North America Sport Utility Vehicle (SUV) Market Outlook, 2029

North America Sport Utility Vehicle (SUV) Market Outlook, 2029

The popularity of SUVs in the North American automotive landscape has steadily increased over the last few decades. These adaptable vehicles have carved themselves a considerable niche in the automobile market, appealing to a wide range of buyers. SUVs provide a fascinating blend of utility and versatility, appealing to both urban dwellers looking for comfort and style and outdoor enthusiasts looking for robust performance. The North American SUV market is a significant force in the global automobile sector. With a strong economy, technological advances and shifting customer preferences, the region remains a major battleground for automakers. Several trends have contributed to the SUV market's long-term expansion in North America. One significant trend is the growing demand for crossover SUVs, which combine the attributes of traditional SUVs with the agility and fuel efficiency of passenger cars. These crossover models appeal to a broad spectrum of consumers, including young families, empty nesters, and urban professionals seeking a versatile vehicle for everyday use. Furthermore, the development of electric and hybrid SUVs has created a new dimension in the market. As environmental concerns and fuel efficiency grow more important, manufacturers are investing substantially in electrified SUVs to meet strict emission requirements and appeal to environmentally aware customers. The emergence of electric SUVs with extended range and rapid charging capabilities has substantially increased their attractiveness, resulting in higher adoption rates across North America. Understanding consumer preferences and lifestyle impacts is critical for automakers looking to increase their market share in North America. SUV buyers are frequently motivated by a desire for room, comfort, and adaptability, making cargo capacity, towing capabilities, and advanced entertainment systems important decision factors. Furthermore, lifestyle factors such as outdoor activities, family size, and urban commute influence shopping decisions.

According to the research report ""North America SUV Market Outlook, 2029,"" published by Bonafide Research, the North America SUV market was valued more than USD 75 Billion in 2023. North America, specifically the United States and Canada, is one of the world's largest SUV markets. SUVs have grown in popularity in this region in recent decades, dominating sales charts and accounting for a sizable share of total car sales. The SUV movement in North America began in the mid-twentieth century with the advent of tough, off-road cars like the Jeep Wagoneer and Ford Bronco. These early SUVs paved the way for today's vast choice of models, which appeal to a wide range of consumer preferences and lifestyles. While SUVs are popular throughout North America, there are significant regional differences in customer tastes and market trends. For instance, the southern United States displays a higher demand for full-size SUVs and pickup trucks, reflecting a preference for larger, more rugged vehicles suited to rural and suburban environments. Regulatory factors play an important role in defining the North American SUV market. Stringent pollution standards, fuel economy restrictions, and safety requirements all have an impact on automakers' product offers and technological breakthroughs, spurring innovation in areas like electrification, lightweight materials, and advanced driver assistance systems (ADAS). North America is a powerhouse for automotive innovation, with prominent automakers and technology businesses investing considerably in R&D. From self-driving capabilities to connected car technology, the region stays at the forefront of innovation, pushing the evolution of SUVs and determining the future of transportation.

Major Drivers

Consumer preferences and lifestyle trends: Consumer choices and lifestyle trends are the key drivers defining the North American SUV industry. In recent years, there has been a noticeable movement in consumer preferences toward larger, more adaptable vehicles with plenty of room, comfort, and utility. SUVs, with their large interiors, high sitting positions, and varied load capacities, have emerged as the preferred vehicle for a wide spectrum of consumers, including families, outdoor lovers, and city inhabitants. Furthermore, shifting lifestyles and socioeconomic trends have fueled the market for SUVs in North America. The rise of urbanization, along with an increased emphasis on outdoor recreation and adventure, has driven the popularity of SUVs among city people looking for versatility and competence for both metropolitan commutes and weekend trips. Moreover, the aging population and growing number of empty nesters have contributed to the demand for SUVs, with older consumers drawn to the comfort, ease of entry, and elevated driving position offered by these vehicles.

Safety and Advanced Driver Assistance Systems (ADAS): Safety concerns and the incorporation of advanced driver assistance systems (ADAS) are key factors impacting the North American SUV industry. With safety being a key priority for consumers, automakers are rapidly implementing advanced safety systems and driver assistance technology into SUVs to improve occupant protection and reduce the likelihood of an accident. Furthermore, the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) periodically conduct crash tests and safety evaluations, which have an impact on consumer perceptions and purchase decisions. SUVs with high safety ratings and awards from these groups are more popular and successful in the market, pushing automakers to prioritize safety in vehicle design and engineering.

Major Challenges

Regulatory compliance and emission standards: The North American SUV market has considerable problems in terms of regulatory compliance and emissions standards. Governments in the region have been enacting increasingly strict regulations to reduce greenhouse gas emissions and improve fuel economy. While SUVs provide versatility and performance, their greater size and higher fuel consumption make them subject to more stringent rules than smaller passenger vehicles. Automakers must invest extensively in R&D to achieve these regulatory standards, which frequently demand the incorporation of innovative technology such as hybrid powertrains, lightweight materials, and aerodynamic design modifications. Furthermore, compliance with emission regulations presents new obstacles, particularly in light of changing regulatory frameworks and the need to balance performance and environmental sustainability.

Competitive landscape and market saturation: The North American SUV market is extremely competitive, with multiple domestic and international automakers competing for market share. This fierce rivalry has resulted in market saturation in certain segments, particularly the compact and midsize SUV categories. As automakers release new models and renew existing ones to remain competitive, consumers are presented with a variety of options, making it difficult for companies to differentiate themselves and attract consumer interest. Furthermore, the entry of new entrants, such as electric car startups and technology businesses, fuels competition and alters existing market dynamics.

Based on type segment market includes small, compact, mid-size, large, and MPV/ MUV. Among them compact type is expected to lead the North America SUV market.

As urbanization grows in North America, many consumers choose smaller, more agile automobiles that are better suited to traversing city streets and parking in tight areas. Compact SUVs strike the ideal combination between size and utility, offering substantial luggage room and seating capacity while staying agile and easy to manage in urban areas. With growing worries about fuel prices and environmental sustainability, tiny SUVs are gaining appeal due to their higher fuel efficiency than larger SUVs. Many people prefer compact SUVs because they burn less fuel while maintaining the usability and utility of larger vehicles. Compact SUVs are often less expensive than their midsize and full-size counterparts, making them more affordable to a wider range of consumers, including young professionals, small families, and first-time automobile owners. The low cost of small SUVs appeals to budget-conscious buyers searching for a versatile and useful car without breaking the bank. Compact SUVs frequently have a sporty and modern design look that appeals to younger generations who want a vehicle that matches their active and adventurous lifestyle. Compact SUVs are becoming increasingly popular among millennials and Gen Z drivers as automakers offer features like advanced infotainment systems, smartphone connectivity, and customizable options. Compact SUVs have proven to be adaptable to changing market trends and consumer preferences. As the automotive industry evolves with advancements in technology, electrification, and autonomous driving, compact SUVs can readily incorporate these innovations to remain competitive and relevant in the market.

In terms of seating capacity segment market includes 5 seater and >5 seater. 5 seater type seating capacity is expected to lead the North America SUV market. Based on propulsion segment market includes petrol, diesel, electric and others. Petrol propulsion segment is playing major role in North America SUV market.

5-seater SUVs offer a good blend of passenger capacity and mobility, making them excellent for small to medium-sized families. With two rows of seating, these SUVs provide enough room for most families while remaining easy to park and navigate in metropolitan areas. Despite being smaller than larger SUVs with 7 or 8 seats, 5-seater SUVs are nonetheless adaptable vehicles. They provide adequate capacity for passengers while leaving room for stuff, making them perfect for a wide range of activities, including everyday commuting, grocery shopping, road trips, and outdoor adventures. In general, 5-seater SUVs use less fuel than larger SUVs with more seats. This makes them more appealing to consumers who are concerned about fuel prices and environmental effects. With rising fuel prices and growing environmental concerns, fuel efficiency is an increasingly important factor driving consumer choice in the SUV market. 5-seater SUVs often come with a lower price tag compared to larger SUVs with additional seating capacity. This makes them more accessible to a broader range of consumers, including young families, first-time car buyers, and budget-conscious shoppers. The affordability of 5-seater SUVs appeals to consumers looking for a practical and versatile vehicle that fits within their budget. Petrol (gasoline) is extensively available throughout North America, with a vast network of gas stations that serve urban, suburban, and rural regions. Petrol's accessibility and availability make it a practical alternative for consumers, who can quickly refuel their gasoline-powered SUVs without worrying about range limitations or infrastructural constraints. Petrol engines are noted for their responsive performance and abundant power, especially in bigger vehicles such as SUVs. Petrol-powered SUVs frequently have strong acceleration, towing capabilities, and overall driving dynamics, appealing to consumers looking for a versatile and capable vehicle for a variety of driving conditions and activities, such as city commuting, highway cruising, and off-road excursions.

Based on report market includes three major countries including United States, Canada and Mexico. United States accounted for largest market for SUV in North America.

SUVs have been deeply engrained in American culture, representing adventure, freedom, and versatility. Americans place a high value on space, comfort, and utility in their vehicles, making SUVs an appealing option for a variety of lifestyles and activities. SUVs are versatile and flexible enough to meet the preferences and wants of American consumers, from road trips and outdoor experiences to daily commutes and family mobility. SUVs are popular in the United States due to their large size and diversified topography. SUVs are ideal for navigating different road conditions and weather patterns in rural and suburban locations with lengthy distances and varying terrain. Furthermore, the popularity of outdoor recreational activities such as camping, boating, and off-roading increases demand for SUVs, which offer ample cargo space and towing capabilities to accommodate gear and equipment. The historical evolution of SUVs in the United States has had a considerable impact on consumer preferences and industry dynamics. Early SUV models, such as the Jeep Wagoneer and Ford Bronco, became popular because to their off-road capability and rugged design, catching the imagination of American consumers seeking adventure and discovery. SUVs have changed over time to accommodate a greater range of sizes, designs, and amenities, catering to a variety of lifestyles and preferences across the country.

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.