Electric Sports Car Market was valued at US$1.591 billion in 2019 and is expected to grow at a CAGR of 16.15% over the forecast period to reach a total market size of US$3.907 billion in 2025. The market growth for electric sports cars is majorly attributed to the rising number of millionaires and billionaires across the globe. According to Knowledge Sourcing Intelligence estimates, the total number of billionaires worldwide crossed the 2100 mark in 2019, and future increases in this figure will be closely tied to the growth of industries, which would add to the wealth of business owners. As this continues, the demand for luxurious mobility solutions will continue to witness a good increase.
The Asia Pacific, for instance, which is one of the most lucrative markets for many companies across industry verticals, is witnessing a decent increase in the number of billionaires, and a resultant increase in the demand for sports cars. According to Singapore's Land Transport Authority, the number of Porsche car registrations in the country in 2017 took a leap of around 10% as it rose from 563 units in 2016 to 677 units in 2017. Porsche car deliveries in China grew 4% in 2018 as the number of units stood at 56,254. Since the company sees good growth potential in this region, it will continue to focus on many middle-sized markets across the region. Other sports car manufacturers are also eyeing this region in order to tap the immense growth potential it holds. Lotus, one of the leading British carmakers, is expected to start its production in China by 2021 under Geely. Geely has begun its recruitment process and the company received approval for its RMB 9 billion manufacturing plant in the city by the local authorities. Tesla is also planning to build its new vehicle manufacturing facility in Shanghai in order to strengthen its presence in the country. While this is just one example of how luxury mobility is witnessing robust growth in a region which still has a lot of raw potential for the growth of many markets, many other countries across the globe have already been seeing these numbers soaring.
Since buyers of expensive sports cars have, for a long, been showing a high degree of inclination towards adopting ways of standing out of the league of commons, buying electric sports cars seems just another way of doing so. With the rich showing a high degree of interest in electric sports cars, the manufacturers are also coming up with impressive ways of attracting customers. Lotus Evija, for instance, besides carrying the tag of being the most expensive Lotus ever, since the projected price is expected to stand near £2.04 million, would come with a unique buying experience. The company recently revealed that customers seeking to buy Evija will get a special option to configure their car as per their desire with the help of a touchscreen configurator which has been developed specifically for the purpose of facilitating car configuration using gaming software.
The software allows customers to view their virtual car from all possible angles and make modifications to every aspect of it, from body paint, wheels, and window tints to every detail of interiors. The software would also allow customers to see how their dream machine would look in different landscapes and environments with the help of a technique that can give desired sunlight levels. Not just this, customers seeking to buy this car can expect to get regular gifts delivered right to their doorstep, each of which would reflect the vehicle’s elite nature and a presentation during key hand-over. As strategies like these continue to be implemented by various market players, the sales of electric sports cars are picking up pace, thus driving the market growth.
Furthermore, the global automotive sector is witnessing a continuous flow of investments into research and development by automakers. Many countries, which already have a favorable infrastructure for research and development, are leading the race with automakers across them making huge investments into innovation. Germany, for instance, has been a key contributor to global automotive research and development.
According to the German Association of the Automotive Industry (VDA), the country alone accounts for more than one-third of the total research and development spending in the automotive sector worldwide each year. More than one-fourth of the total R&D workforce in the country is deployed in the automotive sector by various industry players.
The total inflow of investments into alternate propulsion systems by the German automotive sector was earlier expected to touch €40 billion by 2020. Although this is unlikely to happen, on account of severe disruption to the sector caused by the novel coronavirus disease, the country, which accounts for around one-third of all patents for electric mobility and hybrid drives filed worldwide, is still expected to continue leading the race. Other countries across regions are also expected to pour investments into innovation in the automotive sector since the industry, which hit a speed-breaker, earlier due to declining automotive sales and then consequential shrink in automotive sales, rests on an edge from where some disruptive changes can reignite its growth engine.
This trend is not confined to developed economies across Europe and North America, as it is visible in all key automotive markets across the globe. For instance, the adoption of Government Resolution No.2316, which encourages the Israeli automotive industry to become a world leader in the R&D in the field of smart mobility, along with the presence of R&D centers of international car manufacturers such as Daimler AG, General Motors, and Porsche, has been contributing significantly to the growing spending by these companies into research and development. As the research and development engine of electric sports car manufacturers keeps running, we can expect to see some significant improvements in their designs and performance over the projected period. Many market players are investing rigorously into enhancing the power output of these machines in order to give customers a unique driving experience.
This has been a major concern for many automakers since customers tend to seek the power output they have been getting from internal combustion engine-powered sports cars till now. These investments are translating into increasing investments by potential customers into electric sports cars, thus driving the market growth. Moving ahead, we expect many new market players to enter the segment in order to tap the growth potential it holds. As the know-how about technologies, which power and keep these sports car running smoothly, continues to increase, many sports car manufacturers which do not yet have any offering in this market are expected to step foot into this market. This is expected to increase the sales of electric sports cars, thus propelling the market growth.
The market has been segmented on the basis of power source and geography, By power source, the electric sports car market has been segmented into battery with alternate fuel, and battery without alternate fuel. Geographically, the electric sports car market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. To give a clearer view of the market, North America, Europe, and Asia Pacific electric sports car markets have been further segmented into countries that account for a considerable market share.
North America and Europe together account for a significant market share. These two regions are known to be early adopters of new technologies on account of the availability of favorable infrastructure and environment for good market growth of many products and services across them. The availability of state-of-the-art research infrastructure across these regions is contributing to the market growth across them. Furthermore, the presence of a good number of millionaires and billionaires in these regions is also contributing significantly to the growth of the market. Asia Pacific electric sports car market is expected to witness good growth over the projected period. Japan is a developed economy in the Asia Pacific and is home to some of the biggest automakers in the world. The country has the required infrastructure for supporting the sales of electric sports cars. The presence of a good number of millionaires and billionaires in the country is supporting the market growth across it. China also accounts for a considerable market share in the regional market.
The country has a robust infrastructure that supports the manufacturing of electric sports cars. The market growth in the country is being supported by some other economies as well. Other regional markets like South America and the Middle East and Africa account for a relatively small market share in the global market. Yet, these regional markets would continue to show decent growth over the projected period.
Prominent key market players in the Electric Sports Car market include AUDI AG, BMW AG, Ferrari, McLaren Group, Porsche, and Acura. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the electric sports car market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
|Market size value in 2019||US$1.591 billion|
|Market size value in 2025||US$3.907 billion|
|Growth Rate||CAGR of 16.15% from 2019 to 2025|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Power Source, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||AUDI AG, BMW AG, Ferrari, McLaren Group, Porsche, Acura|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the electric sports car market size by 2025?
A1. The global electric sports car market is expected to reach a market size of US$3.907 billion by 2025.
Q2. What is the size of the global electric sports car market?
A2. Electric Sports Car Market was valued at US$1.591 billion in 2019.
Q3. What are the growth prospects for the electric sports car market?
A3. The electric sports car market is expected to grow at a CAGR of 16.15% over the forecast period.
Q4. What factors are anticipated to drive the electric sports car market growth?
A4. The market growth for electric sports cars is majorly attributed to the rising number of millionaires and billionaires across the globe.
Q5. Who are the major players in the electric sports car market?
A5. Prominent key market players in the Electric Sports Car market include AUDI AG, BMW AG, Ferrari, McLaren Group, Porsche, and Acura.
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