Luxury SUV Market Size - By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Franchised Dealer, Independent Dealer), By Car Price (USD 30K - 60K, USD 60K - 90K, USD 90K – 120K, Above USD 120K), Type & Global Forecast, 2023 - 2032

Luxury SUV Market Size

Luxury SUV Market size valued at USD 4.1 billion in 2022 and is anticipated to grow at a CAGR of 11% between 2023 and 2032. Luxury vehicles are equipped with cutting-edge technologies and feature updates that set them apart from even the most fully equipped commuter SUVs. However, the perception of luxury SUVs as premium is largely dependent on the advertisements that showcase their superior features and elevate the social status of buyers.
 

As a result, automakers equip their luxury SUV models with cutting-edge technologies as they represent the company's brand/image. Luxury SUVs provide occupants with a much higher level of safety & security. Rising traffic accidents are expected to emphasize the importance of having extra safety features in luxury vehicles, thereby making the product more appealing to prospective buyers.
 

A Sports Utility Vehicle (SUV) combines the characteristics of a road-going passenger automobiles with the functionality of an off-road vehicle. Owing to technological advancements, the luxury SUV market now offers a wide range of products and vehicles. Modern-day luxury SUVs are equipped with sophisticated & efficient powertrains as well as the most advanced safety, infotainment, and connectivity systems. SUVs are typically larger than standard automobiles and offer a sense of security while driving. An SUV encompasses large interior spaces as well as two or three rows of seating. It incorporates the storage space and trucking of pickup trucks, making them versatile in carrying different types of loads.
 

The availability of exclusive features and the prestige associated with owning a luxury SUV are primary motivators propelling product purchases. The increased competition, the rising number of luxury brands, and the growing demand for luxury SUVs have encouraged luxury vehicle manufacturers to expand their businesses and utilize the same distribution channel as other segment vehicles. Though it has no direct impact on vehicle sales, the exclusivity associated with an SUV is decreasing. Technologically advanced features form another significant differentiator for luxury SUVs.

Mid-size SUVs are now available with advanced emergency braking systems, collision avoidance warnings, pedestrian detection, steering assistance, blind-spot monitoring, heated seats, and sunroofs, which were previously reserved for luxury vehicles. The availability of advanced features in mid-segment SUVs has diluted the exclusivity of luxury SUVs. This factor is expected to hinder the global luxury SUV market growth.
 

COVID-19 Impact

The COVID-19 pandemic impacted businesses and industries worldwide. The automotive industry experienced raw material & component shortages, which halted vehicle production in major markets. Government-imposed lockdowns and containment measures forced people around the world to stay inside their homes. These factors reduced customer traffic in showrooms, which had negative impacts on luxury vehicle sales. Moreover, several automakers were compelled to temporarily halt production, thereby hampering market expansion.
 

Luxury SUV Market Trends

Consumer preferences are shifting toward luxury SUV brands owing to rising disposable incomes and a significant increase in the tangible luxury offerings of automobiles. Governments and environmental organizations in many countries are tightening emission standards in response to growing environmental concerns. As a result, there is an increase in the global demand for environmental-friendly & sustainable transportation options such as electric luxury vehicles. The market is also fueled by the increasing adoption of used luxury vehicles due to easier access to financing, lower entry costs, and annual maintenance agreements. Leading manufacturers are also incorporating the latest smart mobility technologies including retina recognition, autonomous driving, and personal voice assistance, thereby boosting market growth.
 

Luxury SUV Market Analysis

The luxury SUV market from hybrid/electric segment was reached USD 1 billion revenue in 2022. Rising environmental concerns pertaining to increasing exhaust emissions are prompting governments to enact stricter environmental regulations. Governments are also increasing incentives & subsidies for EV owners, further fueling the demand for environmental-friendly & sustainable transportation. With the developing electric vehicle technology, hybrid electric powertrains are also being added to vehicles with internal combustion engines to improve fuel efficiency. Such elements are expected to present opportunities for market expansion. Market vendors are concentrating their efforts on developing internal combustion engines with high-speed & high-performance characteristics to achieve the highest level of customer satisfaction while minimizing their negative environmental impacts.
 

The franchised dealer segment held over 76% of luxury SUV market share in 2022 and is set to witness 12% CAGR through 2032, led by offering an exclusive distribution network, expertise in product knowledge, a luxurious brand experience, test drives & demonstrations, financing & after-sales services, customer relationship management, and exclusive promotions & events. The dealership network serves as a crucial touchpoint between luxury SUV brands and customers, providing personalized service, fostering brand loyalty, and creating an immersive buying experience that resonates with the target market.
 

Asia Pacific luxury SUV market accounted for 44% revenue share in 2022, attributed to the presence of numerous large-scale businesses. The ever-increasing population in countries including China and India is benefiting luxury SUV manufacturers in Asia Pacific. The China market is demonstrating one of the highest growth potentials in Asia Pacific. The increasing number of production facilities in the region is credited to the low costs and tax benefits associated with the assembly & sale processes provided by many Asia Pacific countries. These factors have led to growth in the APAC market for luxury SUVs with manufacturers catering to the demand by introducing a wide range of luxury SUV models that are tailored to the preferences of discerning consumers.
 

Luxury SUV Market Share

Some of the major companies operating in the luxury SUV market are

• Daimler AG
• Bayerische Motoren Werke AG
• Volvo Car Corporation
• Volkswagen AG
• Tata Motors Limited
• Toyota Motor Corporation
• Tesla
• Aston Martin
• Mazda Motor Corporation
• Isuzu Motors Ltd.

These companies focus on strategic partnerships and new product/service launches for market expansion. Furthermore, these companies are heavily investing in research to introduce innovative solutions and garner maximum revenue in the market.
 

Luxury SUV Industry News:

• In June 2023, Mercedes-Benz introduced the refreshed G-Class lineup in India, which includes the new G 400d model. The G 400d variant of the updated G-Class is powered by a 3.0-liter OM656 in-line six-cylinder diesel engine that generates 330hp, up from 286hp of the previous G 350d engine. It produces 700Nm of torque between 1,200 and 3,200rpm, up from 600Nm of the predecessor.
   
• In March 2022, Audi announced its plans to expand in the Indian market by introducing more brands and extending its network throughout the country. The company offers two battery options for electric SUVs, 52 kWh and 77 kWh, internationally. Audi’s Q4 e-Tron is available in both SUV and coupe-SUV body types.
   

This luxury SUV market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and shipments (Thousand Units) from 2018 to 2032, for the following segments:

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Market, By Fuel Type

• Gasoline
• Diesel
• Hybrid/Electric

Market, By Sales Channel

• Franchised dealer
• Independent dealer

Market, By Car Price

• USD 30K - 60K
• USD 60K - 90K
• USD 90K – 120K
• Above USD 120K

Market, By Type

• Compact
• Mid-Size
• Full-Size

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa