Global Hybrid Vehicle Market

Global Hybrid Vehicle Market Outlook 2031:

The global hybrid vehicle market size was valued at USD 401.66 Billion in 2022 and is projected to reach USD 3.3 Trillion by 2031, expanding at a CAGR of 26.5% during the forecast period 2023 - 2031. A normal vehicle uses an internal combustion engine (ICE) to run using conventional fuels including petrol, diesel, and gasoline; whereas, an electric vehicle uses an electric motor to run using electricity.

The hybrid vehicle is a type of vehicle using a combination of these two technology. The hybrid vehicle is equipped with both ICE and electric motors to function smoothly and efficiently. The vehicle switches between fuel powered engine and electric motors whenever necessary to save fuel and emit less toxic emissions produced by crude fuels.

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The batteries in these vehicles are usually charged while the vehicle is in use by using technology such as regenerative braking systems or by simple dynamo properties. The vehicle turns off the engine whenever not required or whenever electric motors are enough to power the vehicle. This saves a lot of fuel while making these vehicles eco-friendly and more prominent among all sectors; due to which the hybrid class of vehicles are gaining a lot of popularity and in a very short span of time.

Hybrid Vehicle Market Trends, Drivers, Restraints, and Opportunities:

• Increasing awareness among the masses regarding vehicle emissions and strict government policies to curb carbon emission are fueling the market growth.
• Government encouragement and initiatives focused on fuel efficiency and fuel economy are likely to have a positive impact on the market in the coming years.
• Rising demand for battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV) present major restraints that are expected to hinder the growth of the market during the forecast period.
• High cost of the vehicle types due to high price of batteries and other systems act as key challenges that can hamper the market growth during the projected period.
• Rapid growth in the market in developing countries due to certain advantages such as incentives in sales and manufacturing, tax rebates, and increased focus on deploying hybrid commercial vehicles are offering immense opportunities for market expansion in the near future.

Scope of the Hybrid Vehicle Market report:

The report on the global hybrid vehicle market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Hybrid Vehicle Market Segment Insights:

Full hybrid segment is expected to account for a substantial market share

In terms of degrees of hybridization, the market is segregated into micro hybrid, mild hybrid, and full hybrid. The full hybrid segment is expected to account for a substantial market share during the forecast period owing to certain advantages such as improving fuel efficiency and reduced emission due to continuous technology upgrades.

Moreover, massive R&D programs to ensure higher performance of the hybridization types present another major drivers of the segment.

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HEV segment is estimated to hold a large market share

Based on propulsion, the global hybrid vehicle market is segmented into HEV, PHEV, and NGV. The HEV segment is estimated to hold a large market share during the forecast period owing to an increasing market for HEV due to high sales in major economies such as the US, Japan, and China.

Moreover, governments in developing countries including Mexico, India, and Brazil are encouraging their people to use hybrid vehicles to cope with the increasing emissions. These vehicles are inexpensive compared to plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs). Additionally, HEV has a substantial market share compared to other eco-friendly vehicles such as natural gas vehicles and PHEV, due to the better fuel efficiency that HEV offers.

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Advancement in technology drives the parallel hybrid segment growth

Based on electric powertrain types, the market is bifurcated into parallel hybrid and series hybrid. The parallel hybrid segment is projected to register a robust growth rate during the forecast period owing to certain advantages such as advancement in technology such as automations and regenerative braking systems.

Asia Pacific is expected to constitute a major market share

On the basis of regions, the global hybrid vehicle market is classified as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. The market of Asia Pacific is expected to constitute a large market share during the forecast period.

The regional market growth is attributed to favorable government policies, rapid advancement in technology, as well as rising disposable income of a large number of the population in the region.

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Segments

By Degrees of Hybridization

• Micro Hybrid
• Mid Hybrid
• Full Hybrid

By Propulsion

• HEV
• PHEV
• NGV

By Electric Powertrain Types

• Parallel Hybrid
• Series Hybrid

By Regions

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

By Key Players

• Toyota Motor Corp.
• Nissan Motor Corp.
• Honda Motor Company, Ltd.
• Kia Corp.
• Koenigsegg Automotive AB

Competitive Landscape

Key players in the global hybrid vehicle market are Toyota Motor Corp.; Nissan Motor Corp.; Honda Motor Company, Ltd.; Kia Corp.; and Koenigsegg Automotive AB. These players are widely engaged in several business development strategies including mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.