Sports Utility Vehicles (SUV) is a type of off-road vehicle, which includes features such as ground clearance, ruggedness, and four-wheel drive that helps the vehicles to withstand in rough environment. The SUVs offer a broad range of advantages such as power, performance, cargo room, better sightlines, functionality, luxury, and safety, which in turn is driving growth of the SUV market

Increasing concerns regarding safety is the major factor driving growth of the global SUV market

Increasing concern regarding safety is one of the major driving factors for growth of the market. SUV vehicles are equipped with active safety features such as ADAS (Advanced driver-assistance systems), Anti-Lock Brake System (ABS), traction control (ASR), torque vectoring, and Tire-Pressure Monitoring System (TPMS), which has primary function of not to getting into accidents by providing maximum safety to the driver. For instance, in 2017, Audi launched the AudiQ3 SUV vehicles, which was incorporated with advanced technologies such as Electromechanical Parking Brake, Tire-pressure Monitoring System (TPMS), and Anti-lock Brake System (ABS). Increasing inclination of consumers towards adoption of automobiles with safety features, owing to increasing number of road accidents is expected to boost growth of the SUVs market worldwide. For instance, according to World Health Organization (WHO), an estimated 1.25 million road accidents were reported worldwide in 2013, out of which around 93% road traffic death were reported in low and middle income economies and over 50 million people were injured by road accidents.

Furthermore, stringent legislation and policy framework by government, mandating the installation of safety equipment in automobiles coupled with consumers’ preference for better safety measures is propelling growth of the SUV market. For instance, according to the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act, in November 2012, the European Union mandated Tire Pressure Monitoring System (TPMS) in every passenger car models. The U.S. Highway Safety Act of 1991 made airbags and Anti-Lock Braking System (ABS) mandatory in all passenger cars. These technologies offer efficient operation and improved safety, which is expected to drive growth of the SUVs market.

Increasing cost of fuel is one of the major restraining factors for growth of the market

The major factor restraining growth of the market is rising fuel price. Increasing adoption of SUV vehicles is in turn propelling demand for crude oil. This is owing to the fact that SUVs are utility vehicles and consume more fuel. According to Energy Information Administration (EIA), crude oil price increased to US$ 60 per barrel at the end of 2017 from US$ 50 per barrel in 2016. Moreover, according to Coherent Market Insights’ analysis, in India total sales of SUVs were 62,170 units in the month of April 2016, which is decreased to 55,825 units in June 2016. Therefore, increasing price of crude oil is expected to negatively impact growth of the SUV market especially in emerging economies such as India and China.

Global SUV Market: Regional Insights

The SUV market in North America accounted for largest share in global market and is expected to maintain its dominance over the forecast period (2018 – 2026). The growth in this region is attributed to stringent government regulations to prevent road accidents. For instance, in 2008, the U.S. Congress TREAD Act, mandated the deployment of appropriate Tire Pressure Monitoring System (TPMS) technology in all passenger vehicles to improve the driver and passenger safety by means of dashboard warning system. Moreover, in 2016, the U.S. Department of Transportation's National Highway Traffic Safety Administration officially announced that automakers in the U.S. have to make the autonomous emergency braking system a standard feature for all cars and trucks by 2022. This in turn creates a highly conducive environment for growth of the regional SUV market.

Global SUV Market: Competitive Landscape

Key players operating in the SUVs market include AUDI AG Corporation, Toyota Motor Corporation, Volkswagen AG, Rolls-Royce Motor Cars Limited, General Motors LLC, Jaguar Land Rover Automotive PLC, and Acura. Major players such as AUDI AG, Volkswagen AG, and Rolls-Royce Motors Cars Ltd. are focusing on launching products equipped with advanced features, in order to maintain a competitive edge in the market. For instance, in 2016, Volkswagen launched Tiguan SUV, in India. The salient features added in Tiguan SUV are panoramic sunroof, 4 Motion All-Wheel-Drive System, keyless entry and reverse parking camera, infotainment system and others.

Global SUV Market: Taxonomy

By Vehicle Type

  • Small-Sized SUVs
  • Medium-Sized SUVs
  • Large SUVs

By Fuel Type

  • Diesel
  • Gasoline
  • Hybrid

By Seating Capacity

  • 5 seater
  • 7 seater
  • 8 seater
  • 8 Seater above

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users