• Cat-intel
  • MedIntelliX
  • Resources
  • About Us
  • Request Free Sample ×

    Kindly complete the form below to receive a free sample of this Report

    Leading companies partner with us for data-driven Insights

    clients tt-cursor
    Hero Background

    Plug Hybrid Electric Vehicle Battery Market

    ID: MRFR/E&P/34841-HCR
    128 Pages
    Priya Nagrale
    October 2025

    Plug-In Hybrid Electric Vehicle Battery Market Research Report By Battery Chemistry (Lithium-Ion, Nickel-Metal Hydride, Solid-State, Lead-Acid), By Capacity (Less than 10 kWh, 10-20 kWh, 20-30 kWh, Above 30 kWh), By Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle), By Charging Infrastructure (Home Charging, Public Charging, Workplace Charging) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

    Share:
    Download PDF ×

    We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

    Plug Hybrid Electric Vehicle Battery Market Infographic
    Purchase Options

    Plug Hybrid Electric Vehicle Battery Market Summary

    As per MRFR analysis, the Plug-In Hybrid Electric Vehicle Battery Market Size was estimated at 27.87 USD Billion in 2024. The Plug-In Hybrid Electric Vehicle Battery industry is projected to grow from 32.95 USD Billion in 2025 to 175.85 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 18.23 during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The Plug-In Hybrid Electric Vehicle Battery Market is poised for substantial growth driven by technological advancements and increasing sustainability efforts.

    • Technological advancements in battery chemistry are enhancing performance and efficiency in the market.
    • North America remains the largest market, while Asia-Pacific is emerging as the fastest-growing region for plug-in hybrid electric vehicle batteries.
    • Lithium-Ion batteries dominate the market, whereas Nickel-Metal Hydride batteries are experiencing rapid growth.
    • Rising demand for eco-friendly transportation and government policies supporting electric mobility are key drivers of market expansion.

    Market Size & Forecast

    2024 Market Size 27.87 (USD Billion)
    2035 Market Size 175.85 (USD Billion)
    CAGR (2025 - 2035) 18.23%

    Major Players

    Toyota Motor Corporation (JP), General Motors Company (US), Ford Motor Company (US), BMW AG (DE), Honda Motor Co., Ltd. (JP), Volkswagen AG (DE), Hyundai Motor Company (KR), Nissan Motor Co., Ltd. (JP), Daimler AG (DE)

    Plug Hybrid Electric Vehicle Battery Market Trends

    The Plug-In Hybrid Electric Vehicle Battery Market is currently experiencing a transformative phase, driven by a confluence of technological advancements and shifting consumer preferences. As environmental concerns gain prominence, manufacturers are increasingly focusing on developing batteries that not only enhance vehicle performance but also reduce carbon footprints. This market appears to be characterized by a growing demand for efficient energy storage solutions, which are essential for the optimal functioning of plug-in hybrid electric vehicles. Furthermore, the integration of smart technologies into battery systems suggests a trend towards improved energy management and user experience, potentially reshaping the landscape of the automotive industry. In addition to technological innovations, regulatory frameworks are evolving to support the adoption of plug-in hybrid electric vehicles. Governments worldwide are implementing policies that incentivize the use of cleaner transportation options, which may further stimulate market growth. The Plug-In Hybrid Electric Vehicle Battery Market seems poised for expansion, as stakeholders from various sectors collaborate to enhance battery performance and sustainability. This collaborative effort could lead to breakthroughs in battery chemistry and recycling processes, ultimately contributing to a more sustainable future for transportation. As the market continues to evolve, it is likely that consumer awareness and acceptance will play a crucial role in shaping its trajectory.

    Technological Advancements in Battery Chemistry

    Recent developments in battery chemistry are likely to enhance the performance and longevity of plug-in hybrid electric vehicle batteries. Innovations such as solid-state batteries and advanced lithium-ion technologies may provide higher energy densities and faster charging times, appealing to consumers seeking efficiency.

    Increased Focus on Sustainability

    There appears to be a growing emphasis on sustainability within the Plug-In Hybrid Electric Vehicle Battery Market. Manufacturers are exploring eco-friendly materials and recycling methods, which could reduce environmental impact and align with global sustainability goals.

    Government Incentives and Regulations

    Regulatory frameworks are evolving to promote the adoption of plug-in hybrid electric vehicles. Government incentives and policies may encourage consumers to transition to cleaner transportation options, potentially driving demand for plug-in hybrid electric vehicle batteries.

    The increasing emphasis on sustainable transportation solutions appears to be driving advancements in battery technology for plug-in hybrid electric vehicles, potentially reshaping the automotive landscape.

    U.S. Department of Energy

    Plug Hybrid Electric Vehicle Battery Market Drivers

    Expansion of Charging Infrastructure

    The expansion of charging infrastructure is a critical factor influencing the Plug-In Hybrid Electric Vehicle Battery Market. As more charging stations become available, the convenience of owning a PHEV increases, thereby attracting a larger consumer base. This trend is particularly relevant in urban areas where charging accessibility is essential for potential buyers. The development of fast-charging technologies also enhances the appeal of PHEVs, as it reduces downtime for users. According to industry reports, the number of public charging stations is expected to double in the next few years, which could significantly impact the adoption rates of Plug-In Hybrid Electric Vehicles. This growth in infrastructure is likely to create a more favorable environment for the battery market.

    Increasing Fuel Prices and Economic Factors

    The fluctuation of fuel prices and broader economic factors appear to influence consumer choices regarding vehicle purchases. As fuel prices rise, consumers may seek alternatives that offer better fuel efficiency, such as Plug-In Hybrid Electric Vehicles. The Plug-In Hybrid Electric Vehicle Battery Market stands to gain from this shift, as PHEVs provide a cost-effective solution by combining electric and gasoline power. Economic conditions, including disposable income levels, also play a role in consumer purchasing decisions. As more individuals opt for PHEVs to mitigate fuel costs, the demand for advanced battery technologies is likely to increase, further propelling the market forward.

    Rising Demand for Eco-Friendly Transportation

    The increasing awareness of environmental issues appears to drive the demand for eco-friendly transportation solutions. Consumers are becoming more conscious of their carbon footprints, leading to a surge in interest in Plug-In Hybrid Electric Vehicles (PHEVs). The Plug-In Hybrid Electric Vehicle Battery Market is likely to benefit from this trend, as PHEVs offer a balance between traditional combustion engines and fully electric vehicles. According to recent data, the market for PHEVs is projected to grow at a compound annual growth rate (CAGR) of approximately 15% over the next five years. This growth is indicative of a broader shift towards sustainable mobility solutions, which could further enhance the demand for advanced battery technologies.

    Technological Innovations in Battery Efficiency

    Technological advancements in battery efficiency are pivotal for the Plug-In Hybrid Electric Vehicle Battery Market. Innovations such as solid-state batteries and improved lithium-ion technologies are enhancing energy density and reducing charging times. These developments not only improve vehicle performance but also address consumer concerns regarding range anxiety. As manufacturers invest in research and development, the market is expected to witness a significant transformation. For instance, the introduction of batteries with higher energy capacities could lead to an increase in the average range of PHEVs, making them more appealing to a broader audience. This trend suggests a promising future for the industry as it adapts to evolving consumer preferences.

    Government Policies Supporting Electric Mobility

    Government policies aimed at promoting electric mobility are likely to play a crucial role in shaping the Plug-In Hybrid Electric Vehicle Battery Market. Various countries are implementing stringent emissions regulations and offering incentives for electric vehicle adoption. For example, tax rebates and subsidies for PHEV purchases are becoming more common, encouraging consumers to consider these vehicles. Additionally, investments in charging infrastructure are essential for supporting the growth of the PHEV market. As governments continue to prioritize sustainable transportation, the demand for Plug-In Hybrid Electric Vehicle batteries is expected to rise, creating a favorable environment for manufacturers and stakeholders in the industry.

    Market Segment Insights

    By Battery Chemistry: Lithium-Ion (Largest) vs. Nickel-Metal Hydride (Fastest-Growing)

    The Plug-In Hybrid Electric Vehicle (PHEV) battery market is prominently led by Lithium-Ion batteries, which have gained substantial market share due to their efficiency, longevity, and lightweight nature. Following closely is Nickel-Metal Hydride, which, despite a smaller share, is rapidly gaining traction in specific vehicle models, appealing to manufacturers focused on cost-effectiveness and environmental sustainability. As technological advancements continue, these two battery chemistries are shaping the landscape of renewable vehicle power.

    Battery Chemistry: Lithium-Ion (Dominant) vs. Nickel-Metal Hydride (Emerging)

    Lithium-Ion batteries are at the forefront of the Plug-In Hybrid Electric Vehicle market, characterized by their high energy density and fast charging capabilities. This technology dominates due to its adaptability in various vehicle architectures and longevity compared to traditional chemistries. On the other hand, Nickel-Metal Hydride batteries, though considered an emerging option, remain relevant due to their reliability and lower production costs. They are specifically appealing for budget-friendly PHEV models, where performance is essential but cost management is a priority. As manufacturers innovate, both chemistries are expected to coexist, catering to different segments of the market.

    By Capacity: Above 30 kWh (Largest) vs. 10-20 kWh (Fastest-Growing)

    In the Plug-In Hybrid Electric Vehicle Battery Market, the capacity segment distribution reveals that batteries with a capacity of above 30 kWh hold the largest market share. This capacity is favored by consumers for its range and performance, providing sufficient power for longer journeys and more demanding applications. On the other hand, the 10-20 kWh segment is emerging as the fastest-growing, appealing primarily to urban drivers seeking an optimal balance between performance and cost-efficiency. Many manufacturers are adapting their production to cater to this increasing demand.

    Above 30 kWh (Dominant) vs. 10-20 kWh (Emerging)

    Batteries with a capacity of above 30 kWh are characterized by their robust energy storage capability, allowing for extended driving ranges and the ability to support higher power demands associated with Plug-In Hybrid Electric Vehicles (PHEVs). This capacity has become increasingly popular among consumers who prioritize long-distance travel and wish to minimize their reliance on gasoline. Conversely, the 10-20 kWh segment is gaining traction as an emerging option, particularly in urban areas where shorter commutes do not necessitate high capacity. These batteries offer cost-effective solutions, making them attractive to budget-conscious consumers and manufacturers aiming to penetrate the mid-range market. This segment is expected to see significant innovation as producers strive to enhance energy density and reduce costs.

    By Vehicle Type: Passenger Vehicle (Largest) vs. Light Commercial Vehicle (Fastest-Growing)

    In the Plug-In Hybrid Electric Vehicle Battery Market, the 'Vehicle Type' segment showcases a competitive landscape dominated by passenger vehicles. This category captures a significant share due to the increasing consumer preference for eco-friendly alternatives in the personal transportation sector. Light commercial vehicles are close behind, with a growing presence fueled by the expansion of urban logistics and delivery services that prioritize sustainability.

    Passenger Vehicle (Dominant) vs. Light Commercial Vehicle (Emerging)

    Passenger vehicles represent the dominant force within the Plug-In Hybrid Electric Vehicle Battery Market, benefiting from extensive advancements in battery technology that enhance efficiency and performance. This segment is characterized by a wide variety of models appealing to diverse consumers, influenced by incentives for reducing carbon emissions. On the other hand, light commercial vehicles are emerging rapidly as businesses seek scalable solutions that align with green initiatives. Their growth is further supported by government regulations and investments aimed at promoting cleaner urban transportation solutions, setting a precedent for future developments in this segment.

    By Charging Infrastructure: Home Charging (Largest) vs. Public Charging (Fastest-Growing)

    The Plug-In Hybrid Electric Vehicle Battery Market showcases a diverse charging infrastructure segment with three primary components: Home Charging, Public Charging, and Workplace Charging. Home Charging currently holds the largest market share, driven by the convenience it offers to consumers. It allows for overnight charging, which appeals to homeowners with dedicated parking spaces. On the other hand, Public Charging is witnessing rapid growth as urban areas expand and more consumers embrace electric vehicles. This segment caters to those who may not have the ability to charge at home or prefer charging while they are away from their residences. Growth trends in the charging infrastructure sector are significantly influenced by government initiatives promoting electric vehicle adoption and advancements in charging technology. The increasing number of electric vehicle models available in the market is also encouraging the establishment of more Public Charging stations. Furthermore, the rise in the number of multifamily units and the shift towards sustainable lifestyles contribute to the growth of the Public Charging segment. As the market evolves, Workplace Charging is also gaining attention as companies recognize benefits such as attracting eco-conscious employees and providing convenience for their workforce.

    Charging Type: Home Charging (Dominant) vs. Public Charging (Emerging)

    Home Charging stands out in the Plug-In Hybrid Electric Vehicle Battery Market as a dominant segment due to its user-friendly approach and cost-effectiveness. With the increasing number of homeowners investing in personal charging solutions, this infrastructure allows users to charge their vehicles conveniently at their own pace, contributing to sustained usage patterns. Public Charging, while emerging, is gaining rapid traction. It caters to the need for an accessible charging network in urban environments, where many drivers do not have home charging facilities. Public Charging stations are being strategically deployed in high-traffic areas, making them essential for long-distance travelers and urban commuters. As electric vehicle adoption continues to grow, both segments will coexist, catering to diverse consumer needs.

    Get more detailed insights about Plug Hybrid Electric Vehicle Battery Market

    Regional Insights

    The Plug-In Hybrid Electric Vehicle Battery Market has showcased significant regional variations, outlining the importance of different areas in driving market growth. North America serves as a major contributor, valued at 7.5 USD Billion in 2023 and projected to reach 32.1 USD Billion by 2032, highlighting its dominance due to strong regulatory support and market adoption of electric vehicles.

    Europe follows closely, holding a valuation of 6.0 USD Billion in 2023, with expectations to rise to 27.0 USD Billion, showcasing robust initiatives towards sustainability and innovative technology.The Asia-Pacific (APAC) region, valued at 4.5 USD Billion in 2023 progressing to 20.5 USD Billion, is significant as it accounts for a rapid increase in electric vehicle production, driven by multiple manufacturers investing in battery technology.

    South America and the Middle East  Africa (MEA) regions are smaller players, with valuations of 1.2 USD Billion and 1.73 USD Billion in 2023, respectively, but present opportunities for growth as electric vehicle adoption increases in these emerging markets. Together, these valuations highlight the dynamic landscape and varying growth drivers within the Plug-In Hybrid Electric Vehicle Battery Market segmentation.

    Plug In Hybrid Electric Vehicle Battery Market By North America

    Source Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The Plug-In Hybrid Electric Vehicle (PHEV) Battery Market is characterized by a rapidly evolving competitive landscape, driven by the growing demand for sustainable transportation solutions. The increasing emphasis on reducing carbon emissions and enhancing energy efficiency has propelled the need for advanced battery technologies. Competition in this market is amplified by the presence of established players as well as new entrants focusing on innovation, cost reduction, and improving the performance of batteries used in PHEVs.

    The market dynamics reflect the various strategies adopted by companies, including advancements in battery chemistry, collaborations with automobile manufacturers, and investments in research and development to enhance energy density and longevity of batteries.Schneider Electric has a significant presence in the Plug-In Hybrid Electric Vehicle Battery Market, leveraging its extensive portfolio in energy management and automation solutions. The company specializes in providing integrated battery solutions that enhance the efficiency and reliability of PHEV charging infrastructure. Schneider Electric's strengths lie in its expertise in energy management systems, enabling seamless integration between electric vehicles and the power grid.

    The company's commitment to sustainability and innovation positions it favorably in the market, as it actively supports the transition towards greener transportation by promoting technologies that optimize energy use and minimize environmental impact. Schneider Electric's strategic partnerships with automotive manufacturers further reinforce its market position, enabling it to deliver tailored solutions that meet the evolving demands of PHEV battery technology.Panasonic is another key player in the Plug-In Hybrid Electric Vehicle Battery Market, recognized for its innovation in battery manufacturing and technology.

    The company is known for producing high-quality lithium-ion batteries that are widely used in the automotive sector, particularly in hybrid and electric vehicles. Panasonic focuses on enhancing battery performance, aiming for higher energy density, longer life cycles, and improved safety features. The company's robust research and development initiatives enable it to stay ahead of the competition by continually refining its battery technologies and adapting to market trends. Panasonic's established relationships with major automotive manufacturers strengthen its position in the market, allowing it to cater to growing demand for PHEV batteries while maintaining a competitive edge through continuous improvement and innovation.

    Key Companies in the Plug Hybrid Electric Vehicle Battery Market market include

    Industry Developments

    • Q2 2025: Global Electric Vehicle Sales Set for Record-Breaking Year, Even as US Market Slows Sharply, BloombergNEF Finds BloombergNEF’s Electric Vehicle Outlook expects nearly 22 million battery electric and plug-in hybrid vehicle sales in 2025, up 25% from 2024, driven by falling lithium-ion battery costs and increased production of affordable EV models.
    • Q2 2025: Hybrid vehicle sales continue to rise as electric and plug-in hybrid vehicle sales remain flat In the first quarter of 2025, about 22% of light-duty vehicles sold in the United States were hybrid, battery electric, or plug-in hybrid vehicles, up from about 18% in the first quarter of 2024, with hybrid electric vehicles gaining market share.
    • Q2 2025: New car registrations: -1.9% in H1 2025; battery-electric 15.6% market share By June 2025, battery-electric cars reached a 15.6% market share in the EU, up from 12.5% in the first half of 2024, indicating increased adoption of plug-in hybrid and battery electric vehicles.

     

    Future Outlook

    Plug Hybrid Electric Vehicle Battery Market Future Outlook

    The Plug-In Hybrid Electric Vehicle Battery Market is projected to grow at an 18.23% CAGR from 2024 to 2035, driven by technological advancements, regulatory support, and increasing consumer demand.

    New opportunities lie in:

    • Development of high-capacity battery recycling facilities
    • Partnerships with renewable energy providers for charging solutions
    • Investment in advanced battery management systems for efficiency

    By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

    Market Segmentation

    Plug Hybrid Electric Vehicle Battery Market Capacity Outlook

    • Less than 10 kWh
    • 10-20 kWh
    • 20-30 kWh
    • Above 30 kWh

    Plug Hybrid Electric Vehicle Battery Market Vehicle Type Outlook

    • Passenger Vehicle
    • Light Commercial Vehicle
    • Heavy Commercial Vehicle

    Plug Hybrid Electric Vehicle Battery Market Battery Chemistry Outlook

    • Lithium-Ion
    • Nickel-Metal Hydride
    • Solid-State
    • Lead-Acid

    Plug Hybrid Electric Vehicle Battery Market Charging Infrastructure Outlook

    • Home Charging
    • Public Charging
    • Workplace Charging

    Report Scope

    MARKET SIZE 202427.87(USD Billion)
    MARKET SIZE 202532.95(USD Billion)
    MARKET SIZE 2035175.85(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR)18.23% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD Billion
    Key Companies ProfiledMarket analysis in progress
    Segments CoveredMarket segmentation analysis in progress
    Key Market OpportunitiesAdvancements in battery technology enhance efficiency and range in the Plug-In Hybrid Electric Vehicle Battery Market.
    Key Market DynamicsRising demand for sustainable transportation drives innovation and competition in the Plug-In Hybrid Electric Vehicle Battery market.
    Countries CoveredNorth America, Europe, APAC, South America, MEA

    Leave a Comment

    FAQs

    What is the expected market size of the Plug-In Hybrid Electric Vehicle Battery Market by 2034?

    The Plug-In Hybrid Electric Vehicle Battery Market is expected to be valued at 148.74 USD Billion by 2034.

    What is the projected CAGR for the Plug-In Hybrid Electric Vehicle Battery Market from 2025 to 2034?

    The market is projected to have a CAGR of 18.23% from 2025 to 2034.

    Which region is anticipated to have the highest market value in 2032?

    North America is anticipated to have the highest market value at 32.1 USD Billion in 2032.

    What will be the market value for Lithium-Ion batteries in 2032?

    The market value for Lithium-Ion batteries is expected to reach 45.0 USD Billion by 2032.

    What is the expected market size for Nickel-Metal Hydride batteries by 2032?

    The expected market size for Nickel-Metal Hydride batteries by 2032 is 20.0 USD Billion.

    How much is the Plug-In Hybrid Electric Vehicle Battery Market valued at in 2023?

    The market is valued at 19.93 USD Billion in 2023.

    Which key players are significant in the Plug-In Hybrid Electric Vehicle Battery Market?

    Significant players include Schneider Electric, Panasonic, Samsung SDI, Ford, BMW, and Tesla.

    What will be the market value of the Solid-State battery segment by 2032?

    The Solid-State battery segment is expected to reach a market value of 15.0 USD Billion by 2032.

    What regional market is projected to grow from 1.73 USD Billion to 5.9 USD Billion by 2032?

    The Middle East and Africa (MEA) region is projected to grow from 1.73 USD Billion in 2023 to 5.9 USD Billion by 2032.

    What is the expected growth rate for the APAC region in the Plug-In Hybrid Electric Vehicle Battery Market by 2032?

    The APAC region is expected to grow to a market value of 20.5 USD Billion by 2032.

    Download Free Sample

    Kindly complete the form below to receive a free sample of this Report

    Case Study
    Chemicals and Materials

    Compare Licence

    ×
    Features License Type
    Single User Multiuser License Enterprise User
    Price $4,950 $5,950 $7,250
    Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
    Free Customization
    Direct Access to Analyst
    Deliverable Format
    Platform Access
    Discount on Next Purchase 10% 15% 15%
    Printable Versions