Electric Sports Utility Vehicle Market Size

Electric Sports Utility Vehicle Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The electric sports utility vehicle market is growing at a fast pace and is expected to reach $261.53 billion in 2024. This growth is accompanied by a high CAGR of 32.48% between 2022 and 2030. This indicates a dynamic market that is characterized by rapid technological development and changing consumer preferences for sustainable mobility. The increasing demand for electric vehicles, driven by the growing awareness of the environment and the incentives granted by governments, is a major factor behind this market. Meanwhile, technological developments, such as the increasing performance and appeal of electric sports utility vehicles, as a result of the improvement in the battery and electric drive systems, are making them more competitive against gasoline-powered vehicles. And the market players, such as Tesla, Ford and Rivian, are launching new models and entering into strategic alliances to seize the market. For example, the launch of the Tesla Model Y has influenced the number of electric vehicles in the market, and Ford's investment in electric vehicles reflects the company's commitment to expanding its electric sports utility vehicle portfolio. These strategic moves are crucial to the future of the electric sports utility vehicle market and will ensure sustained growth and innovation in the coming years.

Regional Market Size

Regional Deep Dive

The electric sports utility vehicle market is experiencing a strong growth in various regions, owing to the increasing demand for sustainable mobility and the technological developments in electric vehicles. In North America, the market is characterized by the strong presence of established automobile manufacturers and a growing number of start-ups focusing on electric sports utility vehicles. Europe, on the other hand, is the leading region in terms of regulatory initiatives to reduce CO2 emissions, which is accelerating the adoption of electric sports utility vehicles. Asia-Pacific, on the other hand, is witnessing a rapid technological development and the surge in the production of electric vehicles, especially in China and Japan. Middle East and Africa are slowly moving towards electric mobility, supported by government initiatives and investments in charging stations. Latin America is also slowly adopting electric sports utility vehicles, mainly influenced by economic conditions and the need for sustainable urban transport solutions.

North America

• The Biden administration’s proposed plan for the nation’s infrastructure includes a substantial investment in electric vehicle charging stations. This will boost the adoption of electric sport-utility vehicles in the United States.
• The big American automakers are already developing electric SUVs. Ford’s electric version of the Mustang, the Mach E, and GM’s Hummer EV have received a lot of attention.
• Nevertheless, it was not until the State of California, where the emission limits were much stricter than those of other states, that the automobile industry was compelled to increase its output of electric vehicles.

Europe

• The Green Deal, which is a European Union policy aimed at making Europe the first climate-neutral continent by 2050, is driving the aggressive promotion of electric cars, including SUVs.
• VW and BMW are putting a lot of effort into the development of electric vehicles. The ID.4 and the iX are the flagships of the electric SUV market.
• The British government has just announced a ban on the sale of new petrol and diesel cars after the year 2030.

Asia-Pacific

• BYD and Nio are the two Chinese companies that lead the market in electric vehicles. They are mainly electric SUVs, and they are all supported by the government.
• The Japanese automobile industry, led by giants like Honda and Toyota, is concentrating more and more on hybrid and electric cars, with the B-Z4X a key contender in the field.
• The rapid growth of electric car charging stations in the cities of the Asia-Pacific region is a major factor in the rapid growth of electric vehicles, enabling them to be used more widely.

MEA

• The United Arab Emirates government has undertaken initiatives such as the Dubai Electric Vehicle Strategy, which aims to have 10 per cent of all cars in the emirate running on electricity by 2030. This includes electric cars, such as the electric SUVs.
• Companies like Tesla are increasing their presence in the region and are planning to set up charging stations and service centres to encourage the use of electric cars.
• In the course of the diversification of the economies of the Gulf countries, which is the aim of the Saudi Arabian Vision 2030 program, the country is investing heavily in the development of electric mobility, in electric sports utility vehicles.

Latin America

• Brazil is emerging as a major player in the electric SUV market, with local manufacturers such as BYD and Renault launching electric models to meet growing consumer demand.
• Chile is promoting the purchase of electric vehicles, including electric sports utility vehicles, as part of its commitment to sustainable development.
• The lack of recharging points is a major obstacle for many Latin American countries, but some of them are working on improving the situation, which could help electric SUVs.

Did You Know?

“In 2022, electric utility vehicles accounted for nearly a third of all electric vehicles sold in Europe. A strong trend was evident towards a preference for larger, more versatile electric vehicles.” — European Automobile Manufacturers Association (ACEA)

Segmental Market Size

Electric sports utility vehicles are a key component of the electric vehicle market, which is experiencing robust growth driven by growing consumer demand for sustainable mobility. The market is also being driven by a growing awareness of the environment, the tightening of regulations on carbon emissions and the development of new battery technology that enhances vehicle performance and range. The trend towards electric SUVs is particularly evident in the case of manufacturers like Tesla and Ford, which have developed models like the Tesla Model Y and the Ford Mustang Mach-E.

The current electric-SUV market is in the process of scaling up. In North America and Europe, where the government has stepped up subsidies and the charging stations are expanding rapidly, it is already in a significant stage. The main uses are: daily commuting, family transportation, and outdoor travel. Brands like Rivian are mainly for those who are interested in adventure. The market is influenced by macro-influences such as sustainable development and zero-emission policies, which accelerates the growth momentum; at the same time, the trend of e-SUVs is influenced by e-SUVs. The development of e-SUVs is influenced by e-SUVs.

Future Outlook

The electric-SUV market is expected to grow at a CAGR of 32.57% from 2024 to 2030. By 2030, the market is expected to reach $261.53 billion. By then, electric SUVs will account for over 30% of total SUV sales, compared with just 10% in 2024. In addition to the availability of charging stations, the development of battery technology will also make electric vehicles more accessible to consumers.

It is a question of the reduction of the emissions of the greenhouse gases. The governments are reducing the emissions of the greenhouse gases and introducing incentives to increase the use of electric vehicles. Tax reductions, subsidies, low-emission zones are expected to stimulate the demand for electric vehicles. The car manufacturers are also putting more and more emphasis on electrification, and several have announced that their entire range of SUVs will be electric by the end of the decade. And the new developments in the field of driver assistance and smart connections will also increase the attractiveness of electric vehicles, which will be seen as not only clean but also technologically advanced. The electric vehicle market is a pillar of the automobile industry in the coming years.