SUVs - Costa Rica

Costa Rica

Revenue in the SUVs market is projected to reach US$384m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 12.38%, resulting in a projected market volume of US$613m by 2028.
SUVs market unit sales are expected to reach 13.8k vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$44k.
From an international perspective it is shown that the most revenue will be generated in the United States (US$275bn in 2024).

Key regions: United States, Germany, United Kingdom, India, China

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Analyst Opinion

The SUVs market in Costa Rica has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the increasing popularity of SUVs in Costa Rica is the country's geographical landscape. With its diverse terrain and challenging road conditions, SUVs are well-suited for navigating through Costa Rica's mountains, rainforests, and unpaved roads. Additionally, SUVs offer a higher driving position, which provides better visibility and a sense of safety on the road.

Trends in the market: The demand for SUVs in Costa Rica has been steadily rising due to several factors. Firstly, SUVs are seen as a status symbol and a reflection of a higher social status. As the economy has been growing and more people have disposable income, there is an increased desire to own a vehicle that is perceived as luxurious and prestigious. Secondly, SUVs offer more space and versatility compared to traditional sedans, making them a popular choice for families and outdoor enthusiasts. The spacious interiors and large cargo capacity of SUVs make them ideal for transporting both passengers and goods, whether it's for a family road trip or outdoor activities such as camping or hiking.

Local special circumstances: Costa Rica is known for its commitment to environmental sustainability and eco-tourism. As a result, there is a growing demand for hybrid and electric SUVs in the country. Costa Ricans are increasingly conscious of their carbon footprint and are looking for more environmentally-friendly transportation options. The government has also implemented policies and incentives to promote the use of electric vehicles, further driving the demand for hybrid and electric SUVs.

Underlying macroeconomic factors: The growing middle class and improving economic conditions in Costa Rica have contributed to the increased demand for SUVs. As more people have access to credit and financing options, they are able to afford larger and more expensive vehicles such as SUVs. Additionally, the stable political and economic environment in Costa Rica has attracted foreign investment, leading to job creation and higher incomes for the population. This has further fueled the demand for SUVs as a symbol of prosperity and success. In conclusion, the SUVs market in Costa Rica is experiencing significant growth due to customer preferences for vehicles that can handle the country's diverse terrain, as well as the desire for status and versatility. The demand for hybrid and electric SUVs is also on the rise, driven by Costa Rica's commitment to environmental sustainability. The improving economic conditions and growing middle class in the country have also contributed to the increased demand for SUVs.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).