SUV Market Analysis

Based on SUV, the market is divided into compact SUV, mid-size SUV and full-size SUV. The compact SUV market dominated around USD 869.6 billion in 2023 and is set to cross USD 1.47 trillion by 2032. The demand for compact SUVs is propelled by a combination of factors catering to modern consumer preferences. Their versatile design provides ample space for passengers and cargo while maintaining a smaller footprint ideal for urban environments.

Consumers seek the elevated driving position and rugged aesthetic typical of SUVs, coupled with fuel efficiency comparable to smaller vehicles. Additionally, advancements in technology and safety features make compact SUVs an attractive choice for families and individuals prioritizing comfort, convenience, and versatility in their daily lives.

Based on the propulsion, the market is categorized into gasoline, diesel and electric. The gasoline segment accounted for 43% of the SUV market share in 2023, gasoline-based SUVs are gaining popularity due to several key factors. Despite the emergence of electric and hybrid alternatives, gasoline SUVs remain appealing due to their established infrastructure, providing drivers with easy access to refueling stations.

Additionally, gasoline SUVs often offer greater driving range compared to electric models, alleviating concerns about range anxiety. Furthermore, advancements in gasoline engine technology have improved fuel efficiency, making these vehicles more economical to operate. Finally, the robust performance and towing capabilities of gasoline SUVs continue to attract consumers seeking versatility and power in their vehicles.

Asia Pacific SUV market held over 47% of the revenue share in 2023. In Asia Pacific, rapid urbanization and rising disposable incomes have fueled demand for vehicles that offer versatility, space, and status, with SUVs perfectly meeting these criteria. Moreover, the diverse terrain and climate across the region make SUVs ideal for navigating various road conditions, from city streets to rugged rural areas. Additionally, automakers have tailored SUV models to cater to the preferences of Asian consumers, offering features such as increased ground clearance, advanced technology, and luxurious interiors, further driving the market's growth.