Dublin, May 08, 2024 (GLOBE NEWSWIRE) -- The "North America Sport Utility Vehicle (SUV) Market Outlook, 2029" report has been added to ResearchAndMarkets.com's offering.
North America SUV Market was valued more than USD 75 Billion in 2023. North America, specifically the United States and Canada, is one of the world's largest SUV markets
One significant trend is the growing demand for crossover SUVs, which combine the attributes of traditional SUVs with the agility and fuel efficiency of passenger cars. These crossover models appeal to a broad spectrum of consumers, including young families, empty nesters, and urban professionals seeking a versatile vehicle for everyday use. Furthermore, the development of electric and hybrid SUVs has created a new dimension in the market. As environmental concerns and fuel efficiency grow more important, manufacturers are investing substantially in electrified SUVs to meet strict emission requirements and appeal to environmentally aware customers.
The emergence of electric SUVs with extended range and rapid charging capabilities has substantially increased their attractiveness, resulting in higher adoption rates across North America. Understanding consumer preferences and lifestyle impacts is critical for automakers looking to increase their market share in North America. SUV buyers are frequently motivated by a desire for room, comfort, and adaptability, making cargo capacity, towing capabilities, and advanced entertainment systems important decision factors. Furthermore, lifestyle factors such as outdoor activities, family size, and urban commute influence shopping decisions.
While SUVs are popular throughout North America, there are significant regional differences in customer tastes and market trends. For instance, the southern United States displays a higher demand for full-size SUVs and pickup trucks, reflecting a preference for larger, more rugged vehicles suited to rural and suburban environments. Regulatory factors play an important role in defining the North American SUV market.
Stringent pollution standards, fuel economy restrictions, and safety requirements all have an impact on automakers' product offers and technological breakthroughs, spurring innovation in areas like electrification, lightweight materials, and advanced driver assistance systems (ADAS). North America is a powerhouse for automotive innovation, with prominent automakers and technology businesses investing considerably in R&D. From self-driving capabilities to connected car technology, the region stays at the forefront of innovation, pushing the evolution of SUVs and determining the future of transportation.
Major Drivers
Consumer preferences and lifestyle trends: Consumer choices and lifestyle trends are the key drivers defining the North American SUV industry. In recent years, there has been a noticeable movement in consumer preferences toward larger, more adaptable vehicles with plenty of room, comfort, and utility. SUVs, with their large interiors, high sitting positions, and varied load capacities, have emerged as the preferred vehicle for a wide spectrum of consumers, including families, outdoor lovers, and city inhabitants.
Furthermore, shifting lifestyles and socioeconomic trends have fueled the market for SUVs in North America. The rise of urbanization, along with an increased emphasis on outdoor recreation and adventure, has driven the popularity of SUVs among city people looking for versatility and competence for both metropolitan commutes and weekend trips. Moreover, the aging population and growing number of empty nesters have contributed to the demand for SUVs, with older consumers drawn to the comfort, ease of entry, and elevated driving position offered by these vehicles.
Safety and Advanced Driver Assistance Systems (ADAS): Safety concerns and the incorporation of advanced driver assistance systems (ADAS) are key factors impacting the North American SUV industry. With safety being a key priority for consumers, automakers are rapidly implementing advanced safety systems and driver assistance technology into SUVs to improve occupant protection and reduce the likelihood of an accident.
Furthermore, the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) periodically conduct crash tests and safety evaluations, which have an impact on consumer perceptions and purchase decisions. SUVs with high safety ratings and awards from these groups are more popular and successful in the market, pushing automakers to prioritize safety in vehicle design and engineering.
Major Challenges
Regulatory compliance and emission standards: The North American SUV market has considerable problems in terms of regulatory compliance and emissions standards. Governments in the region have been enacting increasingly strict regulations to reduce greenhouse gas emissions and improve fuel economy. While SUVs provide versatility and performance, their greater size and higher fuel consumption make them subject to more stringent rules than smaller passenger vehicles.
Automakers must invest extensively in R&D to achieve these regulatory standards, which frequently demand the incorporation of innovative technology such as hybrid powertrains, lightweight materials, and aerodynamic design modifications. Furthermore, compliance with emission regulations presents new obstacles, particularly in light of changing regulatory frameworks and the need to balance performance and environmental sustainability.
Competitive landscape and market saturation: The North American SUV market is extremely competitive, with multiple domestic and international automakers competing for market share. This fierce rivalry has resulted in market saturation in certain segments, particularly the compact and midsize SUV categories. As automakers release new models and renew existing ones to remain competitive, consumers are presented with a variety of options, making it difficult for companies to differentiate themselves and attract consumer interest. Furthermore, the entry of new entrants, such as electric car startups and technology businesses, fuels competition and alters existing market dynamics.
Aspects covered in this report
- SUV market Outlook with its value and forecast along with its segments
- Various drivers and challenges
- On-going trends and developments
- Top profiled companies
- Strategic recommendation
Company Profiles
- Toyota Motor Corporation
- The Hyundai Motor Company
- Volkswagen AG
- General Motors Company
- Honda Motor Co., Ltd
- Bayerische Motoren Werke AG
- The Mercedes-Benz Group AG
- Ford Motor Company
- The Volvo Group
- Groupe Renault
- Nissan Motor Co. Ltd
- Tesla, Inc.
Considered in this report
- Historic year: 2018
- Base year: 2023
- Estimated year: 2024
- Forecast year: 2029
By Type
- Small
- Compact
- Mid-Size
- Large
- MPV/MUV
By Seating Capacity
- 5 seater
- >5 seater
By Propulsion
- Petrol
- Diesel
- Electric
- Others
By Electric Propulsion
- Battery Electric Vehicles (BEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Others (HEV, FCEV)
For more information about this report visit https://www.researchandmarkets.com/r/9glpx4
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