 1.5 times faster than new vehicle sales.
While buyers continue to be excited about luxury and exotic automobiles, preferences are changing throughout the customer journey, the report says. Players, including brands, retailers and marketplaces, must adapt to these changing preferences to secure their market position and achieve future growth.
By surveying leading stakeholders and surveying over 400 current and former collectors and potential buyers, the report authors found that while buyers remain enthusiastic about purchasing a luxury or exotic car, preferences change throughout the customer journey:
· For most respondents, shopping was an almost constant activity. Approximately 80% of shoppers surfed the Internet at least weekly, even if they had no immediate intention to purchase. However, once they made their decision, around 70% of respondents completed their purchase within a month.
· While a large proportion of shoppers across all age groups preferred some anchor brands (particularly Porsche and Ferrari), Millennials and Generation Z were more willing to cross-shop and consider other brand options.
· Across all age groups, a third of buyers cited emotional factors as their main reason for purchasing a vehicle. However, younger buyers were more likely to view a luxury car as an investment opportunity or a reward, while older buyers were attracted by technological innovations and owning the latest model.
· Although purchasing through an authorized dealer was the most popular option across all age groups, Millennials and Gen Z were more likely to purchase on digital platforms or through private sales. Significantly, the survey found high levels of digital comfort across all generations, with three quarters of respondents willing to purchase their next vehicle entirely online.
· The vast majority of buyers viewed experiences as a valuable part of their brand satisfaction. While driving or vehicle-related programs such as track events and factory tours reigned supreme, lifestyle events such as wine tastings or fashion shows also enjoyed popularity, indicating an emerging opportunity to evolve the luxury car experience beyond the vehicle itself.
The report’s findings show that ecosystem players cannot rely on traditional approaches to captivate and acquire an evolving customer base.
To keep pace with changes in the luxury and exotic car market, they should prioritize the following actions over the next few years: Providing regular, engaging online content that meets buyers’ growing digital sophistication; Building emotional loyalty around the brand; Further develop e-retail models; Double your experiences.
About Daily Sparkz Group
At the heart of the Driven Lifestyle division, Daily Sparkz Group is the world’s leading luxury ecosystem that embodies the culture, community and commerce of the high-end automotive lifestyle. Founded by some of the biggest names in the luxury automotive industry, the Daily Sparkz Group represents a vibrant community of members worldwide, cultivated over four decades. His portfolio includes duPont Registry, Canossa Events, Cavallino, Supercar Owners Circle, Petrolicious, Retromobile USA, FerrariChat and Sotheby’s Motorsport.
About Boston Consulting Group
The Boston Consulting Group works with business and community leaders to address their most important challenges and capitalize on their greatest opportunities. BCG was the pioneer of business strategy when it was founded in 1963. Today, we work closely with clients to take a transformative approach that benefits everyone involved – enabling companies to grow, build sustainable competitive advantage and create positive social impact.
Our diverse, global teams bring deep industry and functional knowledge and a range of perspectives that challenge the status quo and inspire change. BCG delivers solutions through leading management consulting, technology and design, and corporate and digital projects. We work in a unique collaborative model across the company and at all levels of the customer organization, driven by the goal of helping our customers succeed and empowering them to make the world a better place.
