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The electric sports utility vehicle (e-SUV) market size is forecast to increase by USD 83.748 billion. The market is estimated to grow at a CAGR of 25.19% between 2022 and 2027. The expansion of the e-SUV market depends on various factors, notably the escalating demand and sales of Battery Electric Vehicles (BEVs) across the global automotive landscape. Additionally, the decreasing costs of lithium-ion batteries contribute significantly to this growth trajectory. The proliferation of government regulations, along with incentives and subsidies aimed at promoting Electric Vehicles (EVs), play a pivotal role in fostering market expansion. These combined dynamics underscore a promising outlook for the e-SUV sector, driving its upward trajectory in the foreseeable future. This market analysis and report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The market share growth by the battery electric vehicle segment will be significant during the forecast period. The demand for BEVs in the (e-SUV) market is growing due to their environmental advantages, lower costs, and technological advancements that have led to better range, performance, and safety. The new product launches increasing the popularity of zero-emission vehicles, decreasing battery prices, and government initiatives worldwide will drive the growth of the BEV segment of the global electric sports utility vehicle (e-SUV) market during the forecast period.
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The battery electric vehicle segment was valued at USD 8.26 billion in 2017 and continued to grow by 2021. The BEV segment in the global e-SUV market has been growing rapidly in recent years. There has been an increased demand for e-SUVs due to their eco-friendliness, efficiency, and lower operating costs compared with traditional gasoline-powered SUVs. Governments across the world have also been encouraging the adoption of BEVs by offering incentives such as tax breaks, rebate programs, and infrastructure development. Also, the technological advancements in BEVs have significantly improved their range, safety, and performance, leading to higher customer acceptance. The above factors will increase the segment growth in the market during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Various government initiatives to go green, increasing stringent carbon emission norms, and incentive schemes formulated for the adoption of e-SUV in polluted Chinese and Indian cities are contributing to market growth. The rising number of EV charging stations and growing participation by foreign as well as local OEMs to make EV technology more efficient and effective are also propelling market growth in the country. Moreover, people's discretionary income has grown in the last five years as the economic conditions of nations such as China and Japan have improved. As a result, automobile sales in these nations have soared. China is a significant vehicle market, with large volume sales of passenger cars and EVs. Therefore, the increasing demand for EVs will drive the growth of the (e-SUV) market in APAC during the forecast period.
In the Global Electric Sports Utility Vehicle (e-SUV) Market, electric SUVs are emerging as leading contenders against traditional internal combustion fuel engine vehicles, including hybrid SUVs, offering all-wheel drive (AWD) and four-wheel drive (4WD) capabilities for traversing both rough terrain surfaces and public roads. With their zero-emission profile and quiet operation, e-SUVs are revolutionizing the automotive industry, providing efficient and sustainable mobility solutions powered by advanced batteries and electric motors, thereby challenging the dominance of ICE vehicles. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surge in demand and sales of e-SUVs globally serves as the primary driver for the expansion of the electric SUV market. Notably, the sales of battery electric vehicles (BEVs) witnessed remarkable growth in 2021, particularly in key markets such as China and the US, alongside select European nations. Over the past five years, BEV sales have experienced substantial traction worldwide. China emerged as the dominant market for BEV sales in terms of units delivered, with Europe and the US closely following suit.
The proliferation of hybrid SUVs equipped with internal combustion fuel engines has also contributed to this growth, catering to diverse consumer preferences for all-wheel drive (AWD) and four-wheel drive (4WD) capabilities on both rough terrain surfaces and public roads. Moreover, the emphasis on zero-emission vehicles and quiet operation has accelerated the transition away from traditional ICE vehicles towards battery-powered alternatives, leveraging advancements in batteries and motors. This shift aligns with the broader automotive industry's focus on fuel-efficient mobility solutions to address environmental concerns and regulatory mandates.
The emergence of wireless charging systems for EVs is the primary trend in the global market. The charging infrastructure for electric cars is extremely important for the sustainability of fully electric cars. Consequently, significant investments are being made in the development and improvement of electric vehicle charging infrastructure. With the growing emphasis on sustainable transportation, the greater autonomy of electric cars is gaining widespread popularity. Higher adoption of these vehicles will increase the demand for wireless charging systems during the forecast period as they mostly require on-the-go charging to maintain range.
In addition, the connected technology in all-electric cars allows communication among the vehicles to swap charging pads as needed and share a common pad based on the time slot. For instance, Google is engaged in the trial of a wireless charging systems technology in its self-driving cars. The trend of charging EVs using wireless charging systems is expected to be applied commercially by the end of the forecast period, which will boost the growth of the market in focus.
The high cost of ownership is a major challenge to the growth of the global market. In developed automotive markets, improved socio-economic conditions, developed EV infrastructure, higher localization of manufacturing, and government incentives/subsidies make e-SUVs significantly affordable. In addition, the cost differential between e-SUVs and their ICE counterparts remains minimal owing to such factors. However, this does not hold true for emerging automotive markets. For the consumers in the EV industry, the cost of ownership of e-SUVs is higher compared with the ICE options available in the market. In addition, the cost of designing and manufacturing BEVs depends on their intended range, hours of use, fuel cost, and government subsidies. One of the best-selling economical e-SUVs is Tesla Model 3, which costs about USD 40,000.
Similarly, the price of the Chevrolet Volt starts at about USD 36,000 in the US. Moreover, the after-sales services, such as maintenance of EV components, are expensive due to the immature local market and the non-availability of EV service parts. The servicing facilities for EVs are fewer in number compared with the well-established centers for conventional ICE vehicles. Replacing or servicing the damaged (ECU) in terms of pricing is a costly affair. In addition, some replacements will depend on the availability of parts and can slow down the service activity. These factors are likely to negatively impact the growth of the global e-SUV market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Electric Sports Utility Vehicle (e-SUV) Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ford Motor Co.: The company offers e-SUVs such as the Ford Mustang Mach-E.
The market growth and trends report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The e-SUV Market is witnessing rapid growth as consumers embrace electric SUVs as alternatives to traditional internal combustion fuel engine vehicles. With a focus on sustainability and efficiency, hybrid electric vehicles with all-wheel drive (AWD) or four-wheel drive (4WD) capabilities cater to diverse needs, offering smooth rides on both rough terrain surfaces and public roads while ensuring zero-emission and quiet operation. The shift towards electrification is driven by advancements in batteries and motors, providing fuel-efficient mobility solutions and reshaping the automotive industry landscape. With a focus on sustainability, the e-SUV market continues to evolve, driven by innovations in electric vehicle architecture and the adoption of advanced battery technologies like lithium-iron-phosphate (LFP) and lithium-ion batteries, transforming the future of transportation.
Automobile assembly plants worldwide are ramping up their production to meet the growing demand for electric car models, particularly those equipped with efficient powertrains, infotainment systems, and safety features. Global supply chains play a crucial role in sourcing components necessary for the manufacturing of electric vehicles, ensuring smooth operations and timely delivery. Additionally, government incentive schemes like the FAME II scheme encourage the adoption of electric vehicles by offering subsidies and benefits to consumers.
This market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electric Sports Utility Vehicle (e-SUV) Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.19% |
Market growth 2023-2027 |
USD 83.74 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
23.71 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, Japan, Norway, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AEHRA, Bayerische Motoren Werke AG, BYD Co. Ltd., Dr. Ing. h.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Kia Motors Corp., Mahindra and Mahindra Ltd., Maruti Suzuki India Ltd., Mercedes Benz Group AG, Nissan Motor Co. Ltd., Pravaig Dynamics Pvt Ltd., Renault SAS, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Volvo Car Corp. |
Market dynamics |
Market trends and analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Propulsion
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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