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The Sport Utility Vehicle (SUV) Market size is forecast to increase by USD 272.36 billion, at a CAGR of 5.72% between 2023 and 2028.
The growth of the market depends on several factors such as the increased preference for safety and comfort driving sales of SUVs, the rise in demand for 4-wheel and all-wheel drive options for off-roading, and the rising preference for SUVs by upper-middle-class families. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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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.
The market for SUVs is experiencing significant growth due to the increased preference for comfort and safety. SUVs are equipped with advanced comfort features and modern technologies, making them stand out in the automotive market. Automakers focus on showcasing their SUVs as premium vehicles, enhancing the social status of buyers.
Moreover, these vehicles often come with advanced driver-assist systems and safety features, providing a higher level of safety and security. The shift towards electric and full-size SUVs aligns with changing consumer preferences and evolving global emission norms. As a result, the SUV market is witnessing growth, driven by features, premium appeal, and advancements in comfort and safety technologies. Hence, such factors are driving the market growth during the forecast period.
Rapid development of electric and hybrid SUVs is an emerging trend in the market. The increase in electric and hybrid SUVs represents a significant trend in the global market, indicating a shift toward more environmentally sustainable transportation. In addition, electric sports utility vehicles provide emission-free driving, helping to reduce greenhouse gas emissions. Furthermore, hybrid models, on the other hand, combine traditional internal combustion engines with electric propulsion, resulting in increased fuel efficiency and a lower environmental impact.
Moreover, this trend is driven by increased consumer awareness of environmental issues, as well as government incentives and advancements in EV infrastructure. In addition, major automakers are actively embracing this shift, introducing electric and hybrid models to meet the growing demand for environmentally friendly alternatives. Furthermore, the Toyota RAV4 Hybrid exemplifies the hybrid category by seamlessly integrating a gasoline engine and an electric motor for increased fuel efficiency while maintaining the Toyota RAV4 sports utility vehicle's popular features. Therefore, such factors are negatively impacting the sport utility vehicle market Hence, such factors are driving the market growth during the forecast period.
Increasing inclination toward cost-effective and compact models is a major challenge hindering market growth. Increasing demand for hatchbacks and sedans may pose challenges to the global market in a variety of ways. For instance, to begin, consumer preferences have a significant impact on the automotive industry, and an increase in demand for smaller, fuel-efficient vehicles such as hatchbacks and sedans may divert attention and resources away from sports utility vehicle production.
Moreover, hatchbacks and sedans may appeal to consumers looking for cost-effective and compact options because of their lower price points and higher fuel efficiency. In addition, regulatory pressures aimed at improving fuel efficiency and lowering emissions may encourage consumers to choose smaller vehicles with lower carbon footprints, similar to hatchbacks and sedans. Furthermore, this shift toward environmentally friendly options may have an impact on the market share of larger sports utility vehicles, especially if stricter emission standards become more common around the world. Therefore, such factors are negatively impacting the sport utility vehicle market. Hence, such factors are hindering the market growth during the forecast period.
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 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 medium-sized SUVs segment is estimated to witness significant growth during the forecast period. Mid-size segment include models that are slightly smaller than full-size sports utility vehicles but still offer a high level of advanced features and performance. In addition, some popular mid-size models include the BMW X1 (Bayerische Motoren Werke AG), Audi Q3 (Porsche Automobil Holding SE), Mercedes-Benz GLA (Mercedes Benz Group AG), Lexus RX (Toyota Motor Corp.), Volvo XC60 (AB Volvo), and Acura MDX (Honda Motor Co. Ltd.), among others.
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The medium-sized SUVs segment was the largest segment and was valued at USD 322.37 billion in 2018. Moreover, this segment typically offers a range of features and amenities, such as leather interiors, advanced infotainment systems, high-quality audio systems, and advanced safety features. In addition, many medium-size SUVs also offer impressive performance capabilities, with powerful engines and responsive handling. Furthermore, the major markets for mid-size models are Europe and APAC. Customers in APAC and European countries are cost-conscious and prefer vehicles that have high fuel efficiency. In addition, vehicle manufacturers develop models that are equipped with updated features such as turbochargers, inline modeled engines, updated vehicle electronic systems, and multimedia support. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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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. The APAC market is mainly cost-sensitive, wherein the utility value of the vehicle plays a significant role in driving its sales. In addition, the sales of vehicles in APAC countries, such as China, Japan, India, Indonesia, Malaysia, and Thailand, largely depend on the prices of vehicles and their fuel efficiency. Moreover, the cost of service and maintenance also plays a major role in driving the sales of a particular vehicle model. In addition, APAC has high growth potential for the sales of SUVs in countries such as China, Japan, India, and South Korea. Maybach GLS (Mercedes Benz Group AG), Maserati Levante (Stellantis NV), and Porsche Cayenne (Porsche Automobil Holding SE) have consistently maintained significant growth in the Chinese market. Hence, such factors are driving the market growth in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is witnessing significant growth driven by consumer demand for advanced comfort, automatic safety features, and premium options. SUVs offer versatility, multiple drivetrain options, and off-roading capabilities, catering to a diverse range of preferences. The market is also experiencing a surge in electric and hybrid vehicles, contributing to the growing trend of electrification in the automotive industry. Luxury SUVs are incorporating electrification of semiautonomous and autonomous features, enhancing the driving experience. Key players like Jaguar, Kia, and Chevrolet are at the forefront, aligning with emission norms and adopting connected technologies. The European Commission and the United States Environmental Protection Agency play crucial roles in regulating GHG emissions and fuel economy standards. SUVs, including ultraluxurious and pickup variants, continue to evolve with improved engine sizes and horsepower, exemplified by models like the Chevrolet Suburban. As per the IEA Global EV Outlook, the market reflects a dynamic landscape with a focus on reducing CO emissions and embracing innovative automotive solutions. The market is undergoing a transformation with an emphasis on electrification and a shift in engine technology, impacting fuel consumption globally. SUVs are evolving to offer enhanced off-roading capabilities while maintaining a focus on comfort and reducing CO2 emissions.
The market is undergoing a transformative phase with a surge in premium SUVs, emphasizing heavy towing capacity and the integration of electric hybrid technologies. Semiautonomous and autonomous vehicles are becoming integral to the SUV segment, offering enhanced safety and driving experiences. Luxury and ultraluxurious SUVs from prominent automotive OEMs like Jaguar and Chevrolet are leading the market evolution. Additionally, the SUV market embraces pickups, combining power and versatility. The horsepower (hp) specifications further highlight the performance-oriented nature of modern SUVs, catering to diverse consumer preferences and contributing to the dynamic landscape of the automotive industry.
SUV 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, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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. |
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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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