Mild Hybrid Vehicles Market

The global mild hybrid vehicles market size was USD 72 Bn in 2022 and is likely to reach USD 334 Bn by 2031, expanding at a CAGR of 18.6% during 2023–2031. The market growth is attributed to the increased demand for fuel-efficient cars and government regulations to minimize CO2 emissions.

A hybrid electric vehicle (HEV) uses both an internal combustion engine (ICE) and an electric motor for propulsion. Mild hybrid cars provide an efficient powertrain option that improves driving comfort and efficiency while lowering engine load. An internal combustion engine, a 48-volt battery, an electric motor, and a converter make up a mild hybrid car.

Mild hybrids are largely conventional automobiles with engines that can be turned off in the event of braking, coasting, or a car stop, but can be restarted cleanly and swiftly. The use of a bigger motor, which spins the engine to operational RPM levels before fuel injection, causes the engine to restart.

Mild hybrid cars offer an easily accessible, cost-effective, and consumer-friendly platform for fulfilling demanding standards for safer, cleaner, and more fuel-efficient automobiles. However, due to strict measures to reduce carbon emissions and hazardous pollutants from exhaust gases, as well as improved powertrain performance, electrification in cars is inclined to produce considerably over the next decade.

Mild Hybrid Vehicles Market Dynamics

The global mild hybrid vehicles market report has up-to-date insights that help in formulating a strategic roadmap about the estimated market scenario and performance during 2023 to 2031.

What are the Drivers of the Mild Hybrid Vehicles Market?

Favorable Government policies and incentives

Governments all over the world have executed various policies and incentives to boost the use of vehicles in the direction of transitioning entirely to electric vehicles, as part of their vision for net-zero carbon emission in a targeted duration which is expected to drive the growth of the market. Furthermore, the global mild hybrid vehicle industry is being fueled by newly released vehicle types with improved driving experiences is the main factor propelling the market growth during the forecast period.

What Restraints the Mild Hybrid Vehicles Market?

Additional torque and silent engines

The additional torque and engines in the mild hybrid vehicle are expected to restrain the market growth. The affordable cost of a car and the simple nature of the car attracts the end-users, which can hinder market growth. A mild hybrid vehicle's powertrain is fairly complicated. Moreover, as a result, the electric motor requires a larger battery to generate the desired power output, and these additional elements increase the vehicle's weight, and the price is expected to hamper the market expansion.

What are the Opportunities in the Mild Hybrid Vehicles Market?

High primary cost

The high primary cost of the mild hybrid vehicle is a key challenge that can impede the growth of the mild hybrid vehicles in the coming years. However, electric vehicles claim high investments in spite of several incentives provided by the government all over the world. Furthermore, mild hybrid system vehicles provided optimum fuel efficiency, which is a great opportunity for the owners and is expected to boost the growth of the market.

Scope of Mild Hybrid Vehicles Report

The global mild hybrid vehicles market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Mild Hybrid Vehicles Market Segment Insights

What are the Main Aspects for Boosting the 48V Segment?

Based on capacity, the global mild hybrid vehicles market is segmented into 48V, less than 48V, and above 48V. The 48V segment is expected to expand at a significant growth rate during the projection period, due to the growth rate of mild hybrid cars. Manufacturers have increased the production of 48V and above voltage mild hybrid vehicles are expected to continue to develop favorably in the coming years.

What are the Major Reasons for Rising Sales in Passenger Cars Segment?

On the basis of vehicle type, the market is divided into commercial vehicles and passenger cars. The passenger cars segment is projected to register a considerable CAGR during the forecast period, owing to the growing population, increased use of lightweight materials in vehicles, as well as being more fuel-efficient, having greater power, and releasing less pollution. Due to stricter pollution regulatory guidelines and an increasing desire for low or zero-emission cars, passenger cars are growing in the market.

What Key Factors Contribute to the Rapid Expansion of the Lithium-ion Segment?

Based on battery type, the global mild hybrid vehicles market is segregated into lead-acid, lithium-ion, and others. The lithium-ion segment is expected to register a robust growth rate during the forecast period, due to increasing demand for electric automobiles Lithium-Ion batteries are high-performance batteries that are utilized in mild hybrid automobiles. In comparison to traditional batteries such as nickel-metal hydride and lead-acid batteries, lithium-ion batteries are also rechargeable and environmentally safe.

Why is Asia Pacific Dominating the Global Mild Hybrid Vehicles Market?

In terms of region, the global mild hybrid vehicles market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period, due to increased production and demand for mild hybrid automobiles. Several automotive companies have planned to invest in the Asia Pacific to supply hybrid vehicles.

Segments

The global mild hybrid vehicles market has been segmented on the basis of

Capacity

• 48V
• Less Than 48V
• Above 48V

Vehicle Type

• Commercial Vehicles
• Passenger Cars

Battery Type

• Lead Acid
• Lithium-Ion
• Others

Region

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

Key Players

• AB Volvo
• Volkswagen AG
• TOYOTA MOTOR CORPORATION.
• Suzuki Motor Corporation
• Nissan Motor Co., Ltd.
• MITSUBISHI MOTORS CORPORATION.
• Hyundai Motor Company
• Honda Motor Co., Ltd.
• Ford Motor Company
• Mercedes-Benz Group AG.
• BYD Motors Inc.
• AUDI AG.
• General Motors
• Renault Group.

Competitive Landscape

Key players competing in the global mild hybrid vehicles market are AB Volvo; Volkswagen AG; TOYOTA MOTOR CORPORATION.; Suzuki Motor Corporation; Nissan Motor Co., Ltd.; MITSUBISHI MOTORS CORPORATION.; Hyundai Motor Company; Honda Motor Co., Ltd.; Ford Motor Company; Mercedes-Benz Group AG.; BYD Motors Inc.; AUDI AG.; General Motors; and Renault Group.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide.

For instance, in 2020, Toyota is collaborating with Panasonic to enhance battery technology so that it can keep up with emerging innovations in the automobile sector. Their study focuses on lowering costs and reducing weight. The business expects to be able to commercialize next-generation solid-state batteries.

In March 2021, Hyundai launched new mild hybrid cars in South Korea. The car is equipped with a 1-liter turbocharged petrol engine and is integrated with 48V mild hybrid technology.