Driven by cheap gas and the divergent needs of Baby Boomers and millennials, SUV sales are up significantly in 2015 and are expected to rise further in the coming years.
According to data from the researcher Automata Corp. cited by Bloomberg Business, sales of SUVs and sport wagons are up 16 percent in 2015 owing to a confluence of factors including cheap gas and low car loan rates.
Over the long term, sales of SUVs are projected to continue rising as two large generational groups move into life stages that lend themselves to bigger vehicles like SUVs. Millennials are beginning to settle down and start families, which will leave them wanting cars with the space to haul around kids, soccer equipment and whatever else. At the other end of the spectrum, as they age, Baby Boomers—who pioneered the widespread popularity of SUVs as family cars rather than off-road rigs—will look “for a vehicle that supports the reality of some of their physical disposition,” says Kevin Schad, brand manager for the Ford Escape.
Overall, Ford projects these forces will lead to SUV sales accounting for 40% of the U.S. automobile market by 2020.