April 18, 2024

Global Sports Utility Vehicle (SUV) Market Driven by Increased Customer Preference for Comfort and Versatility

 

Sports Utility Vehicles, also known as SUVs, have grown in popularity in recent years as more consumers adopt them for their versatile design and spacious interiors. SUVs provide consumers the benefits of a passenger car along with certain features of light trucks like higher ground clearance, all-wheel or four-wheel drive, and increased cargo space. SUVs now come with plush, comfortable seating for all passengers along with advanced safety and technology features. Their flexible design accommodates both daily commutes and occasional off-road journeys with ease.

The global Sports Utility Vehicle (SUV) Market is estimated to be valued at US$ 1.2 trillion in 2024 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:
One of the key trends driving growth in the global SUV market is the rising demand for mid-size and compact SUVs. With fuel prices and environmental concerns on the rise, consumers are increasingly gravitating towards SUV models that offer the space and versatility of larger SUVs but with improved fuel efficiency compared to full-size SUVs. Major automakers are responding to this demand by expanding their mid and compact SUV lineups with new launches and innovations focused on efficiency and drivability. Such mid-size and compact SUVs appeal to both family buyers as well as younger urban customers. This shift towards smaller yet capable SUVs is expected to remain a major trend over the forecast period.

Porter’s Analysis
Threat of new entrants: Low to moderate investment, and lower threat of new players with established brand names. However, established OEMs continue to enter this market.
Bargaining power of buyers: Moderate as buyers have multiple options, but demand for premium and lifestyle SUVs remains strong.
Bargaining power of suppliers: Moderate to high as large auto components are specialized with high switching costs.
Threat of new substitutes: Low as no direct substitution, but electric vehicles emerge as a potential threat.
Competitive rivalry: High with continuous new model launches, features/technology advancements.

Key Takeaways
The global Sports Utility Vehicle (SUV) market is expected to witness high growth. The global Sports Utility Vehicle (SUV) Market is estimated to be valued at US$ 1.2 trillion in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030.

Regional analysis:
North America dominates the global SUV market due to a shift in consumer preference towards SUVs over sedans. Strong economic growth and rising disposable income in Asia Pacific has led to increased demand for SUVs, with China and India being the major markets. Premium SUV segments are gaining popularity in Europe.

Key players:
Key players operating in the global SUV market include Toyota Motor Corporation, Ford Motor Company, Honda Motor Company Ltd., General Motors Company, Volkswagen AG, Nissan Motor Co Ltd., Hyundai Motor Company, and Fiat Chrysler Automobiles. SUV models like Toyota RAV4, Honda CR-V, Ford Escape, are top-selling globally.

The growing preference of consumers towards vehicles that ensure safety, performance and offer versatile drive experiences has boosted demand for Sports Utility Vehicles globally. Manufacturers focus on incorporating latest technologies and enhanced features to differentiated their product offering. OEMs are also expanding their footprint in developing markets to tap higher growth potential.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it