NEW YORK, July 19, 2024 /PRNewswire/ -- The global electric sports utility vehicle (E-SUV) market  size is estimated to grow by USD 181.10 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  35.85% during the forecast period. Increasing demand and sales of BEVs in global market is driving market growth, with a trend towards emergence of wireless charging systems for EVs. However, high cost of ownership of e-suvs poses a challenge. Key market players include 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..

Get a detailed analysis on regions, market segments, customer landscape, and companies - Click for the snapshot of this report

Key Market Trends Fueling Growth

The electrical vehicle charging infrastructure is crucial for the sustainability of the Electric SUV market. Notable investments are being made to enhance and develop EV charging infrastructure. With the rising demand for sustainable transportation and higher levels of autonomy in EVs, wireless charging systems are gaining significant attention. These systems allow EVs to charge on the go, ensuring they maintain an adequate range. Leading EV manufacturers and charging system providers are collaborating to create efficient wireless charging business models. In these models, EVs align precisely over charging pads for optimal efficiency. Furthermore, the connected technology in all-electric vehicles enables communication between vehicles to swap charging pads and share common pads based on time slots. For instance, Google is testing wireless charging technology in its self-driving cars. By the end of the forecast period, the commercial application of wireless charging for EVs is anticipated, driving market growth. 

The Electric Sports Utility Vehicle (E-SUV) market is witnessing significant growth with key players like Tata Motors and Mercedes-Benz leading the charge. Driving range and speed optimization are top priorities, with companies focusing on LFP batteries and regenerative braking for improved performance. Tata Motors' new electrification strategy includes battery cost reduction, while Mercedes-Benz explores lithium-sulfur batteries. Gasoline-powered vehicles face competition from zero-emission EVs and hybrid SUVs, leading to a shift in consumer preferences. Companies like Lotus Cars, BMW Group, Kia Corporation, and Tesla are investing in R&D operations to offer advanced features like all-wheel drive and four-wheel drive in their electric models. The DOE is working on charging infrastructure to support the growing demand for EVs in the compact, midsize, and full-size segments. The body, chassis, powertrain, electronics, and FAME system are being optimized for fuel-efficient mobility solutions. Supply chain disruptions and environmental awareness are driving the electric vehicle ecosystem forward, making EVs a viable alternative to ICE vehicles. 

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

• The electric sports utility vehicle (e-SUV) market presents unique challenges, particularly in price-sensitive developing markets. While e-SUVs offer advantages such as improved socio-economic conditions, developed EV infrastructure, and government incentives in developed automotive markets, their cost remains higher than conventional SUVs for many consumers. This is due to factors such as the cost of designing and manufacturing BEVs, the lack of EV-friendly infrastructure, and high import costs for advanced electronic components. The starting price of entry-level e-SUVs is often more expensive than their ICE counterparts, making them less accessible to price-sensitive consumers in emerging markets. Additionally, after-sales services for e-SUVs can be costly due to the immature local market and limited availability of EV service parts. These factors may hinder the growth of the global e-SUV market, especially in developing regions. However, affordable options such as the Tesla Model 3 and Chevrolet Volt exist in developed markets, making e-SUVs a viable and increasingly popular choice for consumers.
• The Electric Sports Utility Vehicle (E-SUV) market is witnessing significant growth as automakers like Tata Motors and Mercedes-Benz prioritize their electrification strategies. However, challenges persist in areas such as driving range and speed optimization. Regenerative braking and accelerating technologies are being explored to address these issues. LFP batteries, an alternative to lithium-ion batteries, are being considered for cost reduction. The Department of Energy (DOE) is also investing in next-generation batteries like lithium-sulfur. Tier-1 suppliers are collaborating to improve charging infrastructure, with companies like Lotus Cars introducing models like the Eletre. The compact, midsize, and full-size segments are seeing increased focus in the E-SUV market. Manufacturers are redesigning bodies, chassis, powertrains, and electronics to accommodate batteries and motors. FAME system incentives and the shift towards zero-emission mobility solutions are driving demand. However, challenges remain in battery cost reduction, supply chain disruptions, and R&D operations. Competition is intensifying with players like Kia Corporation, BMW Group, Tesla, and others introducing electric SUVs, hybrid SUVs, all-wheel drive, and four-wheel drive models. The ICE vehicle market is under pressure as environmental awareness grows, and the electric vehicle ecosystem continues to evolve.

For more insights on driver and challenges - Download a Sample Report

Segment Overview 

This electric sports utility vehicle (e-suv) market report extensively covers market segmentation by

1. Propulsion 
   • 1.1 Battery electric vehicle
   • 1.2 Hybrid vehicle
2. Type 
   • 2.1 Small and medium size
   • 2.2 Large size
3. Geography 
   • 3.1 APAC
   • 3.2 North America
   • 3.3 Europe
   • 3.4 South America
   • 3.5 Middle East and Africa

1.1 Battery electric vehicle-  The battery electric vehicle (BEV) segment in the global electric sports utility vehicle (e-SUV) market is experiencing significant growth due to increasing consumer preference for eco-friendly and cost-efficient alternatives to traditional gasoline-powered SUVs. This trend is driven by various factors, including government incentives such as tax breaks and rebate programs, infrastructure development, and technological advancements. For instance, the US offers a tax credit of up to USD7,500 under Internal Revenue Code Section 30D for purchasing a new, qualified plug-in electric vehicle (PEV) or fuel cell electric vehicle (FCEV). The Inflation Reduction Act of 2022 modified the rules for this credit for vehicles purchased from 2023 to 2032. Several automobile manufacturers have responded to this growing demand by launching new BEV SUVs. For example, Tesla's Model X, a full-size electric SUV, offers up to 371 miles of range and impressive acceleration capabilities. Other leading automotive brands, such as Ford, Audi, Jaguar, Mercedes-Benz, BYD Co. Ltd., and Toyota Motor Corp., have also introduced battery-powered SUVs in various markets. Toyota Motor Corp.'s first BEV, the bZ4X, is an electric SUV that can seat up to five passengers and has a range of up to 405 km. It features a new BEV-specific platform, the latest motor generator and battery technology, and advanced safety and connected technologies. The bZ4X also has a 150 kW DC fast charger that can recharge the battery from 0-80% in 30 minutes. Toyota plans to develop the next generation of BEVs by 2026 with fully optimized components, batteries, platforms, and manufacturing methods. The demand for BEVs in the e-SUV market will continue to grow due to their environmental advantages, lower costs, and technological advancements. The increasing popularity of zero-emission vehicles, decreasing battery prices, and government initiatives worldwide will drive the growth of the BEV segment of the global electric sports utility vehicle market during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017 - 2021)  - Download a Sample Report

Learn and explore more about Technavio's in-depth research reports

The global ATV market is experiencing robust growth driven by increasing recreational activities and agricultural applications. Key players are innovating with electric and hybrid models to meet sustainability demands. The automotive service industry continues to expand with rising vehicle complexity and demand for maintenance, repairs, and aftermarket parts globally. Technological advancements like AI and IoT are reshaping service delivery. The luxury SUV market is thriving, buoyed by consumer preference for comfort, performance, and advanced features. Automakers are focusing on hybrid and electric SUVs to align with sustainability goals and regulatory requirements.

Research Analysis

The Electric Sports Utility Vehicle (E-SUV) market is experiencing significant growth as consumers shift towards fuel-efficient mobility solutions and prioritize environmental awareness. E-SUVs offer the spacious interiors and robust capabilities of traditional SUVs, but with the added benefits of zero-emission technology. Unlike combustion fuel engine SUVs, E-SUVs run on batteries and motors, making them a cleaner alternative. Hybrid SUVs also exist, which combine a gasoline engine with an electric motor for improved efficiency. All-wheel and four-wheel drive capabilities are available in some E-SUV models, ensuring optimal performance in various driving conditions. R&D operations in the EV industry are focused on reducing battery costs, with advancements in LFP (Lithium Iron Phosphate) and lithium-ion batteries. Supply chain disruptions and the need for charging infrastructure are ongoing challenges, but the DOE and other organizations are working to address these issues. E-SUVs come in various sizes, including compact, midsize, and full-size options, catering to diverse consumer needs. The body and chassis designs of E-SUVs are evolving to accommodate larger batteries and advanced technology. Lithiumsulfur batteries are a promising new development in the EV industry, offering potential for longer ranges and lower costs. The electrification strategy of major automakers, such as Mercedes-Benz, is a significant factor driving the growth of the E-SUV market. Gasoline-powered vehicles continue to dominate the market, but the trend towards electrification is undeniable. The future of SUVs lies in the zero-emission realm, with E-SUVs poised to lead the charge towards a more sustainable future.

Market Research Overview

The Electric Sports Utility Vehicle (E-SUV) market is experiencing significant growth as consumers shift towards zero-emission mobility solutions. E-SUVs offer the spacious interiors and robust performance of traditional SUVs, but with the added benefits of electric power. Unlike Combustion Fuel Engine (ICE) vehicles, E-SUVs produce no tailpipe emissions and are more fuel-efficient. Hybrid SUVs, which use both electric motors and a gasoline engine, also contribute to this trend. All-wheel and four-wheel drive capabilities are available in some E-SUVs, ensuring optimal performance in various driving conditions. The electric vehicle ecosystem includes key components such as batteries, motors, and charging infrastructure. R&D operations are ongoing to improve driving range, speed optimization, and regenerative braking. Lithium-ion batteries remain the most common choice for EVs due to their energy density and long life. However, research into alternative battery technologies like LFP and lithium-sulfur batteries continues. Supply chain disruptions and battery cost reduction are major challenges in the industry. Manufacturers like Tata Motors, Mercedes-Benz, BMW Group, Kia Corporation, Lotus Cars, and Tesla have announced electrification strategies to meet growing demand. Models like Tata Motors' upcoming E-SUV, Mercedes-Benz EQC, BMW iX3, Kia Niro EV, Lotus Eletre, and Tesla Model X are shaping the future of the compact, midsize, and full-size E-SUV segments. Body, chassis, powertrain, and electronics design are crucial aspects of E-SUV development. Government initiatives like the FAME system support the adoption of EVs. The EV ecosystem continues to evolve, offering consumers a sustainable and technologically advanced alternative to gasoline-powered vehicles.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Propulsion
• • Battery Electric Vehicle
  • Hybrid Vehicle
• Type
• • Small And Medium Size
  • Large Size
• Geography
• • APAC
  • North America
  • Europe
  • South America
  • Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/electric-sports-utility-vehicle-e-suv-market-size-is-set-to-grow-by-usd-181-10-billion-from-2024-2028--increasing-demand-and-sales-of-bevs-in-global-market-to-boost-the-market-growth-technavio-302200683.html

SOURCE Technavio