The market for a hybrid vehicles is anticipated to grow at a revenue CAGR of 26.6% over the forecast period, reaching USD 960.09 billion in 2028. During the projected period, factors such as rising environmental concerns, strict emission standards, and fuel efficiency laws (in terms of tax, subsidies, rebates, and advantages) are anticipated to propel market revenue growth. Hybrid cars are designed to use less fuel and produce less pollution. Over the projected period, rising consumer demand to save fuel costs and adhere to legal CO2 emission standards is anticipated to significantly boost market revenue for hybrid vehicles.
Growing environmental concerns about car emissions are anticipated to be a key factor in the market growth for hybrid automobiles. Due to consumers’ increased focus on fuel efficiency and demand for environmentally friendly vehicles, numerous internal combustion engine automotive models have seen the launch and development of hybrid versions. Additionally, the commercial transportation industry is seeing an increase in the popularity of green vehicles. The efficiency and possibilities of hybrid drives in large vehicles are being explored by manufacturers.
Hybrid electric vehicles are those that use both internal combustion engines and electric motors for propulsion (HEV). Due to the huge sales volume in the US, Japan, and China, the market for HEV is expanding. In addition, because hybrid vehicles are less expensive than PHEVs and EVs, emerging nations like Mexico, India, and Brazil are now using them to comply with the increasingly strict pollution rules. Due to its superior fuel efficiency, HEV has a larger market share than other environmentally friendly vehicles like NGVs (natural gas vehicles) and PHEVs.
Some Key Highlights From the Report
Major companies profiled in this market report are Toyota Motor Corporation, Nissan Motor Co., Ltd., Honda Motor Company, Ltd., Hyundai Motor Company, Kia Corporation, Daimler AG, The Volvo Group, Bayerische Motoren Werke AG, Ford Motor Company, and Mitsubishi Motors Corporation.
By degree of hybridization
According to projections, the full hybrid sector will account for the highest volume of the market. During the forecast period, the mild-hybrid market is anticipated to develop at the greatest CAGR. The expansion of the full hybrid market can be attributed to ongoing technological advancements that have improved fuel economy and decreased emissions.
Driver: Stringent emission norms
As public awareness of environmental pollution has dramatically expanded, regulatory bodies are imposing stricter emission restrictions. As emission laws become increasingly strict and governments in Europe and the US focus on tightening emission standards to limit emissions of greenhouse gases, OEMs are being obliged to produce hybrid vehicles. Because hybrid vehicles are more fuel-efficient than vehicles powered by internal combustion engines, demand for them is rising. These vehicles can increase fuel economy by at least 50% while reducing fuel consumption by up to 35%.
Due to the expanding usage of regenerative braking technology, the parallel hybrid sector accounted for the greatest revenue share in the global market for hybrid vehicles in 2020. A regenerative braking system returns energy to the battery when the brakes are used. Thus, there is less demand for external electric infrastructure. Regenerative braking is used, and mild and micro hybrids are less expensive than PHEVs, which will enhance demand for parallel hybrid powertrains.
Component Type Outlook (Revenue, USD Billion; 2018-2028)
- Electric Motor
- Transmission System
Degree of Hybridization Outlook (Revenue, USD Billion; 2018-2028)
- Full Hybrid
- Mild Hybrid
Propulsion Outlook (Revenue, USD Billion; 2018-2028)
- Hybrid Electric Vehicles (HEV)
- Plug-In Hybrid Electric Vehicles (PHEV)
- Natural Gas Vehicles (NGV)
Vehicle Type Outlook (Revenue, USD Billion; 2018-2028)
- Passenger Cars
- Commercial Vehicles
Electric PowertrainType Outlook (Revenue, USD Billion; 2018-2028)
- Parallel Hybrid
- Series Hybrid
Regional Outlook (Revenue, USD Billion; 2018-2028)
- North America
- the Asia Pacific
- Latin America
- Middle East & Africa
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