United States E-SUV Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The United States e-SUV market reached around USD 30.04 Billion in 2024. The market is projected to grow at a CAGR of 15.40% between 2025 and 2034 to reach nearly USD 125.82 Billion by 2034.

United States E-SUV Market Growth

The sale of all new light-duty EVs in the United States reached around 1.4 million units in 2023. This was a year-on-year growth of nearly 1 million units while accounting for a share of 9% in total sales of all new vehicles. Many American states which have implemented California’s Zero Emission Vehicle (ZEV) policy, such as Washington, and Oregon, have reported substantial sales of EVs, where total EVs account for over 12% of all new vehicle purchases. Besides, all ZEV states also have 780 chargers per one million residents, while non-ZEV states have 320. The increasing appeal for stylish automobiles that ensure a safe and high-tech riding experience is expected to drive the market expansion in the forecast period.

In 2022, the average duration of an SUV drive was nearly 23.4 minutes. In 2022, nearly 255 million American drivers made nearly 227 billion road trips, spent over 90 billion hours travelling, and drove for nearly 2.8 trillion miles. Early morning hours (3 AM-7 AM) reported the highest duration, as compared to other times of the day. The widespread adoption of SUVs is expected to bolster road safety for vehicle owners and reduce the risk of road accidents. As per the National Center for Statistics and Analysis, the number of road fatalities declined slightly by 0.3% in 2022. With the shift towards sustainability, the adoption of e-SUVs is expected to soar significantly in the coming years.

Key Trends and Developments

Expansion of charging infrastructure; rising trend of offshore automotive manufacturing; growing use of sustainable materials; and increasing research on public safety and vehicle electrification are favouring the United States e-SUV market growth

August 2024

Polestar launched its first American-built e-SUV Polestar 3 in the United States at a price of $73,400. It has a high-tech AWD electric system and can fast charge in merely 30 minutes. Its interior features a smooth Scandinavian design, and it can achieve a speed of 60mph in just 4.5 seconds.

June 2024

Hyundai Motor Group announced its plans to start producing IONIQ 5 electric SUVs at its manufacturing facility in Georgia.

April 2024

Toyota Motor Corp. announced its plans to start the production of a new model of 3-row electric SUV, as a part of its new investment worth $1.4 billion in Indiana.

November 2021

VinFast, a Vietnamese automotive manufacturer owned by the VinGroup conglomerate, debuted the VF e36 and VF e35 models of e-SUVs at a Los Angeles Auto Show. Designed in Pininfarina (Italy), they can travel for nearly 300-400 miles on a single charge and possess semi-autonomous driver assistance features.

Expansion of charging infrastructure

In a push towards upscaling EV charging infrastructure, major EV manufacturers have entered into joint venture agreements/partnerships with other automakers to boost consumer accessibility to charging facilities. This includes companies like General Motors and Tesla Inc. in the United States.

Rising trend of offshore automotive manufacturing

Automotive manufacturers from South Asian countries such as Vietnam are offshoring their operations to the USA due to the burgeoning demand for e-SUVs in the USA and the presence of robust automotive production infrastructure.

Growing use of sustainable materials

Major e-SUV manufacturers are focusing on utilising natural materials to enhance the aesthetic appeal of vehicle interiors, which is fuelling the demand for modern SUVs.

Increasing research on public safety and vehicle electrification

Researchers from Northwestern University suggest that electrification of a fraction of automotive on-road in the Great Lakes region can substantially prevent the risk of premature deaths due to pollution.

United States E-SUV Market Trends

In September 2023, a study conducted by researchers at Northwestern University suggested that by electrification of 30% of EVs in the Great Lakes region, the government can save over 1,000 lives and reduce excess healthcare expenditure by $10 billion. The resultant increases in ozone levels are offset by the reductions in the level of nitrogen dioxide and other volatile organic compounds, which is expected to lead to the implementation of new EV adoption rules.

United States Industry Segmentation

Short Description: The report titled “United States E-SUV Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Mid-Size
• Full Size
• Compact

Market Breakup by Propulsion

• Battery Electric Vehicles (BEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

Market Breakup by Drive Type

• FWD
• RWD
• AWD

Market Breakup by Region

• New England
• Mideast
• Great Lakes
• Plains
• Southeast
• Southwest
• Rocky Mountain
• Far West

United States E-SUV Market Share

Based on region, the market is segmented into New England, Mideast, Great Lakes, Plains, Southeast, Southwest, Rocky Mountain, and Far West. The Great Lakes dominated the market, representing 13.2% of the overall market share in 2023. Over the forecast period of 2025-2034, Southeast is expected to grow at a CAGR of 15.5% as a result of increasing government initiatives to ramp up charging infrastructure facilities.

Leading Companies in the United States E-SUV Market

Major market players are expected to invest in improving e-SUV battery technology to provide consumers with the convenience of faster charging time and improved range.

Tesla Inc.

Tesla Inc. is an American MNC that was formed in 2003 and is based in Texas. It produces luxury passenger EVs and innovative clean energy goods to decarbonise the transportation sector worldwide.

BMW AG

BMW AG is headquartered in Munich (Germany) and was founded in 1916. It is a leading manufacturer of high-end motorcycles and automobiles, with a sales distribution network spanning over 140 different countries.

Volkswagen AG

Volkswagen AG is headquartered in Wolfsburg (Germany) and was founded in 1937. It is a leading producer of autonomous vehicles and hybrid electric cars. The company is present in over 150 countries globally and operates over 110 production plants worldwide.

Mercedes-Benz Group AG

Mercedes-Benz Group AG is based in Stuttgart (Germany)and was founded in 1926. It produces luxurious commercial vehicles and passenger cars.

Other major market players are BYD Co. Ltd., SAIC Motor Corp. Ltd, AB Volvo, Toyota Motor Corp., Nissan Motor Co. Ltd., and Hyundai Motor Co., among others.