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Production of Small and Compact SUVs Shifts to Top Gear in North America, Finds Frost & Sullivan

Number of sports utility vehicle models to double by 2020


News provided by

Frost & Sullivan

Jan 14, 2014, 07:42 ET

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MOUNTAIN VIEW, Calif., Jan. 14, 2014 /PRNewswire/ -- The global top 20 automotive original equipment manufacturers (OEMs) intend to reach nearly 38 models of small and compact sports utility vehicles (SUVs) in North America before the end of 2013, and more than 62 models by 2020. So far, the market is dominated by non-premium models, such as Honda CR-V, Ford Escape and Toyota RAV4, but this is expected to change as OEMs increasingly gravitate towards offering a more premium selection.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the North American Small and Compact Sports Utility Vehicle (SUV) Market, finds that market revenue is expected to grow by more than 14.7 percent from 2012 to 2020, while unit sales are likely to increase by 35.4 percent per annum during the same period.

If you are interested in more information on this research, please send an e-mail to Jeannette Garcia, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Higher fuel efficiency of small and compact SUVs, when compared with other vehicles in the light truck segment, has made this vehicle segment the third highest selling vehicle segment in the automotive market in 2013. The small and compact SUV segment accounts for 13 percent of the market sales volume in North America and is expected to grow further as brands such as Tesla, BYD, Lexus and Lincoln, among others, enter the market by 2020.

"The new technologies introduced by these brands make compact SUVs safer, as well as more attractive, comfortable and user-friendly," said Frost & Sullivan Automotive & Transportation Research Analyst Bhavna Bhaisare. "Features such as hands-free liftgate in the Ford Escape, torque vectoring all-wheel drive and voice navigation systems, and advanced driving active safety systems make a strong case for this vehicle segment."

However, the small and compact SUVs' engine performance is inferior to other vehicles in the light truck segment, and also has low quality interiors to create a cost advantage. These vehicles will also be challenged by the growing popularity of compact multipurpose vehicles (MPVs) and the lack of business strategy clarity among some SUV brands.

"Despite the challenges, the small and compact SUV market will get a boost from the entry of new brands," added Bhaisare. "Optional, advanced features in variants of a vehicle can offset the shortcoming of the interiors, while novel technologies can be introduced to improve the efficiency and performance of the vehicle without compromising either features or performance."

Strategic Analysis of the North American Small and Compact Sports Utility Vehicle (SUV) Market is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Automotive & Transportation Total Integrated Solutions and Automotive Industry Research North America. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Strategic Analysis of the North American Small and Compact Sports Utility Vehicle (SUV) Market
NC7A-18

Contact:
Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: [email protected]
Twitter: @Frost_Sullivan or @FS_Automotive
Facebook: FrostandSullivan
Join our Forum on LinkedIn: Future of Mobility

http://www.frost.com

SOURCE Frost & Sullivan

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