Hybrid vehicle is a vehicle exhausting two diverse forms of power such as an internal combustion engine and an electric motor. The global hybrid vehicle market is growing at significant rate, due to mounting alarm about environmental pollution and promising government strategies and supports. Different propulsion type contributed to the hybrid vehicle market size. The market has witnessed high demand for PHEV segment in the coming years due to mounting acceptance of mid and large-sized vehicles and the improvement of electric setup.
Insight by Component
On the basis of component, the hybrid vehicle market is subdivided into electric motor, battery, and transmission. Of all components, battery segment accounted the largest share in the market, as it is the most important component of a hybrid vehicle.
Insight by Electric Power Train Type
On the basis of electric power train type, the market is subdivided into parallel hybrid and series hybrid. Of all the electric power train type, the parallel hybrid accounted the larger share and is expected to grow at the fastest rate in the market due to augmented usage of braking technology, high performance and less complex system.
Insight by Propulsion
On the basis of propulsion, the market is subdivided into hybrid electric vehicle (HEV), natural gas vehicle (NGV) and plug-in hybrid electric vehicle (PHEV). Among the all propulsion, the HEV segment accounted the largest share in the hybrid vehicle market. In addition, PHEV segment is expected to grow at the fastest rate in the market due to mounting acceptance of mid- and large-sized vehicles and the improvement of electric setup.
Insight by Degree of Hybridization
On the basis of degree of hybridization, the market is subdivided into micro hybrid, full hybrid and mild hybrid. Among the all degree of hybridization, the full hybrid segment accounted the largest share in the market due to decreased emission owing to constant technology advancement and refining fuel competence. In addition, the mild hybrid segment is expected to grow at the fastest rate in the market.
Insight by Vehicle Type
The different vehicle types in the market are passenger cars and commercial vehicles. Among the all vehicle type, the passenger cars accounted the larger share in the hybrid vehicle market due to high demand for personal mobility, improved lifestyle, mounting need for mid and large sized cars and mounting per capita income. In addition, the commercial vehicle segment is expected to grow at the faster rate in the market due to benefits of commercial vehicle such as amplified driving range, easiness of application of hybrid vehicle technology, elevated emphasis of OEMs to decrease emissions and fuel efficacy.
Mounting emission rules, continuous decrease in battery expense, mounting alarm about environmental pollution, elevated rate of acceptance of fuel cell vehicles and optimal fuel competence are the primary growth drivers for hybrid vehicle market. For instance, according to 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 place where air quality exceeds WHO guidelines limits. Government plans and schemes relating to hybrid vehicles and huge demand for battery electric vehicle are also facilitating the growth for the hybrid vehicle market.
High vehicle price and mounting demand for FCEVs and BEVs are the major challenges for the growth of hybrid vehicle market. In addition, inadequate setup and elevated development price are also hindering the growth of the market.
Globally industry players are leveraging market growth through launching new products. In addition, establishing manufacturing units for hybrid vehicles involve enormous capital and resource, which is not viable for the small and medium sized companies. Different players are investing in development of new battery technology to lower the cost of hybrid vehicles to compete against gasoline vehicles in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance performance of these vehicles leading to adoption by masses.
Geographically, Asia-Pacific is the largest hybrid vehicle market as it is home to various key players. Amplified sale of hybrid vehicles in Japan, South Korea and China, changing lifestyle, improving disposable income, mounting alertness about the advantages of hybrid vehicle, higher fuel price and government support and grants are also up surging growth of the Asia-Pacific hybrid vehicle market.
Key players in the hybrid vehicle market are catering the demand by collaborating with small players and investing on technologically advanced hybrid vehicle across the globe. In March 2018, Toyota and Suzuki Motor Corporation have signed an agreement for the conjoint supply of hybrid and other vehicles among the two companies for the Indian market. Toyota, Hyundai, ZF, Ford, Honda, Borgwarner, Volvo, Delphi Technologies, Daimler, Allison Transmission, Continental and Schaefler are the key players offering hybrid vehicle.