Global Sports Utility Vehicle (SUV) MarketSize and Trends

Market- Trends

The SUVs offer a broad range of advantages such as power, performance, cargo room, better sightlines, functionality, luxury, and safety, which in turn is driving growth of the SUV market

Increasing concerns regarding safety is the major factor driving growth of the global SUV market

Increasing concern regarding safety is one of the major driving factors for growth of the market. SUV vehicles are equipped with active safety features such as ADAS (Advanced driver-assistance systems), Anti-Lock Brake System (ABS), traction control (ASR), torque vectoring, and Tire-Pressure Monitoring System (TPMS), which has primary function of not to getting into accidents by providing maximum safety to the driver. For instance, in 2017, Audi launched the AudiQ3 SUV vehicles, which was incorporated with advanced technologies such as Electromechanical Parking Brake, Tire-pressure Monitoring System (TPMS), and Anti-lock Brake System (ABS). Increasing inclination of consumers towards adoption of automobiles with safety features, owing to increasing number of road accidents is expected to boost growth of the SUVs market worldwide. For instance, according to World Health Organization (WHO), an estimated 1.25 million road accidents were reported worldwide in 2013, out of which around 93% road traffic death were reported in low and middle income economies and over 50 million people were injured by road accidents.

Furthermore, stringent legislation and policy framework by government, mandating the installation of safety equipment in automobiles coupled with consumers’ preference for better safety measures is propelling growth of the SUV market. For instance, according to the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act, in November 2012, the European Union mandated Tire Pressure Monitoring System (TPMS) in every passenger car models. The U.S. Highway Safety Act of 1991 made airbags and Anti-Lock Braking System (ABS) mandatory in all passenger cars. These technologies offer efficient operation and improved safety, which is expected to drive growth of the SUVs market.