Electric Sports Utility Vehicle Market

Electric Sports Utility Market Overview

The Electric Sports Utility vehicle market is estimated to reach a valuation of USD 261.53 billion by the year 2030 at a CAGR of 32.48% during the forecast period 2022 to 2030. Electric vehicles, since their inception, have revolutionized the global automotive sector. Growing prices of fossil fuels and the adverse effects of internal combustion engine (ICE) vehicles on the environment have increased the importance of electric vehicles globally. Sports utility vehicles, i.e., SUVs, are mainly used as family cars due to the growing demand for comfortable and luxury rides. However, SUVs are fuelled by diesel, which increases their emissions. Thus, electric SUVs were introduced in the market. 

Electric Sports Utility Vehicle Market Trends Insights 

The new-age trend of increasing the driving range of electric SUVs and the trend of employing battery swapping is aiding the market's growth.

With the ever-evolving technology in the automotive industry, it is well-acknowledged that the driving range of electric cars is the most important consideration for consumers when it comes to selecting an electric vehicle. Increasing the driving range can also be accomplished by the use of a great number of other strategies, such as speed optimization and regenerative braking and acceleration. A growing number of nations, notably China and India, are placing a greater emphasis on reducing emissions from vehicles and boosting the support provided by the government. Electric SUVs have a driving range that is far longer than that of conventional SUVs, which helps alleviate range anxiety and makes them more practical for day-to-day use. Through research and development, the automotive industry is speeding up its strategy to electrify vehicles to increase driving performance, improve total powertrain performance, and extend the range of potential vehicles.

Furthermore, a new trend in the global market is to switch batteries at charging stations for electric vehicles (EVs), which saves users of electric utility vehicles time because they do not have to charge their batteries. Level 3 EV charging takes 30 to 60 minutes to fully charge an electric car, and ultra-fast charging takes 15 to 30 minutes. However, electric utility vehicles cannot be charged using these methods. For this reason, switching batteries is a great option for electric utility cars. By July 2021, companies like NIO had set up more than three hundred battery charging stations. By 2025, they want to have another 4,000 set up in China. Its battery-swapping stations have been used about 2.9 million times around the world, and about 1,000 of them were built outside of China. More people will likely buy electric sport utility vehicles with battery swapping stations because they won't have to wait for more charge time. The upfront cost of electric utility cars will go down because people will lease batteries instead of buying them at the swap stations.

Electric Sports Utility Vehicle Market Segment Insights 

The Electric Sports Utility vehicle market is segmented based on propulsion and size.

Based on Propulsion, the said market segment is divided into BEV and HEV, where the HEV (hybrid electric vehicle) segment dominates the global market share owing to the lower acquisition cost than battery electric vehicle (BEV). The HEV is a desirable option for customers in areas with limited charging infrastructure, as it offers superior performance compared to traditional vehicles while also bridging the gap between pure electric vehicles and internal combustion engines. Several businesses are marketing hybrid electric vehicle (HEV) models in underdeveloped nations. 

Battery electric vehicles, or BEVs, are fully electric vehicles that operate solely on rechargeable batteries and do not have a traditional gasoline engine. The vehicle receives all its propulsion energy from the battery, which is replenished by recharging it from the grid. The market is expected to experience growth because of improved driving performance and increased range.

Based on size, the electric sports utility vehicle market is further divided into compact, mid-size, and full-size segments. Out of which, the mid-size segment dominates the global market share, owing to the features and benefits offered that make it more affordable. Followed by the mid-size segment, the compact segment had the major market share in 2022 and is projected to witness significant growth at a substantial compound annual growth rate (CAGR) over the forecast period. Apart from this, the full-size segment is expected to experience the most rapid growth in the market. The demand for full-size sector vehicles with modern features is driven by factors such as increasing consumer disposable income, particularly in established and developing nations, as well as amenities like greater seating capacity and trunk room.

Electric Sports Utility Vehicle Market Regional Insights 

The Electric Sports Utility vehicle market is primarily studied across four major regions, namely North America, Europe, Asia-Pacific, and the Rest of the World. Out of these, the Asia-Pacific region dominates the global market share owing to the government's initiatives to raise the manufacturing and sales of SUVs. The APAC region is dominated by China, which is considered to be one of the fastest-growing countries in the global automotive sector. Technologically advanced countries such as Japan and South Korea have also played key roles in the growth of the market in this region. Besides, developing countries such as India, Taiwan, and Malaysia provide a huge opportunity for further growth in these markets. These are untapped markets, which is encouraging e-SUV OEMs to invest and establish themselves as strong players in the local market.

Followed by the Asia-Pacific region, the North American region has the second-highest revenue generation in the said market segment. The ATV/UTV sector in North America is highly sophisticated and accounts for over 50% of the global market for ATV/UTV vehicles. There has been a substantial increase in the market for electric ATVs/UTVs due to the growing popularity of recreational activities like camping, hunting, and forest rides, particularly during the winter. Polaris, Textron, and John Deere are the main companies that control the sales of electric ATVs/UTVs in the region. These cars have experienced a significant rise in demand in the agricultural sector as the US government encourages farmers to transition to electric utility vehicles. John Deere is collaborating with the government to promote the adoption of electric utility vehicles in US farms. 

The presence of a thriving e-commerce sector and a well-developed infrastructure for industrial and manufacturing enterprises, including their warehousing capacities, contribute to North America's appeal as a lucrative market for producers of industrial vehicles. Furthermore, the presence of a widespread third-party logistics (3PL) network has resulted in the expansion of the warehousing industry in North America.

Electric Sports Utility Market Key Players & Competitive Insights 

Major key competitors in the Electric Sports Utility market employ key business strategies, which include partnerships, mergers and acquisitions, business expansion, and collaboration deals. 

Electric Sports Utility Market Key Companies Insights

• Toyota Motor Corporation (Japan)
• Tesla, Inc. (U.S.)
• BMW Group (Germany)
• Jaguar Land Rover (UK)
• Audi AG (Germany)
• Porsche AG (Germany)
• Volvo Car (Sweden)
• The Hyundai Motor Company (South Korea)
• Honda Motor Company, Ltd. (Japan)
• Nissan Motor Co., Ltd. (Japan).

Recent Developments 

In May 2022, Mahindra Electric, a leader in the automobile industry, signed a partnership deal with Terrago Logistics to enhance a pollution-free last-mile delivery. 

In November 2022, General Motors and Microvast signed a deal to collaborate and develop a specialized EV battery separator. 

 In November 2022, Bollinger Motors introduced Our Next Energy (ONE) as a dealer and partner in battery supply for electric commercial vehicles.

Electric Sports Utility Vehicle (e-SUV) Market Regional Outlook

By Drive Train

• Front Wheel Drive
• Rear Wheel Drive
• All Wheel Drive

By Seater Type

• 5-Seater
• 7-Seater

By Region

North America

• US
• Canada

Europe

• Germany
• France
• UK
• Italy
• Spain
• Rest of Europe

Asia-Pacific

• China
• Japan
• India
• Australia
• South Korea
• Australia
• Rest of Asia-Pacific

Rest of the World

• Middle East
• Africa
• Latin America