Global Utility Vehicle Market 2024-2031

Utility Vehicle Market Size, Share & Trends Analysis Report by Vehicle Type (Sport Utility Vehicle (SUV), Multi Utility Vehicle (MUV), Utility Terrain Vehicle (UTV)), by Propulsion Type (Internal Combustion Engine (ICE), and Electric), and by Application (Mining, Industrial, Agricultural, Sports, and Others) Forecast Period (2024-2031)

Utility vehicle market is anticipated to grow at a significant CAGR of 10.6% during the forecast period (2024-2031). The popularity of utility vehicles, especially SUVs, is increasing as they offer versatility, roomy interiors, and a higher driving position. Technological improvements, including safety enhancements and infotainment systems, are making these vehicles more attractive to consumers. Additionally, environmental considerations are shaping market preferences, with a growing interest in electric and hybrid models. Factors such as urban growth and evolving lifestyles are contributing to the demand for adaptable vehicles, while government policies are promoting advancements in this sector.

Market Dynamics

Technological Advancements

Electric and hybrid utility vehicle innovations are gaining popularity owing to environmental compliance and appeal to consumers seeking sustainable transportation options, boosting market growth. For instance, in October 2024, Hon Hai Technology Group (known as Foxconn), the largest technology manufacturer and service provider, announced two, new reference EVs at the fifth annual Hon Hai Tech Day (HHTD), extending its automotive range with the MODEL D, a lifestyle multipurpose utility vehicle, and the MODEL U, a midi-sized electric bus.

Climate Change and Sustainability

Automakers are driven to develop sustainable and zero-emission automobiles as a result of the growing global awareness of climate change and the need to minimize carbon footprints. For instance, in March 2023, Club Car, a manufacturer of small-wheel, zero-emissions electric vehicles, rolled out its latest street-legal electric vehicles, the Club Car Urban LSV and XR in North America. Club Car has been steadily growing its production line of compact vehicles for utility applications, including facility management, public sector, leisure and outdoor and last-mile delivery.

Market Segmentation

• Based on the type, the market is segmented into sport utility vehicles (SUV), multi-utility vehicles (MUV), and utility terrain vehicles (UTV).
• Based on the propulsion product type, the market is segmented into internal combustion engines (ICE), electric, and others (hydrogen).
• Based on the application, the market is segmented into mining, industrial, agricultural, sports, and others (construction, recreational, and forestry).

Internal Combustion Engine (ICE) Segment is projected to Hold the Largest Market Share

The adoption of green hydrogen is growing rapidly since it offers heavy-duty utilities a sustainable energy source, propelling market expansion. For instance, in January 2024, Bosch launched a hydrogen internal combustion engine for trucks, adding to its existing fuel cell and battery-electric offerings. Although less efficient than fuel cells, hydrogen engines are cheaper to buy and easier to maintain, making them better suited for off-road heavy-duty vehicles like construction diggers and farmyard tractors.

Agricultural Segment to Hold a Considerable Market Share

The integration of precision agriculture technologies, including GPS systems and sensors, is driving market expansion and improving farm productivity and efficiency, rendering agriculture a significant industry for UTV consumption. For instance, in July 2024, John Deere announced the launch of the new gas Gator XUV 845 and diesel Gator XUV 875 utility vehicles aimed to aid farmers and ranchers improve productivity. The new Gator XUV 845 and Gator XUV 875 utility vehicles offer options for integrated precision ag technology, a larger, more versatile cargo box, and added comfort and convenience elements.

Regional Outlook

The global utility vehicle market is further segmented based on geography including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Asia-Pacific Holds Major Market Share

Advancements in charging solutions, such as fast charging, battery swapping, and smart grid technology, reduce charging times and improve network efficiency, driving market growth. According to the India Brand Equity Foundation (IBEF), in May 2024, India has established 12,146 public charging stations, with Maharashtra and Delhi having 3,079 and 1,886 stations, respectively, marking a growth of around 640% over the past two years. A report by the Confederation of Indian Industry titled 'Changing Infrastructure for Electric Vehicles' suggests that by 2030, the top nine Indian cities, each with populations over 4 million, would need 18,000 charging stations. It also projects that India would require at least 1.32 million charging stations by 2030 to accommodate approximately 106 million annual EV sales, necessitating one charger for every 40 EVs, or over 400,000 charging stations annually.

Market Players Outlook

The major companies serving the utility vehicle market include Bobcat Co., Textron Inc., Kawasaki Heavy Industries, Ltd., Polaris Inc., Yamaha Motor Co., Ltd., and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market.

Recent Developments

• In February 2023, Mahindra Electric Mobility Limited merged with Mahindra & Mahindra Limited, aiming to synergize EV development, manufacturing, and sales operations, with the Last Mile Mobility division managing Mahindra's popular mix of petrol, CNG, diesel, and electric vehicles.
• In September 2022, Mullen Automotive acquired a 60% interest in Bollinger Motors, marking its first EV acquisition. This move allowed the company to enter medium-duty truck classes 3-6 and the B1 and B2 sport utility trucks, demonstrating strong market demand for Bollinger's vehicles.
• In January 2022, Toyota Kirloskar Motor launched the Hilux, a lifestyle utility vehicle in India. The iconic Toyota Hilux, known for its ruggedness and toughness, is renowned for its performance, power, and sophistication. The vehicle offers class-leading comfort for city drives and is best suited for off-roading adventure drives and everyday city use. It features a heavy-duty turbo engine, diamond-like carbon coating, and a 500Nm torque, making it an unrivaled combination of performance, power, and fuel efficiency.