Share
Hybrid Vehicles Market Size, Share, and Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Electric Powertrain (Parallel and Series), By Degree of Hybridization (Mild, Full, and Micro), By Component (Body, Chassis, Powertrain, Electronics, and Others), By Region (North America, Europe, Asia-Pacific, and Rest of the World), And Regional Forecast 2024-2034
Hybrid Vehicles Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 12.1% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 256.1 billion and is projected to reach USD 904.2 billion by the completion of 2034.
Hybrid vehicles are a new way of transportation that uses multiple power sources for propulsion. Commonly, these vehicles combine a gas engine with an electric motor, using a dual-system layout to improve the mileage and lower emissions compared to traditional cars. In addition, the electric motor plays an important role in a hybrid system by helping the gasoline engine in acceleration and low-speed driving. Through this collaboration, it is possible to use efficient, small engines without compromising performance. Additionally, hybrid vehicles use regenerative braking systems, which convert motion energy into electrical power as the vehicle slows down and stores it in a battery for later use. Moreover, different kinds of hybrid systems are available, such as parallel, series, and plug-in hybrids, each with its distinct setups and benefits. Therefore, hybrid technology provides a practical solution for efficient consumption of fuel and bridges the gap between conventional gasoline cars and electric cars.
Hybrid vehicle market is projected to reach USD 904.2 billion over the forecast period, due to the rising global eco-consciousness and tighter emissions laws. Car manufacturers have met this demand by increasing their range of hybrid options in different vehicle categories, from small cars to SUVs and high-end vehicles. In addition, due to innovations in battery technology and low production costs, hybrid vehicles are becoming more cost-effective and available to a wider range of consumers. This development has resulted in higher competition among manufacturers and encouraged development in the design and effectiveness of hybrid powertrains.
Furthermore, there has been a shift in the market towards plug-in hybrid electric vehicles (PHEVs) that offer longer ranges of electric driving and the option to charge from external power sources. This development closes the distance between standard hybrids and fully electric cars, thus attracting customers that are desiring more flexibility in their driving needs. Thus, despite the rising popularity of electric vehicles, the hybrid market is still evolving, as manufacturers are making large investments in these technologies to improve performance and value for consumers.
Source: Fatpos Global
Hybrid Vehicles Market is divided by Vehicle Type into Passenger Cars and Commercial Vehicle. The passenger car segment has been dominating the hybrid vehicles market owing to a consistent rise in consumer interest in fuel-efficient and eco-friendly personal transportation. Hybrid vehicles offer an excellent combination of environmental awareness and usefulness for everyday drivers and families. Also, there is a large selection of hybrid models in the passenger car category, which includes compact cars, luxury sedans, and SUVs. This variety effectively meets the needs of various consumers and their financial limitations. Besides, many countries have directed their government incentives and regulations towards promoting the adoption of hybrid passenger vehicles. However, with advancements in technology, hybrid commercial vehicles are also anticipated to increase their market presence during the forecasted period.
Hybrid Vehicles Market is divided by Electric Powertrain into Parallel and Series. The parallel hybrid powertrain segment outperforms the series hybrid configuration in the market as parallel hybrids provide a flexible and effective power distribution system, that allows the internal combustion engine and electric motor to operate separately or together. This adaptability offers unique efficiency in different driving scenarios, from urban roads to open highways. Additionally, the structure of parallel hybrids is usually simpler as compared to series hybrids, which leads to their low production expenses and smooth integration into current vehicle platforms. Furthermore, parallel hybrid vehicles also tend to offer better consumption when driving on highways, in comparison to series hybrid vehicles. This advantage is especially attractive to customers who often participate in driving over long distances.
Source: Fatpos Global
Increasing Environmental Awareness and Strict Emissions Regulations to Drive Growth in the Hybrid Vehicles Market
Hybrid vehicle market is growing due to global environmental awareness and strict emissions regulations. Governments across the world are implementing rigorous fuel efficiency and emissions regulations to address climate change and reduce air pollution. The pressure from regulations is pushing car manufacturers to invest in hybrid technology, which will help them expand their range of products and improve current models. Simultaneously, environmentally conscious consumers are opting for hybrid vehicles to reduce their carbon footprint. Therefore, the combination of regulation and consumer choices is fueling major growth in the hybrid vehicle industry, which is causing hybrids to become a suitable option for eco-friendly transportation.
Technological Advancements and Cost Reductions Act as a Catalyst for Market Growth
Continuous improvements in battery technology, along with power electronics and electric motors play an essential role in boosting the hybrid vehicle market due to technological innovations and cost reductions. These developments are increasing the efficiency of hybrid vehicles and improving their comprehensive performance. Alongside, as production increases, the cost of hybrid systems is consistently decreasing due to economies of scale. Thus, this decrease in expenses allows hybrid vehicles to be more reasonably priced for a wider spectrum of buyers. As a result, the new technology and low prices are increasing the attractiveness of hybrid vehicles, which results in the growth of the market.
Competition from All-Electric Vehicles in the Hybrid Vehicles Market Will Impact the Growth
Competition from electric vehicles presents a major challenge for the hybrid vehicle market. Innovations in battery technology and a high number of charging stations have made electric vehicles more feasible and accessible for daily use. This change in market trends may cause consumers to choose fully electric vehicles over hybrid cars, which can skip hybrid technology entirely. Besides, the growing popularity and feasibility of electric vehicles present a major obstacle to the hybrid vehicle market, thus potentially reducing its future growth and market share as consumers will gravitate towards completely electric options for their transportation requirements.
Hybrid Vehicles Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region dominates the market for hybrid vehicles due to several factors. Japan, which is known for its advanced hybrid technology, has a high demand for these vehicles, with top manufacturers being Toyota and Honda. Similarly, China being the biggest car market globally, has enforced various emissions rules and provided incentives for eco-friendly vehicles, which has further boosted the popularity of hybrids.
On the contrary, North America is set to witness major growth in the next ten years. Automakers are being forced to increase their hybrid options due to more guidelines for fuel efficiency and emission. The automotive sector in the region is making huge investments in hybrid technology, with companies such as Ford and General Motors from the United States releasing a higher number of hybrid models.
Source: Fatpos Global
Hybrid vehicles market was greatly affected by the COVID-19 pandemic as it presented challenges as well as opportunities. Initially, the car industry dealt with major disturbances due to delays in the supply chain and lower consumer interest, thus impacting the production and sales of hybrid vehicles. However, as the economy began to recover, the pandemic resulted in high environmental awareness and a renewed focus on sustainability. Moreover, as people started opting for eco-friendly transportation options, there was a shift in the mindset of consumers, which contributed to the growth of the hybrid vehicle market. This pattern, along with the high demand for fuel-efficient cars during economic uncertainty, played a major role in the recovery of the hybrid vehicle market.
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2034 |
|
Base Year |
2023 |
|
Forecast Period |
2024-2034 |
|
Historical Period |
2019-2022 |
|
Growth Rate |
CAGR of 12.1% from 2024-2034 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
By Vehicle Type |
|
|
By Electric Powertrain |
|
|
By Degree of Hybridization |
|
|
By Component |
|
|
By Region |
|
Hybrid Vehicles Market size was valued at USD 256.1 billion in 2023 and is projected to reach the value of USD 904.2 billion in 2034, exhibiting a CAGR of 12.1% during the forecast period.
The hybrid vehicles market refers to the global industry involved in the development, production, sale, and distribution of vehicles that combine two or more power sources for propulsion.
The Commercial Vehicle segment and Parallel segment accounted for the largest Hybrid Vehicles Market share.
Key players in the Hybrid Vehicles Market include Toyota Motor Corporation, Honda Motor Co., Ltd., Ford Motor Company, Hyundai Motor Company, Volkswagen Group, BMW AG, Nissan Motor Co., Ltd., Stellantis N.V., General Motors Company, Kia Corporation, Mercedes-Benz Group AG, Volvo Car Corporation, Mitsubishi Motors Corporation, Subaru Corporation, BYD Auto Co., Ltd., and Other Prominent Players.
Increasing environmental awareness and strict emissions regulations, along with technological advancements are the factors driving the hybrid vehicles market.
Select License Type
Select License Type
FATPOS CLIENT Appriciation DURING THE PROJECT
Working with Fatpos Global, allowed us to take advantage of their knowledge and easy approach, allowing us to collect important data utilizing a variety of techniques. The results were clearly presented and explained, and FG responded to our questions with speed and expertise.
|
Swiss-based global building materials manufacturer |
The analyses and presentations Fatpos Global have produced for us have been of a very high caliber and have allowed us to proactively improve our customer relationship management. They have also done so while maintaining complete anonymity. Without any doubt, we suggest Fatpos Global to you.
|
|
Tech-powered construction company |
We appreciate the team’s punctuality, flexibility in terms of report modification, post report purchase support and pleasant reaction all around. Overall, my experience with this company was nothing but positive, and I couldn't be more grateful for their excellent service. Thank you for all that you do!
|
|
American global management consulting firm |
We are able to concentrate on the topics and implications that are most important to our clients thanks to the adaptability and responsiveness of the team at Fatpos Global. We would highly recommend this company to anyone in need of their services, and I will certainly be using them again in the future.
|
|
Headquartered in Zug, Switzerland, leading supplier of medical and surgical instrument |
To better study our client demographics, develop the ideal product-price architecture, and enhance our target marketing initiatives, we hired Fatpos Global. Every component of the project was completed, and we are very happy with the useful insights and actionable results.
|
|
Kosovan company, A leading organic fertilizers producer |
Thank you for your team's generous assistance, The final report was delivered to me, and I find it to be really helpful. Also, you may be sure that I will get in touch with you if I ever require fresh materials for market research. Gratitude once more.
|
|
German specialty chemicals company based in Cologne, Germany |
