by The global Hypercar Market is estimated to be valued at Us$ 20 Bn in 2022 and is expected to exhibit a CAGR Of 31.1% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hypercars are extremely high performance sports cars or grand tourers typically valued above US$ 1 million. Hypercars are lightweight and have very high power to weight ratio offering top speeds over 200 mph. These vehicles provide unmatched performance and driving pleasure to its owners. In the recent years, automakers have introduced advanced technologies in materials, engines and transmission in hypercars to push performance boundaries catering to the demands of wealthy car enthusiasts.
Market key trends:
The rise of high net worth individuals and increase in disposable incomes across various countries is boosting luxury spending on hypercars. According to Knight Frank Wealth Report 2022, the number of dollar millionaires increased by over 6.3% to 21.9 million in 2021 driving luxury purchases globally. In addition, introduction of latest hybrid powertrains in hypercars is gaining popularity. For instance, the Bugatti Chiron Sport ‘110 Ans’ model features an 8.0-liter W16 engine paired to electric motors delivering record 1,577 horsepower, eliminating emissions altogether. Furthermore, focus on exotic lightweight materials like carbon fiber and introduction of 3D printed components is enabling drastic weight reduction and construction of innovative body designs spurring the hypercar market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The hypercar market requires huge research and development investments and specialized manufacturing facilities, making it difficult for new players to enter.
Bargaining power of buyers: Hypercars are purchased by high net worth individuals who can afford the high prices of these luxury vehicles. Therefore, bargaining power of buyers is relatively low.
Bargaining power of suppliers: Key suppliers for materials and components used in hypercars such as carbon fiber and turbochargers have some bargaining power due to their specialized skills.
Threat of new substitutes: There exist no close substitutes for hypercars. Other premium and luxury cars cannot match the extreme performance of hypercars.
Competitive rivalry: The hypercar market has few global players and each player tries to build the fastest and most exclusive cars to gain competitive advantage.
Key Takeaways
The global Hypercar Market is expected to witness high growth, exhibiting CAGR of 31.1% over the forecast period, due to increasing disposable incomes of HNIs and their demand for ultra-luxury vehicles. The market size for 2021 was US$ 15.2 billion.
Regionally, Europe dominates the global hypercar market currently owing to the presence of major manufacturers like Lamborghini, Ferrari, Bugatti in the region. The Asia Pacific region is expected to grow at the highest CAGR during the forecast period due to rising affluence in countries like China and India.
Key players operating in the hypercar market include Automobili Lamborghini, Bugatti, Ferrari, Daimler Group, Hennessey Performance Engineering (HPE), Koenigsegg, Pagani Automobili, Porsche, Zenvo Automotive, Mercedes-AMG GmbH, and McLaren. These manufacturers focus on design innovation, lightweight construction, and powerful engine configurations to build the fastest cars globally and attract wealthy customers.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.
