SUVs - South Korea

South Korea

Highlights

Revenue in the SUVs market is projected to reach US$17bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.48%, resulting in a projected market volume of US$16bn by 2029.
SUVs market unit sales are expected to reach 482.5k vehicles in 2029.
The volume weighted average price of SUVs market in 2024 is expected to amount to US$34k.
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 South Korea has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: South Korean consumers have shown a growing preference for SUVs due to their versatility, spaciousness, and perceived safety features. SUVs offer a higher driving position and more cargo space compared to traditional sedans, making them suitable for both urban and rural lifestyles. Additionally, SUVs are often equipped with advanced safety technologies, which appeal to safety-conscious consumers in South Korea. The popularity of SUVs is further fueled by the desire for a more adventurous and active lifestyle, as SUVs are associated with outdoor activities and off-road capabilities.

Trends in the market: One of the key trends in the SUVs market in South Korea is the increasing demand for compact and subcompact SUVs. These smaller SUVs offer the benefits of an SUV in a more compact and fuel-efficient package, making them appealing to urban dwellers who value maneuverability and fuel economy. This trend is in line with the global shift towards smaller SUVs, as consumers seek more economical and environmentally friendly options. Another trend in the South Korean SUVs market is the rise of electric and hybrid SUVs. As the government and consumers become more environmentally conscious, there is a growing demand for eco-friendly vehicles. Electric and hybrid SUVs offer lower emissions and better fuel efficiency compared to traditional gasoline-powered SUVs, making them attractive options for eco-conscious consumers. The government's support for electric vehicles through subsidies and incentives has also contributed to the growth of this segment.

Local special circumstances: South Korea's unique geography and weather conditions have also influenced the development of the SUVs market. The country has a mix of urban and rural areas, with varying road conditions and terrains. SUVs are well-suited for navigating through South Korea's mountainous regions and snowy winters, providing better traction and stability compared to sedans. Additionally, the spaciousness of SUVs makes them ideal for family use, which is highly valued in South Korean culture.

Underlying macroeconomic factors: The strong performance of the South Korean economy has also played a role in the growth of the SUVs market. Rising disposable incomes and a growing middle class have increased purchasing power, enabling more consumers to afford SUVs. Furthermore, low interest rates and favorable financing options have made it easier for consumers to finance their SUV purchases. In conclusion, the SUVs market in South Korea has experienced significant growth due to changing customer preferences, including a preference for compact and subcompact SUVs, as well as electric and hybrid options. Local special circumstances, such as the geography and weather conditions, have also contributed to the popularity of SUVs. Additionally, the strong economy and favorable financing options have made SUVs more accessible to a wider range of consumers.

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).