SUVs - Nigeria | Statista Market Forecast

SUVs - Nigeria

Nigeria

Highlights

Revenue in the SUVs market is projected to reach US$281m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.82%, resulting in a projected market volume of US$269m by 2029.
SUVs market unit sales are expected to reach 6.7k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$42k.
From an international perspective it is shown that the most revenue will be generated United States (US$333bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The SUVs market in Nigeria is experiencing significant growth and development.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards SUVs in Nigeria. This can be attributed to several factors, including the perception of SUVs as status symbols and the desire for vehicles with more space and versatility. Additionally, SUVs are often seen as more suitable for Nigeria's challenging road conditions, with their higher ground clearance and robust build.

Trends in the market: One of the key trends in the SUVs market in Nigeria is the increasing demand for compact and mid-size SUVs. These smaller SUVs offer a combination of practicality, fuel efficiency, and affordability, making them attractive options for urban dwellers. Another trend is the growing popularity of luxury SUVs, as more affluent consumers seek vehicles that provide both comfort and prestige.

Local special circumstances: Nigeria's population is rapidly urbanizing, with more people moving to cities and towns. This urbanization trend has led to increased demand for SUVs, as they are seen as more suitable for navigating the often congested and poorly maintained urban roads. Additionally, Nigeria's oil-rich economy has contributed to the rise in SUV sales, as individuals with higher disposable incomes are able to afford these vehicles.

Underlying macroeconomic factors: Nigeria is the largest economy in Africa, and its GDP has been steadily growing in recent years. This economic growth has resulted in an expanding middle class with increased purchasing power. As a result, more Nigerians are able to afford SUVs, leading to a surge in demand. Furthermore, the government's efforts to improve infrastructure, such as road construction and maintenance, have made SUVs a more practical choice for many Nigerians. In conclusion, the SUVs market in Nigeria is experiencing significant growth and development due to shifting customer preferences, local special circumstances, and underlying macroeconomic factors. The demand for SUVs is driven by the desire for status, practicality, and comfort, as well as Nigeria's urbanization trend and expanding middle class. As the economy continues to grow and infrastructure improves, the SUVs market in Nigeria is expected to further expand in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).