Small SUVs Market (2022 - 2028)

Small SUVs Market Summary

Sport utility vehicles or SUVs expertly provide elements of on-road passenger cars combined with off-road vehicles in the same model. High ground clearance, higher seating position, four-wheel drive, excellent towing capacity, and large space are some of the characteristics that attract consumers to the small SUVs, fueling the global market growth. Furthermore, the industry growth is driven by the development in the automotive manufacturing sectors, increasing disposable income, preference for personal passenger vehicles, and penetration of the key players in emerging regions. For instance, Skoda began manufacturing its small SUV Kushaq in India in June, 2021 with localization levels up to 95%. Similarly, Nissan is also planning to launch 8 new cars in Africa, the Middle East, and India by 2023, which includes small SUVs. COVID-19 pandemic has negatively impacted the mass automotive market, including small SUVs market.

Government-imposed restrictions and lockdowns across the world halted manufacturing sector as well as disrupted supply chain at various stages. Shortages of auto components and lack of labor led to decline in the production rate of small SUVs. However, slow and steady market recovery is expected in the coming years with resumed market activities. When compared to other passenger cars, SUVs contribute more to the environmental pollution and have poor fuel efficiency due to their heavy and large body. There has been an anti-SUV movement stirring among people due to the higher chances of rolling over and longer braking distance, posing higher risk. In addition to this, high cost of the SUVs has also posed as a major restraint, limiting the business growth.

Fuel Type Insights

In the global small SUVs market, the petrol segment of fuel type dominated market revenue share in 2021. Petrol segment recorded over 45% market share in 2021 in the global small SUVs. Compared to the other fuel-based small SUVs, petrol-based small SUVs are mainstream and widely available. Many companies have stopped producing diesel-based cars hence producing petrol-based cars in massive numbers. Easy maintenance, better fuel efficiency, easy aftersales services, availability of spare parts, and large product offerings are attributed to the higher market share of petrol segment in the global market over the years.

In the global small SUVs market, the electric segment has also witnessed exponential adoption. Electric segment is anticipated to register a CAGR of 5.5% from 2022 to 2028. Depleting petroleum-based fuel, increasing greenhouse gas emission levels, and global warming is encouraging car manufacturer and consumers to opt for clean and emission-free fuel alternatives such as electric vehicles. Furthermore, government initiatives to accelerate the infrastructure and facilities for the production and adoption of electric vehicles is propelling the segment growth over the forecast period.

Regional Insights

Geographically speaking, Asia Pacific held 45% of the global market share in the year 2021. High demand and consumption of small SUVs in China has significantly contributed to the regional market growth. High popularity of small SUVs, high population of working professionals, and strong presence of global as well as local players are some of the main factors supporting APAC’s key share of the global market.

In the global small SUVs market, Europe is expected to witness the highest growth rate in the forecast period. The region is anticipated to register a CAGR of 0.8% from 2022 to 2028. Regional market growth is expected to be driven by frequent product launches by key players and increasing government initiatives to encourage consumers to adopt electric SUVs. For instance, on December 7^th, 2021, it was announced that Alfa Romeo Automobiles S.p.A. is planning a new entry-level small electric SUV for 2023. Significant fiscal incentives offered by the governments have marked the scale-up in the manufacturing and research of electric vehicles in the region.

Key Companies & Market Share Insights

The market is significantly concentrated by global players who play a vital role in the global small SUVs market. These key players are focused on continuous research and developments and product launches to drive sales and maintain their share in the global market. For instance, many players are investing and stressing the production and launch of electric vehicles by understanding the grave impact on the environment through petroleum-fuel based vehicles. Furthermore, key companies are also focusing on strategic partnerships and joint ventures to expand their product offerings. For instance, Fisker Inc., an electric car startup partnered with Foxconn Technology Group to co-develop and manufacture a new electric vehicle in May 2021. Some of the key players operating in the global small SUVs market include: -

• Stellantis NV

• Toyota Motor

• Renault

• Volkswagen

• Hyundai Motor Company

• Volvo Car Corporation

• Suzuki Motor Corporation

• General Motors

• Ford Motor Company

• BMW Group

• Peugeot S.A.

• Geely

Small SUVs Market