Electric Sports Car Market was valued at US$1.267 billion in 2020.
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 2,100 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 demand for sports cars is rising quickly as a result of rising per capita income and an increase in millionaires around the world. Due to the exorbitant cost of racing automobiles, only wealthy individuals can afford to own sports cars.
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. Singapore's transition to a green economy remains one of the main areas of attention in the budget presentation for 2022. This expands on the 2020 plans to replace all internal combustion engine (ICE) vehicles with entirely electric vehicles by 2040. ICE vehicles are those that run on gasoline or diesel. According to the Leave Trave Allowance (LTA), this 'early adopter' rebate, which will be in effect from now until the end of December 2021, is expected to reduce the cost of an electric car by an average of 11%, bringing them closer in price to petrol cars. China remains the sports car manufacturer's largest single market, and Porsche achieved an excellent overall result in 2021, increasing by 8% over an already record year in 2020. Despite the challenges posed by supply bottlenecks, 95,671 vehicles were delivered to Chinese customers. Overall, there were 131,098 deliveries in Asia-Pacific, Africa, and the Middle East, which is 8% more than in 2020. Other sports car manufacturers are also eyeing this region in order to tap into 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. The company has begun its recruitment process and has 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 that 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 time, been showing a high degree of inclination towards adopting ways of standing out from 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 at near £2.04 million, it would also 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 interior detail. 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’s 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 favourable infrastructure for research and development, are leading the race, with automakers across the country making huge investments in 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 the 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 a 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 the R&D centres of international car manufacturers such as Daimler AG, General Motors, and Porsche, has been contributing significantly to the growing spending by these companies on 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 in electric sports cars, thus driving the market growth. Moving ahead, we expect many new market players to enter the segment in order to tap into the growth potential it holds. As the know-how about technologies that power and keep these sports car running smoothly, continues to increase, many sports car manufacturers that do not yet have any offerings 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’s 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 batteries with alternate fuel, and batteries without alternate fuel. Geographically, the electric sports car market has been segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. To give a clearer view of the market, the North American, European, 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 environmental conditions 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 large number of millionaires and billionaires in these regions is also contributing significantly to the growth of the market. The 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 world’s biggest automakers. The country has the required infrastructure to support 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 of the global market. Yet, these regional markets would continue to show decent growth over the projected period.
Recent development and expansions
Global car sales fell to an all-time low as the Covid-19 pandemic unfolded in early 2020 and countries around the world implemented lockdowns. As the pandemic spread in early 2020, there was a general expectation that electric car markets would be more resilient than the general automotive sector, though a drop in electric car sales was still expected, albeit a smaller drop than overall car sales. Despite the pandemic, the IEA predicted a slight increase in global electric car sales, which could be even higher if additional stimulus measures were implemented. Electric vehicle sales in 2020 exceeded expectations. With existing policy support and additional stimulus measures, the IEA anticipates that global electric car sales will exceed 3 million, with a market share of more than 4%, making 2020 a record-breaking year for electric mobility. This equates to a 40% increase in global sales from the 2.1 million electric vehicles sold in 2019 and represents a return to the two-digit growth rates seen from 2010 to 2018.
|Market Size Value in 2020||US$1.267 billion|
|Growth Rate||CAGR during the forecast period|
|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, Lotus Cars, Rimac, Pininfarina|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. How is the global electric sports car market segmented?
A1. The global electric sports car market has been segmented by power source and geography.
Q2. What is the size of the global electric sports car market?
A2. Electric Sports Car Market was valued at US$1.267 billion in 2020.
Q3. Which region holds the largest market share in the electric sports car market?
A3. North America and Europe together account for a significant share of the electric sports car market.
Q4. What factors are anticipated to drive the electric sports car market growth?
A4. The electric sports car market growth 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 are AUDI AG, BMW AG, Ferrari, McLaren Group, Porsche, and Acura, among others.
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