CAGR: 9.0%Current Market Size: USD 155.2 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2021-2028Base Year: 2020
Market Overview
The global hybrid vehicle market is expected to grow from USD 155.2 Billion in 2020 to USD 303.5 Billion by 2028, at a CAGR of 9.0% during the Projection period 2021-2028. This growth of the hybrid vehicle market is significantly driven by an upsurge in concerns associated with vehicular emissions and demand for vehicles with more power and enhanced fuel efficiency.
Hybrid vehicles are powered by an electric motor and a conventional internal combustion engine (either petrol or diesel). It cannot be plugged in to charge the battery; however, it utilizes energy stored in batteries where the battery is charged by the internal combustion engine and via regenerative braking. This type of vehicle features a small fuel-efficient engine coupled with an electric motor for assisting the engine while accelerating. As compared with conventional vehicles, hybrid vehicles offer better power and fuel efficiency along with low emissions.
Further, such a type of vehicle ensures reduced operational and maintenance costs. However, with the ongoing technological breakthroughs, the portfolio of hybrid vehicles is expanding at a rapid pace around the globe with a number of consumers in varied regions preferring hybrid vehicles.
Request Sample:- Global hybrid vehicle market
Market Dynamics
Drivers:
Vehicular emissions can lead to numerous bad effects on human health as well as the ecosystem. For instance, transportation has become one of the major sources of air pollution in different countries across the globe owing to the high number of IC engine-powered vehicles. However, usage of the hybrid electric vehicles can cut emissions and reduce smog-forming pollutants significantly. In addition, hybrid vehicles are one of the major solutions for preserving air quality for the future. This factor prominently boosts demand for hybrid vehicles.
According to the December 2020 survey by nationally representative Consumer Reports survey, 89% of the Americans agreed that automakers should improve fuel economy in their upcoming models. In addition, most of them think fuel economy is either very important or extremely important while purchasing a new vehicle. However, one of the major benefits of a hybrid car is its greater fuel economy, with about 30% less fuel per mile as compared with conventional fuel-powered vehicles. Hence, demand for fuel-efficient vehicles is projected to boost the growth of the market.
Restraints:
Rising fuel prices along with the various government initiatives have created a demand for battery electric vehicles (BEVs). In addition to this, a number of electric vehicle companies such as Tesla (US), BYD (China), BMW Group (Germany), Volkswagen AG (Germany), and Nissan Motors (Japan) are introducing battery electric vehicles (BEVs) and Fuel cell electric vehicles (FCEVs), hampering the growth of the hybrid vehicles.
Opportunities:
Emerging government initiatives associated with hybrid vehicles and incentive programs that use special discounts and credits to support the purchase and usage of hybrid vehicles has created lucrative growth opportunities for the market. Such government initiatives have led to the rising shift towards hybrid cars and buses in the public transportation and service vehicles sector as a part of government programs for becoming more environmentally responsible. For instance, under the National Electric Mobility Mission Plan 2020 (NEMMP), the government of India planned to enhance Electric and Hybrid vehicle sales in India.
Challenges:
Hybrid vehicles are comparatively expensive than conventional petrol or diesel-powered vehicles. They can be as much as 20% more costly than its counterpart powered by a conventional gasoline engine. Such high costs may create challenges associated with the sale of hybrid vehicles.
Segmentation Analysis
The global hybrid vehicle market has been segmented based on electric powertrain type, component type, propulsion, hybridization, vehicle type, and regions.
By Electric Powertrain type
By Component Type
By Propulsion
By Hybridization
By Vehicle Type
By Regional Analysis
The regions analyzed for the Hybrid Vehicle market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The North American region dominated the Hybrid Vehicle market and held the 37.9% share of the market revenue in 2020.
Key Industry Players Analysis
Key market players are focusing on new launches to improve market position
The key players are now concentrating on implementing strategies such as adopting new technology, product innovations, mergers & acquisitions, joint venture, alliances, and partnerships to improve their market position in the global hybrid vehicle industry.
For instance, in September 2020, Allison Transmission launched the eGen Flex, the new zero-emission vehicle (ZEV)-a capable electric hybrid system. This launch is aimed at providing an innovative solution for helping fleets of commercial vehicles to go electric.
In July 2019, Continental, one of the leading market players introduced a 48V high-power drive system for enabling electric-only driving in hybrid vehicles. This launch has enhanced the hybrid vehicle portfolio of the company.
Latest Development
Report Metrics
Report Attribute |
Details |
Projection period |
2021-2028 |
Base year considered |
2020 |
CAGR (%) |
9.0% |
Market Size |
155.2 Billion in 2020 |
Projection unit |
Value (USD) |
Segments covered |
Electric Powertrain type, Component type, Propulsion, Hybridization, Vehicle Type, and Regions |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
ZF Friedrichshafen AG, Bharat Forge Limited, NTN Corporation, American Axle & Manufacturing, Inc., Meritor Inc., ThyssenKrupp AG, CIE Automotive, S.A., Dana Inc., Ramkrishna Forgings among others. |
By Electric Powertrain type |
|
By Component type |
|
By Propulsion
|
|
By Hybridization |
|
By Vehicle Type |
|
Regional scope |
|
Scope of the Report
Global Hybrid Vehicle Market by Electric Powertrain type:
Global Hybrid Vehicle Market by Component type:
Global Hybrid Vehicle Market by Propulsion:
Global Hybrid Vehicle Market by Hybridization:
Global Hybrid Vehicle Market by Vehicle Type:
Global Hybrid Vehicle Market by Region:
The market value of the hybrid vehicle Market in 2020 is $155.2 Billion.
Parallel Hybrid segment is the most influencing segment in the Hybrid Vehicle market.
North America held the major share in the market over the Projection period 2021- 2028.
The leading market players active in the global Hybrid Vehicle market are Delphi, Continental, BorgWarner, ZF Friedrichshafen AG, Ford, Volvo, Continental, Toyota, Daimler, Honda, Hyundai, Schaeffler, Allison Transmission, Nissan, and among others.
Electric Powertrain type, Component type, Propulsion, Hybridization, Vehicle Type, and regions are the six segments of the report.
Yes, the market includes qualitative and quantitative insights for COVID-19 impact on the hybrid vehicle market.
The Hybrid Vehicle market is studied from 2020 - 2028.
Political- Emerging government initiatives associated with hybrid vehicles and incentive programs that use special discounts and credits to support the purchase and usage of hybrid vehicles has created lucrative growth opportunities for the market. Such government initiatives have led to the rising shift towards hybrid cars and buses in the public transportation and service vehicles sector as a part of government programs for becoming more environmentally responsible. For instance, under the National Electric Mobility Mission Plan 2020 (NEMMP), the government of India planned to enhance Electric and Hybrid vehicle sales in India.
Economic- Hybrid vehicles are comparatively expensive than conventional petrol or diesel-powered vehicles. They can be as much as 20% more costly than their counterpart powered by a conventional gasoline engine. Such high costs may create challenges associated with the sale of hybrid vehicles.
Social- The Asia-Pacific region is likely to register the highest growth during the Projection period. This is mainly due to the significant demand for hybrid vehicles across the countries including China, Japan, and South Korea. In addition to this, the region is home to prominent market hybrid vehicles market players such as Honda, Toyota, Nissan, BYD, Kia, and Hyundai. This factor is further projected to create lucrative growth opportunities for the market during the Projection period.
Technological- Increasing adoption of regenerative braking technology in hybrid vehicles and innovation in technology is boosting the growth of the market. In addition, it reduces the need for external electric infrastructure; thus, fueling the growth of the segment. However, the series hybrid segment is projected to witness the highest growth rate during the Projection period.
Environmental- Vehicular emissions can lead to numerous bad effects on human health as well as the ecosystem. For instance, transportation has become one of the major sources of air pollution in different countries across the globe owing to the high number of IC engine-powered vehicles. However, usage of the hybrid electric vehicles can cut emissions and reduce smog-forming pollutants significantly. In addition, hybrid vehicles are one of the major solutions for preserving air quality for the future. This factor prominently boosts demand for hybrid vehicles.
Legal- Ford acquired Electriphi which is the developer of end-to-end energy management and fleet operations software. This acquisition strengthens future EV commercial business Ford.
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