Crossovers Industry: Role of Advanced Safety Features in Boosting Business Potential

Highlights:

• Introduction
• Advanced safety features of crossovers
• Trends in the industry
• Key product launches

A crossover vehicle, commonly referred to as a CUV, is a type of vehicle that combines features from both passenger cars and traditional sport utility cars (SUVs). Crossovers, characterized by their unibody construction, share design elements with SUVs, such as a versatile interior space and elevated ground clearance. The global crossovers industry is expected to display a noteworthy CAGR of 7.6% by 2032.

Manufacturers incorporate features of enhanced fuel efficiency and car-like handling into the designs of the crossovers. This hybrid design aims to offer users a vehicle that combines the cargo capacity and practicality associated with SUVs, with the improved fuel economy and smoother ride commonly found in conventional sedans. Crossovers became popular due to their flexibility for both outdoor activities and urban commuting, and their adaptability to various driving conditions.

Advanced safety features: boosting the potential of crossovers

As safety standards in the automotive industry evolve, consumers increasingly prioritize vehicles with advanced safety features. Crossovers have responded to this demand by integrating innovative technologies that enhance both active and passive safety measures. A crucial factor that propels the crossover sector forward is the smooth incorporation of advanced driver-assistance systems (ADAS).

Incorporating advanced safety features is essential for meeting government regulations. The increase in stringency of vehicle safety regulations encourages automakers to invest in innovative safety technologies.

The main driver of this security evolution is the emergence of crossovers, which are popular choices for a wide demographic group. Manufacturers actively respond to the requirements of government by improving the safety features of the vehicles, which ensures that crossover vehicles meet or often exceed these standards.

Crossovers now feature advanced technologies, such as surrounding cameras, parking sensors, and cross-traffic alert systems. These features improve the safety of occupants and contribute to overall convenience and driving.

Futuristic trends transforming the landscape of the crossovers industry

A rise in trend in the crossover vehicle industry is the increased demand for compact and mid-size models. These vehicles exhibit superior fuel efficiency compared to traditional SUVs, appealing particularly to cost-conscious consumers. Furthermore, the ease of maneuverability in urban environments adds to the surge in popularity of compact and mid-size crossovers.

Another notable trend in the sector is the increase in preference for crossover vehicles among young consumers. Millennials and Gen Z individuals prioritize practicality, affordability, and style, all of which are characteristics offered by crossover vehicles. In addition, the presence of advanced features and technology options in these vehicles serves as an added attraction for younger consumers.

How are key players dominating the crossovers industry?

The global crossovers industry is dynamic and key players employ various strategies to expand their presence in the sector by utilizing innovative designs, technological advancements, and marketing campaigns. For instance, on November 16, 2023, Lucid (LCID.O), recognized for its flagship Air luxury electric sedan, revealed the Gravity sport utility vehicle, marking the startup's entry into a lucrative segment of the U.S. auto industry. With a starting price below $80,000 and the top trim offering a range of over 440 miles, Gravity positions itself directly alongside its competitor, Rivian's flagship R1S SUV. Production for Gravity is anticipated to begin in late 2024.

Moreover, Kia Corp. launched a compact electric sport-utility vehicle and unveiled two concept EVs on October 12, 2023, marking its growth into more budget friendly models for cost-conscious drivers. Kia plans to launch models in both North Korea and South Korea with adjusted driving ranges and smaller batteries on the basis of local market demands. The EV5 comes equipped with a 5-inch climate control display and dual 12.3-inch screens for both infotainment and instrument displays. In the Chinese version, the car is expected to have a foldable rear seat that converts into a bed and a front bench seat.

On August 17, 2023, China's largest electric vehicle maker, BYD, officially launched a new premium brand-named Fang Cheng Bao at the event in Shenzhen. This move signifies BYD's intensified efforts to expand its presence in the luxury SUV sector. The newly introduced Fang Cheng Bao brand from BYD is set to offer sports cars and electric off-road sport-utility vehicles (SUVs).

To conclude, the global crossovers industry has experienced growth due to the emergence of electric crossovers, safety features offered by crossovers, and changes in family structure. However, the growth of the luxury crossovers segment, plug-in hybrid, and hybrid models are expected to offer remunerative growth opportunities to the sector in future.

For a detailed analysis of the crossovers industry with segmentation, competitive scenarios, and opportunities, contact our experts today!

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