The luxury market size of emerging cities in Asia and other regions is estimated to reach US$62.6 billion in 2019, up from US$29.41 billion in 2014, a new study shows.

Research group WealthInsight in a new report noted that Istanbul, Mumbai and Mexico City are the top three emerging cities to target for luxury brands.

Cities with smaller luxury markets such as Lagos, Kuala Lumpur and Ho Chi Minh City are expected to grow significantly, while traditional markets, notably Shanghai and Bangkok, indicate slower growth, the report said.

Roselyn Lekdee, economist at WealthInsight says: "It is evident that luxury goods are on the rise in emerging cities. This is a strong message for luxury brands to carefully formulate their expansion, client and marketing strategy to capture local demand, if they want to remain competitive."

New research from WealthInsight looks at the market growth potential of 10 emerging cities - Shanghai, Mumbai, Mexico City, Istanbul, Bangkok, Tel Aviv, Jakarta, Kuala Lumpur, Ho Chi Minh City and Lagos - for luxury brand expansion. As the global economy continues to shift towards emerging markets in the next decades, growth of the luxury industry in these cities is expected to be buoyant.