Hybrid Vehicle Market Size

Hybrid Vehicle Market Overview:

The Hybrid Vehicle Market size was valued at USD 156.97 Billion in 2023. The Hybrid Vehicle industry is projected to grow from USD 204.48 Billion in 2024 to USD 1301.92 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.03% during the forecast period (2024 - 2032). 

Government policy is encouraging people to use hybrid technology items. As the demand for efficient transportation grows, so will the cost of gasoline, the key market driver contributing to market growth and expansion.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Hybrid Vehicle Market Trends

The growing demand for efficient transportation is driving the market growth.

The rising demand for efficient transportation drives market CAGR for hybrid vehicles. The business comprises hybrid cars that get energy from multiple sources. The most important are the generators that produce electricity and the engine that burns fuel. Both diesel and gasoline used in comparable generators aid in smoothly operating the electrical trains that link to the generators. The generator also supplies electricity to the engine. The main idea of the hybrid automobile business is that the combustion system works effectively with various power sources while maintaining efficiency while changing speeds. The transition inside the anticipated peri helps improve the automotive engine's efficiency. Furthermore, the price of the amount of gasoline consumed is reduced significantly.

Additionally, the targeted demographic is becoming more aware of the emissions issue. Regulatory agencies in charge of comparable situations are likely to impose harsher requirements. The enforcement of these tighter requirements is expected to drive OEMs to produce both electric and hybrid vehicles. Furthermore, these cars are noted for releasing less greenhouse gases, which harm the environment. In contrast, diesel and petrol automobiles pollute the environment more. Because of the high degree of digitalization, the market is flooded with hybrid automobiles that use gasoline and diesel engines. Diversity in operation is required to assist the market in overcoming the pandemic. The government is funding such programs, and consumers are choosing comparable cars to lower their risks of catching the coronavirus.

The worldwide transportation market is causing numerous shifts in the manufacturing process and the characteristics that hybrid cars are built with. The new coronavirus was a public health crisis that the WHO classified as a pandemic. Because of the swift propagation of the pandemic throughout international boundaries, numerous corporate units' production and manufacturing units are suffering. People are abandoning public transit to restrict the spread of the epidemic through local initiatives. People are shifting to purchasing valuable and efficient automobiles powered by fuel and electric engines.

For instance, according to the Indian government, the amount of funding provided under the FAME program for fiscal 2023 is anticipated to amount to USD 351 MN, which represents more than 3.5 times the amount allocated for the current fiscal year USD 96.5 MN, and nearly 9x times the distribution for FY21. Thus, it is anticipated that demand for Hybrid vehicles will increase throughout the projected timeframe due to the rising demand for efficient transportation. Thus, driving the Hybrid Vehicle market revenue.

Hybrid Vehicle Market Segment Insights:

Electric Powertrain Insights

Based on Electric Powertrains, the global Hybrid Vehicle market segmentation includes Parallel and Series. The series category dominated the market, accounting for 53% of market revenue (USD 63.9 Billion) in 2022. A hybrid regeneration brake system is employed in both parallel and series configurations. The series of hybrid automobiles are more effective for city driving.

Figure 1: Global Hybrid Vehicle Market by Electric Power-train, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Propulsion Insights

Based on Propulsions, the global Hybrid Vehicle market segmentation includes HEV, PHEV, and NGV. The HEV category generated the highest market revenue of about 40% (USD 48.2 billion) in 2022. They employ combustion engines and electric motors to power the machine.

Type Insights

The global Hybrid Vehicle market segmentation, based on Type, includes Passenger cars, Commercial vehicles, and others. The commercial vehicles segment dominated the market, accounting for 43% of market revenue (USD 51.8 Billion) in 2022. Commercial hybrid cars will likely expand as governments enact more strict regulations throughout the forecast period. People are buying more automobiles for personal use due to growing environmental consciousness and hybrid vehicles' energy efficiency.

Degree of Hybridization Insights

The global Hybrid Vehicle market segmentation, based on the Degree of Hybridizations, includes Full and Micro. The full category dominated the market, accounting for 62% of market revenue (USD 74.7 Billion) in 2022. It improves fuel economy and lowers pollution. Furthermore, technical advancements are ongoing in this field.

Regional Insights

By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Hybrid Vehicle market will dominate during the projected timeframe because Fuel price increases are causing people to choose and operate hybrid automobiles. Thus, the Hybrid Vehicle sector is expected to increase significantly in the North American region.

Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Hybrid Vehicle Market Share by Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe region’s Hybrid Vehicle market accounts for the second-highest market share because the region is heavily inhabited, with the bulk of residents falling into the middle class. They are the largest purchasers of hybrid automobiles. Further, the German Hybrid Vehicle market holds the largest market share, and the UK Hybrid Vehicle market is expected to grow and expand significantly in the European region during the projected timeframe.

The Asia-Pacific Hybrid Vehicle Market is expected to grow quickly during the projected timeframe. This is due to promoting awareness of hybrid automobiles, aiding in growing their global demand. Moreover, China’s Hybrid Vehicle market dominates the market share, and the Indian Hybrid Vehicle market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.

Hybrid Vehicle Key Market Players & Competitive Insights

Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Hybrid Vehicle market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their global footprint, with significant market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings. The Hybrid Vehicles industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.

Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the global industry to benefit customers and capture untapped market share and revenue. The Hybrid Vehicle industry has recently offered significant advantages to the ICE, Electric, Hybrid, and Autonomous Vehicles industry. Moreover, more industry participants are utilizing and adopting cutting-edge Electric Powertrain has grown substantially. Major players in the Hybrid Vehicle market, including Toyota Motor Corporation (Japan), Allison Transmission (U.S.), Delphi Technologies, Inc. (U.K.), Honda Motor Company, Ltd. (Japan), The Ford Motor Company (U.S.), BorgWarner Inc. (U.S.), AB Volvo (Sweden), Schaeffler Technologies AG & Co. KG (Germany), Continental AG (Germany), Daimler AG (Germany), Hyundai Motor Company (South Korea), ZF Friedrichshafen AG (Germany)are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.

Toyota Motor Corporation manufactures and sells automobiles and parts. It works in three divisions: automobiles, banking and finance, and everything other. Kiichiro Toyoda created the corporation on August 28, 1937, and it has its headquarters in Toyota, Japan. In November 2022, Toyota Australia announced significant improvements to its iconic Corolla hatch and sedan ranges, including Toyota Linked Service capabilities and the most recent hybrid powertrain version.

Bayerische Motoren Werke (BMW) manufactures and sells vehicles and motorbikes. It is divided into four business divisions: automobiles, motorbikes, banking and financial services, and additional entities. The firm was established on March 6, 1916, and is based in Munich, Germany. BMW AG said in October 2020 that it will offer 25 hybrid electric car models globally by 2023.

Key Companies in the Hybrid Vehicle market include

• Toyota Motor Company


• Honda Motor Company


• BYD Company Ltd


• Lexus


• Ford Motor Company


• Kia Motors Company


• Nissan Motor Company


• Volkswagen AG


• AB Volvo

Hybrid Vehicle Industry Developments

November 2022: Toyota Australia announced significant improvements to its iconic Corolla hatch and sedan ranges, including Toyota Linked Service capabilities and the most recent hybrid powertrain version.

October 2020:  BMW AG said in October 2020 that it will offer 25 hybrid electric car models globally by 2023.

August 2020:  Paice, an automotive hybrid tech supplier, said in August 2020 that it had reached a deal to license its proprietary hybrid innovation to Mitsubishi Motors in Japan.

Hybrid Vehicles Market Segmentation:

By Electric Powertrain Outlook

• Parallel


• Series

By Propulsion Outlook

• HEV


• PHEV


• NGV

By Type Outlook

• Passenger car


• Commercial vehicles


• Others

By Degree of Hybridization Outlook

• Full


• Micro

By Regional Outlook

• 
  
  Middle East
  
  


• 
  
  Africa
  
  


• 
  
  Latin America