As per MRFR analysis, the Small Suv Market Size was estimated at 362.91 (USD Billion) in 2022. The Small SUV market Industry is expected to grow from 403.77(USD Billion) in 2023 to 1,055.4 (USD Billion) by 2032. The Small Suv Market CAGR (growth rate) is expected to be around 11.26% during the forecast period (2024 - 2032).
The demand for small SUVs globally is rising due to rapid urbanization, increased disposable incomes and the rise of compact and fuel-efficient vehicles. Key market drivers include the rise of the middle class in emerging markets, the proliferation of car-hailing services and increasing interest in safety features.
This includes developing electric/hybrid small SUVs, expanding the luxury segment and growing connected car technologies. Some of the latest trends in this industry are crossovers’ rising popularity along with subcompact SUVs, the adoption of advanced driver assistance systems (ADAS) and as well as self-driven cars. Even niche segments like off-road or performance-oriented small SUVs are receiving attention.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Small SUV market is anticipated to witness substantial growth over the coming years, driven by the increasing demand for fuel-efficient vehicles. The growing environmental concerns and stringent emission regulations have led consumers to shift towards more fuel-efficient and environmentally friendly vehicles. Small SUVs offer a combination of fuel efficiency and versatility, making them an attractive option for consumers seeking a practical and economical vehicle.The rising fuel prices have further accentuated the need for fuel-efficient vehicles, propelling the growth of the small SUV market globally.
The increasing popularity of compact and convenient vehicles is another key driver of the Small SUV market. Urbanization and traffic congestion have led consumers to prefer vehicles that are easy to maneuver and park in crowded urban areas. Small SUVs fulfill this need, offering a compact size and excellent maneuverability without compromising on space and comfort. Moreover, the growing number of nuclear families and the increasing purchasing power of consumers are also contributing to the rising demand for compact and convenient vehicles, driving the growth of the small SUV market.
The automotive industry is undergoing a rapid technological transformation, and the small SUV segment is no exception. Advancements in technology are leading to the development of more efficient, safer, and connected small SUVs. The integration of advanced technologies such as autonomous driving features, infotainment systems, and connected car technologies is enhancing the overall driving experience and safety of small SUVs. Moreover, the increasing adoption of electric and hybrid powertrains is also driving the growth of the small SUV market as consumers become more environmentally conscious and seek sustainable mobility solutions.
The market growth is attributed to the increasing demand for fuel-efficient, compact, and stylish vehicles. These vehicles offer better fuel economy, lower emissions, and more maneuverability compared to traditional SUVs, making them a preferred choice for urban and suburban commuting. The fuel type segment is classified into gasoline, diesel, electric, and hybrid. Among these, the gasoline segment held the largest market share in 2023, owing to the widespread availability of gasoline infrastructure and the lower initial cost of gasoline-powered vehicles.However, the electric and hybrid segments are expected to witness significant growth in the coming years due to increasing government incentives, advancements in battery technology, and rising environmental concerns. The gasoline segment is expected to remain dominant in the Small SUV market throughout the forecast period, with a market share of over 60% in 2032. The diesel segment is projected to experience a steady decline in its market share due to stricter emission regulations and the growing popularity of electric and hybrid vehicles.The electric segment is anticipated to grow rapidly, with a CAGR of over 20% from 2023 to 2032, driven by government subsidies, technological advancements, and increasing consumer awareness about environmental sustainability. The hybrid segment is also expected to witness significant growth, owing to its ability to combine the advantages of gasoline and electric powertrains, offering both fuel efficiency and reduced emissions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Small SUV market is segmented by Size into Subcompact, Compact, and Midsize. Compact SUVs led the Small SUV market with a market size of USD 178.52 Billion in 2023. It is projected to reach USD 457.1 Billion by 2032, exhibiting a CAGR of 11.5% during the forecast period. The growing popularity of compact SUVs owing to their fuel efficiency, practicality, and affordability compared to larger SUVs is propelling the growth of this segment. Subcompact SUVs are expected to witness the fastest growth, expanding at a CAGR of 12.2% over the forecast period.The rising demand for fuel-efficient vehicles and increasing popularity among urban and first-time car buyers are driving the segment's growth. The Midsize SUV segment is anticipated to maintain a steady growth trajectory over the forecast period. The spaciousness, comfort, and off-road capabilities of midsize SUVs are expected to drive its demand.
The body style segment plays a crucial role in shaping the Small SUV market segmentation. In 2023, the four-door body style dominated the market, accounting for over 65% of the Small Suv Market revenue. This dominance is attributed to the practicality and spaciousness offered by four-door SUVs, making them suitable for families and individuals seeking a comfortable driving experience. The two-door body style, while accounting for a smaller market share, has witnessed steady growth in recent years. Two-door SUVs offer a sporty and stylish appeal, attracting buyers seeking a more dynamic driving experience.The SUV coupe body style, a niche segment within the Small SUV market, has gained popularity among enthusiasts seeking a combination of style and performance. The Small Suv Market is projected to witness continued growth in all body style segments. The four-door body style is expected to maintain its dominance, driven by increasing demand for practical and versatile SUVs. However, the two-door and SUV coupe segments are anticipated to grow at a faster pace, fueled by rising consumer preference for sporty and stylish vehicles.
Families, young professionals, and outdoor enthusiasts represent key target markets for the Small Suv Market. Families value the spaciousness and practicality of small SUVs, as they offer ample room for passengers and cargo. In 2023, the small SUV market for families is estimated to be worth USD 150 billion and is projected to register a CAGR of 10% to reach USD 220 billion by 2032. Young professionals are another important target market for small SUVs, as these vehicles offer a combination of style, functionality, and affordability. The small SUV market for young professionals is expected to reach USD 120 billion by 2032, growing at a CAGR of 9% from 2023.Outdoor enthusiasts are also a key target market for small SUVs, as these vehicles offer the capability and versatility to navigate various terrains. The small SUV market for outdoor enthusiasts is projected to reach USD 110 billion by 2032, growing at a CAGR of 8% from 2023.
The Small Suv Market regional segmentation provides insights into the geographical distribution of the market. North America is expected to account for the largest share of the market in 2023, followed by Europe, APAC, South America, and MEA. The growth in North America is attributed to the presence of major automotive manufacturers and a strong consumer base. Europe is expected to witness significant growth due to rising demand for fuel-efficient vehicles. APAC is expected to be the fastest-growing region due to the increasing middle-class population and rising disposable incomes.South America and MEA are expected to experience steady growth due to government initiatives to promote the automotive industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Major players in the Small SUV market industry are constantly striving to gain an edge over their competitors through various strategies such as product innovation, strategic partnerships, and acquisitions. Leading Small Suv Market players are investing heavily in research and development to introduce new and improved Small Suv Market products that cater to the evolving needs of consumers. They are also expanding their distribution channels to reach a broader customer base. Small Suv Market development is being driven by the increasing demand for compact and fuel-efficient vehicles. The small Suv Market Competitive Landscape is expected to remain highly competitive in the years to come, with new entrants and existing players vying for market share.A prominent competitor in the Small Suv Market is Toyota, known for its popular models such as the RAV4 and C-HR. Toyota has a strong global presence and a loyal customer base. The company has been investing in hybrid and electric vehicle technology, which is expected to give it an advantage in the future. Another key competitor is Volkswagen, which offers a range of small SUVs, including the Tiguan and T-Roc. Volkswagen has a strong brand reputation and a wide distribution network. The company is also focusing on developing electric and autonomous vehicles.Honda is another major player in the Small SUV market with popular models like the CR-V and HR-V. Honda has a strong focus on fuel efficiency and safety, which have been key factors in its success. The company is also expanding its presence in emerging markets.
Hyundai
Volkswagen
Kia
Nissan
Subaru
Ford
Honda
Mitsubishi
Chevrolet
Mahindra
Tata Motors
Toyota
Mazda
Suzuki
Jeep
The Small Suv Market is poised to witness significant growth over the coming years. In 2023, the market was valued at around USD 403.77 billion and is projected to reach USD 1055.4 billion by 2032, exhibiting a CAGR of 11.26% during the forecast period. Increasing demand for fuel-efficient and compact vehicles, coupled with rising disposable income and urbanization, is driving market growth. The Asia-Pacific region is expected to dominate the market due to the presence of populous countries like China and India. Technological advancements, such as the integration of advanced safety features and infotainment systems, are further propelling market growth. Recent news developments include the launch of new models by major automakers, such as the Hyundai Venue and the Kia Sonet, and the growing popularity of electric and hybrid small SUVs.
Gasoline
Diesel
Electric
Hybrid
Subcompact
Compact
Midsize
Two-door
Four-door
SUV coupe
Families
Young professionals
Outdoor enthusiasts
North America
Europe
South America
Asia-Pacific
Middle East and Africa
| Report Attribute/Metric | Details |
| Market Size 2022 | 362.91(USD Billion) |
| Market Size 2023 | 403.77(USD Billion) |
| Market Size 2032 | 1055.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 11.26% (2024 - 2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024 - 2032 |
| Historical Data | 2019 - 2022 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | Hyundai, Volkswagen, Kia, Nissan, Subaru, Ford, Honda, Mitsubishi, Chevrolet, Mahindra, Tata Motors, Toyota, Mazda, Suzuki, Jeep |
| Segments Covered | Fuel type, Size, Body style, Target market, Regional |
| Key Market Opportunities | Electrification Hybrids and EVsConnectivity and Autonomous FeaturesCompact Crossovers and Sporty DesignsFocus on Safety and Fuel EfficiencyCustomization and Personalization |
| Key Market Dynamics | 1 Rising Demand for Fuel Efficiency2 Growing Urbanization and Traffic Congestion3 Government Regulations on Emissions4 Technological Advancements in Safety and Connectivity5 Increasing Disposable Income and Lifestyle Changes |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Small Suv Market reached a valuation of 403.77 billion USD by 2023 and is projected to Register a CAGR of 11.26% to reach 1055.4 billion USD by 2032.
The Asia-Pacific region is expected to dominate the Small Suv Market, with China and India being the major contributors. Other regions, such as North America and Europe, are also expected to contribute to the market growth.
Small SUVs are primarily used for personal transportation, commuting, and recreational activities. They are also gaining popularity for commercial uses such as ride-sharing and delivery services.
Major players in the Small Suv Market include Toyota, Honda, Hyundai, Ford, and Volkswagen. These companies offer a wide range of Small SUV models to cater to diverse customer needs.
The growing demand for compact and fuel-efficient vehicles, increasing disposable income in emerging markets, and technological advancements are the primary factors driving the growth of the Small Suv Market.
Rising raw material costs, intense competition, and stringent emission regulations are some of the challenges faced by the Small Suv Market.
The Small Suv Market is expected to continue growing in the coming years, driven by factors such as urbanization, increasing demand for personal mobility, and technological advancements.
The increasing popularity of electric vehicles, autonomous driving features, and connected car technologies are some of the key trends shaping the Small Suv Market.
The COVID-19 pandemic had a negative impact on the Small Suv Market in the short term due to supply chain disruptions and economic slowdown. However, the market is expected to recover and continue growing in the long term.
Emerging markets, technological advancements, and the growing demand for sustainable vehicles are key opportunities for growth in the Small Suv Market.
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Senior Research Analyst She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. hands on expertise in management consulting, and extensive knowledge in domain including ict, automotive & transportation and aerospace & defense. she is skilled in go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.
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