SUVs - Europe

Europe

Revenue in the SUVs market is projected to reach US$172,200m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -0.56%, resulting in a projected market volume of US$168,400m by 2028.
SUVs market unit sales are expected to reach 4,639.0k vehicles in 2028.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$36k.
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 Kingdom, China, Worldwide, Germany, United States

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Analyst Opinion

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

Customer preferences: One of the key reasons for the growth of the SUVs market in Europe is the changing preferences of customers. SUVs offer a combination of functionality, comfort, and style, making them a popular choice among European consumers. The higher driving position and spacious interiors of SUVs appeal to customers who prioritize comfort and practicality. Additionally, SUVs are seen as a status symbol and a symbol of adventure, which further adds to their appeal.

Trends in the market: The trend of SUVs gaining popularity in Europe can be seen across various countries in the region. In countries like Germany, France, and the United Kingdom, SUVs have become the preferred choice for many customers. This trend is also reflected in the sales numbers, with SUVs consistently outperforming other vehicle segments in terms of sales volume. Furthermore, there is a growing demand for electric and hybrid SUVs, as customers become more conscious of environmental issues and seek more sustainable transportation options.

Local special circumstances: Several local factors contribute to the growth of the SUVs market in Europe. One such factor is the presence of a well-developed road infrastructure in many European countries. The availability of well-maintained highways and roads makes SUVs a practical choice for European customers who often travel long distances. Additionally, the unpredictable weather conditions in certain parts of Europe, such as Scandinavia, make SUVs a popular choice due to their superior handling and traction on slippery roads.

Underlying macroeconomic factors: The overall economic growth in Europe has also played a role in the growth of the SUVs market. As the economy improves, consumers have more disposable income, which allows them to consider purchasing higher-priced vehicles like SUVs. Moreover, low interest rates and attractive financing options have made it easier for customers to afford SUVs. The availability of a wide range of SUV models from different manufacturers has also contributed to the market growth, as customers have more options to choose from. In conclusion, the SUVs market in Europe is experiencing significant growth due to changing customer preferences, the popularity of SUVs as a status symbol and for their practicality, and the presence of a well-developed road infrastructure. Additionally, the overall economic growth in Europe and the availability of attractive financing options have further fueled the market expansion. With the increasing demand for electric and hybrid vehicles, the SUVs market in Europe is expected to continue its growth trajectory in the coming years.

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).