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e-SUVs Market Size, Share, Forecast, & Trends Analysis by Propulsion (Battery Electric SUV, Hybrid SUV), Size (Compact SUV, Mid-Size SUV, Full-Size SUV), Power Output (Less Than 150 KW, 150 KW to 250 KW, more than 250 KW), Geography - Global Forecast to 2031
Report ID: MRAUTO - 1041275 Pages: 200 Jan-2024 Formats*: PDF Category: Automotive and Transportation Delivery: 24 to 72 Hours Download Free Sample ReportThe e-SUVs Market is expected to reach $914.2 billion by 2031, at a CAGR of 16.2% from 2024 to 2031. The e-SUVs market is driven due to factors such as the global adoption and development of small and compact e-SUVs, government policies & regulations that support the industry, and stringent emission and fuel economy standards. Furthermore, increased investment in e-SUVs by prominent automobile OEMs is projected to open up new market opportunities. However, the high price of e-SUVs may restrain the market growth. The absence of infrastructure for charging in developing countries presents a challenge to the growth of the market.
A compact e-SUV is a small e-SUV that falls between a mid-size and a sub-compact SUV. Compact e-SUVs are said to be among the most popular cars, as they are small yet athletic.
Compact e-SUVs, with their space efficiency, maneuverability, fuel efficiency, versatility, safety features, and stylish design, offer a comprehensive driving experience.
Furthermore, the market is being driven by the focus of several automobile manufacturers on the development of small and compact SUVs. A significant example is Kia Corporation (South Korea), which, in May 2024, launched the company's first compact electric sports utility vehicle. This move, built on its dedicated EV platform, is a testament to the potential of the compact SUV market, even in the face of a global EVs market slowdown.
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Across the globe, governments are enacting laws and policies to encourage the use of electric vehicles. To entice customers to buy electric vehicles, financial incentives are being provided, such as tax credits and rebates.
To promote a sustainable and environment-friendly future, many companies in the automotive industry are leveraging government policies and regulations and investing heavily in the manufacturing & development of electric vehicles. For instance, in 2021, the U.S. federal government announced tax credits for the purchase of electric vehicles. Additionally, there were discussions about expanding and extending these tax credits to further incentivize EV adoption. These factors are expected to drive the growth of the e-SUVs market during the forecast period.
Some of the recent developments in this market space are:
Electric SUVs are quicker, more efficient, and relatively eco-friendly than their fuel-run counterparts. However, the pricing of e-SUVs may restrain their mass adoption. EVs have a higher cost of purchase when compared to an ICE with similar features and technical characteristics.
The demand for e-SUVs is restrained by their high cost which keeps many potential buyers from purchasing one. For instance, in India, the Mahindra XUV, the price of XUV 300 is INR 13.5 lakh (USD 1.33 Million), and the price of XUV 400 is INR 17.7 lakh (USD 1.77 Million). Similarly, MG ZS EV costs INR 25 lakh (USD 2.5 Million), and the price of MG Astor costs Rs 18 lakh (USD 1.8 Million).
The expensive battery technology employed in EVs is the main cause of this pricing differential. An e-SUV’s battery is its power source, making up a significant amount of the total cost of the electric vehicle. One of the reasons e-SUVs are more expensive is that batteries for electric automobiles are still quite costly to build. Thus, this higher cost can deter many potential buyers, making electric SUVs less accessible.
Based on propulsion type, the e-SUVs market is segmented into battery-electric SUVs and hybrid SUVs. In 2024, the battery-electric SUVs segment is expected to account for the largest share of over 64% of the global e-SUVs market. The large market share of this segment is attributed to increasingly stringent automotive emission regulations across the world, consumer demand for fuel-efficient vehicles, the global shift toward eco-friendly transportation solutions, and the increasing installation of charging infrastructure.
However, the hybrid SUVs segment is expected to record the highest CAGR during the forecast period. The growth of this segment is driven by increasing investments by automotive OEMs for hybridization of vehicle powertrains, better fuel efficiency, lower running costs in comparison to diesel or petrol-running vehicles, reduced emissions, and improved performance.
Based on size, the e-SUVs market is segmented into compact SUVs, mid-size SUVs, and full-size SUVs. In 2024, the mid-size SUVs segment is expected to account for the largest share of over 42% of the global e-SUVs market. A mid-size SUV is a vehicle that falls in the middle of a compact SUV and a full-size SUV. The large share of this segment is due to their better handling, higher fuel efficiency, and more suitable for city driving and parking than full-size SUVs.
However, the compact SUV segment is expected to grow at the highest CAGR during the forecast period. The growth of this segment is due to a host of factors such as fuel efficiency, advanced safety features, rising consumer preference towards compact SUVs, and the growing focus of automotive manufacturers to launch compact electric SUVs with advanced capabilities.
Based on power output, the e-SUVs market is segmented into Less Than 150 KW, 150 KW to 250 KW, and more than 250 KW. In 2024, the 150 KW to 250 KW segment is expected to account for the largest share of over 53% of the global e-SUVs market. The large share of this segment is attributed to the increasing adoption of electric SUVs, increasing investments by government authorities in the development of EV charging infrastructure, and favorable policies, incentives, and subsidies introduced by several state governments.
In 2024, Asia-Pacific is expected to account for the largest share of over 56% of the e-SUVs market. The large share of this region is attributed to government subsidies, tax incentives, and regulations to support the development and adoption of EVs, rising focus to reduce greenhouse gas emissions, growing demand for automobiles, and rising consumer preference for fuel-efficient mobility solutions.
Moreover, the Asia-Pacific region is expected to record the highest CAGR of over 19% during the forecast period. The growth of this market is driven by the increasing number of initiatives and investments made to support the infrastructure needed for charging electric vehicles, as well as the growing attention given by major players to technological improvements in new products and the expansion of production capacity.
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the e-SUVs market are Tesla Inc. (U.S.), Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), BYD Company Ltd. (China), Ford Motor Company (U.S.), Hyundai Motor Company (South Korea), Mercedes-Benz (Germany), Nissan Motor Corporation (Japan), Volkswagen AG (Germany), AB Volvo (Sweden), Kia Corporation (South Korea), and BMW (Germany).
Particulars |
Details |
Number of Pages |
200 |
Format |
|
Forecast Period |
2024–2031 |
Base Year |
2023 |
CAGR |
16.2% |
Market Size (Value) |
USD 914.2 Billion by 2031 |
Segments Covered |
By Propulsion Type
By Size
By Power Output
|
Countries Covered |
North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and the Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and Middle East & Africa (UAE, Israel, and Rest of Middle East & Africa). |
Key Companies |
Tesla Inc. (U.S.), Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), BYD Company Ltd. (China), Ford Motor Company (U.S.), Hyundai Motor Company (South Korea), Mercedes-Benz (Germany), Nissan Motor Corporation (Japan), Volkswagen AG (Germany), AB Volvo (Sweden), Kia Corporation (South Korea), and BMW (Germany). |
The e-SUVs market study focuses on the market assessment and opportunity analysis through the sales of e-SUVs across different regions and countries across different market segmentations; this study is also focused on competitive analysis for e-SUVs based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies.
The global e-SUVs market is projected to reach $914.2 billion by 2031, at a CAGR of 16.2% during the forecast period.
Based on propulsion type, the battery electric SUVs segment is expected to account for the largest share of the global e-SUVs market.
Based on size, the mid-size SUVs segment is expected to account for the largest share of the global e-SUVs market.
Based on power output, the 150 KW to 250 KW segment is expected to account for the largest share of the global e-SUVs market.
The growth in this market is driven by factors such as stringent emission regulations & fuel economy standards worldwide, rapid development & adoption of small and compact e-SUVs, and supportive government policies & regulations. In addition, increasing investment in e-SUVs by leading automotive OEMs is expected to provide opportunities for market growth.
The key players operating in the e-SUV market are Tesla Inc. (U.S.), Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), BYD Company Ltd. (China), Ford Motor Company (U.S.), Hyundai Motor Company (South Korea), Mercedes-Benz (Germany), Nissan Motor Corporation (Japan), Volkswagen AG (Germany), AB Volvo (Sweden), Kia Corporation (South Korea), and BMW (Germany).
Asia-Pacific is projected to register the highest growth rate during the forecast period.
Published Date: Jun-2024
Published Date: Jan-2024
Published Date: May-2024
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Published Date: Jul-2023
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