Sport Utility Vehicle Market Forecasts to 2028 - Global Analysis By Class, Price Range, Seating Capacity, Type, EV Type, Fuel Type, Application and Geography

According to Stratistics MRC, the Global Sport Utility Vehicle (SUV) Market is accounted for $885 billion in 2022 and is expected to reach $1,453 billion by 2028 growing at a CAGR of 8.6% during the forecast period. A SUV (Sports Utility Vehicle) is a type of suburban utility vehicle that is categorised as a light truck and is utilised as a family vehicle. It has higher ground clearance and rugged features. In order to be lighter and more fuel-efficient, SUVs are built on standard car chassis and have all four wheels turning simultaneously. It is divided into categories for diesel, petrol, and electric vehicles.

According to IEA, the number of SUVs will grow by more than 35 million on the world's roads in 2021, increasing CO2 emissions by 120 million tonnes.

Market Dynamics:

Driver:

Electrification of SUVs & growing adoption of advanced connected technologies

Government and regulatory organisations across the world have implemented strict emission limits for lowering GHG emissions in response to the expanding worldwide vehicle sales. Global attention has switched to electric and hybrid cars as a result of strict pollution regulations, which has led to the simultaneous exponential rise of electric SUVs and these vehicles in recent years. The market is seeing the introduction of many electric SUVs from automobile OEMs. SUVs might be electrified since they are among the heaviest and most fuel-hungry cars, and electrification would help them fulfil strict pollution standards.

Restraint:

High cost of SUV

Buyers are gravitating towards the SUV market because it has several advantages over hatchbacks and sedans. However, although having many benefits, these automobiles are more expensive than small and mid-size cars, particularly full-size SUVs. The demand for mid-size SUVs is far better than that for full-size ones, and the market for compact SUVs has grown dramatically in both developed and developing countries. These full-size SUVs have strong engines and offer off-roading capability, but they also have a number of security and comfort services. These amenities include heated front seats, strong third-row air conditioners, an upgraded infotainment touch screen system, parking assistance, intelligent warnings, driver assistance functions, and many more. Since the majority of these full-size SUVs are sold in the premium and ultra-premium sectors, OEMs are forced to embrace more sophisticated features in order to remain competitive, which ultimately raise the price of the vehicle as a whole.

Opportunity:

Increasing demand of heavy and luxury vehicles

The market's growth is anticipated to be accelerated by the spike in demand for luxury and heavy cars as well as the expansion of diesel-powered vehicles. Additionally, the increased focus of manufacturers to produce sports cars with security, safety, and infotainment systems as well as the rising awareness of the benefits and capabilities of these heavy and luxury vehicles, such as off-roading capabilities, greater comfort, and these benefits are contributing to the market's growth during the forecast period.

Threat:

Challenges in meeting fuel economy and emission limits

Mid-size and full-size SUVs often feature bigger engines with worse fuel economy and greater CO2 emissions. The most popular full-size US SUVs have engines of 355 HP to 420 HP. In contrast, the most popular big SUVs in Europe have engines with between 315 and 400 horsepower. OEMs are concentrating on building big electrified SUVs. However, the full-size electric SUVs would need large batteries that would take a long time to charge. Additionally, the weight and price of full-size SUVs would also increase. In addition to tight emission standards and specific OEM initiatives, several nations' officials placed levies and fines on heavier automobiles, which produce the most pollutants. Similar to this, India's Road Transport and Highways Department accepted a plan for a "green tax" on older, more polluting automobiles. Therefore, increasing government rules that are more onerous on traditional SUVs and lower fuel efficiency might slow the expansion of the ICE engine SUV market.

COVID-19 Impact:

The COVID-19 pandemic is still having an impact on how different businesses are developing. The outbreak's early effects, however, vary. While some industries may see a decline in demand, many others will continue to be unaffected and offer bright prospects for expansion. The impact of COVID-19 on the SUV market will be limited.

The mini SUV segment is expected to be the largest during the forecast period

The mini SUV segment is estimated to have a lucrative growth. A mini SUV is a car that is bigger than a compact SUV but smaller than a full-size SUV. They often have greater cargo room than a small SUV and are suited for city driving. They are therefore a fantastic option for those who want more capacity than a compact SUV but do not want to pay the higher price of a full-size SUV. People who desire to drive a smaller vehicle but yet be able to haul huge objects frequently choose this style of SUV.

The 7 seater segment is expected to have the highest CAGR during the forecast period

The 7 seater segment is anticipated to witness the fastest CAGR growth during the forecast period. 7 seat options are often seen in full-size SUVs and MPVs. OEMs now provide a few mid-size SUV variations with seating for seven or eight passengers. Mid-size SUVs with 7-seater layouts typically have an additional 100-200 mm in length. These vehicles are perfect for buyers with large families who want extra seats at a comparable price to a mid-size SUV. SUVs with seven seats are typically high-end vehicles with all necessary standard and cutting-edge safety and comfort equipment. The 7 passenger SUV is predicted to grow in popularity as the Americas area has the greatest market for this sector with the highest percentage of full-size SUVs, and as Asia Pacific countries increasingly embrace mid-size and full-size SUVs.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Additionally, during the course of the projected period, Asia Pacific nations like China and Japan are anticipated to maintain their supremacy. The growing demand for heavy passenger vehicles in the SUV industry is the main factor driving the SUV market. In the approaching years, it is projected that increasing replacement demands would lead to a sustained market for SUVs. Additionally, throughout the projection period, an increase in the quality of living in Asia-Pacific nations is anticipated to drive up SUV demand.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to continuing automotive modernisation programmes. It is anticipated that rising population auto expenditure would favourably affect the expansion of the SUV market. The main element fueling the expansion of the regional market is the significant concentration of HNWIs in nations like the US. Additionally, it is anticipated that throughout the forecast period, the popularity of high-end SUVs would help to further drive the expansion of the SUV market in North America.

Key players in the market:

Some of the key players profiled in the Sport Utility Vehicle (SUV) Market include: Nissan Motor Co., Ltd, Toyota Motor Corporation, Tesla, BMW Group, Continental AG, Ford Motor Company, Honda Motor Co., Ltd, General Motors, Hyundai Motor Company, Volkswagen, Daimler and Renault.

Key Developments:

In December 2022, Hyundai Motor announced the launch of Ioniq 5 EV. The international model will come in 72.6kWh and 58kWh battery models, offering 480 kms and 385 kilometres driving range respectively. Additional, both battery models will come in 4WD and 2WD options.

In July 2022, Honda Motor Co., Ltd. launched a ZR-V, an all-new SUV. All-new ZR-V adopts elegant and smart design, making this model fit for urban environments. This hybrid model of all-new ZR-V will be the first Honda sport utility vehicle (SUV) to be prepared with Sports e: HEV that combines a 2.0-liter direct injection engine and the advanced 2-motor hybrid system (e-CVT).

In June 2022, Suzuki Motor Corporation and Toyota Motor Corporation have announced plans to stsrt manufacturing of hybrid SUV vehicles. The alliance influences Suzuki's capability in compact vehicles and Toyota's expertise in electrification for wider adoption and combined manufacturing of EVs. Thus, this is eventually going to help in market growth.

Classes Covered:

• Class D
• Class B
• Class E
• Class C
• Other Classes

Sizes Covered:

• Compact
• Mid-Size
• Mini-SUV
• Mid-Size Extended-Length (MPV/MUV)
• Other Sizes

Price Ranges Covered:

• Premium
• Medium

Seating Capacities Covered:

• 8 and above Seater
• 5-Seater
• 7-Seater

Types Covered:

• SUV-E
• SUV-C
• SUV-D
• SUV-F
• Other Types

EV Types Covered:

• Fuel Cell Electric Vehicles (FCEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Battery Electric Vehicle (BEV)

Fuel Types Covered:

• Electric SUV
• Diesel
• Petrol
• Other Fuel Types

Applications Covered:

• Motorsport
• Remote Areas
• Recreation
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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