The global sports utility vehicle (SUV) market is estimated to witness high growth owing to rising popularity of convenience driving experience. SUVs provide higher seating position, more cargo space and all-wheel or four-wheel drive capabilities which offers convenience for both city and outdoor driving. SUVs are being increasingly used for daily commuting as well as weekend getaways and road trips with family. The growing inclination towards experience-based driving and outdoor recreational activities has led to higher demand for spacious yet powerful SUVs.

The global sports utility vehicle (SUV) Market is estimated to be valued at US$ 472.4 Bn in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the key drivers for the growth of global SUV market is rising popularity of convenience driving experience. SUVs provide higher seating position which offers better visibility of the road. The cargo space in SUVs is more than regular passenger vehicles which allows easy loading of luggage and other items. Many SUVs now come with all-wheel or four-wheel drive capabilities which provides better traction and control in different road and weather conditions. These features make SUVs a popular choice for daily city commute as well as long road trips. Furthermore, improvement in fuel efficiency of newer SUV models without compromising on performance is also attracting more consumers towards SUV segments. However, high maintenance and insurance cost of SUVs compared to regular cars remains a challenge.

SWOT Analysis
Strength: SUVs have become popular family vehicles owing to their spacious interiors, utility and higher seating position. Their off-road capability also enables driving on rough terrains. Many SUVs now offer powerful engines and superior handling.
SUVs provide both cargo space and passenger room, making them suitable for families and their daily activities. Their bold and rugged looks appeal to many consumers.
Weakness: SUVs typically have lower fuel efficiency compared to sedans and hatchbacks. This results in higher running costs for owners. Their relatively large size and weight also make driving and parking in crowded urban areas inconvenient at times.
Opportunity: Hybrid and electric SUVs provide an opportunity for automakers to improve fuel efficiency without compromising on utility. Governments also encourage eco-friendly vehicles through subsidies and tax benefits. Rising populations and incomes in developing markets like India and South East Asia present a big opportunity.
Threats: Stricter emission regulations threaten older SUV models globally. A shift towards urbanization may reduce demand for off-road capability over time. Changing consumer preferences for smaller and more affordable electric cars is also a threat. Increased taxes on large and luxury vehicles aims to discourage SUV sales.

Key Takeaways
The global Sports Utility Vehicle (SUV) market is expected to witness high growth driven by changing lifestyle and mobility needs. The segment’s size is projected to reach over 21 million units by 2030 growing at a CAGR of 6.6% between 2023-2030.

North America currently dominates the SUV market owing to factors such as developed road infrastructure and preference for larger vehicles. However, China and India are emerging as fast growing and key regional markets benefiting from increasing vehicle ownership, economic development and expanding dealer networks of global automakers. The Asia Pacific region accounts for over 40% of the global SUV market led by China, India and other Southeast Asian countries. China has emerged as the largest SUV market globally. Factors such as growing middle class, higher disposable incomes and preference for spacious yet prestigious vehicles are driving strong demand. Local automakers like Great Wall, Geely and BYD also offer affordable SUVs catering to these emerging markets.

Key players
Key players operating in the global Sports Utility Vehicle (SUV) market include Toyota, Ford, Volkswagen, Hyundai, General Motors, Nissan, Honda, Daimler, BMW, and others. Toyota's popular SUV models such as RAV4 and Highlander dominate sales volumes. Ford's Explorer and Escape are top-selling SUVs in the United States. Volkswagen aims to introduce several new electric SUVs by 2030.