HOME Top Market Reports Hybrid Vehicle Market by Electric Powertrain (Parallel, Series), Degree of Hybridization (Full, Micro, and Mild), Propulsion (HEV, PHEV, and NGV), Vehicle Type (PC, CV), Component (Battery, Electric Motor, and Transmission), and Region - Global Forecast to 2025

Hybrid Vehicle Market by Electric Powertrain (Parallel, Series), Degree of Hybridization (Full, Micro, and Mild), Propulsion (HEV, PHEV, and NGV), Vehicle Type (PC, CV), Component (Battery, Electric Motor, and Transmission), and Region - Global Forecast to 2025

By: marketsandmarkets.com
Publishing Date: May 2018
Report Code: AT 6271

 

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The hybrid vehicle market is estimated to be 3,687 thousand units in 2017 and is projected to reach 7,593 Thousand Units by 2025, at a CAGR of 8.94% during the forecast period. The base year for the study is 2017 and the forecast period is 2018–2025. The market is primarily driven by the benefits offered by hybrid vehicles, such as better fuel efficiency, increased driving range, and low emission. Rising demand for mid- and large-sized PHEV and NGV cars, government initiatives pertaining to hybrid vehicles are likely to further boost the hybrid vehicle market.

Objectives of the Study

  • To analyze the hybrid vehicle market and forecast (2017–2025) its size in terms of volume (‘000 units)
  • To provide detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry challenges)
  • To analyze the regional markets for growth trends, prospects, and their contribution to the overall market
  • To segment the market and forecast its size, by volume, on the basis of region (Asia Pacific, Europe, North America, and Rest of the World)
  • To segment the market and forecast the market size, by volume, on the basis of powertrain type (parallel hybrid and series hybrid)
  • To segment the market and forecast the market size, by volume, on the basis of vehicle type [Passenger Car (PC) and Commercial Vehicle (CV)]
  • To segment the hybrid vehicle market and forecast the market size, by volume, on the basis of component type (electric motor, transmission, and battery)
  • To segment the market and forecast the market size, by volume, on the basis of propulsion [Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), and Natural Gas Vehicle (NGV)]
  • To segment the market and forecast the market size, by volume, on the basis of degree of hybridization (micro hybrid, mild hybrid, and full hybrid)
  • To showcase the technological developments impacting the market
  • To analyze opportunities for stakeholders and the competitive landscape for market leaders
  • To strategically profile key players and comprehensively analyze their market shares and core competencies
  • To track and analyze competitive developments such as joint ventures, mergers & acquisitions, new product launches, expansions, and other activities carried out by key industry participants

Research Methodology

This research study involves the use of secondary sources such as company annual reports/presentations, industry association publications, automotive magazine articles, directories, technical handbooks, World Economic Outlook, trade websites, technical articles, and databases such as Hoover’s, Bloomberg Businessweek, and Factiva to identify and collect information for an extensive commercial study of the hybrid vehicle market. The primary sources comprise industry experts, engineers, product managers, R&D managers, automobile OEMs, fuel cell manufacturers, and sales managers. In-depth interviews have been conducted with various primary respondents, including key industry participants, subject-matter experts, technical experts, fuel cell experts of major market players, and industry consultants to obtain and verify critical qualitative and quantitative information as well as to assess prospects. The following figure illustrates the market research methodology applied to build this report on the hybrid vehicle market.

Hybrid Vehicle Market

To know about the assumptions considered for the study, download the pdf brochure

The ecosystem of the hybrid vehicle market consists of hybrid vehicle technology manufacturers such as Delphi (UK), Continental (Germany), BorgWarner (US), ZF (Germany), and Schaeffler (Germany). The OEMs considered include Toyota (Japan), Honda (Japan), Hyundai (South Korea), Daimler (Germany), and Nissan (Japan).

Target Audience

  • Auto OEMS
  • Companies operating in the hybrid vehicle ecosystem
  • Country-level governments and other policymakers
  • Country-level industry associations and experts
  • Distributors and suppliers of hybrid vehicle components
  • Electric vehicle manufacturers
  • Manufacturers of hybrid vehicle components
  • Manufacturers of hybrid vehicles
  • Raw material manufacturers
  • Raw material suppliers

Scope of the Report

    Hybrid vehicle market, By Electric Powertrain type

    • Parallel Hybrid
    • Series Hybrid

    Market By Component type

    • Battery
    • Electric Motor
    • Transmission

    Hybrid vehicle market, By Propulsion

    • HEV
    • PHEV
    • NGV

    Market By Degree of Hybridization

    • Full Hybrid
    • Micro Hybrid
    • Mild Hybrid

    Hybrid vehicle market, By Vehicle Type

    • Passenger Car
    • Commercial Vehicle

    Market By Region

    • Asia Pacific
    • Europe
    • North America
    • Rest of the World (RoW)

Available Customizations

  • Detailed analysis and profiling of additional countries (up to 3)
  • Detailed analysis and profiling of additional market players (up to 3)
  • Off-Highway segment market
  • 2-Wheeler and 3-wheeler market
  • Competitive Leadership Mapping (Micro-quadrant)
  • Country level analysis of segments (up to 2)

Better fuel efficiency and increasing emission norms are expected to drive the hybrid vehicle market, demand close to 7,593 thousand units by 2025

The demand for hybrid vehicle market is rising due to stringent emission regulation standards and the growing demand for low or zero-emission vehicles. In addition, governments of various countries provide purchase grants and tax rebates for hybrid vehicles, including HEVs and PHEVs.

The trend in hybrid vehicles is growing towards PHEVs and Natural Gas Vehicles (NGVs). It is seen that the demand for hybrid vehicles is either falling or growing slowly. This is possibly due to the continuous decrease in the battery price as developed nations are focusing more towards zero emission vehicles to cope with stringent emission standards.

Hybrid vehicles are more fuel efficient than gasoline and diesel vehicles. As per International Council on Clean Transportation (ICCT), hybrid systems can reduce fuel consumption and CO2 emissions by up to 35%, equivalent to more than 50% increase in fuel economy. Hybrid vehicle manufacturers such as Toyota, Audi, Hyundai, Kia, and Nissan are developing fuel-efficient hybrid cars to cope with rising emission standards to be able to sustain in the market.

The developments are also being seen in the commercial vehicle segment. OEMs are also focusing on developing hybrid commercial vehicles to cope with the stringent emission norms. For instance, Volvo developed Volvo FM truck equipped with a diesel engine and an electric motor. Volvo FM cut CO2 emissions by 15-20%. Significant growth in the freight sector would boost the demand for long haulage hybrid trucks because of the benefits they offer such as less emission and high fuel efficiency.

In North America, the hybrid vehicle market is estimated to grow gradually during the forecast period. The governments in this region are focusing on the development of zero emission vehicles. The US and Canada are expected to dominate the market in North America.

Market Dynamics

Drivers

  • Increasing emission norms
  • Optimum fuel efficiency
  • Continuous reduction in battery price

Restraints

  • Rising demand for BEVs and FCEVs

Opportunities

  • Government initiatives pertaining to hybrid vehicles
  • Growth in developing markets

Challenges

  • High vehicle cost
  • Insufficient infrastructure and high development cost

Hybrid Vehicle Market

Critical Questions:

  • What would be the impact of reduction of subsidies on the hybrid vehicle market?
  • How do you see the demand of PHEVs in the Scandinavian countries?
  • How would you see the improvement in aerodynamics impacting the HEV sales globally?
  • How do you see the future of hybrid vehicles due to the increasing focus on BEVs & FCEVs?

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Years Considered for the Study
    1.4 Currency & Pricing
    1.5 Package Size
    1.6 Limitations
    1.7 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
    2.2 Secondary Data
           2.2.1 Key Secondary Sources
           2.2.2 Key Data From Secondary Sources
    2.3 Primary Data
           2.3.1 Sampling Techniques & Data Collection Methods
           2.3.2 Primary Participants
    2.4 Market Size Estimation
           2.4.1 Bottom-Up Approach
    2.5 Market Breakdown and Data Triangulation
    2.6 Assumptions

3 Executive Summary (Page No. - 27)

4 Premium Insights (Page No. - 35)
    4.1 Attractive Opportunities in the Hybrid Vehicle Market
    4.2 Market By Electric Powertrain Type, 2018–2025
    4.3 Market By Degree of Hybridization, 2018–2025
    4.4 Market By Propulsion, 2018–2025
    4.5 Market By Component Type, 2018–2025
    4.6 Market By Vehicle Type, 2018–2025
    4.7 Hybrid Vehicle Market, By Region, 2018–2025

5 Market Overview (Page No. - 39)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Emission Norms
                    5.2.1.2 Optimum Fuel Efficiency
                    5.2.1.3 Continuous Reduction in Battery Price
           5.2.2 Restraints
                    5.2.2.1 Rising Demand for BEVs and FCEVs
           5.2.3 Opportunities
                    5.2.3.1 Government Initiatives Pertaining to Hybrid Vehicles
                    5.2.3.2 Growth in Developing Markets
           5.2.4 Challenges
                    5.2.4.1 High Vehicle Cost
                    5.2.4.2 Insufficient Infrastructure and High Development Cost
    5.3 Upcoming Hybrid Vehicle Models
    5.4 CNG Station Numbers in Key Countries of Europe, 2016
    5.5 Natural Gas (NG) Station Numbers in Key Countries, 2018

6 Technology Overview (Page No. - 49)
    6.1 Introduction
    6.2 Micro Hybrid
    6.3 Mild Hybrids
    6.4 48 V Li-Ion Battery of Mild Hybrid Technology Roadmap
    6.5 Full Hybrids
    6.6 Plug-In Hybrids

7 Hybrid Vehicle Market, By Electric Powertrain Type (Page No. - 54)
    7.1 Introduction
    7.2 Parallel Hybrid
    7.3 Series Hybrid

8 Market By Propulsion (Page No. - 59)
    8.1 Introduction
    8.2 HEV
    8.3 PHEV
    8.4 NGV

9 Hybrid Vehicle Market, By Degree of Hybridization (Page No. - 65)
    9.1 Introduction
    9.2 Micro Hybrid
    9.3 Mild Hybrid
    9.4 Full Hybrid Vehicle

10 Market By Component Type (Page No. - 73)
     10.1 Introduction
     10.2 Electric Motor
             10.2.1 DC/DC Converter
             10.2.2 DC/AC Converter
     10.3 Transmission
     10.4 Battery

11 Hybrid Vehicle Market, By Vehicle Type (Page No. - 79)
     11.1 Introduction
     11.2 Passenger Car
     11.3 Commercial Vehicle

12 Market By Region (Page No. - 85)
     12.1 Introduction
     12.2 Asia Pacific
             12.2.1 China
             12.2.2 India
             12.2.3 Japan
             12.2.4 South Korea
     12.3 Europe
             12.3.1 France
             12.3.2 Germany
             12.3.3 Italy
             12.3.4 The Netherlands
             12.3.5 Norway
             12.3.6 Sweden
             12.3.7 UK
     12.4 North America
             12.4.1 Canada
             12.4.2 Mexico
             12.4.3 US
     12.5 RoW
             12.5.1 Brazil
             12.5.2 Russia

13 Competitive Landscape (Page No. - 107)
     13.1 Overview
     13.2 Market Ranking Analysis
     13.3 Competitive Scenario
             13.3.1 New Product Developments
             13.3.2 Collaborations/Joint Ventures/Supply Contracts/Partnerships/Agreements
             13.3.3 Expansions, 2016–2018
             13.3.4 Mergers & Acquisitions, 2017

14 Company Profiles (Page No. - 112)
(Business Overview, Products Offered, Recent Developments, SWOT Analysis & MnM View)*
     14.1 Key Players
             14.1.1 Toyota
             14.1.2 Ford
             14.1.3 Volvo
             14.1.4 Continental
             14.1.5 ZF
             14.1.6 Daimler
             14.1.7 Hyundai
             14.1.8 Honda
             14.1.9 Schaefler
             14.1.10 Borgwarner
             14.1.11 Delphi Technologies
             14.1.12 Allison Transmission
*Details on Business Overview, Products Offered, Recent Developments, SWOT Analysis & MnM View Might Not Be Captured in Case of Unlisted Companies.
     14.2 Key Players From Other Regions
             14.2.1 North America
                       14.2.1.1 General Motors
                       14.2.1.2 Magna International
                       14.2.1.3 Cummins
                       14.2.1.4 American Axle & Manufacturing
             14.2.2 Europe
                       14.2.2.1 Eaton
                       14.2.2.2 Mahle
                       14.2.2.3 Bosch
                       14.2.2.4 AVL
             14.2.3 Asia Pacific
                       14.2.3.1 Denso
                       14.2.3.2 Mitsubishi Electric
                       14.2.3.3 LG Chemical
             14.2.4 Rest of the World (RoW)
                       14.2.4.1 Yo-Auto
                       14.2.4.2 Avtovaz

15 Appendix (Page No. - 145)
     15.1 Discussion Guide – Hybrid Vehicle Market
     15.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     15.3 Introducing RT: Real Time Market Intelligence
     15.4 Available Customizations
     15.5 Related Reports
     15.6 Author Details


List of Tables (54 Tables)

Table 1 Currency Exchange Rates (W.R.T. USD)
Table 2 Heavy-Duty Vehicle Emission Regulation Scenario for Europe
Table 3 Overview of Global Tax Subsidies for Hybrid Vehicles
Table 4 Upcoming Hybrid Vehicle Models
Table 5 Key Functions of Hybrid Vehicles
Table 6 Hybrid Vehicle Market: By Electric Powertrain Type, 2016–2025 (Thousand Units)
Table 7 Parallel Hybrid: Market By Propulsion, 2016–2025 (Thousand Units)
Table 8 Series Hybrid: Market By Propulsion, 2016–2025 (Thousand Units)
Table 9 Hybrid Vehicle Market Size, By Propulsion, 2016–2025 ( Thousand Units)
Table 10 HEV: Market By Region, 2016–2025 (Units)
Table 11 PHEV: Market By Region, 2016–2025 (Units)
Table 12 NGV: Market By Region, 2016–2025 (Units)
Table 13 Hybrid Vehicle Market: By Degree of Hybridization, 2016–2025 (Thousand Units)
Table 14 Micro Hybrid: Market By Region, 2016–2025 (Thousand Units)
Table 15 Micro Hybrid: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 16 Mild Hybrid: Market By Region, 2016–2025 (Thousand Units)
Table 17 Mild Hybrid: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 18 Full Hybrid: Market By Region, 2016-2025 (Thousand Units)
Table 19 Full Hybrid: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 20 Hybrid Vehicle Market, By Component Type, 2016–2025 (Thousand Units)
Table 21 Electric Motor: Market By Region, 2016–2025 (Units)
Table 22 Electric Motor: Market By Converter Type, 2016–2025 (Units)
Table 23 Transmission: Market By Region, 2016–2025 (Units)
Table 24 Battery: Market By Region, 2016–2025 (Units)
Table 25 Hybrid Vehicle Market Size, By Vehicle Type, 2016–2025 (Thousand Units)
Table 26 Passenger Car: Market Size By Region, 2016–2025 (Thousand Units)
Table 27 Commercial Vehicle: Market By Region, 2016–2025 (Thousand Units)
Table 28 Hybrid Vehicle Market, By Region, 2016–2025 (Thousand Units)
Table 29 Asia Pacific: Market By Country, 2016–2025 (Thousand Units)
Table 30 Asia Pacific: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 31 China: Market By Propulsion Type, 2016–2025 (Units)
Table 32 India: Market By Propulsion Type, 2016–2025 (Units)
Table 33 Japan: Market By Propulsion Type, 2016–2025 (Units)
Table 34 South Korea: Market By Propulsion Type, 2016–2025 (Units)
Table 35 Europe: Market By Country, 2016–2025 (Thousand Units)
Table 36 Europe: Hybrid Vehicle Market, By Vehicle Type, 2016–2025 (Thousand Units)
Table 37 France: Market By Propulsion Type, 2016–2025 (Units)
Table 38 Germany: Market By Propulsion Type, 2016–2025 (Units)
Table 39 Italy: Market By Propulsion Type, 2016–2025 (Units)
Table 40 The Netherlands: Market By Propulsion Type, 2016–2025 (Units)
Table 41 Norway: Market By Propulsion Type, 2016–2025 (Units)
Table 42 Sweden: Market By Propulsion Type, 2016–2025 (Units)
Table 43 UK: Market By Propulsion Type, 2016–2025 (Units)
Table 44 North America: Market By Country, 2016–2025 (Thousand Units)
Table 45 North America: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 46 Canada: Hybrid Vehicle Market, By Propulsion Type, 2016–2025 (Units)
Table 47 Mexico: Market By Propulsion Type, 2016–2025 (Units)
Table 48 US: Market By Propulsion Type, 2016–2025 (Units)
Table 49 RoW: Market By Country, 2016–2025 (Thousand Units)
Table 50 RoW: Market By Vehicle Type, 2016–2025 (Thousand Units)
Table 51 Brazil: Market By Propulsion Type, 2016–2025 (Units)
Table 52 Russia: Market By Propulsion Type, 2016–2025 (Units)
Table 53 New Product Developments, 2017–2018
Table 54 Collaborations/Joint Ventures/Supply Contracts/Partnerships/Agreements, 2015–2017
 
 
List of Figures (71 Figures)
 
Figure 1 Hybrid Vehicle Market: Markets Covered
Figure 2 Market Research Design
Figure 3 Research Methodology Model
Figure 4 Breakdown of Primary Interviews
Figure 5 Market Size Estimation Methodology for the Hybrid Vehicle Market: Bottom-Up Approach
Figure 6 Data Triangulation
Figure 7 Key Countries in the Market: Japan is Estimated to Be the Largest Market By 2025 (Units)
Figure 8 Asia Pacific is Estimated to Be the Fastest Growing Market for Hybrid Vehicle, 2018 vs 2025 (Thousand Units)
Figure 9 Parallel Hybrid is Estimated to Hold the Largest Share of the Market 2018 vs 2025 (Thousand Units)
Figure 10 PC Segment is Estimated to Hold the Largest Share of the Market 2018 vs 2025 (Thousand Units)
Figure 11 Full Hybrid is Estimated to Hold the Largest Share of the Market 2018 vs 2025 (Thousand Units)
Figure 12 Battery and Electric Motor are Estimated to Hold the Largest Share of the Market 2018 vs 2025 (Thousand Units)
Figure 13 HEV is Estimated to Hold the Largest Share of the Hybrid Vehicle Market, 2018 vs 2025 (Thousand Units)
Figure 14 Better Fuel Efficiency and Increasing Emission Norms are Expected to Drive the Market
Figure 15 Parallel Hybrid to Hold the Largest Share, By Volume, in Market By Electric Powertrain Type
Figure 16 Full Hybrid to Hold the Largest Share, By Volume, in Market By Degree of Hybridization
Figure 17 HEV to Hold the Largest Share, By Volume, in Market By Propulsion
Figure 18 Battery and Electric Motor to Hold the Largest Share, By Volume, in Market By Component Type
Figure 19 Passenger Car to Hold the Largest Market Share in Market 2018 vs 2025 (Thousand Units)
Figure 20 Asia Pacific to Hold the Largest Share, By Volume, in Hybrid Vehicle Market, By Region
Figure 21 Hybrid Vehicle Market: Market Dynamics
Figure 22 Emission Regulation Scenario for Key Countries
Figure 23 Hybrid Fuel Consumption Reduction for Key Hybrid Manufacturers, 2014
Figure 24 Battery Cost (USD/Kwh), 2009–2016
Figure 25 Battery Electric Vehicle Sales, 2012–2017
Figure 26 Timeline of Hybrid Vehicle
Figure 27 Working of Start-Stop System in Micro Hybrid Vehicle
Figure 28 48 v Electrical Architecture
Figure 29 Impact Analysis on 48 V Li-Ion Battery
Figure 30 Working of Hybrid Powertrain
Figure 31 Hybrid Vehicle Market: By Electric Powertrain Type, 2018 vs 2025 (Thousand Units)
Figure 32 Parallel Hybrid: Market By Propulsion, 2018 vs 2025 (Thousand Units)
Figure 33 Series Hybrid: Market By Propulsion, 2018 vs 2025 (Thousand Units)
Figure 34 Market By Propulsion, 2018 vs 2025 (Thousand Units)
Figure 35 HEV: Market By Region, 2018 vs 2025 ( Thousand Units)
Figure 36 PHEV: Market By Region, 2018 vs 2025 (Units)
Figure 37 NGV: Market By Region 2018 vs 2025 (Thousand Units)
Figure 38 Hybrid Vehicle Market: By Degree of Hybridization, 2018 vs 2025 (Thousand Units)
Figure 39 Micro Hybrid: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 40 Mild Hybrid: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 41 Full Hybrid: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 42 Market By Component Type, 2018 vs 2025 (Thousand Units)
Figure 43 Electric Motor: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 44 Transmission: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 45 Battery: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 46 Hybrid Vehicle Market, By Vehicle Type, 2018 vs 2025 (Thousand Units)
Figure 47 Passenger Car: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 48 Commercial Vehicle: Market By Region, 2018 vs 2025 (Thousand Units)
Figure 49 Market By Region, 2018 and 2025 (Thousand Units)
Figure 50 Asia Pacific: Market 2018 vs 2025 (Thousand Units)
Figure 51 Europe: Market 2018 vs 2025 (Thousand Units)
Figure 52 North America: Market 2018 vs 2025, (Thousand Units)
Figure 53 RoW: Hybrid Vehicle Market, 2018 vs 2025 (Thousand Units)
Figure 54 Key Developments By Leading Players in the Market, 2015–2018
Figure 55 Toyota: Company Snapshot (2017)
Figure 56 Toyota: SWOT Analysis
Figure 57 Ford: Company Snapshot (2017)
Figure 58 Ford: SWOT Analysis
Figure 59 Volvo: Company Snapshot (2017)
Figure 60 Volvo: SWOT Analysis
Figure 61 Continental: Company Snapshot (2017)
Figure 62 Continental: SWOT Analysis
Figure 63 ZF: Company Snapshot (2017)
Figure 64 ZF: SWOT Analysis
Figure 65 Daimler: Company Snapshot (2017)
Figure 66 Hyundai: Company Snapshot (2016)
Figure 67 Honda: Company Snapshot (2017)
Figure 68 Schaeffler: Company Snapshot (2017)
Figure 69 Borgwarner, Company Snapshot (2017)
Figure 70 Delphi, Company Snapshot (2017)
Figure 71 Allison Transmission: Company Snapshot (2017) 

The volume of the hybrid vehicle market is estimated to be 4,169 thousand units in 2018 and is projected to reach 7,593 Thousand Units by 2025, at a CAGR of 8.94% from 2018 to 2025. The key growth drivers for the market are increasing government initiatives, higher fuel efficiency, longer driving range, stringent emission regulations and the increasing demand for mid-size and large size cars in countries such as Norway, Sweden, Germany, the US, and others.

The HEV segment, by propulsion type, is estimated to hold the largest market share in 2018. However, the PHEV segment is estimated to be the fastest growing during the forecast period because of the increasing adoption of mid- and large-sized vehicles and the development of electric infrastructure.

The passenger car segment is estimated to hold the largest market share, in terms of volume, for the hybrid vehicle market, by vehicle type, during the forecast period. But, the commercial vehicle segment is estimated to be the fastest growing market owing to the ease of application of hybrid vehicle technology in commercial vehicle, increased driving range, fuel efficiency, and high focus of OEMs to reduce emissions from commercial vehicles.

The full hybrid segment is estimated to hold the largest market share, by volume, for the hybrid vehicle market, by the degree of hybridization, during the forecast period. But the fastest growth can be seen in the mild hybrid segment. The growth of the full hybrid segment can be attributed to the improving fuel efficiency and reduced emission due to a continuous technology upgrade.

The parallel hybrid is estimated to be largest and fastest growing market, in terms of volume, in the hybrid vehicle market, by electric powertrain type. The market for parallel hybrids is likely to grow due to the increased use of regenerative braking technology. The regenerative braking system is the most commonly used technology in hybrid vehicles. The use of the regenerative braking system and the lesser cost of micro and mild hybrids compared to PHEVs will boost the demand for parallel hybrids.

Asia Pacific is estimated to be the largest market for hybrid vehicles during the forecast period, followed by Europe and North America. The market growth in the region can be attributed to the increased sales of hybrid vehicles in Japan, China, and South Korea. Also, the Asia Pacific region is home to major players in the hybrid vehicles market, such as Toyota, Honda, Nissan, Kia, BYD, and Hyundai. Japan is the largest market in the hybrid vehicle segment worldwide.

Hybrid Vehicle Market

The factors restraining the growth of the hybrid vehicle market is the high demand for battery electric vehicles and the high rate of adoption of fuel cell vehicles. Also, the continuous fall in the price of battery is likely to fuel the demand for battery electric vehicles worldwide. High cost of hybrid vehicles, insufficient infrastructure, and high development cost are the challenges for the growth of the hybrid vehicle market.

The hybrid vehicle market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Toyota (Japan), Ford (US), Volvo (Sweden), Continental (Germany), Daimler (Germany), Delphi (UK), and others.

Significant rise in the freight sector would create the opportunity for long haulage hybrid trucks owing to their benefits such as less emission and high fuel efficiency

Hybrid Electric Vehicle (Hev)

Globally, many countries are providing various incentives and tax rebates for the purchase of HEVs, which is ultimately driving the HEV market. For instance, the UK government has announced various subsidies for the research and development of lightweight batteries. Moreover, policies such as exception from road tax, crowding charge waiver, and free car parks at various places have encouraged consumers to choose hybrid vehicles. In Asia Pacific, the adoption of HEVs is increasing. China, India, and Japan are investing a huge amount of money to encourage the adoption HEVs. For example, schemes like National Electric Mobility Mission Plan, 2013 (NEMMP) are adapted to drive the hybrid vehicles market in India.

Plug-In Hybrid Electric Vehcile (Phev)

The sales of PHEV vehicles are lower than the sales of other eco-friendly vehicles such HEV and BEV. A major measure that can boost the sales of PHEV is increasing the number of charging infrastructure across all the regions. Governments of different countries, as well as the automotive OEMs, are taking active steps to increase the number of charging stations. For instance, according to the US Department of Energy, there were more than 14,300 charging stations in the US in 2017. The Department of Energy has taken the initiatives to increase the number charging stations by providing a loan of USD 4.5 billion. European region has the highest number of charging stations than other regions. Governments are also proving subsidies for the purchase of PHEV vehicles. For example, the French government has announced to provide subsidies of Euro 1,000 for the purchase of PHEV vehicles. OEMs are also focusing more on the production of eco-friendly vehicles, which ultimately increases the number of eco-friendly vehicles sold.

Natural Gas Vehicle (Ngv)

NGV vehicles run on CNG and LNG. In a NGV vehicle, energy is released by the combustion of methane gas with Oxygen. NG vehicle emits less CO2 than diesel- and gasoline-powered vehicles do. CNG produces 20–30% lesser greenhouse gas emissions and 95% lesser tailpipe emissions than gasoline powered vehicles do.  Increased number of NG stations and low NG fuel price would drive the market of NGVs. Lower price of NG is the major driving factor of the increasing demand for NG vehicles. Additionally, government in Asian countries such as China, India, and others are adopting NG buses for public transit owing to its low emission. Hence lower price of NG and government adoption of NG-powered vehicles in Asia Pacific has are expected to drive the market growth during the forecast period.

Critical Questions:

  • Where will all the government mandates take the industry in the mid to long term?
  • What will be the future of natural gas vehicles?
  • Which geographical markets have lower penetration of hybrid vehicle where there is a good growth potential?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

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