Originally published on Technavio:Sport Utility Vehicleb Market Analysis 2024-2028: Size and Growth Forecast
The Sport Utility Vehicle (SUV) Market size is projected to increase by USD 272.36 billion, with a CAGR of 5.72% between 2023 and 2028.

Market Dynamics 
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Driver - Increased Preference for Safety and Comfort  
The SUV market is experiencing significant growth due to the increased preference for comfort and safety. SUVs are equipped with advanced comfort features and modern technologies, making them stand out in the automotive market. Automakers focus on showcasing their SUVs as premium vehicles, enhancing the social status of buyers. Moreover, these vehicles often come with advanced driver-assist systems and safety features, providing a higher level of safety and security. The shift towards electric and full-size SUVs aligns with changing consumer preferences and evolving global emission norms. The SUV market is witnessing growth, driven by features, premium appeal, and advancements in comfort and safety technologies.

Key Trends - Rapid Development of Electric and Hybrid SUVs  
The rapid development of electric and hybrid SUVs represents a significant trend in the global market, indicating a shift toward more environmentally sustainable transportation. Electric SUVs provide emission-free driving, helping to reduce greenhouse gas emissions. Hybrid models combine traditional internal combustion engines with electric propulsion, resulting in increased fuel efficiency and a lower environmental impact. This trend is driven by increased consumer awareness of environmental issues, government incentives, and advancements in EV infrastructure. Major automakers are actively embracing this shift, introducing electric and hybrid models to meet the growing demand for environmentally friendly alternatives.

Significant Challenge - Increasing Inclination Toward Cost-Effective and Compact Models  
The increasing demand for hatchbacks and sedans poses challenges to the global market. Consumer preferences have a significant impact on the automotive industry, and an increase in demand for smaller, fuel-efficient vehicles may divert attention and resources away from SUV production. Hatchbacks and sedans may appeal to consumers looking for cost-effective and compact options due to their lower price points and higher fuel efficiency. Regulatory pressures aimed at improving fuel efficiency and lowering emissions may encourage consumers to choose smaller vehicles, affecting the market share of larger SUVs, especially if stricter emission standards become more common worldwide.

Market Customer Landscape  
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

SUV Market Share by Geography

Who are the Major Market Companies  
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AB Volvo: The company offers SUVs such as the XC 90 recharge, XC 90, and XC 60.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:  
The medium-sized SUVs segment is estimated to witness significant growth during the forecast period. Mid-size segment includes models that are slightly smaller than full-size SUVs but still offer a high level of advanced features and performance. Some popular mid-size models include the BMW X1, Audi Q3, Mercedes-Benz GLA, Lexus RX, Volvo XC60, and Acura MDX, among others.

The medium-sized SUVs segment was the largest segment and was valued at USD 322.37 billion in 2018. This segment typically offers a range of features and amenities, such as leather interiors, advanced infotainment systems, high-quality audio systems, and advanced safety features. Many medium-size SUVs also offer impressive performance capabilities, with powerful engines and responsive handling. The major markets for mid-size models are Europe and APAC. Customers in APAC and European countries are cost-conscious and prefer vehicles that have high fuel efficiency. Vehicle manufacturers develop models that are equipped with updated features such as turbochargers, inline modeled engines, updated vehicle electronic systems, and multimedia support.

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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC market is mainly cost-sensitive, wherein the utility value of the vehicle plays a significant role in driving its sales. The sales of vehicles in APAC countries largely depend on the prices of vehicles, their fuel efficiency, and the cost of service and maintenance.

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Technavio Research
Jesse Maida
Media & Marketing Executive
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