NEW YORK, March 10, 2024 /PRNewswire/ — The electric sports utility vehicle (e-SUV) market size is expected to grow by USD 83,748.62 million during 2022-2027, progressing at a CAGR of 25.19% as per the latest Technavio market research report. In the projected period, the APAC region is anticipated to account for 33% of global market growth. Technavio analysts have outlined regional trends and drivers shaping the market. Government initiatives promoting sustainability, stringent carbon emission regulations, and incentives for e-SUV adoption in polluted urban centers like China and India drive market expansion. Increased EV charging infrastructure and active involvement of foreign and local OEMs to enhance EV technology further fuel market growth. Improved economic conditions in China and Japan have bolstered discretionary income, leading to a surge in automobile sales, particularly in the EV segment. Despite setbacks from COVID-19, the region’s recovery is evident with lifted lockdowns and resumed business operations. Developing nations like India, Indonesia, and Bangladesh present lucrative opportunities for e-SUV manufacturers, supported by government initiatives, environmental concerns, and rising fuel costs driving market growth.
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 25.19% |
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Market growth 2023-2027 |
USD 83,748.62 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
23.71 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, China, Japan, Norway, and Germany |
Electric Sports Utility Vehicle (e-SUV) Market: Increasing demand and sales of BEVs in the global market to drive growth
The growing BEV manufacturers in China, such as BYD Co and BAIC, are driven by the country’s growing demand for new energy vehicles, resulting in increased sales volumes.
For instance, in 2021, global BEV sales saw significant growth, especially in China, the US, and select European countries. BEVs accounted for over 60% of all global EV sales, with China leading in BEV deliveries, followed by Europe and the US. Hence, such factors drive the e-SUV market growth during the forecast period.
- The emergence of wireless charging systems is an emerging e-SUV market trend.
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Key Companies
The electric sports utility vehicle (e-SUV) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
AEHRA, Bayerische Motoren Werke AG, BYD Co. Ltd., Dr. Ing. h.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Kia Motors Corp., Mahindra and Mahindra Ltd., Maruti Suzuki India Ltd., Mercedes Benz Group AG, Nissan Motor Co. Ltd., Pravaig Dynamics Pvt Ltd., Renault SAS, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Volvo Car Corp.
Segmentation Analysis
This market research report segments the electric sports utility vehicle (e-SUV) market by propulsion (battery electric vehicle and hybrid vehicle), Type (Small, medium size, and Large size) and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
- The battery electric vehicle segment will be significant during the forecast period. The segment growth can be attributed to their environmental advantages, lower costs, and technological advancements that have led to better range, performance, and safety. The technological advancements in BEVs have significantly improved their range, safety, and performance, which leads to higher customer acceptance. Hence, such factors boost the battery electric vehicle segment of the e-SUV market during the forecast period.
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Analyst Review
The electric sports utility vehicle (e-SUV) market is witnessing a remarkable surge in demand and innovation, revolutionizing the automotive industry. With concerns over environmental sustainability and fuel-efficient mobility solutions on the rise, e-SUVs represent a significant leap towards zero-emission transportation modes, thereby addressing the pressing need for cleaner mobility on public roads.
Unlike traditional internal combustion fuel engine vehicles, e-SUVs boast quiet operation and contribute to lower running costs over time, making them increasingly attractive to consumers. Moreover, the integration of advanced batteries and electric vehicle architecture ensures not only impressive driving range but also enhanced speed optimization and regenerative braking & accelerating, perfect for both urban commuting and navigating rough terrain surfaces with ease.
One of the key drivers propelling the growth of the e-SUV market is the implementation of government incentive schemes such as the FAME II scheme, which aims to accelerate the adoption of electric car models by providing subsidies and tax benefits to consumers. This, coupled with the declining cost of electric vehicle battery technology, has significantly narrowed the gap in upfront purchase costs between e-SUVs and their gasoline-powered vehicles counterparts.
Furthermore, the automotive industry is witnessing a surge in electric vehicle startups focused on developing innovative e-SUV models, supported by robust R&D operations funding and a burgeoning electric vehicle ecosystem. These startups are redefining the traditional automobile assembly plants by prioritizing the production of hybrid SUVs and all-wheel drive (AWD) or four-wheel drive (4WD) e-SUVs equipped with cutting-edge safety systems and infotainment features.
To cater to the growing demand for e-SUVs, there has been a substantial expansion in charging infrastructure, facilitated by collaborations between governments, private enterprises, and the Department of Energy (DOE). This infrastructure development is crucial for ensuring widespread adoption and long-term viability of e-SUVs, alongside the continuous advancement in lithium-ion battery technology, including lithium-iron-phosphate (LFP) and lithium-sulfur battery variants, optimizing both manufacturing costs and environmental concerns.
In conclusion, the e-SUV market represents a paradigm shift in the automotive industry towards cleaner, more sustainable transportation modes, driven by technological advancements, supportive government policies, and shifting consumer preferences towards electrification.
Market Overview
The electric SUV market is witnessing a surge in demand as consumers increasingly prioritize zero-emission vehicles. These e-SUVs boast cutting-edge technology, offering the perfect blend of sustainability and performance. While traditional internal combustion fuel engines once dominated the SUV segment, the rise of hybrid SUVs has paved the way for fully electric models. With features like all-wheel drive (AWD) and four-wheel drive (4WD), e-SUVs ensure optimal traction on rough terrain surfaces while maintaining efficiency on public roads. This market trend underscores a shift towards eco-conscious transportation solutions without compromising versatility and capability. As automotive manufacturers continue to innovate, the electric SUV segment is poised for substantial growth in the coming years.
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Table of Contents
1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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