Small SUVs market COVID-19 Impact, Trends & Business Statistics By 2028Posted by Mrudula Karmarkar on November 28th, 2022 The global small SUVs market size is expected to reach USD 564.1 billion by 2028, registering a CAGR of 0.3% over the forecast period, according to a new report by Grand View Research, Inc. The growing demand for small SUVs is mainly attributed to the rising popularity among young adults pertaining to the characteristics that it combines the elements of on-road passenger cars and off-road sturdy vehicles. Higher ground clearance, higher seating position, and large space is supporting the popularity of small SUVs. Technological developments in lightweight materials and electric and hybrid engine areas are expected to further fuel the industrial growth. For instance, Mazda Motor Corporation developed lightweight small SUV with a striking exterior, increased fuel efficiency, and an enjoyable driving experience. The lightweight body of the small SUV provides solid agility which lacks in other heavy frame. The outbreak of COVID-19 has negatively impacted the demand for small SUVs owing to disrupted supply chain of the auto components such as car ship, and stagnant of production lines. However, market is expected to recover and witness slow growth over the forecast period with the resumed industrial operations, trade activities, and increasing vaccination rate. Electric segment by fuel type is anticipated to witness the highest growth over the forecast period. In the global small SUVs market, the electric segment is expected to register a CAGR of 5.5% from 2022 to 2028. Government initiatives and stringent environmental policies are encouraging manufacturers as well as consumers to shift towards electric vehicles. Many key players are planning to go all-electric in the future to lower CO2 emission and greenhouse gas emission levels. For instance, Ford Motor Co. plans to go all electric in Europe by 2030 as announced in February, 2021. As well as, Jaguar, British car brand announced about going all-electric by 2028. In the global small SUVs market, Asia Pacific dominated the market revenue share in 2021. The region has recorded a significant market share of over 45% in 2021 in the global market. This significant market share of the region is credited to the higher demand and consumption by Chinese consumers. High popularity of the small SUVs, higher young working population, increased affordability, rising spending on the passenger cars, and strong presence of local as well as global brands is credited for the higher market share. To Request Sample Copy of this report, click the link: https://www.grandviewresearch.com/industry-analysis/small-suvs-market-report/request/rs1 Small SUVs market growth is substantially credited to the rising popularity of the SUVs. Sport utility vehicles or SUVs expertly provide elements of on-road passenger cars combined with off-road vehicles in the same model. High ground clearance, higher seating position, four-wheel drive, excellent towing capacity, and large space are some of the characteristics that attract consumers to the small SUVs, fueling the global market growth. Furthermore, the industry growth is driven by the development in the automotive manufacturing sectors, increasing disposable income, preference for personal passenger vehicles, and penetration of the key players in emerging regions. For instance, Skoda began manufacturing its small SUV Kushaq in India in June, 2021 with localization levels up to 95%. Similarly, Nissan is also planning to launch 8 new cars in Africa, the Middle East, and India by 2023, which includes small SUVs. COVID-19 pandemic has negatively impacted the mass automotive market, including small SUVs market. Small SUVs Market Report Highlights
Government-imposed restrictions and lockdowns across the world halted manufacturing sector as well as disrupted supply chain at various stages. Shortages of auto components and lack of labor led to decline in the production rate of small SUVs. However, slow and steady market recovery is expected in the coming years with resumed market activities. When compared to other passenger cars, SUVs contribute more to the environmental pollution and have poor fuel efficiency due to their heavy and large body. There has been an anti-SUV movement stirring among people due to the higher chances of rolling over and longer braking distance, posing higher risk. In addition to this, high cost of the SUVs has also posed as a major restraint, limiting the business growth. In the global small SUVs market, Europe is expected to witness the highest growth rate in the forecast period. The region is anticipated to register a CAGR of 0.8% from 2022 to 2028. Regional market growth is expected to be driven by frequent product launches by key players and increasing government initiatives to encourage consumers to adopt electric SUVs. For instance, on December 7th, 2021, it was announced that Alfa Romeo Automobiles S.p.A. is planning a new entry-level small electric SUV for 2023. Significant fiscal incentives offered by the governments have marked the scale-up in the manufacturing and research of electric vehicles in the region. List of Key Players of Small SUVs Market
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