SUV Market By Size (Subcompact SUVs, Compact SUVs), Fuel Type (Petrol, Diesel), Class (Class B, Class C), Seating Capacity (5 Seater, 7 Seater 8, and Above Seater), & Region for 2024-2031
Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationSUV Market By Size (Subcompact SUVs, Compact SUVs), Fuel Type (Petrol, Diesel), Class (Class B, Class C), Seating Capacity (5 Seater, 7 Seater 8, and Above Seater), & Region for 2024-2031
SUV Market Size And Forecast
SUVs are rapidly gaining popularity, surpassing sedans and hatchbacks. This rise in demand might be ascribed to a variety of things. people are becoming more interested in the practical benefits that SUVs provide. Their increased ground clearance results in superior handling on uneven roads and off-road capabilities, making them perfect for families with active lives or those living in rural locations. the various organizations is driving the market size surpass USD 30.67 Million valued in 2023 to reach a valuation of around USD 45.17 Million by 2031.
Furthermore, the large interiors cater to increasing families who want enough cargo space for bags and equipment. Even in metropolitan locations, many drivers value the commanding view from the driver’s seat and the sense of security it provides. This shift in consumer desire, along with the emergence of fuel-efficient and feature-rich compact and mid-size SUVs, has pushed the SUV Market to new heights. The rising demand for cost-effective and efficient SUVis enabling the market grow at a CAGR of 4.96% from 2024 to 2031.
SUV MarketDefinition/ Overview
An SUV, or Sport Utility Vehicle, is a versatile vehicle designed for both on- and off-road use, distinguished by higher ground clearance, a strong chassis, and a large interior. SUVs are popular for families and outdoor activities because they can accommodate numerous people and have plenty of luggage capacity. They frequently have four-wheel drive or all-wheel drive systems, which improves their performance in a variety of terrains and weather situations. SUVs have grown in popularity in the automobile industry due to their combination of passenger comfort and utility.
SUVs are used in various industries, including personal transportation, outdoor recreation, and commercial applications, due to their versatility and ability to transport families and freight. As consumer preferences shift toward larger, larger vehicles, the prospects for SUVs appear bright, particularly with the growing demand for electric and hybrid variants.
Advancements in technology, such as enhanced driver assistance systems and connectivity features, are expected to improve safety and convenience. Furthermore, the increased emphasis on sustainability will encourage manufacturers to create more environmentally friendly SUVs, making them an important component of the automobile market in the coming years.
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How will Improved Fuel Efficiency Drive the SUV Market?
Improved fuel efficiency is expected to propel the SUV Market, as buyers prioritize sustainability and cost-effectiveness in their vehicle purchases. With breakthroughs in engine technology and the advent of hybrid and electric versions, modern SUVs have achieved considerable fuel economy increases, with the typical 2021 automobile giving 28.1 miles per gallon—a 41% improvement over 2004 models, according to the US Department of Energy. This higher efficiency not only solves environmental issues but also improves the general appeal of SUVs, making them more appealing to a wider spectrum of purchasers. As people become more aware of the environmental impact of their fuel usage, the market for fuel-efficient SUVs is projected to develop.
Rising disposable income in emerging nations is likely to propel the SUV Market, as the growing middle class wants vehicles with both space and versatility. This tendency is illustrated by China’s outstanding 20.2% growth in SUV sales in 2020, which reached 10.1 million units despite a larger downturn in the car market. As purchasing power rises, customers in emerging countries are increasingly likely to invest in SUVs, reflecting their shifting tastes for larger vehicles that can accommodate families and lifestyles. This increased demand is expected to drive SUV sales even higher, cementing their position as a crucial category in the automotive industry.
How Does the Rising Cost of Fuel Affect the Growth of the SUV Market?
The rising cost of fuel may affect the growth of the SUV Market, as consumers become more hesitant to purchase larger vehicles with higher fuel consumption. While newer SUVs have increased fuel efficiency, rising gasoline prices may still dissuade purchasers who value cost-effective transportation. As fuel prices rise, buyers may turn to smaller, more fuel-efficient automobiles, as well as hybrid and electric options.
However, sustained desire for SUVs, driven by aspects like as spaciousness, safety, and modern technology, may keep the industry alive, albeit with a potential increase in interest in fuel-efficient versions. Ultimately, the long-term impact will be determined by how manufacturers adapt to these problems and changing consumer preferences.
Environmental issues are anticipated to impact SUV Market growth, as consumers prioritize sustainability in purchase decisions. As people become more concerned about climate change and pollution, many opt for more environmentally friendly vehicles, such as hybrid and electric SUVs. This tendency may decrease traditional gas-powered SUV sales unless manufacturers respond by improving fuel efficiency and introducing greener alternatives. Ultimately, the SUV Market may expand, but its success will be determined by the industry’s ability to align with environmental standards.
Category-Wise Acumens
Will Sweet Spot Propel the Compact SUVs Segment Drive the SUV Market?
SUVs currently dominate the SUV Market. The compact SUV class, and thus the overall SUV Market, is poised to benefit from the sweet spot between size and functionality. Compact SUVs strike a compromise between large interiors and load capacity while maintaining manageable dimensions, making them perfect for urban locations and family needs. This versatility appeals to a wide range of people, including young professionals and developing families, who want functionality without sacrificing beauty or comfort. As consumers increasingly emphasize efficiency, mobility, and functionality, demand for compact SUVs is projected to climb, consolidating their place as a key growth sector within the broader SUV Market.
They’re larger than subcompact SUVs, offering additional storage capacity and passenger comfort, but they’re still flexible for city driving and easier to park than larger vehicles. They are typically more fuel-efficient than their larger counterparts, making them an appealing option for cost-conscious consumers concerned about gas costs. Finally, compact SUVs are available in a wide range of styles and pricing points, appealing to a diverse set of demands and preferences. This mix of utility, affordability, and variety has established its status as the top sector in the SUV Market.
Will Infrastructure Raise the Petrol Segment for the SUV Market?
The growing popularity of electric cars (EVs), petrol SUVs still dominate the SUV Market. Infrastructure development will have a big impact on the petrol portion of the SUV Market, as the availability of well-maintained highways and fueling stations increases the convenience of owning larger cars. Consumers in areas with strong infrastructure are more inclined to invest in petrol SUVs due to their adaptability and off-road capabilities.
Increased infrastructure facilitates longer excursions and increases travel convenience, making petrol SUVs an appealing alternative for families and adventurers. However, as infrastructure improves, the focus may move to accommodate hybrid and electric vehicles, altering the future dynamics of the SUV Market.
Range anxiety is expected to drive sustained demand for the petrol portion of the SUV Market, as consumers remain concerned about the limitations of electric vehicles in terms of travel distance and charging infrastructure. While advances in EV technology are addressing these difficulties, many purchasers still prefer the dependability and convenience of gasoline SUVs for long trips, especially in places with few charging outlets. This preference ensures that petrol-powered SUVs will continue to be a popular choice among consumers looking for independence and trust in their vehicle’s range.
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Country/Region-wise Acumens
Will Advanced Infrastructure in North America Bolster the SUV Market?
North America currently holds the dominant position in the SUV Market. Infrastructure will fuel the SUV Market in North America, as the wide road network supports the vehicles’ reputation for adventure and long-distance travel. According to the US Department of Transportation, the US has approximately 4.2 million miles of public roadways, including 164,000 miles in the National Highway System, which allows for seamless travel. This strong infrastructure supports over 3.2 trillion vehicle miles traveled yearly, making it ideal for the increased demand for SUVs. SUVs and crossovers made up 50.2% of new car sales in 2020, up from 48.6% in 2019, according to IHS Markit. The combination of well-maintained transportation and consumer preference for larger, multipurpose vehicles continues to drive the growth of the SUV Market in North America.
Fuel prices will play an important role in boosting the SUV Market in North America, as historically low gasoline prices offer larger, less fuel-efficient vehicles more tempting to buyers. The average retail price for ordinary gasoline in the United States is $2.17 per gallon in 2020, which is much lower than in many European countries, contributing to SUVs’ growing popularity. The United States Environmental Protection Agency (EPA) reported that SUVs and crossovers accounted for 52% of new vehicle sales in 2021, up from 39% in 2012.
Will Government Policies in the Asian Pacific Region Drive the SUV Market?
The Asia-Pacific region is experiencing the fastest growth in the SUV Market. Government policies are expected to generate significant development in the SUV Market in Asia-Pacific since demanding fuel efficiency standards push manufacturers to produce more fuel-efficient vehicles. China’s new fuel economy rules, which mandate that passenger vehicles reach an average of 4.0 L/100km (59 mpg) by 2025, have expedited the development of hybrid and electric SUVs. This transition is reflected in a 10.9% increase in new energy vehicle sales in 2020, including electric and hybrid SUVs, despite a general market decrease.
Rising disposable income is expected to considerably drive the SUV Market in Asia-Pacific, as buyers seek to invest in larger, more luxurious vehicles. Emerging and developing Asia’s GDP per capita in Purchasing Power Parity terms increased from $11,088 in 2015 to $14,618 in 2020, which has had a direct impact on the car market, especially the SUV segment. In China, SUV sales hit 10.1 million units in 2020, accounting for 46% of total passenger vehicle sales, while in India, SUV sales increased by 12.13% in FY 2021-22, exceeding all other segments.
Furthermore, forecasts show that by 2035, almost 80% of Indian households would be middle-income, implying that demand for SUVs will remain strong. This high association between rising disposable income and increased SUV sales demonstrates the SUV Market’s great growth potential in Asia-Pacific.
Competitive Landscape
The SUV Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.
The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the SUV Market include
Ford Motor Company, General Motors, AUDI AG, Kia Motors Corporation, Groupe Renault, Groupe PSA, SAIC Motor Corporation Limited, Tesla, Mercedes-Benz Group AG, BMW AG, Hyundai Motor Company, BYD Company Ltd., Continental AG, TOYOTA MOTOR CORPORATION, Nissan Motor Co., LTD., Volkswagen Group, AB Volvo, Honda Motor Co., Ltd.
Latest Developments
- In March 2024, Hyundai plans to deliver an electric version of its popular Creta SUV in India by March 2025. Based on its latest redesign, the Creta EV will compete with models from Tata, Mahindra, Maruti, and MG Motor. This electric mid-size SUV is projected to share several characteristics with Hyundai’s Ioniq 5 and have a similar cabin to existing Creta owners.
- In March 2024, Ford reportedly postponed introducing a three-row electric SUV due to shifting consumer preferences and competition from Chinese companies. Instead, the company is focusing on the construction of a more affordable electric vehicle priced at $25,000.
- In May 2023, Range Rover announced that its luxury SUV lineup would now include a hybrid powertrain. Every Range Rover SUV will be equipped with a new V8 type, as well as hybrid and plug-in hybrid powertrains.
- In April 2023, MG Motor will release a plug-in hybrid SUV in Mexico. The firm opted to offer this due to the increased potential for a hybrid market in the area. MG Motor’s eHS model will retail in Mexico for USD 45,610.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2018-2031 |
| Growth Rate | CAGR of ~4.96% from 2024 to 2031 |
| Base Year for Valuation | 2023 |
| Historical Period | 2018-2022 |
| Forecast Period | 2024-2031 |
| Quantitative Units | Value in USD Million |
| Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
| Segments Covered |
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| Regions Covered |
|
| Key Players | Ford Motor Company, General Motors, AUDI AG, Kia Motors Corporation, Groupe Renault, Groupe PSA, SAIC Motor Corporation Limited, Tesla, Mercedes-Benz Group AG. |
| Customization | Report customization along with purchase available upon request |
SUV Market, By Category
Size
- Subcompact SUVs
- Compact SUVs
- Midsize SUVs
- Full-Size SUVs
Fuel Type
- Petrol
- Diesel
- Electric SUV
Class
- Class B
- Class C
- Class D
- Class E
Seating Capacity
- 5-seater
- 7-seater
- 8 an above seater
Geography
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Research Methodology of Market Research
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Reasons to Purchase this Report
• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support
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