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The SUV market size is forecast to increase by USD 272.36 billion, at a CAGR of 5.72% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. Firstly, the increased preference for safety and comfort is fueling sales of SUVs, as consumers prioritize these features in their vehicle purchases. Secondly, the rapid development of electric and hybrid SUVs is gaining traction, as consumers seek more eco-friendly transportation options. Lastly, there is an increasing inclination toward cost-effective and compact SUV models, catering to the needs of budget-conscious consumers and those with limited parking space. Engine size is another factor influencing the market, with consumers opting for smaller engines to improve fuel efficiency and reduce emissions. Overall, these trends are shaping the market's future, offering numerous opportunities for growth and innovation.
The market is witnessing significant growth due to the increasing demand for advanced comfort and automatic safety features in vehicles. Premium SUVs continue to dominate the market, offering versatility and multiple drivetrain options to cater to diverse consumer preferences. Compact SUVs are also gaining popularity for their off-roading capabilities and heavy towing capacity. Automakers are focusing on electrification to meet emission norms set by the European Commission. Full-size SUVs and luxury cars are being transformed into semi-autonomous and autonomous vehicles to enhance the driving experience. Ultra-luxurious cars are incorporating the latest connected technologies to offer a seamless and personalized experience to customers.
Automobile OEMs like Mercedes, Audi, Volvo, Jaguar, Kia, Tesla, and Chevrolet are leading the market with their innovative offerings. The trend towards electrification is also evident in the SUV segment, with electric SUVs gaining traction among consumers. The market is expected to witness continued growth, driven by consumer preferences for versatility, comfort, safety, and advanced technologies. GHG emissions and emission norms are key factors influencing the market. Automakers are investing in research and development to produce SUVs that meet the stringent emission standards while maintaining performance and fuel efficiency. The focus on reducing emissions is driving the adoption of electric and hybrid SUVs, which are expected to dominate the market in the coming years.
The 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 medium-sized SUVs segment is estimated to witness significant growth during the forecast period. Mid-size SUVs represent a significant segment in The market, characterized by vehicles that offer a balance between size and advanced features. These SUVs, which are smaller than their full-size counterparts, continue to garner popularity due to their versatility and performance. Notable mid-size SUV models include the BMW X1 (Bayerische Motoren Werken AG), Audi Q3 (Porsche Automobil Holding SE), Mercedes-Benz GLA (Mercedes-Benz Group AG), Lexus RX (Toyota Motor Corporation), Volvo XC60 (AB Volvo), and Acura MDX (Honda Motor Co. Ltd.). These vehicles provide a range of premium features, such as leather interiors, sophisticated infotainment systems, high-fidelity audio systems, and advanced safety technologies.
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The medium-sized SUVs segment was valued at USD 322.37 billion in 2018 and showed a gradual increase during the forecast period.
APAC 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.
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The APAC market for SUVs is characterized by cost sensitivity, with the utility value of the vehicle being a significant factor influencing sales. In countries such as China, Japan, India, Indonesia, Malaysia, and Thailand, the sales of SUVs are primarily driven by vehicle prices and fuel efficiency. The cost of servicing and maintenance also plays a crucial role in determining the popularity of a particular SUV model. The APAC region holds immense growth potential for SUV sales, particularly in China, Japan, India, and South Korea. Notable automakers, including Maybach GLS (Mercedes Benz Group AG), Maserati Levante (Stellantis NV), and Porsche Cayenne (Porsche Automobil Holding SE), have experienced consistent growth in the Chinese market.
Our researchers analyzed the data with 2023 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.
Increased preference for safety and comfort driving sales of SUVs is the key driver of the market. Mid-size SUVs in the automotive market continue to gain popularity due to their versatility and advanced features. These vehicles offer a spacious interior, capable of accommodating both passengers and cargo, making them an ideal choice for families and small businesses. However, concerns regarding fuel economy and CO2 emissions remain a significant factor in consumer decision-making. To address these concerns, automakers are investing in the development of more efficient engines and hybrid powertrains.
Moreover, fueled by increasing disposable income, urbanization, and changing consumer preferences, the market is expected to reach significant heights. In terms of technology, mid-size SUVs are equipped with the latest advancements to differentiate them from pickups and smaller commuter SUVs. These include advanced driver-assist systems, such as intelligent all-wheel-drive systems, electronic stability control, and automatic lane-keeping systems. These features not only enhance the driving experience but also contribute to improved safety and overall vehicle performance. Automakers are also focusing on reducing CO2 emissions and improving fuel economy by introducing hybrid and electric powertrains. For instance, the Ford Explorer Hybrid and Toyota Highlander Hybrid are popular mid-size SUV models that offer impressive fuel efficiency and low emissions.
In conclusion, the mid-size the market is witnessing significant growth, driven by consumer preferences for versatility, advanced features, and improved fuel economy. Automakers are responding to these trends by investing in the development of more efficient engines and hybrid powertrains, while also incorporating the latest technology to enhance the driving experience and improve safety.
Rapid development of electric and hybrid SUVs is the upcoming trend in the market. The market is witnessing a notable trend towards electric and hybrid models, as consumers and governments prioritize reduced fuel economy and CO2 emissions. Electric SUVs offer a sustainable solution with zero emissions during operation, contributing to the decrease in greenhouse gases. In contrast, hybrid SUVs integrate traditional internal combustion engines with electric power, resulting in improved fuel efficiency and a smaller carbon footprint. This shift is influenced by heightened environmental consciousness among consumers and regulatory initiatives, as well as advancements in electric vehicle (EV) infrastructure. Leading automakers are responding to this trend by launching electric and hybrid mid-size SUVs to cater to the growing demand for eco-friendly alternatives.
Increasing inclination toward cost-effective and compact models is a key challenge affecting the market growth. The market may encounter obstacles due to the escalating preference for fuel-efficient pickups and mid-size vehicles, such as hatchbacks and sedans. Consumer trends play a crucial role in shaping the automotive sector, and the growing demand for compact and cost-effective options poses a challenge to SUV manufacturers. Fuel economy and CO2 emissions are increasingly important considerations for consumers, and smaller vehicles typically offer better fuel efficiency. Regulatory initiatives aimed at enhancing fuel efficiency and reducing carbon emissions further encourage the shift towards compact vehicles. Consequently, the market may experience a diversion of resources and focus towards producing more fuel-efficient models or risk losing market share to hatchbacks and sedans.
The market forecasting 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 market growth analysis strategies.
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.
AB Volvo: The company offers SUVs such as the XC 90 recharge, XC 90, and XC 60.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is experiencing significant growth due to the increasing demand for advanced comfort and automatic safety features. Premium SUVs, compact SUVs, and full-size SUVs continue to be popular choices among consumers, offering versatility, multiple drivetrain options, and off-roading capabilities. The market is also witnessing a shift towards electrification, with electric and hybrid SUVs gaining traction. Semi-autonomous and autonomous vehicles are expected to revolutionize the market in the future. The European Commission's emission norms and stringent regulations on CO2 emissions are driving automotive OEMs to focus on fuel economy and reducing GHG emissions. Mid-size SUVs and engine size are other significant factors influencing the market.
The market is also growing, with consumers seeking advanced connected technologies and off-roading capabilities. Pickups are another segment of the market that is witnessing growth due to their heavy towing capacity.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.72% |
Market Growth 2024-2028 |
USD 272.36 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.84 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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., Stellantis NV, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., and Volkswagen AG |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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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 Vehicle Type
7 Market Segmentation by Fuel Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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