Mid-Size SUV Market

Rise in demand for premium vehicles with advanced comfort features is driving market growth

Market CAGR for Mid-Size SUVs is driven by the rise in demand for premium vehicles with advanced comfort features. The enhancement of global economic conditions has prompted a shift in consumer lifestyles, leading to a notable change in preferences and demands, particularly evident in the increased sales of ultra-luxury automobiles worldwide. This surge can be attributed to heightened disposable incomes, driving consumer inclinations towards modern conveniences.

Audi notably outpaced industry growth, achieving an impressive 89% rise in sales, reaching 7,931 units in 2023 compared to 4,187 in the preceding year.

Moreover, the evolving regulatory landscape and increasing environmental consciousness are likely to incentivize the development and adoption of electric or hybrid SUVs. These shifts align with the broader market trend towards SUVs, driven by advancements in technology such as infotainment systems, autonomous driving capabilities, and enhanced connectivity, catering to the preferences of tech-savvy consumers. As a result, it is anticipated that throughout the projection period, demand for the Mid-Size SUV Market will increase due to the rise in demand for premium vehicles with advanced comfort features. Thus, driving the Mid-Size SUV Market revenue.

The Global Mid-Size SUV Market Industry experiences a notable increase in consumer demand for versatile vehicles that accommodate various lifestyles. Mid-size SUVs offer a blend of passenger comfort and cargo space, appealing to families and individuals alike. As urbanization continues to rise, consumers seek vehicles that can navigate both city streets and off-road terrains. This trend is reflected in the projected market value of 492.4 USD Billion in 2024, indicating a robust preference for mid-size SUVs. The industry's ability to adapt to consumer preferences for versatility is likely to drive growth in the coming years.

The Global Mid-Size SUV Market Industry is witnessing a shift towards sustainability, with manufacturers increasingly offering eco-friendly options. Hybrid and electric mid-size SUVs are gaining traction as consumers become more environmentally conscious. This trend aligns with global efforts to reduce carbon emissions and promote sustainable transportation. As a result, several automakers are investing in electric vehicle technology, which is likely to enhance their market presence. The industry's adaptation to sustainability trends could significantly impact its growth trajectory, potentially leading to a market value of 1038.5 USD Billion by 2035.

The Global Mid-Size SUV Market Industry is significantly influenced by the global expansion of automotive manufacturers. Many companies are broadening their product lines to include mid-size SUVs, recognizing the segment's profitability and consumer appeal. This expansion is not limited to established brands; new entrants are also emerging, increasing competition and variety in the market. As manufacturers invest in research and development to enhance their offerings, the industry is poised for growth. The influx of diverse models and features is expected to attract a wider consumer base, further driving the market's expansion.

The Global Mid-Size SUV Market Industry benefits from rising disposable incomes and urbanization trends. As more consumers gain financial stability, they are inclined to invest in larger, more comfortable vehicles. Mid-size SUVs, with their spacious interiors and advanced features, cater to this growing demographic. Urbanization further fuels this trend, as individuals seek vehicles that can accommodate both family needs and urban lifestyles. This combination of economic factors is likely to bolster the market, contributing to the anticipated growth and expansion of the mid-size SUV segment in the coming years.

Technological innovation plays a pivotal role in shaping the Global Mid-Size SUV Market Industry. Enhanced safety features, such as advanced driver-assistance systems (ADAS), are increasingly integrated into mid-size SUVs. These technologies not only improve vehicle safety but also appeal to safety-conscious consumers. For instance, features like automatic emergency braking and lane-keeping assist are becoming standard in many models. This focus on safety is expected to contribute to the industry's growth, with a projected compound annual growth rate (CAGR) of 7.02% from 2025 to 2035, reflecting the increasing importance of safety in consumer purchasing decisions.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Mid-Size SUV market in North America can be attributed to several key factors. The substantial popularity of mid-size SUVs, combined with the robust presence of key market players in the region, increased spending on passenger cars, and higher purchasing power, contribute to the region's elevated market share. The U.S. demonstrates particularly high demand and sales rates, significantly impacting North America's standing in the global market.

In 2022, SUV sales in the U.S. soared, exceeding 6 million units and marking a 15% increase compared to 2021.

The widespread appeal of SUVs can be attributed to their versatility, spacious interiors, and ample ground clearance. Notably, the Toyota RAV4 emerged as the best-selling SUV in 2022, with 366,741 units sold, albeit experiencing a 10.05% decline from 2021 figures. The RAV4 offers various powertrain options, including a 2.5-liter four-cylinder engine, along with hybrid and plug-in hybrid variants known as the RAV4 Prime. Additionally, mid-size SUV sales in the United States remained robust in 2022, with over 2.55 million units sold.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Mid-Size Suv Market Share By Region 2023 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Mid-Size SUV Market accounts for the second-largest market share as European consumers are increasingly drawn to SUVs due to their versatility and spacious interiors. SUVs offer ample seating and cargo space, making them well-suited for various purposes such as family outings, road trips, and daily commutes. The preference for larger and more adaptable vehicles has propelled the popularity of SUVs over traditional sedans in Europe. Consumers value the elevated driving position and practicality of SUVs, making them the preferred choice for a diverse range of lifestyles.

According to data from JATO Dynamics, registrations across all types of SUVs (including small, compact, midsize, and luxury) totaled 464,900 units in January, marking a 14% increase compared to January 2022. Notably, SUVs accounted for over half (51.3%) of total new car registrations in Europe for the first time in January. Leading the segment were Volkswagen Group with 129,500 units (a 33% increase), followed by Stellantis with 62,800 units (a 7% decrease), Hyundai-Kia with 46,200 units (a 5% decrease), Toyota with 38,300 units (an 11% increase), and Renault Group with 34,300 units (a 20% increase).

Additionally, Chinese brands registered 12,100 units, marking a significant increase of 109%. Further, the German Mid-Size SUV Market held the largest market share, and the UK Mid-Size SUV Market was the fastest-growing market in the European region.

The Asia-Pacific Mid-Size SUV Market is expected to grow at the fastest CAGR from 2024 to 2032. The Asia Pacific region is poised to lead the market, propelled by government initiatives aimed at boosting the manufacturing and sales of e-SUVs. For example, in April 2019, India launched the second phase of the FAME system, focusing on the rapid production and introduction of hybrid and fully electric vehicles, backed by a budget of USD 1 billion. Moreover, the share of hybrid SUVs in China saw an uptick due to the implementation of the new energy vehicle mandate.

By 2023, over 8 million new plug-in electric cars were registered in China, marking a significant increase of approximately 46% year-over-year and constituting about 37% of the total volume. This surge continued with all-electric cars alone, comprising around 25% of the market share. Plug-in hybrids also experienced a remarkable rise, increasing their market share from 1.2% in 2020 to 12% in 2023, reflecting a significant trend towards electrification in the automotive sector. Moreover, China’s Mid-Size SUV Market held the largest market share, and the Indian Mid-Size SUV Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Mid-Size SUV market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Mid-Size SUV industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Mid-Size SUV industry to benefit clients and increase the market sector. In recent years, the Mid-Size SUV industry has offered some of the most significant advantages to consumers, including spacious interiors, versatile cargo capacity, enhanced safety features, and comfortable driving experiences.

Major players in the Mid-Size SUV Market, including Toyota Motor Corporation (Japan), Volkswagen AG (Germany), Honda Motor Co., Ltd (Japan), Hyundai Motor Company (South Korea), General Motors (US), Ford Motor Company (US), Stellantis (Netherlands), Daimler (Germany), Nissan Motor CO., Ltd (Japan), and BMW Group (Germany) are attempting to increase market demand by investing in research and development operations.

Toyota Motor Corp (Toyota) is a renowned automobile manufacturer engaged in designing, manufacturing, and marketing a wide range of vehicles, including passenger cars, buses, minivans, trucks, specialty cars, and recreational and sport-utility vehicles. Additionally, the company offers financing services for both dealers and customers, facilitating vehicle purchases or leases. Apart from its core automotive business, Toyota is involved in housing, financial services, telecommunications, and information technology ventures. Embracing a vehicle electrification strategy, Toyota invests in electric battery technologies. Its financial services encompass retail leasing, retail financing, insurance, and wholesale financing.

With operations spanning across the Americas, Europe, Africa, Asia Pacific, and the Middle East, Toyota is headquartered in Toyota City, Aichi, Japan. In May 2022, Toyota unveiled the RAV4 Hybrid Woodland Edition, elevating the RAV4 Hybrid to new levels of adventure.

Committed to advancing technologies, Hyundai focuses on areas like robotics and Advanced Air Mobility (AAM). With operations spanning across North America, South America, Asia Pacific, Europe, and other regions, Hyundai maintains manufacturing facilities in various countries, including the US, Russia, China, Korea, Turkey, India, Czech Republic, and Brazil. The company's headquarters are located in Seoul, South Korea. In May 2022, Hyundai Motor India (HMIL) announced the forthcoming launch of the all-new Tucson sports utility vehicle (SUV), featuring the fourth-generation model. It represents a premium SUV and marks the introduction of Hyundai SmartSense technology with level-2 ADAS in India.