E-SUVs Market Strategic Market Review, Key Business Drivers and Industry Forecast by 2034

E-SUVs Market Emerging Trends, Investment Opportunities & Competitive Benchmarking

The E-SUVs market is forecast to grow from USD 337.42 billion in 2025 to USD 13,969.03 billion by 2034, driven by a CAGR of 51.24% from 2025 to 2034.

Unlock Infinite Advantages: Subscribe to Annual Membership

Introduction

The E-SUVs market is a crucial branch of the electric vehicle industry. This industry deals in manufacturing and distribution of electric SUVs across the globe. There are different types of vehicles developed in this sector including compact SUVs, mid-size SUVs and full-size SUVs. These SUVs are comprises of different components such as body, chassis, powertrain, battery, electronics and some others. It is designed for providing various driving range comprising of upto 150 kms, 150 to 300 kms, above 300 kms and some others. The growing sales of electric SUVs in different parts of the globe has boosted the market expansion. This market is expected to rise significantly with the growth of the automotive sector around the world.

• According to the International Energy Organization, around 2.35 million electric SUVs were sold in advanced nations during 2022 that increased to 3.3 million units in 2023.

Highlights of the E-SUVs Market

• Asia Pacific held the highest share of the E-SUVs market.
• North America is expected to grow with a significant CAGR during the forecast period.
• By propulsion, the HEV segment led the industry.
• By propulsion, the BEV segment is likely to rise with a significant growth rate during the forecast period.
• By size, the mid-size segment led the industry.
• By size, the full-size segment is predicted to grow with the highest CAGR during the forecast period. 
• By driving range, the 150-300 km segment held the largest portion of the industry.
• By driving range, the above 300 km segment is anticipated to grow with the fastest rate during the forecast period.
• By component, the powertrain segment dominated the market.
• By component, the battery segment is projected to rise with the highest CAGR during the forecast period.

Key Metrics and Overview

E-SUVs: Trends in the Industry

• The automotive companies have started developing E-SUVs at affordable prices to cater the consumers of middle-income countries.
• Several EV brands have increased their focus on manufacturing off-roading SUVs for driving enthusiasts.
• Numerous battery companies are investing heavily for developing solid-state batteries to provide superior driving range in full-sized SUVs.
• Various automotive brands are partnering with each other for manufacturing electric SUVs with advanced features to fulfill the wishes of rich consumers.

Propulsion Insights

The HEV segment led the industry. The rising demand for vehicles that provides high-driving range has boosted the market expansion. Also, the technological advancements in parallel hybrid powertrain along with rapid investment by automotive companies for developing full hybrid vehicles is crucial for the industrial growth. Moreover, the increasing adoption of hybrid SUVs due to several benefits such as low maintenance, high fuel economy, regenerative braking and some others is expected to boost the growth of the E-SUVs market.

• In October 2024, Mahindra and Mahindra announced to launch a hybrid SUV by 2026. This SUV will be developed in a joint venture with Skoda.

The BEV segment is likely to rise with a significant growth rate during the forecast period. The growing demand for eco-friendly SUVs around the world boosts the market growth. Also, several government initiatives aimed at strengthening the EV charging infrastructure coupled with rising consumer awareness to reduce CO2 emission has played a significant role in shaping the industrial landscape. Additionally, various automotive companies such as Mahindra and Tata are investing heavily for developing advanced electric SUVs is projected to drive the growth of the E-SUVs market.

• In March 2025, Tata announced to launch Harrier EV in India. Harrier EV is an electric SUV that comes with advanced features such as level 2 ADAS, 360-degree camera, 7-airbags and some others.

Size Insights

The mid-size segment led the industry. The rising sales of budget SUVs in middle income countries such as China, India, South Africa and some others has boosted the market growth. Also, the growing consumer preference for comfortable vehicles with 5-seater arrangement is positively driving the market expansion. Moreover, the increasing demand for SUVs with advanced features and high-driving range propels the industrial growth.

• In January 2025, Hyundai launched Creta EV in India. Creta EV is an electric SUV that comes with numerous battery options such as 42 kWh and the 51.4 kWh.

The full-size segment is predicted to grow with the highest CAGR during the forecast period. The rising demand for luxury SUVs in different parts of the world has boosted the market expansion. Additionally, the growing consumer preference towards off-roading activities is crucial for the industrial growth. Moreover, the increasing demand for 7-seater vehicles among elite class people is projected to foster the growth of the E-SUVs market.

• In April 2025, Volvo launched EX90 in Malaysia. EX90 is an electric SUV that comes with a 7-seater configuration and integrated with advanced safety features.

Driving Range Insights

The 150-300 km segment held the largest portion of the industry. The growing sales of affordable SUVs in developing nations has boosted the market expansion. Also, the rising adoption of EVs among sub-urban commuters due to its versatility and flexibility is playing a vital role in shaping the industrial landscape. Moreover, the increasing use of li-ion batteries in affordable SUVs is projected to drive the market growth.

• In March 2025, Volkswagen unveiled EV ID. EV ID is an all-electric SUV that is expected to deliver a driving range of around 250 kms on a single charge

The above 300 km segment is anticipated to grow with the fastest rate during the forecast period. The rising demand for SUVs with high-driving range propels the market growth. Additionally, the increasing sales of luxury SUVs in developed nations along with technological advancements in EV manufacturing sector is crucial for the industrial expansion. Furthermore, the rapid integration of solid-state batteries in SUVs for delivering high-driving range is expected to foster the growth of the E-SUVs market.

• In July 2024, Mercedes-Benz launched EQA. EQA is an electric SUV that is expected to provide a driving range of 560 kms on a single charge.

Component Insights

The powertrain segment dominated the market. The rising demand for high-performance powertrain systems in SUVs drives the market growth. Also, the growing research and development activities for developing efficient and powerful drivetrain propels the industrial expansion. Moreover, rapid investment by automotive brands for opening new powertrain manufacturing facility is projected to boost the market growth.

• In January 2025, Jatco announced to invest around US$ 59.49 million. This investment is done for opening an EV powertrain manufacturing plant in Sunderland facility.

The battery segment is projected to rise with the highest CAGR during the forecast period. The growing demand for SUVs with high-driving range has boosted the market growth. Also, technological advancements in battery manufacturing coupled with numerous partnerships among automotive brands and battery companies is crucial for the industrial expansion. Moreover, rapid developments in li-ion batteries and solid-state batteries is expected to propel the growth of the E-SUVs market.

• In February 2025, Hyundai announced to launch solid-state batteries in March 2025. These solid-state batteries are designed for EVs to deliver superior driving range and fast charging capabilities.

Geographical Insights

Asia Pacific held the highest share of the E-SUVs market. The rising investment by government for strengthening the EV infrastructure drives the market expansion. Also, the rising demand for compact SUVs in countries such as India, Nepal, Bhutan and some others propels the industrial growth. Moreover, the presence of numerous EV brands such as Xpeng, Toyota, Suzuki, Tata Motors, BYD and some others is likely to drive the market growth in this region.

China dominated the market in this region. The growing consumer awareness to reduce emission in the environment along with availability of raw materials at low prices is driving the market expansion. Also, the developments in the battery industry with the presence of numerous market leaders such as CATL, BYD, CALB and some others has boosted the market growth.

• According to the Our World in Data, the CO2 emission in China was 10.71 billion tons in 2019 that increased to 11.9 billion tons in 2023.

India, Japan, South Korea also contributed significantly to the market growth. In India, the market is generally driven by the growing demand for mid-sized SUVs. In Japan, rapid technological advancements in the automotive sector fosters the market growth. In South Korea, this industry is boosted by the presence of various market players such as Hyundai, Kia and some others.

North America is expected to grow with a significant CAGR during the forecast period. The growing demand for luxury SUVs drives the market growth. Also, rapid investment by government for developing the EV charging infrastructure further propels the market expansion. Moreover, rapid adoption of EVs due to increasing prices of diesel and gasoline also accelerates the industrial growth in this region.

The U.S. is a major contributor of this industry. The market is generally driven by the rising deployment of fast chargers in EV charging stations. Also, the rising demand for sustainable transportation along with government initiatives aimed at developing the EV industry propels the market growth. Moreover, the presence of various market players such as Ford, Rivian and some others is expected to boost the market expansion.

Industry Leader Announcement

• In April 2025, Deniz Mei, the General Manager of New Market Development Department at XPENG made an announcement stating that, “We are proud to bring XPENG to the Polish market. Our vehicles set a new standard for electric mobility by combining innovation, performance, and advanced technology. We believe Polish customers will appreciate our vision of the future of transportation.”

Competitive Landscape

The E-SUVs market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Hyundai Motor Company (South Korea), BYD Company Ltd. (China), Toyota Motor Corporation (Japan), Volkswagen AG (Germany), Mercedes-Benz (Germany) and some others. These companies are constantly engaged in developing E-SUVs and adopting numerous strategies such as product launches, partnerships, business expansion, acquisition, and some others to maintain their dominant position in this industry. For instance, in December 2024, Toyota launched the Urban Cruiser EV. Urban Cruiser EV is a SUV that is available in two battery options including 49-kWh and 61-kWh.

Recent Developments

• In April 2024, Brabus partnered with Smart. This partnership is done for launching a high-performance electric SUV in 2025.
• In December 2024, Maruti Suzuki announced to launch e-Vitara in India. E-Vitara is an electric SUV that comes with superior driving range and advanced technologies.
• In November 2024, Bentley made an announcement to launch an electric SUV in 2026. This car will come with hybrid power train and fully electric power train.

E-SUVs Market Segments

By Propulsion

• BEV
• HEV

By Size

• Compact
• Mid-Size
• Full- Size

By Driving Range

• Upto 150 km
• 150 to 300 km
• Above 300 km 

By Components

• Body
• Chassis
• Powertrain
  • ICE
  • Motor
• Up to 20 kW
• 20 to 100 kW
• Above 100 kW
• Battery
  • Upto 10 kWh
  • 10 to 30 KWh
  • 30 to 60 kWh
  • Above 60 KWh
• Electronics
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa