According to the International Automobile Manufacturers Association (IAA), sales of all vehicle types are on the rise worldwide, with the majority of the growth coming from the luxury and luxury-class brands.
The luxury segment, which is forecast to reach $8.9 trillion by 2020, is expected to account for nearly half of global luxury vehicle sales.
The growth in luxury sales has been attributed to a combination of a growing number of new vehicles and the introduction of new technologies, including advanced infotainment systems, the IAA said in a statement.
The luxury-category luxury segment will continue to grow, according to the IAAA, and new car models will also be introduced to the market.
While luxury sales have been growing rapidly in recent years, the luxury-car segment is still growing at a slow pace.
The IAA predicts that the luxury car market will see an average annual growth rate of just 0.2 percent from 2020 to 2025, which would be the lowest annual growth since 2010.
The luxury-vehicle segment accounts for approximately 55 percent of global car sales, according the IMA, and has grown by almost 50 percent from 2000 to 2020, while the luxury category has grown only about 5 percent.
The luxury car industry is one of the fastest-growing segments of the global economy.
It generates an estimated $1.6 trillion in annual economic activity for the United States, according an IAA report.
In the United Kingdom, where the luxury luxury-segment is already in its second decade, the market is expected hit a new peak in 2021, according a report by the UK government’s National Insurance Institute (NI).
The growth of the luxury industry is expected by many to continue in the future, especially after the introduction and expansion of new technology, such as electric vehicles.