|Status : Published||Published On : Aug, 2021||Report Code : VRAT4003||Industry : Automotive & Transportation||Available Format :||Page : 228|
The global hybrid vehicle market was valued at USD 250.1 billion in 2020 and is anticipated to reach USD 1169.65 billion by 2027, thus growing at a CAGR of 22.10% during the forecast period 2021-2027. The hybrid vehicle is a vehicle exhausting two diverse forms of power i.e., an internal combustion engine (ICE) and an electric motor. The global hybrid vehicle market is growing at a substantial pace, owing to its fuel efficiency, more power, and emits less carbon dioxide than conventional petrol and diesel engine vehicles. They can save energy by turning off the engine when the car is parked, idle, or when the electric motor has enough power to drive the car without the help of ICE. Moreover, the rising environmental pollution and promising government strategies and rebates for hybrid vehicles, including HEVs and PHEVs are driving the growth of the hybrid vehicle market globally. The various types of propulsion have contributed to the hybrid vehicle market size. The market has witnessed high demand for the PHEV segment during the forecast period. because it can reduce fuel costs dramatically because of its highly efficient electric motors, can run solely on electricity, and the mounting acceptance of mid and large-sized vehicles.
The COVID-19 pandemic has adversely impacted the automobile industry as many manufacturing and production units had stopped production due to disruption in the supply chain and lack of labor force. However, after the relaxation in the lockdown people are shifting towards valuable and functional vehicles with the help of fuels and electric motors and are ditching the mode of public transport. Thus, the market is growing for hybrid vehicles during the forecast period.
Insight by Component
Based on the component, the global hybrid vehicle market is segmented into the electric motor, battery, and transmission. Among all the components, the battery segment accounted for the largest share and is expected to witness significant growth during the forecast period because it is the most important component of a hybrid vehicle.
Insight by Electric Power Train Type
Based on the electric powertrain type, the global hybrid vehicle market is bifurcated into parallel hybrid and series hybrid. Among all the electric powertrain types, the parallel hybrid segment is anticipated to hold the largest market share by volume during the forecast period owing to the augmented usage of regenerative braking technology, high performance, and less complex system.
Insight by Propulsion
Based on the propulsion, the global hybrid market is categorized into hybrid electric vehicles (HEV), natural gas vehicles (NGV), and plug-in hybrid electric vehicles (PHEV). Of all these propulsion types, the HEV segment dominates the hybrid vehicle market. In addition, the PHEV segment is expected to grow at the fastest rate in the market due to the rising acceptance of mid-and large-sized vehicles and the improvement of electric setup. These vehicles use battery power that can only be charged with the help of a motor-generator mechanism. Natural gas vehicles use compressed natural gas to provide power to the engines and further help power generators.
Insight by Degree of Hybridization
Based on the degree of hybridization, the global hybrid vehicle market is divided into micro-hybrid, full hybrid, and mild hybrid. Of all the degrees of hybridization, the full hybrid segment accounts for the largest share in the market due to decreased emission owing to constant technology development and refining fuel competence. In addition, the mild hybrid segment is expected to grow at a higher CAGR during the forecast period.
Insight by Vehicle Type
Based on the vehicle type, the global hybrid vehicle market is divided into passenger cars and commercial vehicles. Of these two vehicle types, the passenger cars accounted for the larger share in the hybrid vehicle market due to high demand for personal mobility, changing lifestyle, rising need for mid and large-sized cars, and the increase in per capita income. Moreover, the commercial vehicle segment is anticipated to grow at a faster rate during the forecast period owing to the benefits offered by commercial vehicles such as amplified driving range, easiness of application of hybrid vehicle technology, the elevated emphasis of OEMs to decrease emissions and fuel efficacy.
Industry players around the world are taking advantage of market growth by launching new products. In addition, the establishment of a hybrid vehicle manufacturing unit involves a lot of capital and resources, which is not feasible for small and medium-sized enterprises. Different players are investing in the development of new battery technology to reduce the cost of hybrid vehicles in order to compete with gasoline vehicles in terms of price and performance. In the next few years, industry leaders are expected to significantly reduce the cost of these vehicles and improve the performance of these vehicles, leading to mass adoption.
Mounting emission norms, continuous reduction in the price of electric batteries, mounting alarm about environmental pollution, increasing rate of acceptance of fuel cell vehicles, rising adoption of hybrid vehicles, and optimal fuel competence are the major and key growth drivers for the hybrid vehicle market. The demand for green vehicles is growing substantially in developed countries such as the US and Canada and is anticipated to increase during the forecast period which will boost the growth of the hybrid vehicle market For instance, according to the World Health Organization (WHO), globally exposure of ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in places where air quality exceeds WHO guidelines limits. Government plans and schemes relating to hybrid vehicles and huge demand for battery electric vehicles are also facilitating the growth of the hybrid vehicle market.
High vehicle cost, lack of infrastructure, and mounting demand for FCEVs and BEVs are the major challenges for the growth of the hybrid vehicle market. Furthermore, inadequate setup and elevated development prices are also hindering the growth of the market.
Hybrid vehicles are providing promising opportunities for the growth in markets of developing economies because of the government initiatives and support in the form of grants and rebates and rising price of fuels is pushing the customers to opt for hybrid vehicles.
Geographically, Asia-Pacific is the largest hybrid vehicle market as it is home to various industry players such as Toyota, Honda, Nissan, Hyundai, and Kia. Amplified sale of hybrid vehicles in Japan, South Korea, and China, a shift in lifestyle, rise in disposable income, mounting alertness about the advantages of a hybrid vehicle, higher fuel price, and government support and grants are also up surging growth of the Asia-Pacific hybrid vehicle market.
Key industry players in the hybrid vehicle market are catering to the demand by collaborating with small players, entering into new strategic partnerships, product launches, investing in R&D projects, and investing in a technologically advanced hybrid vehicle globally.
Ford is investing USD 11 billion in electrification, with plans to add 40 hybrid and fully electric vehicles to its lineup by 2022.
Toyota Prius was the world's first mass-produced hybrid car, and the firm has sold 13 million hybrid cars since its introduction. The company has taken strategic step to promote hybrid cars as a bridge to fully electric vehicles.
Toyota, Hyundai, ZF, Ford, Honda, Borgwarner, Volvo, Delphi Technologies, Daimler, Allison Transmission, Continental and Schaefler are the key players offering hybrid vehicle.
Source: VynZ Research
Source: VynZ Research