Increased Penetration of Sport Utility Vehicle (SUV) to Fuel Growth of Utility Vehicle Market
The global automobile market is undergoing significant transformation, as consumer buying preferences are continuously changing with the market. There is a growing demand for high performance and versatility in the automobile market. The days of consumers preferring large sports utility vehicles are now passe, and the focus has switched to compact sports utility vehicles. In addition, with rising fuel prices, consumers are looking for fuel-efficient utility vehicles, thus sports utility vehicles, and multi-utility vehicles are the solution. As a result, growth in demand for performance combined with efficiency is expected to drive utility vehicle market over the forecast period.
Handle all weathers, and terrains with ease - moreover, the constantly rising popularity of off-road recreational activities created a sense of enthusiasm and excitement for sports among young people, resulting in the growth of sports utility vehicles. For instance, the Off-Road Championship, SCORE International, Grand National Cross Country, and Best in the Desert allow Sport Utility Vehicles to participate and the off-road rally racing, Dakar Rally, organise separate events for utility vehicles in 2018.
Safety is paramount - the most significant driver for utility vehicle market is an increase in consumer awareness of increased safety due to improved security features on these utility vehicles, which has led to increased sales of sport utility vehicle segments. Sport utility vehicles (SUVs) are fully equipped with active safety features such as anti-lock brake system (ABS), advanced driver-assistance systems (ADAS), traction control (ASR), torque vectoring, and tire-pressure monitoring system (TPMS), which have the primary function of preventing accidents by providing the driver with maximum safety. The increasing inclination of consumers toward the adoption of vehicles with high safety features, owing to the increasing number of road accidents is expected to drive the growth of the sport utility vehicle market globally. For instance, according to the World Health Organization (WHO), nearly 1.25 million road accidents report every year.
Carry more people, luggage - practicality reigns supreme when you look at a sport utility vehicle. An SUV offers car owners a roomy interior that is suitable for families and large groups who are looking to go on a road trip or adventure. Towing and hauling capabilities - SUVs are crafted with large and powerful engines that make it much easier to tow weighty assets than the average car that may struggle with the task. Typically, medium to large, SUVs can carry more weight than an average sedan or hatchback and offer ample space that one can use for items such as luggage, prams, or even boxes if moving homes. SUVs offer adventure seekers enough space to carry their sporting gear around and handle the weight of lifestyle equipment of all shapes and sizes. SUVs will also come with a trailer sway control which is incredibly helpful when taking a trailer out on the road. Lastly, the generous height an SUV offer makes it the ideal option for taller drivers, providing increased comfort levels for everyone in the car.
Development in Electric Powered Utility Vehicle Segment to lead Utility Vehicle Market
Electric powered is expected to be the fastest-growing segment of the utility vehicle market over the forecast period. In terms of technological evolution, all mobility solutions have undergone significant changes in recent years. Market players are relying on electrical components to meet changing customer needs due to their output efficiency and lightweight, resulting in the development of electric-powered utility vehicle solutions. Moreover, vehicle emissions are a critical aspect since they release dangerous greenhouse gases, raising environmental and health concerns. As a result, governments all over the world are implementing vehicle emission standards to reduce greenhouse gas emissions and preserve environmental balance. To keep emissions under control, manufacturers must comply with these regulations. For instance, the Indian government implemented the BS6 emission standard in April 2020 to control the outflow of air pollutants from vehicles. As a result, all these factors will increase the demand for electric-powered utility vehicles over the forecast period.
Shifting Transportation Preferences to Drive Growth of Asia Pacific Utility Vehicle Market
Asia Pacific is the largest user of utility vehicles and is expected to grow at the fastest rate throughout the forecast period. Changing transportation preferences, civic utility applications, and increased demand electric powered utility vehicles, are driving regional expansion. Asia Pacific is the leading region across the globe in terms of market share owing to the rapid industrialisation along with the growth of the automotive sector. This region is dominated by China, which is considered one of the fastest-growing countries in the global automotive sector. Technologically advanced countries like South Korea, and Japan have also played important roles in the growth of utility vehicle market across the region. In India, increased construction activity and civic utility applications are driving up demand for small utility vehicles, leading to positive market growth. The Chinese compact utility vehicle market is anticipated to increase as the country's civic utilities, and construction activities expand. In China, sales of compact utility vehicles increased in 2020, and this trend is expected to continue over the forecast period.
The rapid growth of the utility vehicle market in North America can be ascribed to the stringent government regulations to prevent road accidents. For instance, the TREAD Act, passed by the United States Congress in 2018, mandated the installation of appropriate Tire Pressure Monitoring System (TPMS) technology in all passenger vehicles to improve driver and passenger safety through dashboard warning systems. Furthermore, in 2016, the U.S. Department of Transportation's National Highway Traffic Safety Administration officially announced that auto manufacturers in the United States must make autonomous emergency breaking a standard feature for all cars and trucks by 2022. As a result, the regional Sport Utility Vehicle (SUV) market has a highly favourable environment for growth.
Global Utility Vehicle Market: Competitive Landscape
In April 2022, Honda Motor and General Motors, an American multinational automotive manufacturer, formed a partnership. The companies partnered to develop a range of affordable electric utility vehicles based on a new global platform. This partnership would enhance the manufacturers' relations in the areas of all-electric, and autonomous vehicles. On the other hand, in October 2021, Polaris acquired a new manufacturing plant in Monticello, which now includes in-house die casting capabilities, making it a vertically integrated facility that can produce higher-quality products with increased efficiency.
A few of the players in the utility vehicle market include Yamaha Motor Co., Ltd., BRP Inc., Textron Inc., CFMOTO, Polaris Inc., Deere & Company, Mahindra & Mahindra Limited, Honda Motor Co. Ltd., Kubota Corporation, and Kawasaki Heavy Industries, Ltd.
Regional Classification of the Global Utility Vehicle Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Utility Vehicle Market
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