Global E-SUV Market Report and Forecast 2024-2032

Global E-SUV Market Size

The global E-SUV market value was around USD 131.17 billion in 2023. The market is projected to grow at a CAGR of 24.7% between 2024 and 2032 to reach a value of around USD 956.41 billion by 2032.

Global E-SUV Market Outlook

• France intends to invest €2.5 billion by 2030 to produce around two million electric and hybrid vehicles, reports IEA.

• Electric vehicle purchases in Australia rose 86% in 2022, comprising 3.8% of new car sales, states the Electric Vehicle Council.

• South Korea targets 4.5 million electric vehicles in its transportation sector by 2030, per the International Energy Agency HEV (IEAHEV).

Global E-SUV Market Growth

An SUV, short for a sports utility vehicle, typically features a truck-like chassis suitable for off-road use. Electric SUVs, known as E-SUVs, are a variant powered by electric or hybrid battery systems, designed for robust performance with reduced environmental impact.

SUVs are identifiable by their raised ground clearance, four-wheel drive capability, and spacious interiors, and often built on a light-truck chassis. The term "SUV" has broadened over time to encompass a variety of designs and capabilities, including smaller, mid-size, and crossover models, reflecting their growing popularity worldwide and influencing the E-SUV market trends.

The SUV's history dates to early military and limited-production models of the late 1930s, evolving into four-wheel-drive station wagons and carryalls introduced around 1949. The contemporary idea of SUVs is frequently attributed to the 1984 Jeep Cherokee (XJ). While early SUVs typically used body-on-frame construction, many have transitioned to unibody construction over time to enhance efficiency and performance, which has contributed to the E-SUV market growth.

E-SUV Industry Trends

The rising interest in zero-emission vehicles

The surge in demand for zero-emission electric SUVs reflects worldwide environmental issues. The E-SUV market dynamics and trends are influenced by government incentives and technological progress is driving their popularity, delivering efficient and eco-friendly transport solutions considering stricter environmental regulations and policies.

Growing adoption of sulphide-based batteries in electric SUVs

Sulphide-based batteries are revolutionizing electric SUVs by providing faster charging times and longer driving ranges. These batteries feature higher energy densities, increased durability, and lower maintenance costs, with their adoption in the automotive market further accelerated by the advent of wireless charging technology.

Technological advancements in the market

Technological innovations like IoT sensors and data analytics elevate E-SUV capabilities. Real-time monitoring enhances performance, safety, and connectivity, catering to consumer demands for intelligent, secure, and interconnected electric vehicles at the forefront of automotive evolution.

E-SUV Industry Outlook

The growth of the E-SUV market offers a notable advantage in fuel efficiency compared to traditional gasoline or diesel counterparts. According to the U.S. Department of Transportation, powering an EV for 15,000 miles annually costs around USD 600 in electricity. In contrast, fueling a gasoline-powered SUV for the same distance averages about USD 2,700 per year. This translates to potential savings of over USD 2,100 annually on fuel costs alone for EV owners.

The E-SUV market revenue is increasing in Norway as it achieved a remarkable milestone in 2023, with electric vehicles accounting for an impressive 82.4% share of new car sales, highlighting the country's leadership in EV adoption. Although January 2024 saw a peak of 92.1% in sales figures, indicating a potential temporary high, Norway continues to make strong progress towards its goal of 100% EV adoption thus expanding the E-SUV industry revenue.

Globally, the adoption of electric cars surged in 2023, with nearly 14 million new electric vehicles registered, bringing the total on the road to 40 million, as reported by the IEA. This marks a significant 35% increase from 2022 and reflects more than sixfold growth compared to 2018. Electric vehicles also claimed an expanded market share, accounting for 18% of total car sales in 2023, up from 14% in 2022. Battery electric cars remained dominant, comprising 70% of the electric car market, and their rapid mainstream acceptance, thus boosting the E-SUV market expansion.

The E-SUV market opportunities are further broadened by the growing number of charging points globally. The IEA notes substantial growth in public charging infrastructure for electric vehicles. By the end of 2022, there were 2.7 million charging points worldwide, with over 900,000 installations in that year alone, marking a 55% increase compared to 2021.

In 2023, the global installation of public light-duty vehicle fast chargers reached approximately 2 million, with China making a significant contribution. Future projections from STEPS and APS suggest a substantial increase to over 8 million chargers by 2035, indicating robust growth in charging infrastructure to support the expanding E-SUV market demand.

SWOT Analysis of the Global E-SUV Market

The surge in demand for e-SUVs is driven by their spacious interiors, versatility, perceived safety, impressive acceleration, handling, and technological features, making them popular worldwide. 

• The E-SUV market demand is boosted by government initiatives, including subsidies, tax breaks, and other incentives.

E-SUVs face challenges such as a higher initial purchase price and limitations in battery range compared to gasoline-powered counterparts.

• Additionally, the limited availability of public fast-charging stations and the heavy weight of the batteries contribute to these difficulties.

Continued advancements in battery technology, charging infrastructure development, and vehicle design are expected to promote the growth of the E-SUV industry.

• Collaboration between energy companies and governments, along with innovative ownership models like subscriptions and leasing, can accelerate the development of charging infrastructure and battery technology.

The reliance on specific materials for battery production can make the E-SUV market demand vulnerable to price fluctuations and supply chain disruptions.

• Economic instability could lead to decreased consumer spending, potentially impacting the sales of e-SUVs, which may still be considered a premium option.

Price Competition in the E-SUV Industry

• Advancements in battery technology are steadily decreasing production costs, while government incentives like tax breaks and purchase subsidies directly reduce the upfront cost for consumers.

• The entry of both established automakers and new electric vehicle startups is supporting the growth of the E-SUV industry, though global supply chain disruptions may affect the availability of critical components.

Key Players in the Global E-SUV Market and Their Key Initiatives

Hyundai Motor Company

• Hyundai Motor Company launched the Ioniq 5, a futuristic E-SUV with fast charging and long-range capabilities.

• The company expanded their EV lineup with the launch of the Hyundai Ioniq 7, aiming for premium electric SUV market dominance.

AUDI AG

• Launch of Audi Q4 e-tron and Q4 Sportback e-tron, expanding their electric SUV lineup.

• Introduction of advanced battery technologies for extended range and faster charging.

BMW AG

• Launch of BMW iX and BMW iX3 models to expand electric SUV lineup.

• Investment in sustainable production technologies for E-SUVs, along with collaboration with charging infrastructure providers to enhance accessibility.

Mercedes-Benz

• Mercedes-Benz introduced the EQB, expanding its electric SUV lineup.

• Enhanced charging infrastructure support globally for improved customer convenience is expected to boost the growth of the E-SUV market.

Ford Motor Company

• Introduced the Mustang Mach-E, an all-electric SUV, targeting eco-conscious consumers.

• Expanded charging infrastructure globally to support electric vehicle adoption.

Global E-SUV Industry Segmentation

“Global E-SUV Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Crossover 

• Mid-size 

• Full Size 

• Compact

Market Breakup by Propulsion

• Battery Electric Vehicles (BEVs)

• Plug-In Hybrid Electric Vehicles (PHEVs) 

• Fuel Cell Electric Vehicles (FCEVs)

Market Breakup by Seating Capacity

• 5-seater

• 6-seater and Above

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Global E-SUV Market Share

Battery electric vehicles (BEVs) dominate the global E-SUV market, credits to a wide range of battery-powered SUV models. Manufacturers are incorporating advanced technologies such as ultra-fast charging and vehicle-to-grid systems to extend battery life and driving range. BEVs operate more quietly than traditional SUVs due to the absence of an internal combustion engine and simpler drivetrains, which reduces noise pollution and enhances driving convenience boosting the E-SUV market expansion.

As per the E-SUV industry analysis, government subsidies and tax incentives are boosting consumer adoption, driving rapid growth in the segment. Additionally, major automakers are ramping up their investments in BEV technology to stay competitive.

Competitive Landscape

Hyundai Motor Company, founded in 1967, is a global automotive manufacturer headquartered in Seoul, South Korea. The company is dedicated to offering advanced mobility solutions and supporting the shift towards clean energy.

Audi AG is an automotive company for luxury vehicles, founded in 1909 and based in Ingolstadt, Germany. The company focuses on high build, progressive design, and sustainability in its premium cars.

BMW AG, incorporated in 1916 and headquartered in Munich, Germany, is a multinational provider of luxury vehicles. Some of its major automotive brands include BMW, MINI, BMW Motorrad, and Rolls-Royce, among others.

Other E-SUV market players include Mercedes-Benz AG, Ford Motor Company, Renault S.A.S, Tesla, Inc., Volkswagen AG, Volvo Group, and Tata Motors Limited, among others.

Key Highlights of the Report

E-SUV Market Report Snapshots

E-SUV Market Size

E-SUV Market Growth

E-SUV Market Trends

E-SUV Market Share

E-SUV Companies