SUV Market: Shifting Consumer Preferences & Sustainability

1
SUV Market Shifting Consumer Preferences
Sustainability As per Inkwood Research, the
global sport utility vehicle (SUV) market is
expected to grow at a CAGR of 6.08 during the
period from 2024 to 2032, reaching a revenue of
1505.94 billion by 2032. The global market is
rapidly evolving, and the upcoming years are
expected to bring transformative changes. As
consumer preferences shift and new technologies
take center stage, businesses in the SUV sector
are set to face new challenges and
opportunities. SUV manufacturers play a key role
in driving this growth by continuously innovating
to meet shifting consumer demands and adopting
cutting-edge technologies. As they embrace
electrification, advanced driver assistance
features, and sustainable practices, they not
only cater to the shifting preferences of
eco-conscious consumers but also set the pace for
the broader automotive industrys transformation.

• Request a FREE sample of the Sport Utility
  Vehicle (SUV) Market
• This blog explores the evolving preferences of
  SUV buyers, breaks down the key market
  segmentsluxury, mid-range, and economy or
  budgetparticularly in developing markets like
  India, and examines how sustainability is
  influencing both consumer behavior and industry
  practices.
• Shifting Preferences and Purchase Behavior of SUV
  Customers in 2024-2025
• The profile of the average SUV buyer is changing
  as consumer demands and societal trends evolve.
  While traditional factors such as performance,
  safety, and space remain important, novel
  elements are set to shape customer preferences
  for the coming years.
• Rise of Electric and Hybrid SUVs
• The demand for electric and hybrid SUVs continues
  to grow, with 2024-2025 marking a significant
  shift towards eco-friendly models. An increasing
  number of consumers are

2

• considering electric and hybrid SUVs for their
  next vehicle, driven by concerns about
  environmental impact, stricter emissions
  regulations, and the growing availability of
  charging infrastructure.
• Notable automakers like Tesla with its Model X
  and Model Y and Rivian with the R1S are leading
  the charge in electric SUVs. Meanwhile,
  traditional manufacturers such
• as Toyota with its hybrid RAV4 Prime and Hyundai
  with the Ioniq 5 are expanding their electric and
  hybrid SUV offerings. Ford has also made notable
  strides with
• its Mustang Mach-E, while Volkswagens ID.4 is
  gaining popularity globally.
• Technological Advancements as a Differentiator
• SUV customers are placing an increased emphasis
  on technology from autonomous driving
  capabilities to advanced infotainment systems,
  cutting-edge technology is becoming a critical
  factor in purchase decisions. Features such as
  driver-assistance systems, connectivity, and
  AI-enhanced safety are no longer optional they
  are expected by the modern buyer.
• Accordingly, automakers should focus on
  developing and marketing SUVs that feature
  advanced technological systems. Highlighting
  these innovations in marketing campaigns can make
  these models more attractive to tech-savvy
  customers looking for convenience, safety, and a
  futuristic driving experience.
• Focus on Personalization and Comfort
• Consumers are increasingly looking for vehicles
  that cater to their unique lifestyles and needs.
  From customizable interiors to flexible seating
  arrangements, personalization is becoming a
  strong motivator for SUV purchases. Additionally,
  features that prioritize comfort, such as premium
  seating materials and advanced climate control,
  are in high demand.
• Offering personalized options like interior
  finishes, seating configurations, and enhanced
  technology features can differentiate brands in a
  competitive market. Providing customers with the
  ability to tailor their SUV to their preferences
  will appeal to buyers seeking more than just a
  standard model.
• Stay up-to-date with whats trending in the Sport
  Utility Vehicle (SUV) Market
• Key SUV Market Segments Targeting Luxury vs.
  Economy Buyers
• The SUV market is highly segmented, with distinct
  consumer groups gravitating toward different
  types of vehicles. These segments include luxury,
  mid-range, and economy SUVs, each attracting a
  unique demographic. One region where this
  segmentation is particularly pronounced is India,
  where the SUV market is experiencing rapid
  growth.
• Luxury SUV Luxury SUVs are designed for
  high-income buyers who prioritize comfort,
  cutting-edge technology, and performance. These
  customers are less concerned with price and more
  focused on exclusivity, brand prestige, and the
  latest innovations. The luxury SUV segment has
  also seen significant growth in electrification,
  with high-end brands introducing electric models
  that offer sustainability alongside luxury.
• Market Position In 2023, the luxury SUV segment
  captured a notable revenue share of 15.96
  subsequently, the segment is expected to reach
  16.05 by 2032.
• Luxury SUV leaders like Mercedes-Benz with its
  electric EQB and GLE models, Audi with the
  e-Tron, and BMW with the iX are setting the
  standard for high-end electric SUVs. In

3

• addition, Land Rovers Range Rover continues to
  dominate the luxury market, with both traditional
  and hybrid variants that appeal to the affluent
  buyer.
• In this regard, Indias SUV market is expanding,
  driven by rising incomes and an increasing
  appetite for premium brands. Brands like
  Mercedes-Benz, Jaguar Land
• Rover, and BMW are capitalizing on this growing
  demand, especially among urban professionals.
• Mid-Range SUV The mid-range SUV market is the
  largest globally, appealing to middle- class
  families and professionals who want a balance
  between affordability, functionality, and modern
  features. Consumers in this segment prioritize
  value for money, looking for vehicles that offer
  spacious interiors, good fuel efficiency, and
  technological conveniences at a reasonable price.
• Market Position Mid-range is expected to be the
  dominating price range during the forecast
  period, capturing the highest share of 44.02 by
  2032.
• In the mid-range segment, brands like Toyota with
  its Fortuner, Hyundai with the Tucson, and Kia
  with the Seltos dominate. The popularity of
  mid-range SUVs is driven by the balance they
  offer between price and features, making them a
  top choice for a wide range of buyers.
• Economy SUV The budget/economy SUV segment
  targets budget-conscious consumers who want the
  space and versatility of an SUV at an affordable
  price. Buyers in this category prioritize low
  running costs, reliability, and practicality,
  often foregoing advanced features to keep prices
  down.
• Market Position The budget segment is expected
  to grow with the fastest- growing CAGR of 6.35
  during the forecast years 2024 to 2032.
• Economy SUVs from brands like Maruti Suzuki
  (Vitara Brezza), Mahindra (XUV300), and Renault
  (Kiger) are highly sought after in emerging
  markets. These models offer compact designs and
  cost-effective solutions for urban commuters.
• Kindly click here to view the LinkedIn post
  related to this market Key Insights for
  Businesses
• To attract luxury buyers, automakers must
  prioritize continuous innovation by integrating
  cutting-edge technology and sustainable
  solutions. Highlighting the eco-friendly
  credentials of luxury SUVs will resonate with
  affluent consumers who seek both exclusivity and
  environmental responsibility.
• For the broader mid-range market, automakers
  should focus on delivering a balance of
  durability, fuel efficiency, and modern tech
  features. Offering hybrid options within this
  segment can effectively cater to eco-conscious
  buyers who want an affordable step toward
  sustainability without the premium price tag of
  fully electric models.
• Meanwhile, for economy SUV buyers, practicality,
  low maintenance costs, and reliability should
  take center stage. Emphasizing long-term savings
  and affordability will appeal to this
  cost-conscious demographic, helping them see the
  value of ownership over time.
• Sustainability in the SUV Market A Key Selling
  Point

4

• Sustainability is not just a trend but a critical
  factor influencing purchasing decisions in the
  2024-2025 SUV market. Automakers that prioritize
  eco-friendly practices will differentiate
  themselves in an increasingly competitive
  industry. Heres how
• Electric and Hybrid Models The shift toward
  electric and hybrid SUVs is reshaping the
  industry. Consumers, especially in regions with
  strict emissions regulations, are actively
  seeking alternatives to traditional gas-powered
  vehicles. Automakers are responding by expanding
  their portfolios to include more electric and
  hybrid options across all market segments.
• Leading Market Players Tesla, Rivian, and Ford
  are at the forefront of the electric SUV
  revolution. The Tesla Model Y, Rivian R1S, and
  Ford Mustang Mach-E are leading examples of how
  automakers are responding to consumer demand for
  sustainable yet high-performing vehicles.
• Sustainable Manufacturing Practices Beyond the
  vehicles themselves, customers are increasingly
  concerned about the environmental impact of the
  manufacturing process. Automakers are responding
  by implementing energy-efficient production
  techniques and using renewable energy sources in
  their factories.
• Recyclable Materials and Eco-friendly Interiors
  Automakers are incorporating sustainable
  materials like recycled plastics, vegan leather,
  and eco-friendly fabrics into their SUVs. These
  innovations reduce environmental impact while
  also appealing to buyers looking for vehicles
  aligned with their eco-conscious values.
• SUV manufacturers must prioritize sustainability
  at every stage of production. Clearly
  communicating eco-friendly practices and
  integrating sustainability into marketing
  strategies can increase brand loyalty and attract
  environmentally-conscious consumers.
• As we move into 2025, the SUV market is
  transforming rapidly. Consumers are demanding
  more from their vehicles, whether its advanced
  technology, customization options, or sustainable
  features. By understanding shifting preferences,
  targeting the right market segments, and focusing
  on sustainability, businesses can thrive in an
  evolving market.
• Brands that adapt to these trends will be
  well-positioned to capture the attention of both
  luxury and economy buyers in the globally
  competitive SUV landscape.
• Explore the market insights in this YouTube video
  by clicking here
• FAQs
• 1. What types of products can be made from
  recycled FRPs?
• A Recycled FRPs can be used in a variety of
  applications, including automotive parts,
  construction materials, sporting goods, and
  consumer products. The enhanced properties of
  recycled fibers allow for their use in
  high-performance applications,
• such as lightweight vehicle components and
  durable outdoor equipment.
• 2. What are the main challenges in recycling
  FRPs?
• A The main challenges in recycling FRPs include
  the difficulty in separating the fibers from the
  polymer matrix, the degradation of material
  quality during recycling processes, and the lack
  of established recycling infrastructure.
  Traditional methods often lead to significant
  loss of material properties, limiting the reuse
  of recycled FRPs.