Hybrid Vehicles Market

Hybrid Vehicles Market Size (2023-2028):

The Global Hybrid Vehicles Market was worth US$ 421.05 billion in 2022 and is anticipated to reach a valuation of US$ 1,424.21 billion by 2028 and is predicted to register a CAGR of 22.78% during 2023-2028.

Market Drivers:

Several factors aid in the growth of the global hybrid vehicle market. Firstly, the hike in fuel costs has led to customers demanding hybrid vehicles to bring down the car operating expense. Secondly, the governments of leading countries try to scale back the carbon footprint by switching to alternative automobile fuels and therefore, the hybrid vehicle option, which might cause reduced pollution. Thirdly, the scarcity of fossil fuels thanks to excessive consumption has encouraged automakers to look for newer and cost-efficient technologies for automobiles, including hybrid vehicles for safeguarding the more extended term on sales. Lastly, the increase in efficiency in terms of engine performance and fuel consumption can be easily achieved using hybrid vehicles.

The market is also driven by the advantages offered by hybrid vehicles, like better fuel efficiency, increased golf range, and low emission. With rising demand for mid- and large-sized PHEV and NGV cars, government initiatives concerning hybrid vehicles are likely to boost the worldwide market further.

Market Restraints:

High manufacturing cost associated with electric vehicles and low fuel economy & serviceability restrains the hybrid vehicle market growth. However, technological advancements in electric cars and proactive government initiatives are expected to unfold various opportunities for the expansion of the stakeholders of the hybrid vehicle market, like system integrators, vehicle manufacturers, engine manufacturers, and component providers, in the future.

Market Recent Developments:

• The chairman emeritus of Tata Group, Ratan Tata shared his views on the talk about whether government policies should support only all-electric vehicles or maybe hybrid vehicles to market adoption, calling for legislation that supports all technologies.
• The transport ministry of India has written to the finance ministry posing for the products and services tax on hybrid vehicles to be reduced from 28%.
• Long before the Toyota Prius and therefore the GM EV1 was conceived, a US company not otherwise known for creating cars showed a most unusual vehicle possibly described as a progenitor of plug-in hybrids.

HYBRID VEHICLES MARKET REPORT COVERAGE:

Market Segmentation:

Hybrid Vehicles Market - By Electric Powertrain Type:

• Parallel Hybrid 
• Series Hybrid 

The parallel hybrid segment is projected to be the most extensive and fastest-growing market, in terms of volume, in this market, by electric powertrain type. The marketplace for parallel hybrids is probably going to grow thanks to the increased use of regenerative braking technology. The regenerative braking system is that the most ordinarily used technology in hybrid vehicles. The utilization of the regenerative braking system and therefore, the lesser cost of micro and mild hybrids will heighten the demand for these parallel hybrids.

Hybrid Vehicles Market - By Component Type:

• Battery 
• Electric Motor 
• Transmission 

There has been tremendous growth in electric vehicles everywhere on the planet. China remains the dominant player globally within the pure electric vehicles market, with quite 47% of the worldwide market share followed by the US. Governments around the world are offering many subsidies for purchasers of electric and hybrid vehicles. As an example, in April 2016, a scheme worth USD 1.13 billion was launched primarily for plug-in electric vehicles. Approximately USD 678 million was reserved for the acquisition of subsidies, which is predicted to run until 2019. 

Hybrid Vehicles Market - By Propulsion:

• HEV 
• PHEV 
• NGV 

Hybrid Vehicles Market - By Degree of Hybridization:

• Full Hybrid 
• Micro-Hybrid 
• Mild Hybrid 

Hybrid Vehicles Market - By Vehicle Type:

• Passenger Car 
• Commercial Vehicle 

The passenger cars segment holds a majority of the share within the global hybrid vehicles market. This is often thanks to the dominance of passenger cars within the automotive industry. Coach production in 2015 was quite 68 million units, way ahead of light and heavy commercial vehicles. It's projected that the hybrid vehicles marketplace for passenger cars will still be a significant market segment, and is estimated to garner a CAGR of 22.8% during the outlook period. Hybrid vehicles can be more fuel-efficient than conventional cars, because it utilizes power from automotive batteries, within the event of start-stop or at cruising speeds. Alongside this, the presence of an indoor combustion engine with an electrical system makes a hybrid vehicle more economical and straightforward to drive, especially in urban areas where traffic is typically high.

Market Reginal Analysis:

The Global Hybrid Vehicles Market Report includes the segmentation of regions:

• North America - U.S, Canada
• Europe - Norway, Germany, Sweden
• Asia Pacific - China, India, Japan
• Latin America - Brazil, Mexico, Argentina
• Middle East and Africa - Middle East, Africa

The North American hybrid vehicles market is projected to grow gradually during the foreseen period. The governments in this region are focusing more on zero-emission vehicles. The US and Canada are expected to dominate the market in North America. Asia-pacific is predicted to witness a high rate of growth during the forecast period. However, with countries like India and China, lifting subsidies for the acquisition of electric vehicles may hinder the expansion of the market within the region. As an example, in India, the government lifted subsidies on mild-hybrid vehicles under the FAME scheme in 2017.

Market Key Players:

1. Toyota Motor Corporation (Japan)
2. The Ford Motor Company (U.S.)
3. AB Volvo (Sweden)
4. Continental AG (Germany)
5. ZF Friedrichshafen AG (Germany)
6. Daimler AG (Germany)
7. Hyundai Motor Company (South Korea)
8. Honda Motor Company, Ltd. (Japan)
9. Schaeffler Technologies AG & Co. KG (Germany)
10. BorgWarner Inc. (U.S.)
11. Delphi Technologies, Inc. (U.K.)
12. Allison Transmission (U.S.)