The global sports car market was valued at US$14.266 billion in 2020 and is expected to decline at a CAGR of 4.88% to attain a value of US$10.049 billion by 2027
The global sports car market growth is closely tied to the change in the number of millionaires and billionaires in many countries worldwide. The world already saw the number of billionaires across the 2100 mark in 2019 and will witness a continuous rise over the projected period. An increase in this figure is majorly attributed to the growth of enterprises across all key business sectors, which eventually increases business owners' wealth. The increase in wealth of business owners tends to increase their spending on luxury goods and services. This very factor is driving the adoption of sports cars by customers in many parts of the globe. For instance, the Asia Pacific, which holds a lot of untapped growth potential for many industrial sectors and has remained a very lucrative geography for pumping investments by players across industries, is witnessing a continuous surge in the number of billionaires. With this, the sales of sports cars are also witnessing a decent increase across many countries in the Asia Pacific.
According to data published by Singapore's Land Transport Authority, total registrations of Porsche cars in Singapore in 2017 jumped by around 10%. The figure stood at 677 units in 2017 compared to 563 units in 2016. In China, deliveries of Porsche cars surged by around 4% in 2018, thus translating into a total shipment of 56,254 units. Since the sports and luxury vehicle maker sees good growth potential in this region, it announced its plans to continue focusing on many other markets. Other manufacturers of sports cars are also focusing on this region, intending to tap into the growth potential. For instance, Lotus, which is one of the key British carmakers, has plans to commence production of cars in China under Geely by 2021. Geely started the recruitment process after the local authorities gave the green signal for its RMB 9 billion manufacturing plant.
Tesla, another key player in the sports car segment, is eyeing Shanghai to build a new vehicle manufacturing facility to solidify its presence in China. While the Asia Pacific is just one example of a lucrative sports car market, many other regions also see the market registering good year-on-year growth. Since target customers of expensive sports car manufacturers have, for a long, remained highly inclined towards ways in which they can stand out from the rest of the league, sales of sports cars with some unique specifications are picking up pace. This spurs the sales of electric sports cars in many regions, thus augmenting the market growth.
Furthermore, the market’s growth is further augmented by the pumping of fairly huge investments by industry players into research and development. Countries known for having infrastructure advanced enough to support research and development activities across the automotive sector are already moving ahead of many other countries in innovation. Germany, for instance, continues to lead the world in automotive research and development. According to data published by the German Association of the Automotive Industry (VDA), more than one-third of the total spending on automotive research and development each year flows into Germany. Not just that, more than a quarter of the country’s total workforce in research and development is accounted for by the German automotive industry. The value of total investments in alternate propulsion systems by companies in Germany was anticipated to reach €40 billion by 2020. Although this target seems too distant far away to be achieved, since the outbreak of novel coronavirus disease and widespread disruption caused by it across the industry have weakened the industry players to some extent, the country, which boasts of holding nearly one-third of all patents which have been filed in the field of electric mobility and hybrid drives worldwide, can still be seen as one of the frontrunners in the race.
Many other countries in different parts of the world are also expected to funnel investments into research and development in the automotive sector over the short term and medium term. One of the key reasons for this is expected to be the industry's current condition. The global automotive industry has witnessed a continuous decline in automotive sales over the last couple of years. This shrink in sales translates into a continuous decline in the production of vehicles worldwide. This is the first time since the global recession, which kicked in in 2007 and lasted till 2009, that the industry has started witnessing a downturn. The only difference is that this time it was not because of the poor spending capacity of people but because of the high penetration of vehicles in many regions and the high popularity of alternate methods of transportation.
As if this was not enough, the industry took another blow because of the exponential spread of the novel coronavirus disease worldwide. With supply chains disrupted, the global automotive industry now stands at a crossroads on a two-way where success in bringing about some disruptive technologies and solutions can reignite the growth engines. As a result, the flow of investments into R&D in the automotive sector is not limited to developed markets in North America and Europe but is seen in all key markets. So the flow of investments into R&D in the automotive sector is not confined to developed markets across North America and Europe, as all key markets are witnessing a continuous flow of investments. For instance, as part of its attempt to strengthen the country’s automotive sector, the government of Israel adopted Resolution No.2316, which is giving a push to Israel’s automotive industry, thus aiding it in becoming a world leader in smart mobility. The country already has a strong presence of research and development facilities owned by key automakers such as Daimler AG, General Motors, and Porsche. As the R&D engines of sports car manufacturers continue s to get the required boost, we anticipate some major improvements in their aesthetics and performance throughout our study.
While many sports car manufacturers are focusing on increasing the power output of people’s dream cars, as they seek to lure many new speed enthusiasts while offering customers the next level of driving experience, we see many market players pumping investments into better and more appealing sports car designs. For instance, Ford has again given birth to the 55-year-old legacy of Mustang with the launch of the GT350 and GT350R. The heritage edition package comes with Guardsman Blue over-the-top racing stripes, a unique Guardsman Blue side stripe on Wimbledon White exterior paint, and a heritage interior chassis badge, the brand’s homage to the original Mustang GT350.
The year 2020 also saw the reincarnation of the original Mustang in the form of the Shelby GT500, along with EcoBoost® and GT Mustang convertibles for enthusiasts. With these offerings, the company also allows its customers to choose from among 18 different styles of wheels and colour choices, along with offering them many more possible customization options for their ride. Market players' investments like these are translating into an increase in spending by potential customers on sports cars, thus boosting the market’s growth. As we continue to move ahead, we expect the entry of many new automakers into this segment on account of the huge growth potential it holds held by it. This is expected to result in a further increase in the sales of sports cars, thus propelling the market’s growth.
The sports car market has been segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. North America, Europe, and Asia Pacific sports car markets have been further segmented into countries that account for a considerable market share to give a clearer view of the market. North America and Europe together account for a significant market share. A fairly large number of billionaires and millionaires in these regions has been a major driving factor for this market.
The Asia Pacific sports car market is poised to grow well throughout our study. Much of the market growth in this region comes from countries like Japan, China, and South Korea, which account for a significant share of sports car sales. The South American sports car market and the Middle East and African sports car markets are relatively small. Yet, these regional markets are expected to show fairly decent growth over the projected period.
Prominent key market players in the sports car market include Ford Motor Company, AUDI AG, BMW AG, Ferrari, McLaren Group, Porsche, and Acura. These companies hold a significant share of their good brand image and product offerings in the market. Major players in the sports car market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments by different market players over the last two years.
The COVID-19 disease outbreak had a major impact on the sports car market, with sales and production declining in 2020. The pandemic had an impact on consumers spending power. Global car sales fell by an unprecedented amount in the first four months of 2020. The monthly sales decline was even more pronounced, reflecting the timing and severity of the lockdowns in many countries. China, the world's largest auto market, saw its steepest year-on-year drop in February. In China, car sales have dropped by 80% in 2020 as compared to February 2019. According to IEA, Other leading automotive markets saw their steepest declines in April. In the United States, they approximately halved year on year; in Germany, they fell by around 60%; and in France, they fell by well almost 90%. Sales in the United Kingdom and Italy fell by 98 percent in April, indicating a total breakdown of those markets. There were almost no car sales reported for India. In the first half of 2020, Audi's Total revenue was Euro €20,476 million, and its operating loss before special items was Euro €643 million. As Per Business
|Market Size Value in 2020||US$14.266 billion|
|Market Size Value in 2027||US$10.049 billion|
|Decline Rate||CAGR of 4.88% from 2020 to 2027|
|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||Ford Motor Company, 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 sports car market size by 2027?
A1. The global sports car market is expected to reach a total market size of US$10.049 billion in 2027.
Q2. What is the size of the global sports car market?
A2. Sports Car Market was valued at US$14.266 billion in 2020.
Q3. What are the growth prospects for the sports car market?
A3. The sports car market is expected to decline at a CAGR of 4.88% over the forecast period.
Q4. What factors are anticipated to drive the sports car market growth?
A4. The global sports car market growth is closely tied to the change in the number of millionaires and billionaires in many countries worldwide.
Q5. Which region holds the largest market share in the sports car market?
A5. North America and Europe together account for a significant market share in the sports car market.
Ford Motor Company
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