The global hybrid electric vehicle market was valued at $150.9 billion in 2021 and it is expected to reach $1560.8 billion at a CAGR of 21.5% between 2022 and 2032. One of the main causes favoring the adoption of HEVs is the rising levels of air pollution caused by vehicle exhaust emissions, together with the growing environmental consciousness among the general public about rising pollution levels.
The industry for hybrid vehicles includes those with at least two different power sources. The internal combustion engine and electric generator are the two main ones. The flawless operation of the electric trains that connect to the electric generators is made possible by the use of gasoline and diesel in similar generators. The main tenet of the hybrid vehicle business is that the engine operates effectively with various power sources while maintaining efficiency when speed is changed as well. In addition, the adoption of electric vehicles for business usage is being encouraged by governments from several nations to minimize greenhouse gas emissions.
Source: SAI Research
The twin-powered engine used in the hybrid car's efficient operation helps to reduce fuel consumption and conserve energy. Hybrid vehicles are made cheaper by the credits and incentives offered. Additionally, it reduces reliance on fossil fuels to a greater level. The lightweight construction of hybrid vehicles results in lower energy consumption. When the hybrid vehicle is stationary or at a standstill, the engine is automatically turned off and only restarts when the accelerator is depressed. As more and more people transition to hybrid cars, the resale value offered for hybrid vehicles is good.
Due to the high desire for electric mobility, rising fuel prices, and strict rules set by governments in various locations, the global market for hybrid vehicles is expanding quickly. However, the vast majority of people on earth are not familiar with PHEV technology. Additionally, consumers are apprehensive when it comes to new technologies; for instance, there may be concerns about battery life and replacement costs, as well as convenience and recharging times. HEVs can be categorized based on several factors, including architecture, hybridization level, energy storage system, etc. Based on the degree of hybridization, we shall categorize HEVs in this section. This is dependent on the electric motors and the IC engine's power output.
However one of the essential conditions for ensuring the adoption of electric vehicles is the development of a strong electric vehicle infrastructure. Unfortunately, the majority of developing nations lack suitable EV charging infrastructure at the moment and have not yet caught up to meet the demand, which is impeding the expansion of the market for electric vehicles. Furthermore, both an electric motor and a traditional internal combustion engine power hybrid automobiles (either petrol or diesel). The battery cannot be charged by plugging it in; instead, it uses energy from batteries that are charged by an internal combustion engine and regenerative braking. In comparison to traditional automobiles, hybrids provide more power, higher fuel economy, and fewer pollutants.
Based on propulsion type, the full hybrids segment accounted for the larger share of this market. Moreover, better fuel economy and lower emissions are provided. In this field, technical advancements are also ongoing. During the anticipated period, the mild hybrid segment is also anticipated to expand. The completely hybrid category comes next. Furthermore, a vehicle that can run exclusively on a combustion engine, exclusively on an electric motor, or both is known as a full or strong hybrid. For battery-only operation, a sizable battery pack with a high capacity is required. The vehicle can be propelled for brief distances and at modest speeds thanks to larger batteries and stronger electric motors.
In terms of vehicle type, the passenger car is anticipated to drive market growth during the forecast period from 2022 to 2032. People are buying more and more cars for their use due to rising environmental consciousness and hybrid cars' increased fuel efficiency. Growth is anticipated to be aided by the ongoing construction of residential and commercial infrastructure to enable hybrid vehicle commuting. In addition, because hybrid vehicles don't require a large drive range for battery capacity, demand for them is particularly high in urbanized areas where consumers typically use them for regular commuting.
Geographically, the Asia-Pacific region holds most of the market share. This segment is also anticipated to boost the market in the future due to rising demand among a large number of consumers. Sales of hybrid vehicles have increased in China. Asia Pacific is home to many of the major market participants, including Hyundai, Nissan, Honda, and Toyota. Due to the widespread use of hybrid vehicles, nations like China and Japan have greatly boosted the industry. Additionally, the market expansion in this area can be linked to the rise in hybrid car sales in South Korea, China, and Japan. In China, hybrid vehicles have also become more popular in addition to electric vehicles.
According to the study, key players such as Allison Transmission (U.S), AB Volvo (Sweden), BMW AG (Germany), BYD Ltd (China), BorgWarner (U.S), Ford Motor (U.S), Groupe Renault (France), Greaves Cotton (India), Hyundai Motor Group (South Korea), Hero Electric (India), Honda Motor Company (Japan), INA-Holding Schaeffler (Germany), Lucid Motors (U.S), Lexus (Japan), Mercedes Benz Group (Germany), Porsche SE (Germany), Suzuki (Japan), Tesla (U.S), WM Motor (China), Wanxiang Group Corp (China), among others are leading the global hybrid electric vehicle market.
|Market Size in 2021||US$ 150.9 Billion|
|Market Volume Projection by 2032||US$ 1560.8 Billion|
|Forecast Period 2022 to 2032 CAGR||21.5%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Propulsion Type: Full Hybrids, Mild Hybrids, Plug-In Hybrids & Others
By Vehicle Type: Passenger Car , Commercial Car & Others
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||Allison Transmission (U.S), AB Volvo (Sweden), BMW AG (Germany), BYD Ltd (China), BorgWarner (U.S), Ford Motor (U.S), Groupe Renault (France), Greaves Cotton (India), Hyundai Motor Group (South Korea), Hero Electric (India), Honda Motor Company (Japan), INA-Holding Schaeffler (Germany), Lucid Motors (U.S), Lexus (Japan), Mercedes Benz Group (Germany), Porsche SE (Germany), Suzuki (Japan), Tesla (U.S), WM Motor (China), Wanxiang Group Corp (China), among others.|
The Global Hybrid Electric Vehicle Market – by Propulsion Type:
The Global Hybrid Electric Vehicle Market – by Vehicle Type:
The Global Hybrid Electric Vehicle Market – by Regions: