Changing lanes: The industry will shift toward fuel-efficiency as consumer preferences change

Over the five years to 2017, revenue for the SUV and Light Truck Manufacturing industry increased, bolstered by rising disposable income, which bolstered purchases of new automobiles. However, rising regulatory standards and volatile gasoline prices hampered industry growth somewhat. Over the five years to 2022, revenue is expected to continue rising, albeit at a slower rate. The world price of crude oil is expected to increase over the next five years, which may encourage consumers to purchase smaller, more fuel-efficient vehicles such as passenger cars. As a result, industry operators are expected to increase their emphasis on producing more fuel-efficient vehicles...read more.

Industry Statistics & Market Size
Revenue
$37bn
Annual Growth 12-17
4.9%
Forecast Growth 17-22
Profit
Employment
16,733
Businesses
26

Industry Threats & Opportunities

  • Higher gas prices will discourage consumers from purchasing larger vehicles, which are typically less fuel-efficient
  • International trade, particularly trade with the United States, is an integral component of the industry
  • As the price of oil increases, consumers are expected to purchase smaller, fuel-efficient vehicles
  • Industry Report - Industry Products Chapter

    This industry produces vans, trucks and sport-utility vehicles (SUVs). The automotive marketplace is one of constant change and innovation that continuously creates new product platforms. IBISWorld segments industry product types into three main categories: vans, trucks and SUVs, each consisting of two subcategories.SUVs and CUVsSUVs are fully enclosed vehicles similar to station wagons but built on a light truck chassis. These vehicles, such as the Jeep Wrangler, were originally known for their excellent off-road capabilities. Over the past five years, rising gas prices altered consumer preferences for large vehicles with poor fuel economy. Standard SUVs suffer from very low gas mileage comparable to that of a full-size pickup truck. Con...purchase to read more.

    Additional Insights for the SUV & Light Truck Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the SUV & Light Truck Manufacturing Industry are

  • Product portfolio matches customer demand
  • Flexible cost structures
  • Establishment of export markets
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and World price of crude oil in the SUV & Light Truck Manufacturing industry impact industry performance..

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    What's in this report

    What is the SUV & Light Truck Manufacturing Industry?

    This industry manufactures light trucks and utility vehicles such as vans, pickups, sport-utility vehicles (SUVs) and crossover-utility vehicles (CUVs). The industry also manufactures light truck and utility vehicle chassis. This industry excludes the manufacturing of cars and motorcycles.

    Industry Products
  • Small pickup trucks
  • SUVs
  • Large vans
  • CUVs
  • Large pickup trucks
  • Industry Activities
  • Pickup truck
  • SUV and CUV
  • Light truck and utility chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • World price of crude oil
  • Canadian-dollar effective exchange rate index
  • World price of steel

  • Current Performance
  • Rising regulation
  • Dependent on the United States
  • Profit trends higher
  • Chart: Revenue Growth

  • Industry Outlook
  • Obstructed growth
  • International trade
  • Profit growth tightens
  • Table: SUV & Light Truck Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - SUV & Light Truck Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling in Canada
  • New Car Dealers in Canada
  • Car Rental in Canada

  • Key Selling Industries
  • Automobile Engine & Parts Manufacturing in Canada
  • Battery Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada

  • Products & Services
  • CUVs
  • Large pickup trucks
  • SUVs
  • Large vans
  • Small pickup trucks
  • Chart: SUV & Light Truck Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Automobile dealers
  • Wholesalers
  • Leasing companies
  • Government
  • Chart: Major Market Segmentation for the SUV & Light Truck Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Research and development costs
  • Chart: Cost Structure Benchmarking – Sector vs SUV & Light Truck Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the SUV & Light Truck Manufacturing Industry

  • Industry Globalization
    General Motors Company, Ford Motor Company of Canada Limited,
  • Table: General Motors Company - financial performance
  • Table: Ford Motor Company of Canada Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the SUV & Light Truck Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the SUV & Light Truck Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Canadian-dollar effective exchange rate index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Corporate Average Fuel Economy (Cafe)
  • A regulation intended to improve the average fuel economy of cars and light trucks.
  • Crossover-Utility Vehicle (Cuv)
  • A mid-sized vehicle that combines features of a car with an SUV. They are generally smaller and more fuel efficient that SUVs.
  • Fuel Cell
  • An energy source that operates like a battery but does not require recharging; oxygen passes over one electrode and hydrogen over a second, generating electricity, water and heat.
  • Hybrid Vehicles
  • A vehicles that uses two different power sources to run, in most cases referring to an electric battery in conjunction with a gasoline engine.
  • Miles Per Gallon (Mpg)
  • A measure used to indicate fuel efficiency.
  • Sport-Utility Vehicle (Suv)
  • A mid-sized vehicle similar to a station wagon, but built on a light-truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s SUV & Light Truck Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on SUV & Light Truck Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The SUV & Light Truck Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on SUV & Light Truck Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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