SUV Market Size - By SUV (Compact, Mid-size, Full-size), By Propulsion (Gasoline, Diesel, Electric), By Class (Class B, Class C, Class D, Class E), By Seating Capacity (5 Seater, More than 5 Seater) & Forecast, 2024 - 2032

SUV Market Size - By SUV (Compact, Mid-size, Full-size), By Propulsion (Gasoline, Diesel, Electric), By Class (Class B, Class C, Class D, Class E), By Seating Capacity (5 Seater, More than 5 Seater) & Forecast, 2024 - 2032

SUV market size will register 6% CAGR between 2024 and 2032, driven by the shifting consumer preferences towards vehicles that provide a combination of spaciousness, versatility, and ruggedness. Lately, consumers are increasingly prioritizing vehicles that can accommodate their active lifestyles, carry passengers comfortably, and navigate various road conditions with ease. The insight of SUVs as safer vehicles owing to their larger size and higher driving position is contributing to their popularity among families and individuals seeking enhanced safety features in their vehicles.

Moreover, automakers are continuously striving to enhance the performance, fuel efficiency, and connectivity options of SUVs, attracting consumers with advanced infotainment systems, driver-assistance features, and fuel-efficient powertrains. The expansion of SUVs to include compact, mid-size, and full-size models for catering to diverse consumer preferences will further add to the market growth. For instance, in April 2024, Mahindra & Mahindra unveiled its compact SUV, the Mahindra XUV 3XO featuring upgradations in design, features, and safety.

The SUV industry is segmented into SUV, propulsion, class, seating capacity and region.

Based on propulsion, the market share from the electric segment will record notable CAGR from 2024-2032. Increasing environmental consciousness and government initiatives promoting electric vehicle adoption are outlining the demand for eco-friendly transportation solutions. Electric SUVs offer zero-emission driving without compromising on the spaciousness, versatility, and performance characteristics that consumers expect from traditional SUVs. Rising advancements in battery technology have further extended the driving range and reduced charging times while addressing concerns related to range anxiety and infrastructure limitations.

With respect to seating capacity, the SUV market from the 5 seater segment is anticipated to witness decent growth throughout 2032, due to their versatility, practicality, and higher appeal to a wide range of consumers. As urbanization continues to increase and lifestyles become more dynamic, consumers are prioritizing vehicles that offer ample passenger seating and cargo space while remaining maneuverable in urban environments. 5-seater SUVs are also suitable for families, commuters, and outdoor enthusiasts.

North America SUV industry size is slated to generate notable revenue during 2024-2032, attributed to the favorable economic conditions, including low-interest rates and robust consumer confidence. SUVs are favored for their perceived value and utility across the region. Continuous innovation in design, technology, and features by automakers to meet the evolving needs and preferences of North American consumers will contribute to the sustained market growth in the region.