Electric Sports Utility Vehicle Market Analysis

Electric Sports Utility Vehicle Market Deep Dive – PESTLE, Porter, SWOT

The electric utility vehicle market is about to be transformed as consumer preferences move toward sustainable and high-performance vehicles. With the rapid development of batteries and electric drivetrains, manufacturers are increasingly focusing on electric utility vehicles that not only satisfy the requirements for the environment but also offer the power and versatility associated with the traditional utility vehicle. A strong emphasis on innovation, safety and technology is also attracting a wide range of consumers from the environment to performance enthusiasts. And as car manufacturers invest heavily in research and development, the market is changing rapidly. The established auto giants and the new entrants are vying for market share. The electric utility vehicle market is about to be transformed, and the combination of performance and environment is expected to become a key focus for industry players and consumers.

PESTLE Analysis

• Political:
  In 2024, government policy is increasingly favouring electric vehicles (EVs) to combat climate change. For example, the United States government has set aside $7.5 billion to develop a charging network for EVs, with 500,000 charging points planned for the year 2030. And a number of countries, including the United Kingdom and France, have announced a ban on the sale of new petrol and diesel cars by 2030. This is likely to boost the market for electric sports utility vehicles.
• Economic:
  In 2024 the world's economy was characterized by rising energy prices. The average price of gasoline in the United States reached four dollars per gallon. The high cost of gasoline drew consumers to electric vehicles, such as the electric sport-utility vehicle. Moreover, the average price of a kilowatt-hour of battery had fallen to around a hundred dollars, which made electric vehicles more affordable and thus more marketable.
• Social:
  In 2024, the attitude of the public towards electric vehicles is changing rapidly. According to a survey, seven out of ten buyers of cars are planning to buy an electric vehicle for their next purchase. Awareness of the environment and the desire for sustainable mobility are driving this change. The growing trend among young people, who are attracted by the electric SUVs of the social media celebrities, has also contributed to this trend. Forty percent of Generation Zers prefer electric vehicles to cars with a combustion engine.
• Technological:
  The electric vehicle market in 2024 will be mainly determined by technological advances in battery technology. The introduction of solid-state batteries with a power density of up to 500 Wh/kg will significantly increase the performance and range of electric vehicles. Also, the introduction of advanced driver assistance systems (ADAS) will be a matter of course, with over 60% of electric SUVs featuring some degree of self-driving capability, which will improve safety and thus consumer appeal.
• Legal:
  In 2024, various laws are introduced to support the EV market. The European Union, for example, imposes a strict CO2 limit of 95 grams per kilometer for 2025. The fines are up to €95 per car for each gram of CO2 over the limit. So carmakers have to develop a lot of EVs to meet the limit and avoid the fines.
• Environmental:
  In 2024 the environment is a crucial consideration. In a life-cycle assessment, electric vehicles emit 50 per cent less greenhouse gas than their petrol counterparts. In the process of manufacturing electric cars, a third of the materials used come from recycled sources, a commitment to reducing the carbon footprint of the automobile industry.

Porters Five Forces

• Threat of New Entrants:
  In 2024 the electric Sports Utility Vehicle (SUV) market is facing a moderate threat of new entrants. The growing demand for electric vehicles (EVs) and the support from governments offer opportunities, but the high investment required for development, production and the establishment of a brand are a major barrier. The established car companies are also investing heavily in EV technology, which makes it difficult for new entrants to compete.
• Bargaining Power of Suppliers:
  The suppliers of electric sport-utility vehicles have medium bargaining power. They are dependent on specialized components, such as batteries and electric drive trains, which are produced by a limited number of suppliers. However, as more suppliers enter the market and the supply chain diversifies, the suppliers’ bargaining power may weaken. Further, advances in battery technology and the potential for vertical integration could further reduce their influence.
• Bargaining Power of Buyers:
  The buyers of electric sport-utility vehicles enjoy high bargaining power, as a result of the increasing number of choices. They can easily compare the various models offered by various manufacturers, as well as their features, prices, and performance. Competition has thus driven the companies to improve their offerings and their pricing strategies. In addition, as consumers become more aware of electric vehicles, their bargaining power increases.
• Threat of Substitutes:
  The threat of substitutes in the electric-SUV market is medium. The alternative of the gas-powered SUVs and other car types such as sedans and hatchbacks remains an option, but the growing interest in sustainability and the environment is driving consumers to electric vehicles. The availability of alternative-fuel vehicles, such as hydrogen-powered cars, may, however, become a threat if they gain a foothold in the market.
• Competitive Rivalry:
  Competition in the electric vehicle market is high, and there are many established car brands and new entrants. The electric vehicle market is growing rapidly, attracting investment and innovation, and competition is fierce. Competition is further intensified by the companies’ focus on differentiating their products on the basis of their technology, performance and green credentials. Brands with a strong heritage and a focus on technology development make the market highly competitive.

SWOT Analysis

• Strengths:
  • Growing consumer demand for eco-friendly vehicles.
  • Advancements in battery technology enhancing range and performance.
  • Strong brand loyalty among existing electric vehicle users.
• Weaknesses:
  • High initial purchase price compared to traditional SUVs.
  • Limited charging infrastructure in certain regions.
  • Perceived range anxiety among potential buyers.
• Opportunities:
  • Expansion of government incentives for electric vehicle purchases.
  • Increasing investment in renewable energy sources for charging.
  • Potential for partnerships with tech companies for enhanced features.
• Threats:
  • Intense competition from both traditional automakers and new entrants.
  • Fluctuations in raw material prices affecting production costs.
  • Regulatory changes that could impact market dynamics.

The Electric Sports Utility Vehicles Market by 2024 is characterized by strong demand and technological advancements, which makes it favorable for growth. However, the market faces the challenge of high costs and limited charging stations. Opportunities for the market are available through government subsidies and joint ventures. However, the market faces the threat of competition and changes in the regulatory framework.