The auto industry continues to see blockbuster sales, and after adding November figures, SUVs have cemented themselves as the star of the show.

As fuel efficiency improves and both older and younger generations require more room and performance from their vehicles, car buyers are shunning compact cars for a bigger ride. Ford Motor Company F, -2.06% estimates that SUVs make up about one-third of the current market, and will grow to about 40% of the market by 2020.

“All things being equal, people like utility,” Erich Merkle, a Ford spokesman, told MarketWatch.

November sales highlight that preference for utility. Ford’s Edge, a midsize crossover, saw a 6% year-over-year increase in sales, and the company’s year-to-date sales of its larger Explorer -- which saw a model refresh this year -- have already surpassed sales for all of 2014 by more than 16,000 vehicles.

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Fiat Chrysler Automobiles’ FCAU, -0.33% Jeep brand had its best November sales on record this year, with an increase of 20% year-over-year.

More people who traditionally drove sedans are driving SUVs as their handling becomes more similar to smaller cars, says Jim Morrison, head of Jeep product marketing. The improvement makes larger vehicles easier to drive, so car buyers who prefer a larger size but prefer easy handling “can have their cake and eat it too,” Morrison says.

Both General Motors’ GM, -0.34% Chevrolet Traverse -- a midsize crossover -- and Chevrolet Equinox -- a compact crossover -- broke sales records for November. Retail sales of the Chevrolet Suburban were up 31% from 2014.

“We expect customers will continue to embrace crossovers and SUVs because they are meeting their fundamental needs for utility, comfort and fuel efficiency,” said Mustafa Mohatarem, chief economist for GM, in a news release.

However, the cars flying off the lots aren’t the same as the gas guzzlers that dominated the late 1990s and early 2000s.

The evolution of the segment to smaller SUVs and crossovers has helped increase their attractiveness to both baby boomers and millennials, says Jessica Caldwell, director of industry analysis at automotive research site Edmunds.com. The combination of higher ride height, larger cargo capacity and improved fuel efficiency appeals to a wide variety of car buyers.

“People like being able to see over traffic, there’s better visibility and a feeling of safety,” she says.

Caldwell says smaller SUVs have become the most popular segment in the U.S. market, with vehicles like the Honda 7267, -3.91% CR-V, Toyota TM, +0.78% RAV4 and Nissan 7201, -1.53% Rogue contributing heavily to auto maker sales. “November will be the 27th straight month in which [small SUVs] have outsold cars, and the gap is widening,” Caldwell says. She adds that much of the sales come from compact car owners transitioning to small SUVs as vehicle fuel efficiency improves. Combined city and highway fuel economy for SUVs in the 2002 model year ranged from about 12 miles per gallon to about 24 miles per gallon, according to the U.S. Department of Energy. The range has increased to about 17 miles per gallon to 32 miles per gallon for the 2015 model year.

The CR-V continues to be one of the best-selling SUVs on the market, and after the addition of November sales, has sold more than 300,000 vehicles for three consecutive years.

While larger SUVs and crossovers are popular among young families who need extra passenger space, small SUVs have become increasingly popular among empty-nesters who are used to driving larger cars. Merkle says that nearly 40% of buyers between the ages of 65 and 75 are opting for smaller SUVs because of familiarity and the ease of entering the vehicle. Unlike sedans, older drivers don’t have to bend down, or climb up, like in larger SUVs.

The larger SUV segment will also continue to grow, according to Merkle, as older millennials grow their families and younger millennials begin to have children as well.

And the trend is expected to only go up from here. “If fuel efficiency increases keep happening, [SUV sales increases] seem like a no-brainer,” Caldwell says.