Large SUVs Market Is Anticipated To Witness Significant Growth Prospects With Rising CAGR By 2028
Posted by Mrudula Karmarkar on December 19th, 2022
The global large SUVs market size is expected to reach USD 334.3 billion by 2028, registering a CAGR of 0.5% from 2022 to 2028, according to a new report by Grand View Research, Inc. The market growth of the large SUVs is significantly driven by the increasing popularity pertaining to the characteristics of on-road passenger cars and off-road sport vehicles. The rising popularity among car consumers in Europe, the Middle East, China, and India are expected to drive the market growth. Other characteristics such as large storage and seating space, higher ground clearance for mountain terrains, higher vantage point, etc. attracts consumers fueling the market growth. Furthermore, the introduction of an electric version of large SUVs is likely to propel market growth. For instance, as published on 17th November 2021, Hyundai revealed a new extra-large electric SUV, Hyundai Seven at Los Angeles Auto show.
The market growth of the large SUVs experienced a negative impact during the COVID-19 pandemic outbreak. To curb the infection, lockdowns and restrictions were imposed by the governments worldwide, which disrupted the supply chain at various stages in the automotive industry. This ultimately affected the global output of the large SUVs as well as worldwide sales, plummeting the growth rate. Over the forecast period, the market is expected to recover with resumed manufacturing, product launches, and purchase activities.
The electric segment by fuel type is anticipated to show strong growth scenarios, owing to the government initiatives, increased product launches, phasing out of fossil fuels, and environmental policies. From 2022 to 2028, the electric segment is expected to register a CAGR of 11.1% in the global market. Many carmakers are phasing out petrol and diesel cars and plan to go all-electric vehicles in the future. For instance, at United Nations, Climate Change Conference 2021, held in Oct.-Nov. 2021, major countries and automakers have set a new goal to go all-electric by 2040. The list of automakers comprises Ford, General Motors, Volvo, and Jaguar Land Rover, among others.
North America dominated the global market in 2021. The U.S. market being the biggest consumer and demanding region for large SUVs. The shift in consumer preference in the U.S. for off-road utility vehicles and increased popularity is credited for the higher consumption rate. Furthermore, the strong presence of the key players, easy availability, and higher spending on the passenger vehicles in the region are attributable to higher market revenue share.
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The market is majorly driven by the increasing demand from the Middle East and Europe, attributed to the rising popularity of the sports utility vehicles, which is outpacing the others. The popularity of large SUVs is attributed to their properties, such as the look of a car and the functionality and power of the utility vehicle, over other passenger cars. It offers more capacity, and a higher vantage point for drivers due to higher seating, attractive styles, and connected features like passenger cars. Budding market demand for large SUVs in China is also contributing to the global market growth. Furthermore, frequent launches of large SUVs by manufacturers are fueling the market growth. For instance, Volkswagen launched Touareg R in October 2020 which comes with a plug-in hybrid system. Toyota Urban Cruiser launched in September 2020, among many others.
Large SUVs market growth is restrained by the rising concerns about environmental issues and safety. Due to the large and heavy body of the large SUV, energy consumption is far more compared to the other medium-sized and small passenger cars and subsequent increase in CO2 emissions. Large SUVs are more prone to rollover due to the large size of the SUV and higher center of gravity. These aspects of the large SUVs are expected to restrain the global market growth.
Large SUVs Market Report Highlights
The market of the large SUV experienced a drop in the growth rate as a result of the COVID-19 pandemic worldwide. The pandemic disrupted the supply chain of the auto components and manufacturing process, global output of large SUVs plummeted as well as sales. However, with the resumed manufacturing process, supply chain and fast ongoing vaccination process the market will recover in the forecast years, with a little shadow of the pandemic.
The majority of the market is captured by global companies playing important role in the market. The main focus of the companies is to increase sales through product launches, R&D activities, and expansion to the new geographies. For instance, Hyundai Motor India plans to increase its SUV portfolio in India as published in February 2021, which includes a seven-seater SUV. General Motors Co. is working on expanding the Corvette line with crossover SUV, published on 15th January 2021. Companies are also actively focusing on the research and development in the electric SUVs sector. Some of the key players operating in the global large SUVs market include:
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
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