Crossover Vehicles Market

Rising penetration of SUVs is driving the market growth

According to the International Organisation of Motor Vehicle Manufacturers, 95 million and 96 million commercial and passenger automobiles were sold globally in 2017 and 2018. This suggests a slump in the car sector. Nevertheless, the popularity of SUVs has been attributed to laxer trade regulations and lower vehicle taxes, which were implemented to stimulate sales. Of the total number of vehicles sold worldwide in 2018, 29.77 million were SUVs. SUV sales increased by 6.8% in volume compared to 2017, which saw a record-breaking 27.88 million SUV sales.

As a result, the reasons above present the worldwide crossover vehicle market with abundant potential.

Another key crossover vehicles market trend projected to drive the market is the investment growth in setting up new assembly lines or manufacturing equipment. New designs and machinery are needed to manufacture the specific type of crossovers. These new designs and equipment include multi-year lead times. Automakers are investing in Greenfield and Brownfield production strains to meet the growing demand for Crossover SUVs.

Automobile manufacturers are adding a number of systems that either complicate the design of the car or add to its weight. Modern cars can now be found with cutting-edge security and safety measures. Over the past ten years, the vehicles in the economic class have also greatly accelerated in speed and sophistication. Therefore, adopting modern automotive safety measures has become significantly more necessary due to these improvements. Additionally, consumers are more interested in choosing automobiles outfitted with better and more advanced systems due to their increased concern for safety systems and technology.

Over the past ten years, urbanization has exploded in developing countries worldwide, which has significantly impacted market size and consumer purchasing power. Rapid urbanization is supported by industrial expansion in several sectors, including mining, building and repairing transportation infrastructure, manufacturing, and production. This suggests that the economy is growing, raising the amount of disposable income available worldwide. Consumer preference is changing away from public and private transportation due to consumer demand for safety and security. Together, these elements will accelerate the crossover vehicles market revenue expansion over the projection period.

Market growth projections for the Global Crossover Vehicles Market Industry indicate a robust trajectory. The market is expected to grow at a compound annual growth rate (CAGR) of 8.25% from 2025 to 2035. This growth is driven by various factors, including consumer preferences for versatile vehicles and advancements in technology. The anticipated increase in market value from 0.11 USD Billion in 2024 to 0.26 USD Billion by 2035 reflects the evolving landscape of the automotive industry. As manufacturers respond to changing consumer demands and regulatory pressures, the crossover segment is poised for significant expansion.

Urbanization is a critical factor influencing the Global Crossover Vehicles Market Industry. As more individuals move to urban areas, the demand for compact yet spacious vehicles increases. Crossover vehicles offer the ideal solution, providing maneuverability in congested city environments while accommodating the needs of modern lifestyles. The trend towards urban living suggests that consumers are seeking vehicles that can navigate tight spaces without sacrificing comfort. This demographic shift is likely to sustain market growth, as crossovers become increasingly popular among city dwellers who prioritize practicality and style.

The Global Crossover Vehicles Market Industry is benefiting from a rising interest in outdoor activities and adventure travel. Consumers are increasingly seeking vehicles that can accommodate recreational gear, such as bicycles, kayaks, and camping equipment. Crossover vehicles, with their spacious interiors and versatile cargo options, are well-suited for this purpose. This trend indicates a potential for market expansion, as manufacturers may introduce models specifically designed for outdoor enthusiasts. The alignment of vehicle capabilities with consumer lifestyles suggests that the market will continue to thrive as more individuals embrace outdoor adventures.

The Global Crossover Vehicles Market Industry experiences a notable increase in consumer demand for versatile vehicles that combine the attributes of cars and SUVs. This trend is driven by the desire for spacious interiors, higher seating positions, and enhanced cargo capacity. In 2024, the market is projected to reach 0.11 USD Billion, reflecting a growing preference for crossovers over traditional sedans. Consumers increasingly seek vehicles that accommodate family needs while offering a stylish appearance. This shift in consumer behavior suggests that manufacturers must adapt their offerings to meet the evolving expectations of buyers, thereby influencing market dynamics.

The Global Crossover Vehicles Market Industry is significantly impacted by stringent environmental regulations aimed at reducing emissions and promoting fuel efficiency. Governments worldwide are implementing policies that encourage the production of eco-friendly vehicles, including hybrids and electric crossovers. As a result, manufacturers are investing in research and development to create vehicles that comply with these regulations while maintaining performance. This shift is expected to contribute to a projected market growth, with estimates indicating a rise to 0.26 USD Billion by 2035. The focus on sustainability is likely to reshape consumer preferences, further driving the demand for crossover vehicles.

Technological innovations play a pivotal role in shaping the Global Crossover Vehicles Market Industry. Features such as advanced driver-assistance systems, infotainment technologies, and connectivity options are becoming standard in crossover vehicles. As manufacturers integrate these technologies, they enhance the overall driving experience, making crossovers more appealing to tech-savvy consumers. The incorporation of safety features, such as automatic emergency braking and lane-keeping assist, is particularly influential in attracting buyers. This trend indicates that the market is likely to expand as consumers prioritize safety and convenience, further driving growth in the sector.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American crossover vehicles market area will dominate this market due to a number of factors, including a rise in the demand for light-duty vehicles among commercial users, an increase in the number of people owning their cars, and government initiatives to promote low carbon emission vehicles (LEV) over conventional gasoline-powered cars through strict regulations on fuel efficiency standards. 

Furthermore, the region's high standard of living and well-developed transport system are likely to contribute to a growth in privately owned vehicles. Sport utility vehicles (SUVs) made up about 45% of all vehicles sold in the United States in 2018. In addition, SUVs made up about 43% of all automobiles in Canada.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Crossover Vehicles Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe crossover vehicles market accounts for the second-largest market share due to several variables, including a high level of consumer discretionary income, an increase in car registrations in nations like the Germany, and a growing penetration of hybrid crossovers across Europe. Additionally, the electrification of SUVs and the high demand for hybrid crossovers for both passenger and commercial use will create a wealth of new opportunities and fuel the expansion of the crossover vehicle market in this region.

Further, the German crossover vehicles market held the largest market share, and the UK crossover vehicles market was the fastest growing market in the European region

The Asia-Pacific Crossover vehicles Market is expected to grow at the fastest CAGR from 2023 to 2032. SUVs are becoming more and more popular in Asia Pacific nations. For instance, in China, India, and Japan, SUVs made up 42%, 23%, and 13% of all vehicles sold in 2018. Ventures by different OEMs to increase production and manufacturing in Asia Pacific nations like China and India are also fueling the market for hybrid crossovers. 

For instance, Suzuki and Toyota established a joint venture in August 2018 via which Suzuki contributed $1 billion to Toyota's plant in Bengaluru, India. This investment aims to increase both Suzuki and Toyota automobile production. Thus, the factors above fuel the crossover car market in Asia and the Pacific. Moreover, China’s crossover vehicles market held the largest market share, and the Indian crossover vehicles market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the crossover vehicles market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, hybrid crossovers industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Crossover SUVs industry to benefit clients and increase the market sector. In recent years, the hybrid crossovers industry has offered some of the most significant advantages to market. 

Major players in the crossover vehicles market attempting to increase market demand by investing in research and development operations include FCA US LLC (US), Volvo Cars (Sweden), Kia Motor Corporation (South Korea), Honda Motor Company Ltd (Japan), Volkswagen (Germany), Toyota Motor Corporation (Japan), Ford Motor Company (US), Mazda Motor Corporation (Japan), Subaru of America Inc.(US) and Nissan Motor Company Ltd (Japan).

Ford Motor Co. (Ford) manufactures automobiles that offer a full line of cars, trucks, sport utility vehicles, and electric vehicles. The business offers financing and leasing services for vehicles. Ford sells its goods through the Lincoln and Ford brand names. Africa, Asia Pacific, Europe, the Middle East, South America, and the Middle East are among the regions it serves. The business owns and runs engine, casting, metal stamping, gearbox, assembly and other component plants all over the world.

Kia Corp. (Kia), formerly known as Kia Motors Corp., is an automaker that produces and sells a wide range of automobiles. In addition to passenger automobiles and commercial vehicles, it offers sport utility vehicles (SUVs), multipurpose vehicles (MPVs), recreational vehicles, and MPVs. Additionally, the business offers services for automobile repair and leasing. The company sells these automobiles via a network of dealers and distributors. The corporation conducts business across the Americas, Europe, the Middle East, and Asia-Pacific through its subsidiaries. The headquarters of Kia is in Seoul, South Korea.