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The Luxury Sport Utility Vehicle Market size is forecast to increase by USD 33.01 billion, at a CAGR of 11.42% between 2023 and 2028. The growth of the market is driven by several crucial factors. A significant factor is the increased preference for safety and comfort, which is boosting the sales of luxury SUVs. These vehicles are favored for their advanced safety features and high comfort levels. Additionally, the rise in the high-net-worth individual (HNWI) population, who often prefer the status and features of luxury SUVs, further propels market demand. The market is driven by the demand for Sports Utility Vehicle (SUV), passenger vehicle, and lightweight pickup truck, each catering to specific application niches. Moreover, there is a rising overall preference for SUV models due to their versatility, spaciousness, and performance, contributing to the expanding market for luxury SUVs globally. These factors collectively underscore the robust growth and increasing popularity of luxury SUVs.
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.
AB Volvo - The company offers luxury SUVs such as the XC90, which is a premium SUV that combines advanced safety and comfort, designed for ultimate elegance and capacity.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 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 luxury sport utility vehicle market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The individual segment is estimated to witness significant growth during the forecast period. The luxury SUV market segment by application for individuals includes various types of luxury SUVs designed and marketed for personal use. These vehicles typically offer advanced features, premium materials, and high-end performance capabilities. Extravagance SUVs can be classified into different sub-segments based on various factors, such as size, price, and performance.
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The individual segment was the largest and was valued at USD 23.36 billion in 2018. Prominent companies in the luxury SUV market, such as Range Rover (Tata Motors Ltd.) with its Range Rover Velar and Porsche Automobil Holding SE with models like the Porsche Cayenne, exemplify the offerings tailored for individual buyers. These vehicles are designed to provide a luxurious and personalized driving experience, with attention to detail in craftsmanship and performance. Additionally, the rising trend of customization options allows individuals to personalize their SUVs, adding a sense of exclusivity. Customization options include unique interior trims, exterior color choices, and additional features, catering to the diverse preferences of individual buyers. Overall, the individual segment is highly competitive and rapidly evolving, with new models and features being introduced regularly to meet the demands, which will result in the growth of the market through individual segments during the forecast period.
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North America is estimated to contribute 46% 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. SUVs and crossovers are widely viewed as large and powerful vehicles with higher ground clearance and a higher seating position with dynamic capabilities for handling multiple types of terrain. Luxury SUV sales are higher in North America due to a combination of factors, including more affordable loans, lower petrol prices, and a growing need for efficient personal transportation. Extravagance SUVs are marketed as high-end cars with advanced technology, which further fuels the demand owing to easily accessible financing. The increased penetration of the Internet has led the average American buyer to be dependent on smart gadgets for connectivity.
In addition, vehicle manufacturers have been providing Internet connectivity and technology to support the control and transfer of information between smart gadgets in luxury SUVs to increase utility. The rising penetration of Android Auto multimedia systems provides seamless integration between smartphones and vehicle infotainment. With features like voice commands, navigation, and entertainment apps, drivers can access and control various functionalities hands-free. This technology enhances the driving experience by offering connectivity and convenience in luxury SUVs and is expected to further drive the regional market growth during the forecast period.
Consumers are increasingly looking for vehicles that combine battery models with prestige, highlighting the importance of eco-friendly options alongside luxury features. Exhaust emissions remain a critical consideration, with manufacturers striving to meet stringent environmental standards. A well-informed customer base values product knowledge, and providing opportunities for test drives is essential in influencing purchasing decisions. By understanding these preferences and trends, automakers can effectively position their offerings in the competitive landscape of the global luxury SUV market. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges.
The rise in the HNWI population preferring luxury SUVs is notably driving the market growth. Therefore, an increase in the number of HNWIs will positively impact the luxury sport utility vehicle market. Financial institutions term an individual as having a high net worth according to the amount of wealth owned by the individual. A person with a minimum of USD1 million in liquid assets is considered a high-net-worth individual. Since 2018, Asia and North America have witnessed an increase in the number of HNWIs. In the same year, the super extravagance cars segment witnessed maximum growth in China. The US holds the maximum market share for super indulgence cars in terms of volume, which strengthens the correlation between the HNWI population and the growth of the market. APAC and North America account for an approximately three-fourth increase in the HNWI population and about a two-thirds increase in HNWI wealth.
Moreover, increasing the HNWI population or HNWI wealth can be considered a direct driving factor for the luxury sport utility vehicle market. The US, Japan, China, Germany, and Canada are the top five countries with the highest numbers of HNWIs and UHNWIs. The numbers are expected to increase during the forecast period. Thus, the increase in the HNWI population will positively impact the market growth and trends during the forecast period.
The introduction of new luxury vehicle segments by manufacturers is an emerging trend shaping market growth. The sales of existing extravagance vehicle models and new indulgence vehicle models in the existing segment, including sedans and SUVs, have grown. A rise in competition among excess vehicle manufacturers to gain a competitive edge is pushing them to undertake various initiatives, such as the expansion of the product portfolio with new vehicle segments.
For instance, in January 2022, Bayerische Motoren Werke AG launched a new version of its X3 SUV in India. The vehicle is now sportier and more modern with its comprehensive refreshed look, premium interior with new equipment features, and updated infotainment. Thus, the launch of luxury vehicles in new segments will positively impact the market during the forecast period.
Declining exclusivity of luxury cars is a significant challenge hindering market growth. 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 of indulgence SUVs is technologically advanced features. However, these features are becoming common in mid-segment vehicles.
Nowadays, mid-segment SUVs are equipped with advanced emergency braking systems, collision avoidance warning, pedestrian detection, steering assist, blind-spot monitoring, heated seats, and sunroofs, which were previously exclusive to extravagance vehicles. The availability of advanced features in mid-segment SUVs has diffused the exclusivity of costly SUVs. This is expected to hamper the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market growth and forecasting, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also include key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Luxury Sport Utility Vehicle Market Customer Landscape
The market is witnessing significant growth as automakers strive to meet evolving consumer preferences and rising disposable incomes. Modern luxury SUVs offer exclusive features such as advanced safety features, state-of-the-art infotainment systems, and sophisticated connectivity systems that cater to the tech-savvy consumer. With a focus on seating capacity and comfort, these vehicles provide a prestigious driving experience. The market is also seeing a shift towards electric luxury vehicles, driven by the demand for eco-friendly options with an extended driving range. Despite this, internal combustion engines continue to maintain a significant presence. Brand loyalty plays a crucial role, with established brands leveraging their reputation to attract buyers. The combination of these factors is driving the growth and evolution of the luxury SUV market.
The market encompasses sports utility vehicles (SUV), passenger vehicles, and lightweight pickup trucks, with a focus on four-wheel drive (4WD) and two-wheel drive (2WD) options. The rising cost of fuel and raw material shortage, alongside shipping delays and economic slowdown, impact production and sales. Luxury SUVs often feature advanced safety & security systems, appealing to both road-going passenger automobiles and off-road vehicle enthusiasts. Powertrains, including hybrid electric powertrains and electric vehicle technology, cater to eco-conscious consumers, adhering to emission standards set by environmental organizations. Incentives & subsidies for EV owners further boost market growth. A strong distribution network, brand experience, and after-sales services enhance the buying experience, with exclusive promotions and events providing additional value.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.42% |
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Market growth 2024-2028 |
USD 33.01 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
10.69 |
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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 46% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, luxury sport utility vehicle market industry report |
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Key companies profiled |
AB Volvo, Bayerische Motoren Werke AG, China FAW Group Co. Ltd., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Mahindra and Mahindra Ltd., Mazda Motor Corp., Mercedes Benz Group AG, Mitsubishi Corp., Nissan Motor Co. Ltd., Porsche Automobil Holding SE, Renault SAS, Tesla Inc., Toyota Motor Corp., SAIC Motor Corp. Ltd., Stellantis NV, Tata Motors Ltd., BYD Co. Ltd., and Ford Motor Co. |
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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 the market forecast period, luxury sport utility vehicle market growth analysis. |
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Customization purview |
If our luxury sport utility vehicle 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 Application
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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