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

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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?

Think SUVs can't be green? Think again! Improved gas mileage is making them super popular, as more and more drivers want vehicles that are good for the planet and their wallets. Thanks to cool new engine designs and the rise of hybrid and electric options, SUVs are way more fuel-efficient these days. I mean, the average 2021 car gets 28.1 miles per gallon – that's a 41% jump from what we saw in 2004, says the US Department of Energy! This isn't just about helping the environment; it's making SUVs more attractive to all sorts of buyers. Basically, as we all become more aware of how our fuel consumption impacts the world around us, expect the demand for fuel-efficient SUVs to keep growing.

SUVs are about to get even bigger, thanks to emerging nations where people have more money to spend! As the middle class grows, folks want vehicles that are spacious and can do it all. Think of China, where SUV sales jumped by a whopping 20.2% in 2020, hitting 10.1 million even when the overall car market was struggling. Basically, as people's wallets get fatter in these countries, they're increasingly likely to splurge on SUVs. They're after larger rides that fit their families and active lives. All this demand means SUV sales are set to soar, solidifying their spot as a major player in the car world.

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 are the kings and queens of the road these days, especially the compact ones! And honestly, these compact SUVs seem to have found the magic formula, offering the perfect mix of space and practicality. You get a good-sized interior for hauling stuff and people, but they're still easy to maneuver around town – a win-win! They're great for city dwellers and families alike. What's not to love? They're good looking, comfy, and incredibly useful, which is why everyone from young professionals to growing families are snapping them up. And because we all want something efficient, easy to get around in, and super functional, expect to see even more compact SUVs on the road soon. They're definitely a major player in the SUV world and will be for a while.

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?

Right now, North America is king when it comes to SUVs. And it makes sense, right? Our infrastructure here really feeds that SUV love. Think about itall those wide-open roads perfectly match what SUVs are all about – adventure and hitting the open road for a long haul. The US Department of Transportation says we've got a whopping 4.2 million miles of public roads, including 164,000 miles in the National Highway System, making travel super easy. That solid base supports over 3.2 trillion miles driven every year, which is perfect for all the SUVs we're craving! In fact, IHS Markit says SUVs and crossovers accounted for 50.2% of new car sales in 2020, a jump from 48.6% the year before. So, it's a combo of great roads and our desire for bigger, do-it-all vehicles that keeps the SUV market booming 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 ATTRIBUTESDETAILS
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
  • By Size
  • By Fuel Type
  • By Class
  • By Seating Capacity
  • By Geography
Regions Covered
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
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

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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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We dive deep into the market using both qualitative and quantitative analysis, segmenting it based on economic realities and other factors. You'll get market value (in USD Billion) for every segment and sub-segment, plus we'll point out which region and segment we expect to see the most growth and which will likely be the leader. Our analysis breaks down product/service consumption by geography, highlighting the factors influencing each region's market. We'll map out the competitive landscape, ranking the major players and detailing their new offerings, partnerships, expansions, and acquisitions over the last five years. Expect thorough company profiles covering overviews, insights, product benchmarking, and SWOT analysis for the key market players. We'll give you our take on the present and future market outlook, considering recent developments, growth opportunities, drivers, and the challenges facing both emerging and developed regions. You'll also get an in-depth look at the market through Porter's five forces analysis, plus valuable insights into the Value Chain. We'll round it out with a look at market dynamics, future growth opportunities, and even provide 6 months of post-sales analyst support.

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