The global large cars market size was valued at USD 157.12 billion in 2020 and it is expected to expand at a compound annual growth rate (CAGR) of 6.0% from 2021 to 2028. The market growth is significantly driven by the increasing disposable income, rising affordability, and increasing purchasing power of the consumer. In the developing economies, such as India, China, and Brazil, the industrial revolution and economic growth have spurred demand for cars as they are considered as a status symbol. The growth is also driven by technological developments and product innovations.
With technological developments, cars have improved characteristics and functionality. These added functions attract customers and encourage purchase, which in turn, drives the demand in the market. Due to globalization, the automobile industry is thriving in developing economies, propelling the growth of the large cars market. Market growth is restrained by the characteristics such as low ground clearance as compared to the SUVs and higher fuel consumption due to their size and weight.
The rising popularity of SUVs in various markets due to their versatility, comfortable ride height, high ground clearance, and huge cargo space, is anticipated to hinder the growth of the market. Another restraint for the growth is the stringent emission laws and regulations that actas a barrier to market entry. The European Union has set a target of net-zero greenhouse gas emission by 2050, which largely affects and imposes stringent CO2 emission limits for road transportation, including large cars.
The Covid-19 pandemic negatively affected the market for passenger cars including large cars. Due to the immense threat posed by the pandemic, governments all around the world imposed restrictions and lockdowns to curb the spread of infections. This resulted in plummeted sales of the large cars as well as halted the automobile manufacturing process. The ongoing vaccination and relaxed restrictions, consumers’ pent-up demand for vehicles and stimulus money are expected to create growth opportunities in the future.
The petrol-based large cars segment occupied a high revenue of over 45% in 2020. Petrol-based cars are a widely available and commonly used type. Petrol-based cars offer advantages over other fuel type cars, such as better functionality, smooth driving experience, and less maintenance. Due to technological advancements, electric cars are gaining momentum. This factor is expected to affect the demand. However, from the price perspective, petrol-based cars are preferred compared to electric cars.
The electric-based large cars segment is anticipated to witness a healthy CAGR of 14.3% from 2021 to 2028. As the concerns regarding global warming and climate change are rising, countries are making efforts to reduce greenhouse emissions. Electric cars are gaining popularity due to their environment-friendly nature and near to zero CO2 emissions. However, high prices of electric vehicles due to the lithium-ion battery and the lack of sufficient charging stations are the factors anticipated to hinder the growth of the segment.
The mainstream cars segment dominated the global large cars market, accounting for around 65% of the revenue share in 2020. Mainstream cars include the regular type of cars from lower price tags ranging from US$300 to US$ 50,000. Mainstream cars are economic and thus affordable among a huge consumer base from the middle-income class for day-to-day transportation. These cars have lower maintenance, lower service cost with a wider service network, comfort, and easy accessibility of the spare parts as compared to the premium cars.
The premium cars segment in the global market is anticipated to witness a high CAGR of 6.5% from 2021 to 2028. Premium cars are expensive compared with regular/mainstream cars. These cars are made of high-end materials with up-to-date technology and luxurious finishes on the exterior as well as the interior. Due to the high price of the cars and a limited number of manufacturers, the market is limited, however, the segment is expected to witness promising growth due to the shift in consumer preferences and perceptions. Also, accessibility of lower range premium brands is increasing which in turn is driving the segment growth.
Asia Pacific held the largest market share of over 40% in 2020. The high population in the region, contributed by China and India is credited for the higher market share. The poor public transportation system in the region strongly affects the customers’ decisions and encourages them to own a car. Also, in various countries from Asia Pacific, owning a car is seen as a status symbol which leads to a higher percentage of young adults purchasing cars early on.
Europe is anticipated to expand at a high CAGR of 6.9% from 2021 to 2028. This high growth rate of the region is attributed to the increasing spending on premium cars and electric cars. Europe is one of the promising hubs for electric vehicles. A strong presence of car manufacturers in the region can also be attributed to the higher growth rate over the forecast period.
The market is competitive with the presence of a large number of regional and global players having a vital role. Some big players operating in this market are Stellantis NV, Toyota Motor, Renault, Volkswagen, Hyundai Motor Company, and General Motors. Key players in the market are keen on developing and launching new cars with improved and added functionalities. For instance, Nissan Maxima will be launched in December 2021 and will have heated rear seats in the Platinum trim. Key players from western countries have moved their manufacturing facilities to produce cars at lower prices and increase the consumer base in the Asia Pacific. Some of the key players operating in the global large car market are:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 164.82 billion |
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Revenue forecast in 2028 |
USD 247.69 billion |
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Growth Rate |
CAGR of 6.0% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Fuel type, type, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Canada; Germany; U.K.; France; Russia; Italy; China; Japan; India; Brazil; Argentina; South Africa; Saudi Arabia |
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Key companies profiled |
Stellantis NV; Toyota Motor; Renault; Volkswagen; Hyundai Motor Company; Kia Corporation; Suzuki Motor Corporation; General Motors (Chevrolet); BMW Group; Honda Motor Company, Ltd. |
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Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For his study, Million Insights has segmented the global large car market report based on fuel type, type, and region:
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