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The Luxury Sports Utility Vehicles (SUV) Market size is estimated to grow at a CAGR of 6.18% between 2022 and 2027. The market size is forecast to increase by 785.19 thousand units. The growth of the market depends on several factors, including the increased preference for safety and comfort to drive sales of luxury SUVs, the rise in HNWI population, and the rising preference for SUV model vehicles.
This Luxury Sports Utility Vehicles Market report extensively covers market segmentation by type (mid-size luxury SUVs and full-size luxury SUVs), application (individual and commercial), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It 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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Increased preference for safety and comfort to drive sales of luxury SUVs notably drive the Luxury Sports Utility Vehicles Market growth, although factors such as declining exclusivity of luxury cars impede the market growth. 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.
One of the key factors driving growth in the luxury SUV market is the increased preference for safety and comfort to drive sales of luxury SUVs. Luxury vehicles are equipped with modern technology and feature updates to stand apart from even the fully equipped variants of commuter SUVs. However, the very /image of luxury SUVs largely depends on the advertising by the vehicle manufacturer to showcase the vehicle as premium and elevate the social status of the buyers. Hence, automakers equip their luxury SUV models with the latest technologies, as these represent the brand /image of the company. Luxury SUVs offer a much higher degree of safety and security to vehicle occupants.
The increase in road accidents is expected to further highlight the importance of having additional safety features in luxury vehicles. This will make luxury SUVs more desirable to potential buyers. Governing bodies are striving to reduce the number of fatalities caused due to road accidents by mandating various safety features in vehicles. This will encourage vehicle manufacturers to equip their premium vehicles with advanced safety features ahead of the commuter segment vehicles to maintain the differences between luxury and commuter vehicles.
The rapid development of electrified luxury vehicles is a luxury SUV market trend that is expected to have a positive impact during the forecast period. The rising concern about reducing vehicular emissions is increasing the adoption of electrified vehicles, which include pure electric vehicles, plug-in hybrid electric vehicles, and hybrid electric vehicles. Electrified vehicles are gaining popularity among luxury vehicle manufacturers. BMW launched 10 electrified vehicle models (9 plug-in hybrid vehicles and 1 pure-electric vehicle). Furthermore, the company has announced its plans to launch 25 electrified vehicles (13 plug-in hybrid vehicles and 12 pure electric vehicles) by 2025.
In addition, established luxury electric vehicle manufacturers, including Tesla, are increasing their product portfolio by introducing new electric vehicle models. In January 2019, Tesla announced the development of its next electric vehicle (Model Y crossover). Thus, the rapid adoption and development of luxury electric vehicles are expected to positively impact the global Luxury Sports Utility Vehicles (SUV) Market shortly.
The declining exclusivity of luxury cars will be a major challenge for the luxury SUV market during the forecast period. The major factors driving the purchase of a luxury SUV are its exclusive features and the prestige associated with its ownership. However, the intensifying competition, rise in the number of luxury brands, and increasing demand for luxury SUVs have pushed luxury vehicle manufacturers to expand their businesses and sell to the mass segment through the same distribution channel as that for other segment vehicles. Though this does not affect the sales of these vehicles directly, the exclusivity declines.
Another major differentiating factor for luxury SUVs is technologically advanced features. Nowadays, mid-segment SUVs are equipped with advanced emergency braking systems, collision avoidance warnings, pedestrian detection, steering assist, blind-spot monitoring, heated seats, and sunroofs, which were previously exclusive to luxury vehicles. The availability of advanced features in mid-segment SUVs has diffused the exclusivity of luxury SUVs. This is expected to hamper the growth of the global luxury SUV market.
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 Luxury SUV Market Customer Landscape
Vendors 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.
Stellantis NV - The company offers luxury SUVs such as ID.4 Pro, Atlas Cross Sport, and Tiguan.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the mid-size luxury SUVs segment will be significant during the forecast period. Compact luxury SUVs are part of mid-size SUVs, and it is the dominating category in this segment. The major markets for mid-size luxury SUVs are Europe and APAC.
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The mid-size luxury SUVs segment was valued at 1,476.21 thousand units in 2017 and continued to grow until 2021. Customers in APAC and European countries are cost-conscious and prefer vehicles that have high fuel efficiency. Hence, vehicle manufacturers develop SUVs that are equipped with updated features such as turbochargers, inline modeled engines, updated vehicle electronic systems, and multimedia support.
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North America is estimated to contribute 47% 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.
A high presence of the HNWI population in countries such as the US is one of the crucial factors that drive the sales of luxury SUVs in this region. The US is the primary market for luxury SUVs such as Cullinan - Rolls-Royce, Audi Q8, Porsche Cayenne, Lamborghini Urus, and Bentley Bentayga. Apart from traditional SUVs, electric SUV such as Tesla X also gains traction in this region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The market in focus was adversely affected by the outbreak of COVID-19 in 2020, which led to a decline in the sales of luxury SUVs in the region. However, automotive players have been experiencing a recovery in automotive sales, such as luxury SUVs. For instance, in June 2021, the auto sales of Ford in the US in Q2 2021 rose by 9.6% to 475,327 units when compared with Q1 2021, benefiting from strong demand for SUVs and EVs. Thus, it is anticipated that the market in focus will witness significant growth during the forecast period.
The luxury SUV market 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.
Technavio categorizes the global luxury SUV market as a part of the global automotive market under the global automobiles and components industry. The parent market, the global automotive market, covers companies engaged in the production of vehicles such as passenger cars, commercial vehicles, and all-terrain vehicles. It does not include manufacturers of motorcycles, scooters, e-bikes, trikes, and three-wheelers. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Luxury SUV Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.18% |
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Market growth 2023-2027 |
785.19 thousand units |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.25 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, Bayerische Motoren Werke AG, BYD Co. Ltd., China FAW Group Co. Ltd., Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Mahindra and Mahindra Ltd., Mazda Motor Corp., Mercedes Benz Group AG, Mitsubishi Motors Corp., Nissan Motor Co. Ltd., Renault SAS, SAIC Motor Corp. Ltd., Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Stellantis NV |
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Market dynamics |
Parent market 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. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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