Small SUVs Market

Global Small SUVs Market Size (2024 to 2029):

The global small SUVs market size is expected to reach USD 503.55 billion in 2024 and reach USD 531.95 billion by 2029, growing at a CAGR of 0.41% from 2024 to 2029.

Small SUVs, also known as compact SUVs, are a type of sport utility vehicle that is smaller in size and typically has a more fuel-efficient design than larger SUVs. Some examples of small SUVs include the Honda CR-V, Toyota RAV4, and Subaru Forester. These vehicles generally seat five passengers and have a cargo area for storage, making them a popular choice for families and individuals needing more space and utility than a sedan or hatchback can provide. In addition, small SUVs tend to have a higher driving position than passenger cars, which can provide a more commanding view of the road. They also often have all-wheel drive (AWD) available for improved traction in adverse weather conditions.

The increasing demand and growing trend of versatile vehicles that can offer a good balance of passenger and cargo space are anticipated to offer lucrative growth possibilities in the small SUVs market. Furthermore, technological advancements are expected to open more possibilities for small SUVs. The manufacturers from the automotive industry never stop investing in developing new technologies, due to which more advancements are expected to come in the small SUVs segment in the coming years and are expected to provide growth opportunities. The increasing popularity of small SUVs is projected to bring growth avenues to the market participants of the small SUVs market. Furthermore, growing urbanization and changing consumer preferences are predicted to bring more growth possibilities to the market in the coming years.

Global Small SUVs Market Drivers:

The increasing adoption of small SUVs is a significant factor promoting the growth of small SUVs. SUVs have become increasingly popular in recent years due to various factors such as practicality, off-road capability, status symbol, safety, and fuel efficiency. In addition, compared to large SUVs, small SUVs have better affordability, which is expected to boost the market’s growth rate.  The safety advantages associated with the small SUVs are another notable factor propelling the adoption rate of these vehicles. Small SUVs have advanced safety features such as stability control and airbags that can provide the required safety to passengers traveling in the vehicles in accident events. Small SUVs also have a higher ground clearance, which helps avoid collisions with the road.

The increasing manufacturing activities from the automotive companies are anticipated to result in the growth of the small SUVs market. In addition, it is observed that manufacturers of small SUVs are investing hefty amounts in developing and manufacturing new small SUV vehicles and in the marketing and promotional activities of the vehicles to attract the target audience. This is anticipated to contribute to the market's growth rate during the forecast period.

The growing preference from the public to have Small SUVs as personal passenger vehicles is fuelling the market growth. Although the trend of having small SUVs as a primary vehicle for people has been growing for the last few years, the demand for these vehicles is likely to increase. This can result in greater production and sales of small SUVs and fuel market growth. Practicality, versatility, and safety features are some of the major factors promoting the adoption rate of small SUVs among people.

Furthermore, the increasing disposable income among people from developing and developed countries and key market participants expanding their business operations to emerging markets are expected to drive the small SUVs market growth.

Global Small SUVs Market Restraints:

High costs associated with the small SUVs are majorly limiting the market growth. Though small SUVs are comparatively lower in cost than large SUVs, they are still a problematic option for many. The available alternatives, such as sedans and hatchbacks, are expected to hinder the market’s growth rate. Furthermore, the environmental issues associated with the usage of SUVs are further anticipated to hamper the small SUVs market growth rate. Small SUVs are usually less fuel-efficient and release more GHG emissions, which threatens the environment.

COVID-19 Impact on the Small SUVs market:

The COVID-19 pandemic has had a significant negative impact on the small SUVs market. The situations brought on by the COVID-19 pandemic, such as lockdowns, economic downturn, supply chain disruptions, and travel bans, have reduced demand for small SUVs and slowed down market growth during the pandemic time. Many of the population have canceled or postponed their thoughts of purchasing new vehicles, resulting in reduced sales for small SUVs. Furthermore, for a short time in the recent past, to curb the widespread coronavirus, manufacturing units of automotive have stopped their manufacturing activities, hampered the production of new vehicles, and inhibited the market’s growth rate.

However, as the economy started recovering and restrictions imposed by governments were lifted, the demand for small SUVs is anticipated to reach the pre-pandemic levels very soon, and the market’s growth rate is anticipated to pick up.

REPORT COVERAGE:

Global Small SUVs Market – By Fuel Type:

• Petrol
• Diesel
• Electric
• Others

Based on fuel type, the petrol segment captured a significant share of the global small SUVs market in 2021. The greater availability of petrol-based small SUVs is one of the major factors propelling the segment's growth. In addition, the growing focus of the market participants on manufacturing petrol-based small SUVs is a plus to the segment. The advantages associated with small SUVs, such as Easy maintenance, better fuel efficiency, accessible aftersales services, availability of spare parts, and extensive product offerings, are further contributed to the petrol segment to register the domination over the other segments in the global small SUVs market in the recent past.

However, the electric segment is gaining attention and is predicted to showcase a promising growth rate during the forecast period. The environmental concerns associated with petrol and diesel-based vehicles promote the adoption of electric vehicles, favoring the electric segment to register the fastest growth in the global market during the forecast period. In addition, the increasing efforts from the governments to boost the adoption of electric vehicles among the people are further favoring the segment's growth.

Global Small SUVs Market – By Region:

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

Geographically, the APAC region had the largest share of the global small SUVs market in 2021. China is one of the significant contributors to the APAC market and helped significantly in registering its dominance in the global market. The demand and consumption of small SUVs are growing significantly in the APAC countries, which is one of the major factors propelling the regional market growth. The growing working population and an increasing number of market participants in the region further promote the growth rate of the small SUVs market in Asia-Pacific. Furthermore, the popularity of small SUVs has been growing considerably in APAC countries and is resulting in market growth in this region.

The European region is predicted to register the fastest CAGR among all regions in the global market during the forecast period. The increasing number of new vehicle models and marketing and promotional activities by the market participants are primarily fuelling the small SUVs market growth in the European region. Furthermore, the increasing efforts by the EU governments to promote the usage of electric vehicles in the region are projecting a favorable impact on the market growth. Governments are also giving various incentives and support to manufacturers and consumers to boost the trend of electric vehicles in the European region, further favoring regional market growth.

Other regions, North America and Latin America are expected to showcase moderate growth in the global small SUVs market in the coming years.

KEY MARKET PLAYERS:

Suzuki Motor Corporation, General Motors, Ford Motor Company, Renault, Volkswagen, Hyundai Motor Company, Volvo Car Corporation, BMW Group, Peugeot S.A., Geely, Stellantis NV, Toyota Motor

The key market participants have adopted strategies such as research and development, new product launches, partnerships, and strategic collaborations to boost sales and strengthen their position in the small global SUVs market.

RECENT DEVELOPMENTS IN THE MARKET:

• In June 2021, Skoda's Kushaq was a small SUV designed specifically for the Indian market with high levels of localization. Likewise, Nissan announced plans to launch eight new cars in Africa, the Middle East, and India by 2023, which include small SUVs.
• In May 2021, Fisker Inc., an electric car startup, announced a partnership with Foxconn Technology Group to co-develop and manufacture a new electric vehicle (EV).