Market Overview:
Hybrid vehicles offer benefits of both internal combustion engine and electric vehicles by reducing fuel consumption and emissions. They provide better mileage than gasoline-powered vehicles and are more affordable than fully electric vehicles. The technology allows for lower greenhouse gas emissions and improved energy efficiency.
Market key trends:
One of the major trends in the hybrid vehicles market is the increasing adoption of electric vehicles. Unlike hybrid electric vehicles (HEVs) which rely on both gasoline and electric powertrains, plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) are gaining more traction due to technological advancements and declining battery costs. The increasing investments by governments worldwide in electric vehicle charging infrastructure are expected to further drive the adoption of EVs over the forecast period. For instance, the India government’s FAME II scheme focuses on incentivising adoption of hybrid and electric vehicles considering the potential of EVs in reducing oil imports and curbing pollution.
Segment Analysis
The hybrid vehicles market is segmented by vehicle type, propulsion type, and geography. The vehicle type segment is further divided into hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). Among these, the HEVs segment currently dominates the market due to its affordable price and ability to run solely on an internal combustion engine without the need to be recharged periodically from an external source of electricity. This makes HEVs a viable option for consumers not yet ready to fully switch to electric vehicles.
Key Takeaways
The Global Hybrid Vehicles Market Demand size is expected to witness high growth, exhibiting CAGR of 18.00% over the forecast period, due to increasing environmental concerns and stringent emission regulations implemented by governments worldwide.
Regional analysis shows that Asia Pacific is the fastest growing as well as dominating regional market. Countries like China and Japan have strong domestic automakers manufacturing hybrid vehicles at competitive prices. Governments in the region also provide various subsidies to promote sales of green vehicles.
Key players operating in the hybrid vehicles market include Toyota Motor Corporation, Nissan Motor Co. Ltd., Honda Motor Company Ltd., Hyundai Motor Company, Kia Motors Corporation, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Mitsubishi Motors Corporation, and BYD Co. Ltd. Toyota is a dominant leader with its popular Prius hybrid family selling over 15 million units globally so far. Other manufacturers are also introducing multiple hybrid models across segments to switch to low-emission technologies and meet regional emission norms.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
