Global Sport Utility Vehicle (SUV) Market Overview, 2024-29

Global Sport Utility Vehicle (SUV) Market Overview, 2024-29

The global Sport Utility Vehicle (SUV) industry stands as a formidable force within the automotive landscape, representing a dynamic and diverse segment that continues to reshape the preferences of consumers worldwide. With roots dating back to the early 20th century, the SUV has evolved from its utilitarian origins to become a symbol of versatility, comfort, and adventure. The SUV, or Sport Utility Vehicle, originated in the United States in the 1930s, with the Chevrolet Suburban often considered the first SUV. It was initially designed as a rugged, off-road vehicle capable of transporting passengers and cargo over rough terrain. SUVs gained significant popularity in the 1990s and early 2000s, becoming one of the fastest-growing segments in the automotive industry. This surge in popularity was driven by factors such as increased consumer demand for versatile, family-friendly vehicles and automakers' efforts to meet those demands with a wide range of SUV models. Many SUVs are designed with towing capabilities, allowing them to haul trailers, boats, and other recreational vehicles. This makes them popular choices for outdoor enthusiasts who enjoy activities like camping, boating, and off-roading. Despite their popularity, SUVs have faced criticism for their fuel consumption and emissions. However, automakers are increasingly introducing hybrid and electric SUV models to address environmental concerns and meet stricter fuel efficiency standards. Today, the global SUV market encompasses an extensive array of vehicles, ranging from compact crossovers designed for urban commuting to rugged off-road behemoths capable of conquering the most challenging terrain. What sets SUVs apart is their unparalleled versatility, offering ample interior space, elevated seating positions, and all-terrain capabilities to meet the diverse needs and lifestyles of consumers. From families seeking practical transportation solutions to outdoor enthusiasts craving adventure, and from luxury connoisseurs desiring comfort and prestige to urban dwellers navigating city streets, SUVs cater to a wide spectrum of drivers across the globe.

According to the research report, “Global SUV Market Outlook, 2029” published by Bonafide Research, the market is anticipated to cross USD 1200 Billion by 2029, increasing from USD 892.39 Billion in 2023. The market is expected to grow with 6.44% CAGR by 2024-29. SUVs offer versatility, serving as practical vehicles for various purposes, including daily commuting, family transportation, outdoor adventures, and even luxury travel. Their spacious interiors, ample cargo space, and all-terrain capabilities appeal to a wide range of consumers with diverse needs and lifestyles. SUVs are often perceived as safer vehicles due to their larger size, robust construction, and elevated seating position, which provides better visibility on the road. Advanced safety features, such as airbags, stability control, and collision avoidance systems, further enhance the appeal of SUVs to consumers concerned about safety. SUVs typically offer a comfortable and elevated seating position, making them easier to enter and exit compared to sedans or hatchbacks. Additionally, features such as adjustable seats, climate control, and advanced infotainment systems contribute to the overall comfort and convenience of SUVs, attracting consumers seeking a pleasant driving experience. SUVs are equipped to handle various weather conditions and terrains, including snow, rain, mud, and gravel. Their higher ground clearance and available all-wheel or four-wheel-drive systems provide better traction and stability, making them popular choices for consumers living in regions with challenging weather or road conditions.

Market Drivers
• Versatility and Utility: SUVs offer versatility, serving various needs from family transportation to off-road adventures. Their spacious interiors, ample cargo capacity, and adaptable seating configurations appeal to a wide range of consumers.
• Safety and Security: The perception of SUVs as safer vehicles due to their larger size and advanced safety features drives demand. Elevated seating positions provide better visibility, while robust construction enhances crash protection.

Market Challenges
• Environmental Concerns: SUVs are often criticised for their higher fuel consumption and emissions compared to smaller vehicles, leading to concerns about their environmental impact. Stricter emissions regulations and increasing awareness of climate change may pose challenges for SUV manufacturers to improve fuel efficiency and reduce emissions.
• Regulatory Compliance: Adapting to evolving regulatory standards and emissions requirements in different regions can be challenging for SUV manufacturers. Meeting stringent emission targets while maintaining vehicle performance and affordability presents a significant challenge for the industry.

Market Opportunity
• Growing Demand in Emerging Markets: Emerging markets in Asia-Pacific, Latin America, and Africa present significant opportunities for SUV sales. Rising incomes, urbanisation, and changing consumer preferences drive demand for versatile and practical vehicles, particularly in rapidly developing economies.
• Expansion of Electric and Hybrid SUVs: The increasing adoption of electric and hybrid vehicles presents an opportunity for SUV manufacturers to introduce eco-friendly models and capitalise on the growing demand for sustainable transportation. Innovations in battery technology and charging infrastructure support the expansion of electric SUV offerings.

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-seater and more than 5 seater.

Large SUVs contribute the highest cargo rate during the forecast period. Large SUVs offer spacious interiors, ample cargo capacity, and seating for multiple passengers, making them versatile vehicles for families, group travel, and hauling cargo. Their ability to accommodate a wide range of needs and lifestyles appeals to a wide range of consumers. Large SUVs are often perceived as safer vehicles due to their larger size, robust construction, and advanced safety features. Elevated seating positions provide better visibility on the road, while advanced safety technologies such as collision mitigation systems, lane departure warnings, and adaptive cruise control enhance driver and passenger safety. Many large SUVs come equipped with all-wheel or four-wheel-drive systems, providing enhanced traction and stability in adverse weather conditions. This feature is particularly appealing to consumers living in regions with inclement weather or rugged terrain, where all-weather performance is a priority. Furthermore, the market for SUVs with more than five seats is growing; SUVs with more than five seats accommodate larger families or those who need more passenger accommodations. On lengthy trips or regular commutes, they are perfect for comfortably fitting families, friends, and additional passengers thanks to their roomy interiors and adaptable seating arrangements. With seating for more than five passengers, these SUVs provide versatility for carrying additional passengers without sacrificing comfort or convenience. They are well-suited for carpooling, group travel, or transporting large families, making them popular choices for consumers seeking practical and spacious vehicles.

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

Electricity contributes the highest greenhouse gas rate during the forecast period, and there is a rising need for ecologically appropriate transit options as people become more conscious of climate change and air pollution. Since electric SUVs have no exhaust emissions, they are a desirable choice for environmentally concerned people looking to lessen their carbon footprint and support sustainable development in the environment. Many governments around the world are implementing policies and incentives to promote the adoption of electric vehicles (EVs), including SUVs. These measures include subsidies, tax incentives, rebates, and emissions regulations that encourage consumers to switch to electric vehicles. Government support accelerates the adoption of electric SUVs by making them more affordable and accessible to consumers. Advances in battery technology, electric drivetrains, and charging infrastructure have improved the performance, range, and affordability of electric SUVs. Longer driving ranges, faster charging times, and enhanced battery durability address consumer concerns about range anxiety and charging infrastructure, making electric SUVs more practical and appealing to a wider audience. Modern electric SUVs offer competitive driving ranges and performance capabilities that meet the needs of most consumers. Improved battery technology and vehicle design enable electric SUVs to achieve longer ranges on a single charge while delivering impressive acceleration and driving dynamics, enhancing their appeal to drivers seeking both efficiency and performance.

Based on the report, the five regions covered in the report include North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

North America significantly contributes to the SUV market. SUVs have become increasingly popular among North American consumers due to their versatility, spaciousness, and all-weather capabilities. Consumers appreciate the elevated driving position, ample cargo space, and versatile seating configurations that SUVs offer, making them well-suited for a wide range of lifestyles and preferences. There has been a noticeable shift in consumer preferences away from traditional sedans towards SUVs and crossovers in North America. This trend is driven by factors such as changing demographics, lifestyle preferences, and the desire for vehicles with greater cargo capacity and ground clearance. Automakers have made significant advancements in improving the fuel efficiency of SUVs through the use of lightweight materials, aerodynamic designs, and more efficient powertrains. These improvements have helped mitigate concerns about fuel economy and emissions, making SUVs more attractive to consumers. A strong economy in North America has bolstered consumer confidence and purchasing power, leading to increased demand for SUVs. Low unemployment rates, rising disposable incomes, and favourable financing options have incentivized consumers to upgrade to larger vehicles like SUVs.

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.
• In June 2023, Mercedes-Benz introduced the refreshed G-Class lineup in India, which includes the new G 400d model. The G 400d variant of the updated G-Class is powered by a 3.0-liter OM656 in-line six-cylinder diesel engine that generates 330hp, up from 286hp of the previous G 350d engine. It produces 700Nm of torque between 1,200 and 3,200rpm, up from 600Nm of the predecessor.
• In March 2022, Audi announced its plans to expand in the Indian market by introducing more brands and extending its network throughout the country. The company offers two battery options for electric SUVs, 52 kWh and 77 kWh, internationally. Audi’s Q4 e-Tron is available in both SUV and coupe-SUV body types.
• In 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.
• In 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).

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.