Global Sports Utility Vehicle (SUV) Market: Sports Utility Vehicles or SUVs are all-purpose vehicles that combine the features of passenger cars and light trucks. SUVs offer comfort and amenities comparable to passenger cars along with higher ground clearance and four-wheel drive capabilities that allow it to be used on rough terrains. The global SUV market has witnessed increased demand in recent years owing to changing consumer preferences towards larger vehicles that offer utility, power and spacious interiors for carrying people and cargo.
The global Sports Utility Vehicle (SUV) Market is estimated to be valued at US$ 2.3 trillion 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.
Market key trends: The growing demand for versatile and spacious vehicles that can be used for both daily commuting as well as off-road adventures has been a major driver propelling the SUV market in recent years. SUVs are increasingly becoming popular family vehicles as they provide ample space for passengers and cargo while still being comfortable to drive in urban areas. Owing to their elevated seating position and powerful engine options, SUVs also allow consumers the flexibility to drive both on-road and off-road without compromising much on comfort or convenience. Furthermore, the availability of consumer-friendly financing options from vehicle manufacturers and easy availability of after-market parts has also contributed to increasing affordability of SUVs and further expanded the potential consumer base for this market segment.
SWOT Analysis
Strength: SUVs offer excellent cargo space and towing capacity which make them a practical family vehicle. Their elevated seating position provides better visibility over other vehicles on the road.
Weakness: SUVs typically have lower fuel efficiency compared to sedans which impacts operating costs. Additional features like all-wheel drive further reduce fuel economy. Some SUV body styles limit rear visibility which can compromise safety.
Opportunity: Rising environmental concerns are driving demand for electric and hybrid SUVs which provide fuel savings without compromising on features. Compact and subcompact SUV segments are witnessing strong demand from urban consumers.
Threats: Strict emission regulations along with higher fuel prices can negatively impact sales of gasoline-powered SUVs. Shift towards smaller and more fuel efficient vehicles also poses a threat.
Key Takeaways
The global sports utility vehicle market is expected to witness high growth over the forecast period supported by rising lifestyle changes and increasing road infrastructure development. The global Sports Utility Vehicle (SUV) Market is estimated to be valued at US$ 2.3 trillion in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030.
North America currently dominates the market and is expected to maintain its leading position through 2030 backed by presence of major SUV manufacturers and availability of large SUV body styles preferred by customers in the region.
Key players operating in the market are Toyota Motor Corporation, Honda Motor Company Ltd., Ford Motor Company, General Motors Company, Nissan Motor Co. Ltd. SUV body styles are evolving with compact and subcompact crossovers becoming increasingly popular. Electric and hybrid powertrains are also being incorporated across various SUV segments to improve efficiency and reduce emissions. While full-size SUVs remain popular choices for larger families, mid-size and compact SUVs are finding more buyers in global markets. With investment in new product launches featuring latest conveniences and driver assist technologies, leading automakers aim to expand their customer base.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
