The global electric sports utility vehicle (e-SUV) market is expected to grow by as much as US $83.74 billion from 2022-2027. And 33% of that market growth is anticipated to come from the Asia–Pacific region (APAC), according to Technavio’s latest market research report.
Based on the company, government initiatives pushing sustainability, tight carbon emission regulations, and incentives for e-SUV adoption in polluted urban areas (such as China and India) will drive market expansion. That coupled with an increase in EV charging infrastructure and an active involvement from foreign and local automotive manufacturers (the latter helping to boost EV technology) should fuel market growth even more.
“Improved economic conditions in China and Japan have bolstered discretionary income, leading to a surge in automobile sales, particularly in the EV segment,” said Technavio in its news release. “Despite setbacks from COVID-19, the region’s recovery is evident with lifted lockdowns and resumed business operations.”
They add that developing nations such as India, Indonesia, and Bangladesh, present opportunities for e-SUV OEMs, as government initiatives, environmental concerns among consumers, and rising fuel costs will help drive market growth.
“One of the key drivers propelling the growth of the e-SUV market is the implementation of government incentive schemes such as the FAME II scheme, which aims to accelerate the adoption of electric car models by providing subsidies and tax benefits to consumers,” said Technavio.
The year-over-year growth rate for the global e-SUV market is expected to be 23.71% for 2023. Technavio analyzed the APAC, North America, Europe, South America, and Middle East and Africa regions for its study.
