SUV Market worth $1,673.57 billion by 2032 | MarketsandMarkets™
DELRAY BEACH, Fla., Nov. 28, 2025 /PRNewswire/ -- According to MarketsandMarkets™, the SUV market is expected to reach USD 1,673.57 billion by 2032, from USD 1,180.30 billion in 2025, with a CAGR of 5.1%
Browse 134 market data Tables and 67 Figures spread through 345 Pages and in-depth TOC on " SUV Market - Global Forecast to 2032"
SUV Market Size & Forecast:
- Market Size Available for Years: 2025–2032
- 2025 Market Size: USD 1,180.30 billion
- 2032 Projected Market Size: USD 1,673.57
- CAGR (2025–2032): 5.1%
SUV Market Trends & Insights:
- 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 controllers.
- Mid-size SUVs are expected to secure the leading market position during the forecast period.
- Electric SUVs are expected to exhibit the fastest growth during the forecast period.
- Europe is expected to be the fastest-growing market for SUVs during the forecast period.
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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 controllers. 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 AWD systems. Premium and mid-size SUVs are relying heavily on advanced NVH 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. Global platform consolidation (TNGA, MQB, E-GMP, MEB) is enabling scalable SUV portfolios across compact to full-size categories.
Mid-size SUVs are expected to secure the leading market position during the forecast period.
Mid-size SUVs hold the largest market share among all types. They are offered in multiple engine variants, including gasoline (naturally aspirated and turbocharged), diesel, and some plug-in hybrid options for improved fuel economy. 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). 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.
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Electric SUVs are expected to exhibit the fastest growth during the forecast period.
Electric SUVs are expected to record the highest CAGR during the forecast period. Stringent emission regulations imposed by global economies, with lowered emission limits and updated CO2 and fuel efficiency regulations, high crude oil prices, and elevated demand for fuel-efficient vehicles, drive the electric SUV market. Battery electric SUVs hold the largest share, followed by plug-in hybrid versions. The world's top-selling electric SUV models include the Tesla Model Y, MG ZS EV, Mercedes-Benz EQC, Audi e-tron, Kona Electric, and Volvo XC40. In the US and some European countries, OEMs are offering plug-in hybrid SUVs that offer better mileage without compromising on engine performance. These factors will fuel the future growth of the electric SUV market.
Europe is expected to be the fastest-growing market for SUVs during the forecast period.
Europe's SUV market is being reshaped by CO2 fleet-average targets (2025/2030) and Euro 7, which are pushing OEMs to prioritize compact and mid-size SUVs built on electrified and lightweight platforms, as full-size SUVs face steep compliance penalties due to high curb weights and aerodynamic drag. The region's shift toward BEV-centric architectures, especially in Germany, the Nordics, and France, is driving SUVs to adopt battery-floor integration, heat-pump HVAC, and multi-motor AWD for winter traction and efficiency. Compact and mid-size SUVs dominate growth because they enable OEMs to balance range, mass, and aerodynamics within regulatory limits. Meanwhile, full-size SUVs remain a niche but profitable segment, primarily supported in Norway and Switzerland. ADAS Level 2+/3 mandates under Euro NCAP 2030 are influencing SUV front-end design, increasing the need for LiDAR-ready fascias, sensor heating, and stronger crash structures. Additionally, increasing use of aluminum subframes, composite liftgates, and active aero (grille shutters, deployable spoilers) is enabling European OEMs to offset battery weight while meeting handling and NVH targets.
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Top Companies in SUV Market:
The Top Companies in SUV Market are Toyota Motor Corporation, Volkswagen AG, Hyundai Motor Company, General Motors, and Stellantis.
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