Crossover Vehicle: Introduction
- Increase in demand for large cargo capacity and comfort on long journeys is boosting the demand for crossover vehicles. A crossover vehicle is a sub-segment of the sport utility vehicle. A crossover vehicle’s platform is built by using a car’s platform, while bigger SUVs are built on the chassis of trucks. Crossover vehicles have a unibody architecture, which means the vehicle’s body and frame are a single unit. SUVs comprise the body on frame type of design, which means the body is built separately from the frame and both are placed together later, during the assembly of the vehicle.
Key drivers of global crossover vehicle market
- Increase in demand for crossover vehicles is attributed to a rise in consumer demand for vehicles with larger cargo space and increased passenger space. Crossover vehicle are essentially utility vehicles with good fuel economy and cargo capacity as large as a small truck. Moreover, they are available at a lower price as compared to that of premium vehicles.
- Demand for SUVs is increasing due to a rising trend toward vehicle customization. The aftermarket offers numerous options for vehicle customization, including customization of vehicle internal and external esthetics, installation of several electronic gadgets including dash cams, coffee maker, and mini fridge. Furthermore, crossover vehicles can be fitted with external accessories including custom grilles, chrome accessories for headlamps and tail-lights, off road bumpers, grille guards, and spoilers owing to the large size of the vehicle.
- Rapid urbanization is accompanied by industrial growth in several industrial verticals including mining, construction and road infrastructure, manufacturing and production. This indicates expansion of the economy, which in turn boosts the disposable income of the population across the globe. Consumer demand for safety and security is shifting consumer preference toward personal transport over public transport. All the factors mentioned above are likely to propel the global crossover vehicle market.
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Increasing penetration of SUVs across the world propelling global crossover vehicle market
- According to International Organization of Motor Vehicle Manufacturers, in 2017 and 2018, total number of commercial and passenger vehicles sold across the globe was approximately 96 million units and 95 million units, respectively. This indicates slowdown of the automotive industry globally. Nonetheless, an increase in popularity of SUVs has been attributed to flexible trade norms and reduction of taxes on automobiles in order to boost sale.
- In 2018, SUVs accounted for 29.77 million units of the total number of vehicles sold globally. When compared to 2017, which recorded 27.88 million units of SUV sale, there was 6.8% rise in total sales of SUVs, in terms of volume. Therefore, the factors mentioned above offer lucrative opportunities to the global crossover vehicle market.
North America followed by Asia Pacific to hold prominent share of global crossover vehicle market
- High living standards and developed road infrastructure in North America are likely to increase trend of personally owned vehicles in the region. In 2018, approximately 45% of vehicles sold in the U.S. were sport utility vehicles (SUVs). Furthermore, approximately 43% of vehicles cold in Canada were SUVs. This indicates a rise in trend toward adoption of SUV in North America.
- Popularity of SUVs is also rising in countries in Asia Pacific. For instance, in 2018, SUVs accounted for 42%, 23%, and 13% of total vehicles sold in China, India, and Japan, respectively.
- Ventures between various OEMs to boost their production and manufacturing in countries like China, India in Asia pacific are further driving the crossover vehicle market in Asia Pacific. For instance, in August 2018, Suzuki and Toyota entered into a joint venture under which Suzuki invested US$ 1 billion in Toyota’s plant at Bengaluru, India. This investment is intended to boost production of both Suzuki and Toyota vehicles. Therefore, the factors mention above propels the crossover vehicle market in Asia Pacific.
Key players operating in global crossover vehicle market
The global crossover vehicle market is highly concentrated owing to the presence of top manufacturers. A few of the key players operating in the global crossover vehicle market are:
- Ford Motor Company
- Subaru of America, Inc.
- Honda Motor Company, Ltd.
- Toyota Motor Corporation
- Nissan Motor Company Ltd.
- Mazda Motor Corporation
- Kia Motor Corporation
- FCA US LLC
- General Motors
- BMW AG
- Volvo Cars
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Global Crossover Vehicle Market: Research Scope
Global Crossover Vehicle Market, by Drive Type
- Front Wheel Drive
- Rear Wheel Drive
- All Wheel Drive
Global Crossover Vehicle Market, by Propulsion
Global Crossover Vehicle Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
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