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.
Market Overview:
SUVs provide better cargo space and higher seating position compared to sedans and hatchbacks. They offer enhanced driving comfort, safety and off-road capabilities. Growing preference of people towards vehicles with higher ground clearance for recreational activities and urban lifestyles has boosted the demand of SUVs globally.
Market key trends:
All-terrain SUVs or off-road SUVs that come with enhanced ground clearance and four-wheel drive for driving on challenging terrains are gaining more traction among customers. Major automobile manufacturers are focusing on launching upgraded versions of existing models as well as new models of all-terrain SUVs equipped with latest comfort and safety features to cater to the growing demand. For example, the launch of Toyota Land Cruiser 300 series and Ford Bronco, both recognized for their off-road performance. The growing popularity of recreational activities like camping and adventure sports has further fueled the sales of all-terrain SUVs globally.
Segment Analysis
The global sports utility vehicle (SUV) market is dominated by compact SUVs. Compact SUVs are the most popular type of SUVs due to their compact size, affordability, and practicality. They provide similar features and utility as a larger SUV but with better fuel efficiency and maneuverability. Compact SUVs are suitable for daily urban commutes and family road trips. Their growing popularity can be attributed to the rise of young, independent customers and dual-income nuclear families that prefer an SUV body type for its versatility over sedans.
Key Takeaways
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 preference for spacious and versatile vehicles.
Regional analysis:
North America dominates the global SUV market with the highest market share as of 2023. However, the Asia Pacific region is expected to grow at the fastest CAGR during the forecast period due to increasing disposable income and rising infrastructure development in emerging economies such as India and China.
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 continuously focusing on new product launches and strategic partnerships to enhance their market share. For instance, in 2023, Toyota launched the all-new RAV4 SUV in the US with improved safety and infotainment features