The Crossover Vehicles Market size was valued at USD 0.10 Billion in 2023. The Crossover Vehicles industry is projected to grow from USD 0.11 Billion in 2024 to USD 0.21 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.82% during the forecast period (2024 - 2032). The key market driver boosting the market for Crossover SUVs is the quickly growing demand for vehicles with higher fuel efficiency. Furthermore, another main factor fueling the market expansion for Sport Utility Vehicles during the anticipated period is the exceptional value for money they offer.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
According to the International Organisation of Motor Vehicle Manufacturers, 95 million and 96 million commercial and passenger automobiles were sold globally in 2017 and 2018. This suggests a slump in the car sector. Nevertheless, the popularity of SUVs has been attributed to laxer trade regulations and lower vehicle taxes, which were implemented to stimulate sales. Of the total number of vehicles sold worldwide in 2018, 29.77 million were SUVs. SUV sales increased by 6.8% in volume compared to 2017, which saw a record-breaking 27.88 million SUV sales. As a result, the reasons above present the worldwide crossover vehicle market with abundant potential.
Another key crossover vehicles market trend projected to drive the market is the investment growth in setting up new assembly lines or manufacturing equipment. New designs and machinery are needed to manufacture the specific type of crossovers. These new designs and equipment include multi-year lead times. Automakers are investing in Greenfield and Brownfield production strains to meet the growing demand for Crossover SUVs.
Automobile manufacturers are adding a number of systems that either complicate the design of the car or add to its weight. Modern cars can now be found with cutting-edge security and safety measures. Over the past ten years, the vehicles in the economic class have also greatly accelerated in speed and sophistication. Therefore, adopting modern automotive safety measures has become significantly more necessary due to these improvements. Additionally, consumers are more interested in choosing automobiles outfitted with better and more advanced systems due to their increased concern for safety systems and technology.
Over the past ten years, urbanization has exploded in developing countries worldwide, which has significantly impacted market size and consumer purchasing power. Rapid urbanization is supported by industrial expansion in several sectors, including mining, building and repairing transportation infrastructure, manufacturing, and production. This suggests that the economy is growing, raising the amount of disposable income available worldwide. Consumer preference is changing away from public and private transportation due to consumer demand for safety and security. Together, these elements will accelerate the crossover vehicles market revenue expansion over the projection period.
The crossover vehicles market segmentation, based on drive type includes Front Wheel, Rear Wheel and All-Wheel. The front wheel segment dominated the market. One of the most popular drivetrain options for crossovers is front-wheel drive. The front wheels in this design receive power from the engine, which gives them traction and control. Compared to all-wheel drive (AWD) or four-wheel drive (4WD) versions, FWD crossovers often have superior fuel economy, reduced manufacturing costs, and a more compact design. They are appropriate for both light off-road driving and daily city driving.
The crossover vehicles market segmentation, based on fuel type, includes Petrol and Diesel. The petrol category generated the most income. air quality is declining due to the emissions of pollutants and greenhouse gases brought on by the combustion of fuels like petrol, coal, and diesel. People in China, India, and some other Asian nations are more motivated to use alternative fuel sources and related technologies as a result of the deteriorating environment and air quality. Hybrid and electric cars are more affordable and in demand because of their reduced emissions and improved fuel economy.
The crossover vehicles market segmentation, based on type, includes Small Size, Mid-Size and Large Size. The mid-size category generated the most income. Mid-size crossovers are between full-size and subcompact crossovers in size. They typically have seating for five to seven passengers and a sizable luggage area in the back. Mid-size crossovers are frequently lighter and more efficient than SUVs because they do not offer as much space for people or goods as SUVs. Luxury features like heated seats, leather interior upholstery, and power-adjustable front passenger sitting positions are often seen in mid-size cars.
The crossover vehicles market segmentation, based on gear transmission, includes Manual and Automatic. The automatic category generated the most income. The most typical gearbox found in Sport Utility Vehicles is an automatic gearbox. They simplify gear-shifting by allowing drivers to do it without using their hands. Different gear ranges, such as 6-speed, 8-speed, or continuously variable gearbox (CVT) systems, are available for automatic transmissions. Instead of having set gear ratios, CVT transmissions use a system of belts and pulleys to provide seamless gear changes and increased fuel efficiency.
Figure 1: Crossover Vehicles Market, by Gear Transmission, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American crossover vehicles market area will dominate this market due to a number of factors, including a rise in the demand for light-duty vehicles among commercial users, an increase in the number of people owning their cars, and government initiatives to promote low carbon emission vehicles (LEV) over conventional gasoline-powered cars through strict regulations on fuel efficiency standards. Furthermore, the region's high standard of living and well-developed transport system are likely to contribute to a growth in privately owned vehicles. Sport utility vehicles (SUVs) made up about 45% of all vehicles sold in the United States in 2018. In addition, SUVs made up about 43% of all automobiles in Canada.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Crossover Vehicles Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe crossover vehicles market accounts for the second-largest market share due to several variables, including a high level of consumer discretionary income, an increase in car registrations in nations like the Germany, and a growing penetration of hybrid crossovers across Europe. Additionally, the electrification of SUVs and the high demand for hybrid crossovers for both passenger and commercial use will create a wealth of new opportunities and fuel the expansion of the crossover vehicle market in this region. Further, the German crossover vehicles market held the largest market share, and the UK crossover vehicles market was the fastest growing market in the European region
The Asia-Pacific Crossover vehicles Market is expected to grow at the fastest CAGR from 2023 to 2032. SUVs are becoming more and more popular in Asia Pacific nations. For instance, in China, India, and Japan, SUVs made up 42%, 23%, and 13% of all vehicles sold in 2018. Ventures by different OEMs to increase production and manufacturing in Asia Pacific nations like China and India are also fueling the market for hybrid crossovers. For instance, Suzuki and Toyota established a joint venture in August 2018 via which Suzuki contributed $1 billion to Toyota's plant in Bengaluru, India. This investment aims to increase both Suzuki and Toyota automobile production. Thus, the factors above fuel the crossover car market in Asia and the Pacific. Moreover, China’s crossover vehicles market held the largest market share, and the Indian crossover vehicles market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the crossover vehicles market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their 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, hybrid crossovers industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Crossover SUVs industry to benefit clients and increase the market sector. In recent years, the hybrid crossovers industry has offered some of the most significant advantages to market. Major players in the crossover vehicles market attempting to increase market demand by investing in research and development operations include FCA US LLC (US), Volvo Cars (Sweden), Kia Motor Corporation (South Korea), Honda Motor Company Ltd (Japan), Volkswagen (Germany), Toyota Motor Corporation (Japan), Ford Motor Company (US), Mazda Motor Corporation (Japan), Subaru of America Inc.(US) and Nissan Motor Company Ltd (Japan).
Ford Motor Co. (Ford) manufactures automobiles that offer a full line of cars, trucks, sport utility vehicles, and electric vehicles. The business offers financing and leasing services for vehicles. Ford sells its goods through the Lincoln and Ford brand names. Africa, Asia Pacific, Europe, the Middle East, South America, and the Middle East are among the regions it serves. The business owns and runs engine, casting, metal stamping, gearbox, assembly and other component plants all over the world.
Kia Corp. (Kia), formerly known as Kia Motors Corp., is an automaker that produces and sells a wide range of automobiles. In addition to passenger automobiles and commercial vehicles, it offers sport utility vehicles (SUVs), multipurpose vehicles (MPVs), recreational vehicles, and MPVs. Additionally, the business offers services for automobile repair and leasing. The company sells these automobiles via a network of dealers and distributors. The corporation conducts business across the Americas, Europe, the Middle East, and Asia-Pacific through its subsidiaries. The headquarters of Kia is in Seoul, South Korea.
May 2022: EV6, an electric crossover, was released by Kia. The EV6 is the first vehicle in the world that can charge from 10% to 80% on an 800-volt system in less than 18 minutes.
March 2022: Ford introduced two new electric CUVs as part of its announcement that it will increase the number of electric vehicles available in Europe. Based on the MEB platform from VW, which is also used in the ID.4 and other electric vehicles, the "sport" and "medium-size" vehicles will be manufactured in Europe.
March 2022: The UX250h and UX300e, Lexus' smallest crossover SUVs, will be distributed in India. The Lexus UX and NX, the only EV models from the Japanese luxury car manufacturer, will be included in this series, which is now in testing.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 0.10 Billion |
| Market Size 2024 | USD 0.11 Billion |
| Market Size 2032 | USD 0.21 Billion |
| Compound Annual Growth Rate (CAGR) | 7.82% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Drive Type, Fuel Type, Type, Gear Transmission, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | FCA US LLC (US), Volvo Cars (Sweden), Kia Motor Corporation (South Korea), Honda Motor Company Ltd (Japan), Volkswagen (Germany), Toyota Motor Corporation (Japan), Ford Motor Company (US), Mazda Motor Corporation (Japan), Subaru of America Inc.(US) and Nissan Motor Company Ltd (Japan) |
| Key Market Opportunities | Increased demand for vehicles that provide comfort along with striving for better use of features and maintaining fuel efficiency |
| Key Market Dynamics | Fleet owners are increasing their inclination towards utility vehicles in comparison to sedans or light-weighted vehiclesKicking the demand for crossover vehicles that belong to both commercials as well as passenger applications |
Crossover Vehicles Market Highlights:
Frequently Asked Questions (FAQ) :
The crossover vehicles market size was valued at USD 0.1 Billion in 2022.
The market is projected to grow at a CAGR of 7.82% during the forecast period, 2024-2032.
North America had the largest share in the market
The key players in the market are FCA US LLC (US), Volvo Cars (Sweden), Kia Motor Corporation (South Korea), Honda Motor Company Ltd (Japan), Volkswagen (Germany), Toyota Motor Corporation (Japan), Ford Motor Company (US), Mazda Motor Corporation (Japan), Subaru of America Inc.(US) and Nissan Motor Company Ltd (Japan).
The mid-size category dominated the market in 2022.
The automatic category had the largest share in the market.
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Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
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