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 are vehicles designed with characteristics of both conventional passenger cars and pickup trucks. SUVs provide cargo space, comfort, and seating for 5-7 passengers. The latest SUV models are available with features like all-wheel drive, hybrid power-trains, latest infotainment systems, and safety features such as automatic emergency braking, lane keeping assist and blind spot monitoring. The enhanced styling, driving dynamics and versatility make SUVs an attractive choice for both families and luxury buyers.
Market key trends:
One of the key trend observed in the global SUV market is the growing preference for mid-size and compact SUVs over traditional large and full-size models. This is mainly due to improved fuel efficiency of compact and mid-size SUVs. Compact and mid-size SUVs deliver almost similar utility with better fuel economy compared to full-sized models. Moreover, major automakers like Hyundai, Kia, Toyota, Honda, Nissan and Chevrolet have expanded their compact and mid-size SUV lineup with popular models such as Hyundai Tucson, Kia Sportage, Toyota RAV4, Honda CR-V, Nissan Rogue and Chevrolet Equinox respectively. This increased availability and marketing initiatives by automakers have boosted the sales of mid-size and compact SUVs.
Threat of new entrants: The high initial capital investment required for SUV production and strong brand recognition of established players pose moderate threat of new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of various automobile options. However, rising SUV demand increases their dependency on a limited number of manufacturers.
Bargaining power of suppliers: Automobile components suppliers have low to moderate bargaining power due to availability of substitute components and threat of forward integration by major manufacturers.
Threat of new substitutes: Threat of substitution is low as SUVs provide utility and comfort of MPVs along with off-roading capabilities of pickup trucks.
Competitive rivalry: Stiff competition exists among Toyota, Volkswagen, Honda, Hyundai and other manufacturers results in continuous product innovations and competitive pricing.
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 utility vehicles with powerful engine capability and spacious interiors for family usage.
Regional analysis: North America dominates the global SUV market currently. However, Asia Pacific is expected to witness fastest growth owing to rising disposable income, changing lifestyle and entry of global SUV manufacturers in India and China.
Key players: Key players operating in the SUV market are Toyota Motor Corporation, Volkswagen AG, Honda Motor Co., Hyundai Motor Company, General Motors, Ford Motor Company, Stellantis, Daimler, Nissan Motor CO. and BMW Group. Major automakers are launching new SUV models with advanced safety, infotainment and connectivity features to strengthen their market position.