Premium CUVs poised for sales growth in US
Sales of premium-price-class crossover utility vehicles (CUVs) have risen dramatically in the United States since 2014. In 2014, there were 713,447 premium CUVs sold in the US, and this increased to 1.04 million units in 2017. The US premium CUV market still has room to grow, according to the IHS Markit sales forecast, and sales will reach about 1.44 million units in 2024.
In 2019, new products are expanding US consumers' choice and driving a forecasted 8.9% growth in demand for premium CUVs in 2020, when this year's new products will have been on market for a full calendar year. Between 2019 and 2024, US sales of premium CUVs are forecast to see a compound annual growth rate of 4.1%. Most of the growth will happen by 2022, when the sales volume is forecast to reach 1.40 million units and the sales growth is expected to begin to slow.
Of the premium CUV segments, the compact segment remains the largest, followed by the mid-size, full-size, and subcompact. Although the overall order in terms of sales is not forecast to change, an increase in the product nameplates available will drive a change in the market shares of the different premium CUV segments. In 2019, premium compact CUVs are forecast to account for 42.6% of all premium CUV sales, with this share growing to 46.9% in 2024. Premium full-size CUVs will also increase their market share, growing from 8.5% in 2019 to 10.6% in 2024. On the other hand, the premium mid-size and subcompact CUV segments are forecast to capture a lower share of the premium CUV volume in 2024 than in 2019. Premium mid-size CUVs' share is forecast to drop from 41.8% in 2019 to 37.0% in 2024, though the sales volume in the segment is forecast to increase from 495,000 units in 2019 to nearly 536,000 units in 2024. In the premium subcompact CUV segment, IHS Markit forecasts US sales will decline. The drop in sales will be from about 84,000 units in 2019 to about 79,500 units in 2024, and this will cause the segment's share to drop from about 7.1% of total premium CUV sales to about 5.5% in 2024.
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