Electric Sports Utility Vehicle Market

The new-age trend of increasing the driving range of electric SUVs and the trend of employing battery swapping is aiding the market's growth.

With the ever-evolving technology in the automotive industry, it is well-acknowledged that the driving range of electric cars is the most important consideration for consumers when it comes to selecting an electric vehicle. Increasing the driving range can also be accomplished by the use of a great number of other strategies, such as speed optimization and regenerative braking and acceleration. A growing number of nations, notably China and India, are placing a greater emphasis on reducing emissions from vehicles and boosting the support provided by the government. Electric SUVs have a driving range that is far longer than that of conventional SUVs, which helps alleviate range anxiety and makes them more practical for day-to-day use. Through research and development, the automotive industry is speeding up its strategy to electrify vehicles to increase driving performance, improve total powertrain performance, and extend the range of potential vehicles.

Furthermore, a new trend in the global market is to switch batteries at charging stations for electric vehicles (EVs), which saves users of electric utility vehicles time because they do not have to charge their batteries. Level 3 EV charging takes 30 to 60 minutes to fully charge an electric car, and ultra-fast charging takes 15 to 30 minutes. However, electric utility vehicles cannot be charged using these methods. For this reason, switching batteries is a great option for electric utility cars. By July 2021, companies like NIO had set up more than three hundred battery charging stations.

By 2025, they want to have another 4,000 set up in China. Its battery-swapping stations have been used about 2.9 million times around the world, and about 1,000 of them were built outside of China. More people will likely buy electric sport utility vehicles with battery swapping stations because they won't have to wait for more charge time. The upfront cost of electric utility cars will go down because people will lease batteries instead of buying them at the swap stations.

The Global Electric Sports Utility Vehicle Market Industry is experiencing a notable shift towards sustainability, driven by increasing consumer awareness regarding environmental issues. As more individuals seek eco-friendly alternatives, electric SUVs are becoming a preferred choice. This trend is reflected in the projected market value of 29.6 USD Billion in 2024, indicating a robust demand for electric vehicles. Consumers are increasingly prioritizing vehicles that contribute to reducing carbon footprints, which aligns with global sustainability goals. This growing preference for electric SUVs suggests a significant opportunity for manufacturers to innovate and cater to this environmentally conscious demographic.

The Electric Sports Utility vehicle market is primarily studied across four major regions, namely North America, Europe, Asia-Pacific, and the Rest of the World. Out of these, the Asia-Pacific region dominates the global market share owing to the government's initiatives to raise the manufacturing and sales of SUVs. The APAC region is dominated by China, which is considered to be one of the fastest-growing countries in the global automotive sector. Technologically advanced countries such as Japan and South Korea have also played key roles in the growth of the market in this region. Besides, developing countries such as India, Taiwan, and Malaysia provide a huge opportunity for further growth in these markets.

These are untapped markets, which is encouraging e-SUV OEMs to invest and establish themselves as strong players in the local market.

Followed by the Asia-Pacific region, the North American region has the second-highest revenue generation in the said market segment. The ATV/UTV sector in North America is highly sophisticated and accounts for over 50% of the global market for ATV/UTV vehicles. There has been a substantial increase in the market for electric ATVs/UTVs due to the growing popularity of recreational activities like camping, hunting, and forest rides, particularly during the winter. Polaris, Textron, and John Deere are the main companies that control the sales of electric ATVs/UTVs in the region.

These cars have experienced a significant rise in demand in the agricultural sector as the US government encourages farmers to transition to electric utility vehicles. John Deere is collaborating with the government to promote the adoption of electric utility vehicles in US farms. 

The presence of a thriving e-commerce sector and a well-developed infrastructure for industrial and manufacturing enterprises, including their warehousing capacities, contribute to North America's appeal as a lucrative market for producers of industrial vehicles. Furthermore, the presence of a widespread third-party logistics (3PL) network has resulted in the expansion of the warehousing industry in North America.

Major key competitors in the Electric Sports Utility market employ key business strategies, which include partnerships, mergers and acquisitions, business expansion, and collaboration deals.