The SUV market is projected to reach USD 1221.7 billion by 2027 from USD 885.8 billion in 2022, at a CAGR of 6.6%. With increased demand for luxury SUVs, the market for premium SUVs has risen significantly recently. According to MarketsandMarkets Analysis, of total premium cars produced globally, the share of premium SUVs stood at ~53% in 2016, which grew to ~62% in 2021. Countries such as the US, Canada, China, Japan, and South Korea lead the premium SUVs market, constituting more than 90% of total production globally. For instance, in 2021, the production of luxury SUVs in the US out of total luxury cars was around 75%. Similarly, the demand for compact SUVs in Asia Pacific region has increased significantly owing to several advantages such as smaller in size, smaller engines resulting in better fuel efficiency, best suited for smaller families, better maneuvering ability, high ground clearance, and chassis-framed body structure for off-road performance. Further, rising stringency in vehicular emissions and fuel economy parameters has led manufacturers to develop electric and plug-in hybrid electric vehicles. Rising growth of pure electric and PHEV SUVs is also expected to drive the SUV market.
The SUV market is led by globally established players such as Toyota Motor Corporation (Japan), Volkswagen AG (Germany), Stellantis N.V. (the Netherlands), Hyundai (South Korea), General Motors (US)Ford Motor (US), Mercedes-Benz (Germany), BMW (Germany). Nissan (Japan), and Renault (France). New product development, expansion, acquisition, and partnership strategy have been the most dominating strategy adopted by major players from 2018 to 2022, which helped them to innovate on their offerings and broaden their customer base.
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Toyota Motor Corporation is a leading global player in the SUV market. The company has strong focus on new products development. The company spents around 4% of its total revenue on R&D activities. The company has adopted the strategies of collaboration for new product development in SUV segment. For instance, in June 2022, the company has signed a strategic collaboration with Suzuki Motor Corporation for production of mid-size SUVs in India. The company has strong geographical presence across globe.
Volkswagen AG is another leading player in this market. Volkswagen AG is engaged in design and develops engines and manufactures passenger cars, trucks, buses, motorcycles, light commercial vehicles, turbomachinery, large-bore diesel engines, propulsion components, automotive parts, special gear units and testing. The company has manufacturing facilities in 120 locations in 19 countries of Europ and a further 10 countries in Americas, Asia and Africa. The company sell its vehicles in 150 countries around the world. The company has strong focus on expansion strategy with other key players in automobile market. For instance, Volkswagen and SEAT S.A plans to invest around USD 11.83 billion on construction of battery manufacturing plant in Spain.
Stellantis N.V. to differentiate itself from competitors, secure more sales, and offer reliable solutions to customers. It has strong brand portfolio and industrial and technological expertise which enable it to manufacture superior quality products. It markets vehicles under the Dodge, Ram, Jeep, and Chrysler brands to offer utility vehicles, pickup trucks, cars, and minivans in the North American market. The company sells luxury vehicles under Maserati, a leading luxury brand. It also offers components and production systems under the Comau and Teksid brands.
Hyundai Motor Company is engaged in design and manufacturing of motor vehicles. The company operates through following segments: Vehicle, finance, and others. The company carry out sales of motor vehicles such as passenger cars, SUVs, and heavy equipment under vehicle segment. The company has strong focus on new product development. The company provides SUV in different powertrain such as diesel, petrol, electric, PHEV & FCEV. The company has total 10 technical and design centers around the world for R&D activities.
General Motors is engaged in design and manufacturing of passenger cars, SUV, pick-up trucks, and automotive parts with its partners. The company has strong focus on manufacturing facility expansion. For instance, General Motors and Vacuumschmelze (VAC) has decided to build new manufacturing facility in the US to manufacture permanent magnet which is required for electric motors in vehicles. The company has 50 manufacturing facilities across world. Four major brands operate under General Motors across globe.
SUV Market by Type (Mini, Compact, Mid- & Full-Size, MPV), Propulsion (Diesel, Gasoline, Electric), Class (B, C, D, E), Seating Capacity (5 Seater,>5 seater), EV Type (BEV, PHEV, FCEV), Sales (Compact, Mid- & Full-Size) & Region - Global Forecast to 2027
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