Europe Sport Utility Vehicle (SUV) Market Outlook, 2029

Europe Sport Utility Vehicle (SUV) Market Outlook, 2029

In recent years, the European SUV market has grown at a faster rate than the regular passenger vehicle industry. Due to their perceived safety features, superior driving position, and adaptability, SUVs have grown in popularity among European buyers. The European SUV market is diverse, featuring both domestic brands such as BMW, Mercedes-Benz, and Volkswagen, as well as foreign brands like Toyota, Hyundai, and Jeep. This diversity offers consumers a wide range of options in terms of price, design, and features. Despite Europe's predominantly urban landscape, there is still demand for SUVs with off-road capability. Brands like Land Rover and Jeep offer rugged SUVs designed for outdoor enthusiasts and adventurers who enjoy exploring off-the-beaten-path destinations. As income levels rise across Europe, consumers have more disposable income to spend on vehicles. SUVs, particularly premium and luxury models, are often perceived as status symbols, and higher income levels enable more consumers to afford these vehicles. Low interest rates make financing a vehicle more affordable for consumers. With lower borrowing costs, individuals are more likely to purchase larger, more expensive vehicles, like SUVs, as the monthly payments become more manageable. Economic stability and positive consumer sentiment contribute to increased confidence in making big-ticket purchases, such as vehicles. When consumers feel optimistic about their financial situation and the overall economy, they are more willing to invest in larger, more expensive vehicles like SUVs.

According to the research report ""Europe SUV Market Outlook, 2029,"" published by Bonafide Research, the Europe SUV market is expected to reach a market size of more than USD 310 Billion by 2029. The urban lifestyle prevalent in many European cities favours SUVs, as they provide a comfortable and commanding driving experience in urban environments. SUVs are well-suited for navigating narrow streets, crowded parking lots, and varied road conditions, offering convenience and confidence to urban commuters. SUVs are often associated with status, prestige, and luxury, particularly premium and luxury models. Owning a high-end SUV from brands like BMW, Mercedes-Benz, or Audi is seen as a symbol of success and affluence, driving demand among affluent consumers who value luxury and exclusivity. Europe's diverse landscape, including mountains, forests, and coastlines, provides ample opportunities for outdoor activities such as camping, hiking, and skiing. SUVs with off-road capabilities and rugged design appeal to outdoor enthusiasts who seek adventure and exploration in nature. SUVs are popular choices for towing trailers, boats, and caravans, offering substantial towing capacity compared to smaller vehicles. This capability makes SUVs desirable for consumers who enjoy recreational activities like boating, camping, and travelling with trailers. The SUV segment continues to expand in Europe, with automakers introducing new models and variants to cater to evolving consumer preferences. The availability of diverse SUV options, including compact, mid-size, and luxury models, offers consumers a wide range of choices to suit their needs and preferences.

Market Drivers
• Safety and Security: SUVs are perceived to offer better safety and security features compared to smaller vehicles. Their larger size and elevated driving position provide better visibility on the road, while advanced safety technologies like collision mitigation systems and lane-keeping enhance driver confidence and passenger protection.
• Status and Prestige: SUVs, especially premium and luxury models, are often associated with status, prestige, and success. Owning a high-end SUV from brands like BMW, Mercedes-Benz, or Audi is seen as a symbol of wealth and accomplishment, driving demand among affluent consumers who value luxury and exclusivity.

Market Challenges
• Environmental Regulations: Stricter emissions regulations in Europe pose a challenge for SUV manufacturers, particularly those producing larger, less fuel-efficient models. Meeting emissions targets requires significant investment in technology and innovation to improve fuel efficiency and reduce carbon emissions.
• Fuel Efficiency Concerns: Despite advancements in technology, SUVs generally have higher fuel consumption compared to smaller, more fuel-efficient vehicles. Rising fuel prices and environmental awareness among consumers may deter some buyers from choosing SUVs, leading to increased demand for alternative powertrain options such as hybrid and electric SUVs.

Market Opportunity
• Expanding Electric and Hybrid Offerings: With increasing environmental awareness and regulatory incentives for low-emission vehicles, there is a growing opportunity for automakers to expand their electric and hybrid SUV offerings. Investing in electrification technology and developing affordable, high-performance electric SUVs can capture a significant share of the market.
• Urban Mobility Solutions: As urbanisation continues to rise across Europe, there is a demand for SUVs tailored to urban mobility needs. Compact SUVs with efficient powertrains, advanced connectivity features, and autonomous driving capabilities offer opportunities to address urban congestion and meet the needs of urban commuters.

Based on the types, they are bifurcated into small, compact, mid-size, large, and MPV/MUV. In terms of seating capacity, they are segmented into five-seaters and more than 5 seater.

In Europe, the compact SUV leads the SUV market. European metropolitan surroundings, with their small streets, cramped parking lots, and frequent traffic, are ideal for compact SUVs. Families and urban commuters find them appealing since they are simpler to park and manoeuvre in congested cities due to their smaller size when compared to full-size SUVs. Compact SUVs generally offer better fuel efficiency compared to larger SUVs, making them attractive options for cost-conscious consumers and those concerned about environmental sustainability. With rising fuel prices and stricter emissions regulations in Europe, fuel-efficient vehicles are in high demand. Despite their smaller size, compact SUVs offer ample cargo space, flexible seating arrangements, and a higher driving position compared to traditional passenger cars. Their versatility and practicality make them popular choices for families, outdoor enthusiasts, and individuals with active lifestyles. Compact SUVs are typically priced lower than larger SUVs and luxury models, making them accessible to a broader range of consumers. Their competitive pricing, combined with attractive financing options and incentives, makes compact SUVs a compelling choice for budget-conscious buyers in Europe. Furthermore, in the region, SUVs with more than five seats significantly contribute to the market. SUVs with more than five seats often referred to as mid-size or full-size SUVs, are well-suited for families with multiple children or those who frequently travel with additional passengers. The extra seating capacity provides greater flexibility and convenience for larger families or group outings. The overall popularity of SUVs in Europe has been steadily increasing, driven by factors such as urbanization, changing consumer preferences, and advancements in SUV design and technology. As SUVs become more mainstream, there is a growing demand for larger models that can accommodate more passengers and cargo.

According to the propulsion, they are segmented into petrol, diesel, electric, and others.

In Europe, electric cars contributed the highest CO2 emissions during the Forcaste period. The environmental effects of conventional combustion engine cars are becoming more widely recognised as worries about air pollution and climate change develop. In metropolitan areas, where air quality is a major problem, electric SUVs contribute to cleaner air by offering zero-emission driving, lowering greenhouse gas emissions. Many European countries offer incentives and subsidies to promote the adoption of electric vehicles (EVs), including electric SUVs. These incentives include financial incentives, tax breaks, reduced registration fees, and access to special driving lanes or parking spaces, making electric SUVs more attractive and affordable to consumers. The expansion of charging infrastructure across Europe, including public charging stations, fast chargers, and destination chargers, has alleviated concerns about range limitations and accessibility for electric SUV owners. Increased charging infrastructure supports the widespread adoption of electric vehicles, including SUVs, by providing convenient charging options for drivers. There is a growing demand among European consumers for sustainable mobility solutions that align with their environmental values and lifestyle choices. Electric SUVs offer a sustainable alternative to traditional SUVs, allowing consumers to reduce their carbon footprint and contribute to a more sustainable transportation system.

Based on the report, the major countries covered include Germany, the United Kingdom, France, Italy, Spain, Russia, and the rest of Europe.

Germany leads the SUV market. Germany is home to some of the world's largest and most prestigious automakers, including Volkswagen Group, BMW, and Daimler AG (Mercedes-Benz). These German automakers have a long history of producing high-quality vehicles and are renowned for their engineering expertise, innovation, and brand reputation. German automakers offer a diverse range of SUV models catering to various segments and consumer preferences. From compact SUVs like the Volkswagen Tiguan and BMW X1 to luxury SUVs like the Mercedes-Benz GLC and Audi Q7, German brands provide options for every budget and lifestyle. Germany has a large and affluent domestic market with a strong demand for SUVs. German consumers appreciate the versatility, practicality, and prestige associated with SUVs, making them popular choices among buyers in the country. German automakers benefit from strong brand loyalty and trust among European consumers. German SUVs are perceived as reliable, well-built, and technologically advanced vehicles, instilling confidence and loyalty among buyers who value quality and performance. A country’s influence in the European Union's (EU) policymaking process, particularly in the automotive sector, shapes regulations and standards that affect the SUV market. German automakers collaborate with policymakers to ensure regulations support innovation, competitiveness, and sustainability in the automotive industry.

The competitive landscape for the SUV (Sports Utility Vehicle) industry is dynamic and intense, characterized by a diverse range of manufacturers vying for market share. Key players, both traditional automakers and newer entrants, compete in various segments to cater to the diverse preferences and needs of consumers. Traditional automotive giants, such as Toyota, Ford, Honda, General Motors, and Volkswagen, have a significant presence in the SUV market. These companies leverage their experience, global reach, and established brand equity to offer a wide range of SUV models, spanning from compact crossovers to full-size SUVs. Established automakers often have the resources for extensive research and development, allowing them to incorporate advanced technologies and design innovations into their SUV offerings. Luxury automakers, including BMW, Mercedes-Benz, Audi, and Lexus, contribute to the competitive landscape by offering high-end SUV models. The luxury SUV segment has seen substantial growth as consumers increasingly seek vehicles that combine opulence with the versatility of SUVs. These manufacturers emphasize premium features, cutting-edge technology, and sophisticated design to differentiate their offerings in the market. The rise of electric SUVs has attracted new entrants and disruptors to the industry. Companies like Tesla have gained attention for their electric SUV models, such as the Tesla Model X. The shift towards sustainable and eco-friendly transportation has opened opportunities for emerging players to challenge traditional automakers and establish themselves in the market.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• SUV market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Small
• Compact
• Mid-Size
• Large
• MPV/MUV

By Seating Capacity
• 5 seater
• >5 seater

By Propulsion
• Petrol
• Diesel
• Electric
• Others

By Electric Propulsion
• Battery Electric Vehicles (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Others (HEV, FCEV)

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the UAE industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.