The global SUV market is forecast to hit $1.67 trillion by 2032 from this year’s $1/18 trillion, according to MarketsandMarkets, reflecting a compound annual growth rate (CAGR) of 5.1 percent.
This growth will be driven by technological advancements and the shift toward electrified vehicles.
“The SUV market is driven by the shift toward electrified and software-defined vehicle platforms, offering superior packaging space for larger battery packs, advanced thermal systems, and centralized ADAS (advanced driver assistance system),” MarketsandMarkets said.
Also, mid-size SUVs are expected to secure the leading market position during the forecast period, while electric SUVs are expected to exhibit the fastest growth during the forecast period.
Furthermore, Europe is expected to be the fastest-growing market for SUVs during the forecast period.
MarketsandMarkets said that the popularity of SUVs is driven by the increased demand for chassis rigidity, high ground clearance, and mixed-terrain capability is pushing OEMs to adopt reinforced subframes, multi-link rear axles, and electronically controlled all-wheel drive (AWD) systems.
Also, premium and mid-size SUVs are relying heavily on advanced NVH (noise, vehicle and harshness) solutions, such as hydraulic bushings, active mounts, and acoustic insulation, to deliver sedan-like refinement. Thermal innovations, such as heat-pump HVAC and multi-loop cooling, are further enhancing the efficiency of electric SUVs, particularly in harsh climates.
MIDSIZE SUVS WITH LARGEST SHARE
MarketsandMarkets said that mid-size SUVs hold the largest market share among all types, as these are offered in multiple engine variants, including gasoline (naturally aspirated and turbocharged), diesel, and some plug-in hybrid options for improved fuel economy.
Among the mid-size SUVs distributed in the Philippine market include the Mitsubishi Montero, Toyota Fortuner, Ford Everest, Isuzu mu-X, and Nissan Terra.
“They are also provided with various transmission options [manual, automatic transmission (AT), continuously variable transmission (CVT), and dual clutch transmission (DCT)], two or three rows of seating options, and multiple luxury, safety, and driver assistance features, including smart entry, start-stop, all-wheel disc brakes, heated & ventilated seats, sunroof, and ambient lighting),” it said.
Also, compact SUVs and rising incomes will contribute to the growth of the global SUV market.
“Consumer preferences are shifting from premium hatchbacks and compact SUVs to mid-size SUVs. The main reason behind this is the desire for increased seating and cargo space, emphasizing improved functionality and practical features at a lower price point than full-size SUVs. Rising disposable incomes further contribute to this trend,” MarketsandMarkets said.
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