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The E-SUV market size is forecast to increase by USD 181.10 billion at a CAGR of 35.85% between 2023 and 2028. Market demand and growth are driven by increasing consumer demand and sales, declining prices of lithium-ion batteries, and government incentives and subsidies on electric vehicles. These initiatives have led to a rise in the adoption of battery electric vehicles (BEVs). Automakers are investing heavily in electric vehicle technology and electric cars to meet the growing demand. The market is further supported by increasing consumer demand for eco-friendly vehicles, advancements in battery technology, and key trends include longer driving ranges, enhanced charging infrastructure, and rising competition among automakers for electric SUV dominance.
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The e-SUV market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth of the battery electric vehicle segment will be significant during the forecast period. The e-SUV market is witnessing significant growth due to the increasing preference for zero-emission vehicles and the drive toward fuel-efficient mobility solutions. Traditional combustion fuel engine SUVs are being replaced by utility vehicles such as electric and hybrid SUVs, which offer all-wheel and four-wheel drive capabilities, longer driving ranges, and improved speed optimization.
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The battery electric vehicle segment showed a gradual increase in the market share of USD 10.33 billion in 2018. Companies are investing heavily in R&D operations to reduce battery costs and improve the performance of lithium-ion batteries, such as LFP and lithium-sulfur batteries. Tata Motors, Mercedes-Benz, and other automakers are accelerating their electrification strategies to meet the growing demand for e-SUVs. Governments and organizations, including the Department of Energy (DOE), are also playing a crucial role in the development of the electric vehicle ecosystem by providing incentives and investing in charging infrastructure. The e-SUV market can be segmented into compact, midsize, and full-size segments based on body, chassis, powertrain, battery, and electronics. The market is expected to continue its upward growth trajectory as consumers become more environmentally aware and the charging infrastructure becomes more widespread.
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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional electric sports utility vehicle market growth and trends that shape the market during the forecast period.
The electric sports utility vehicle (E-SUV) market is experiencing significant growth as major automobile manufacturers, including BMW Group and Kia Corporation, expand their electric vehicle offerings. BMW, for instance, has unveiled its iX3 electric SUV, while Kia's e-Niro and Soul EV models have gained popularity. Notably, Tesla, a pioneer in the electric vehicle industry, continues to lead the market with its Model X and Model Y SUVs. These companies' investments in advanced technology and commitment to reducing carbon emissions are driving the e-SUV market forward. The competition among these key players is expected to intensify, leading to innovations in battery technology, charging infrastructure, and vehicle design.
E-SUVs are gaining popularity in the automotive industry as consumers move toward zero-emission mobility solutions. These vehicles offer the spacious interiors and strong performance of traditional SUVs, but with the added benefit of being powered by batteries instead of combustion fuel engines. e-SUVs come in various forms, including hybrid SUVs and luxury SUVs that use both electric motors and ICE vehicles for power. All-wheel and four-wheel drive electric sports utility vehicles provide excellent traction and handling, making them suitable for various driving conditions. The batteries and motors used in these vehicles are essential components, with advancements in fuel-efficient mobility solutions reducing battery costs and increasing range. However, supply chain disruptions and R&D operations pose challenges for manufacturers in the e-SUV market. Major players in the market include Mercedes-Benz, which has an electrification strategy focusing on battery cost reduction and the use of advanced batteries like LFP and lithium-sulfur battery.
The e-SUV market is segmented into compact, midsize, and full-size segments, with each offering unique body and chassis designs. The charging infrastructure development is crucial for the widespread adoption of these electric sports utility vehicles, and gasoline-powered SUVs continue to face competition from their electric counterparts due to growing environmental awareness. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. The electric sports utility vehicle market report also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
Increasing demand and sales of BEVs in the global e-SUV market is notably driving market growth. The electric SUV market has experienced notable growth in recent years, with sales of electric SUVs accounting for over 60% of global electric vehicle (EV) sales in 2021. This trend is driven by the increasing demand for zero-emission mobility solutions and growing environmental awareness. While combustion fuel engine SUVs continue to dominate the market, the shift toward electrification is accelerating. Hybrid SUVs and hybrid vehicles with all-wheel and four-wheel drive capabilities are also gaining popularity along with luxury cars. Key players are investing heavily in R&D operations to reduce battery costs and improve driving range.
Furthermore, lithium-ion batteries remain the preferred choice for EVs due to their high energy density and long life. However, there are ongoing efforts to develop alternative battery technologies such as LFP and lithium-sulfur batteries. The global EV ecosystem is facing supply chain disruptions due to the increasing demand for batteries and other critical components. Governments and organizations are investing in charging infrastructure to support the transition to electric mobility. The electric SUV market is segmented into compact, midsize, and full-size segments based on body size. Powertrain, battery, electronics, and the FAME system are the key components of an electric SUV. Companies are optimizing speed and driving range through regenerative braking and other efficiency measures. The DOE and other organizations are funding research to improve the performance and reduce the cost of electric SUVs. Thus, such factors are driving electric sports utility vehicle market growth during the forecast period.
Emergence of wireless charging systems for EVs is the key trend in the market. The electric SUV market is experiencing significant growth as consumers shift toward zero-emission mobility solutions. Traditional combustion fuel engine SUVs and hybrid models are being replaced by all-wheel drive and four-wheel drive electric variants. ICE vehicles, which once dominated the market, are now being overshadowed by the environmental awareness and advanced technology of EVs. Manufacturers like Tata Motors and Mercedes-Benz are leading the electrification strategy, focusing on driving range, speed optimization, and battery cost reduction. LFP (lithium ferro phosphate) and lithium-ion batteries are the preferred power sources, while R&D operations are underway to explore the potential of lithium-sulfur batteries.
Furthermore, the electric vehicle ecosystem is expanding, with charging infrastructure becoming increasingly important. The compact, midsize, and full-size segments are witnessing an increase in the demand for electric SUVs. As the body, chassis, and powertrain of these vehicles evolve, so does the need for advanced electronics and the FAME system. Despite the challenges posed by supply chain disruptions and the high cost of batteries, the market is expected to grow. Wireless charging systems, such as those being developed by leading EV makers and charging system providers, are a promising solution for maintaining the range of electric SUVs on the go. The future of sustainable transportation lies in the continued innovation and improvement of electric SUVs and their charging infrastructure. Thus, such trends will shape e-SUV market growth during the forecast period.
High cost of ownership of e-SUVs is the major challenge that affects the growth of the market. Electric sports utility vehicles are gaining popularity in the automotive industry due to increasing environmental awareness and the shift toward fuel-efficient mobility solutions. However, the cost of e-SUVs is a significant barrier for consumers in developing markets. In contrast, in developed markets, factors such as improved socio-economic conditions, developed EV infrastructure, higher localization of manufacturing, and government incentives make them more affordable. The manufacturing cost of electric vehicles, including e-SUVs, depends on various factors such as the intended driving range, hours of use, fuel cost, and government subsidies. The cost of e-SUVs is higher than their combustion fuel engine counterparts due to the cost of batteries and motors.
However, the cost differential is minimizing with advancements in technology, such as the use of LFP batteries and the development of lithium-ion batteries with higher energy density. Electric sports utility vehicles offer benefits such as zero-emission driving, all-wheel and four-wheel drive capabilities, and regenerative braking. However, the charging infrastructure and driving range are still concerns for some consumers. Companies like Tata Motors, Mercedes-Benz, and others are investing in electrification strategies and battery cost reduction to make e-SUVs more competitive in the market. The electric vehicle ecosystem consists of various components, including the body, chassis, powertrain, battery, and electronics. The FAME system and DOE are also playing a crucial role in the development and adoption of electric sports utility vehicles. Companies like Mercedes-Benz are focusing on speed optimization and accelerating the transition to electric mobility. Overall, the e-SUV market is expected to grow significantly in the coming years, with various players investing in R&D operations to address the challenges and meet consumer demands. Hence, the above factors will impede electric sports utility vehicle market growth during the forecast period
The e-SUV market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the electric sports utility vehicle market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bayerische Motoren Werke AG - The company offers e-SUVs such as BMW iX.
The e-SUV market forecast report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Electric sports utility vehicles have emerged as a popular choice for consumers seeking zero-emission mobility solutions without compromising on space and power. Unlike traditional combustion fuel engine SUVs, electric SUVs run on rechargeable batteries and motors, making them more fuel-efficient and eco-friendly. Hybrid SUVs represent a middle ground, combining an internal combustion engine with an electric motor for enhanced performance and reduced emissions. All-wheel and four-wheel drive systems are available in electric SUVs, ensuring optimal traction and control in various driving conditions. Key companies in the e-SUV market are focusing on improving driving range, speed optimization, and battery cost reduction through advanced technologies like LFP batteries and electrification strategies. Environmental awareness and the electric vehicle ecosystem are driving the shift toward electric SUVs.
However, challenges such as supply chain disruptions, R&D operations, and charging infrastructure development persist. Battery technology advancements, such as lithium-ion batteries and lithium-sulfur batteries, are expected to address range anxiety and reduce charging times. The electric SUV market is segmented into compact segment, midsize segment, and full-size segment based on body size and chassis type. Manufacturers like Tata Motors and Mercedes-Benz are investing in the development of compact and midsize electric SUVs to cater to the growing demand for affordable and efficient mobility solutions. Speed optimization, regenerative braking, and accelerating are essential features that differentiate electric SUVs from gasoline-powered vehicles. FAME system subsidies and government incentives are encouraging the adoption of electric SUVs, making them an attractive alternative to traditional ICE vehicles.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 35.85% |
Market growth 2024-2028 |
USD 181.10 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
26.52 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 34% |
Key countries |
China, US, Norway, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AEHRA, Bayerische Motoren Werke AG, BYD Co. Ltd., Dr. Ing. h.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., KIA CORP., Mahindra and Mahindra Ltd., Maruti Suzuki India Ltd., Mercedes Benz Group AG, Nissan Motor Co. Ltd., Pravaig Dynamics Pvt Ltd., Renault SAS, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Volvo Car Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our electric sports utility vehicle market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this e-SUV market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Propulsion
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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