The global Sports Utility Vehicle (SUV) Market is estimated to be valued at US$ 1,302.33 Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SUVs provide comfort, spacious interiors and higher seating positions along with better traction and ample cargo space. These multi-utility vehicles are increasing popular among consumers for daily commute as well as off-road adventures.
Market key trends:
One of the key trends driving the growth of global SUV market is increasing demand for luxury and premium SUV models. With rise in disposable income and changing preferences, consumers are willing to spend more on SUVs offering hi-tech features, premium interiors and luxurious driving experiences. Manufacturers are launching new luxury SUV models equipped with advanced driver assistance, connectivity and infotainment technologies to cater to this growing demand. Furthermore, manufacturers are focusing on developing electric and hybrid SUVs to comply with stringent emission norms and attract environment conscious customers. Several new battery electric SUV models have been launched recently and the segment is expected to witness significant growth over the coming years.
Strength: SUVs provide spacious interior which makes them suitable for large families. They also offer superior traction and powerful engines which make them suitable for off-roading.
Weakness: SUVs typically have lower fuel efficiency compared to sedan cars which results in higher fuel costs. They also tend to be more expensive than equivalent sedan models.
Opportunity: Increasing consumer preference for vehicles which can be used for both urban commutes as well as outdoor adventures is driving the demand for SUVs. Expanding road infrastructure in developing countries is also facilitating their adoption.
Threats: Stiffer emission regulations coupled with rising environmental concerns pose a threat in the form of additional production costs for automakers. Electric vehicles also threaten to eat into the market share of conventional SUVs over the long term.
The global sports utility vehicle (SUV) market is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing consumer preference for versatile vehicles that can be used for both urban commutes and outdoor activities.
Regional analysis: North America dominates the global SUV market currently due to increasing demand for light trucks and off-road vehicles in the US and Canada. However, Asia Pacific is expected to surpass North America and emerge as the fastest growing regional market owing to rising vehicle ownership, expanding road infrastructure and entry of global SUV brands in the emerging economies of China and India.
Key players: Key players operating in the global sports utility vehicle (SUV) market are Toyota Motor Corporation (Japan), Volkswagen AG (Germany), Honda Motor Co., Ltd (Japan), Hyundai Motor Company (South Korea), General Motors (US), Ford Motor Company (US), Stellantis (Netherlands), Daimler (Germany), Nissan Motor CO., Ltd (Japan), and BMW Group (Germany). These players are focused on introducing advanced safety and connectivity features in their SUV models to attract more customers.