Hyderabad, India, Nov. 06, 2025 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the Electric SUV market is projected to expand from USD 361.35 billion in 2025 to USD 596.81 billion by 2030, growing at a 10.56% CAGR. The drop in lithium-ion battery prices by 20% to USD 115 per kWh in 2024 is helping reach cost parity with gasoline SUVs and boosting fleet confidence. Chinese manufacturers benefit from vertically integrated supply chains and diverse product ranges, intensifying competition with Western automakers. Stricter CO₂ regulations, corporate electrification targets, and fast-charging network expansion continue to drive demand, though issues such as mineral supply and rural charging gaps remain.
Regional Insights
Asia-Pacific continues to lead the electric SUV market, supported by strong local manufacturing, advanced battery production, and government incentives that make electric vehicles more accessible. Countries like China, South Korea, and India are expanding production capacity and supply chains, strengthening the region’s dominance.
Europe remains a frontrunner in environmental regulations, positioning electric SUVs as essential for automakers to meet emission goals. However, rising competition from Chinese imports is challenging local manufacturers. In South America, affordable electric SUV models produced through regional assembly are rapidly boosting adoption, particularly in Brazil and nearby markets, signalling the region’s growing importance in the global landscape.
Electric SUV’s Growth Drivers
Fleet Electrification Policies Drive Surge in Electric SUV Demand: Leasing firms are witnessing rising demand for electric SUVs as businesses shift toward sustainable and cost-efficient fleet options. The appeal of these vehicles for executive and delivery use is strengthening market momentum, supported by better residual values and growing investments in charging infrastructure. This shift marks a key phase in the evolution of fleet electrification and long-term mobility planning.
Highway Charging Infrastructure Accelerates to Support EV Growth: Global charging infrastructure for electric SUVs is expanding rapidly as more fast-charging stations become available across key regions. Major automakers and governments are investing heavily to improve accessibility, enabling quicker long-distance travel. The opening of private networks to all vehicle brands and new regulations in Europe are also improving charging convenience, ensuring electric SUV owners can travel freely without range concerns.
Segmentation Landscape
By Vehicle Size
- Compact
- Mid-size
- Full-size
By Propulsion Type
- Battery Electric Vehicle (BEV)
- Fuel-cell Electric Vehicle (FCEV)
- Hybrid Electric Vehicle (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
By Drivetrain
- 2WD
- 4WD
- AWD
By End-User
- Personal Use
- Commercial Use
By Seating Capacity
- 5-Seater
- 7-Seater
Electric SUV Companies
- Tesla, Inc.
- BYD Auto Co. Ltd.
- Volkswagen AG
- Hyundai Motor Group
- SAIC Motor Corp., Ltd.
- Kia Corporation
- Ford Motor Company
- General Motors Company
- BMW Group
- Mercedes-Benz Group AG
- AB Volvo
- Stellantis N.V.
- Toyota Motor Corporation
- NIO Inc.
- XPeng Inc.
- Rivian Automotive Inc.
- Lucid Group
- Geely Holding Group Co. Ltd.
- Great Wall Motor Company Limited
- Tata Motors Limited
- Li Auto Inc.
- Maruti Suzuki Ltd.
- Mitsubishi Motors Corporation
Industry Related Reports by Mordor Intelligence
Electric Vehicle Sensor Market: The electric vehicle sensor market is valued at USD 10.73 billion in 2025 and is projected to reach USD 22.05 billion by 2030, registering a CAGR of 15.49% during the forecast period. Market growth is driven by the accelerating adoption of electric vehicles, advancements in battery management systems, and increasing demand for precision sensing technologies that enhance performance, safety, and efficiency.
Electric Vehicle Range Extender Market: The Electric Vehicle Range Extender Market is valued at USD 1.33 billion in 2025 and is projected to reach USD 2.38 billion by 2030, registering a CAGR of 12.34% during the forecast period. Market growth is driven by the increasing adoption of electric vehicles and the rising need to overcome range anxiety through hybridized powertrain solutions.
Electric Vehicle Battery Coolant Market: The Electric Vehicle Battery Coolant Market is projected to grow at a compound annual growth rate (CAGR) of around 4% from 2025 to 2030. This growth reflects the increasing production and adoption of electric vehicles worldwide, supported by government initiatives, emission regulations, and advancements in EV technology.
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