Mild hybrid vehicles incorporate a small electric motor that enhances fuel efficiency without requiring external charging. They provide stronger acceleration and braking along with recapturing lost energy during deceleration to charge the battery. Mild hybrid systems are popular among SUV and luxury car manufacturers as they offer reduced emissions compliance without major changes to the powertrain design. The global mild hybrid vehicle market has seen increased demand due to stringent emission norms forcing automakers to adopt more fuel-efficient technologies.
The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 Bn in 2023 and is expected to exhibit a CAGR of 18.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The major trend in the mild hybrid vehicle market has been the shift towards smaller and more affordable batteries. Lithium-ion batteries that were once expensive are now available at reasonable costs, prompting more carmakers to offer mild hybrid powertrains across their lineup. Furthermore, automakers are developing 48-volt mild hybrid systems that enhance fuel efficiency marginally but qualify for green vehicle incentives and tax rebates in various markets. As governments focus on reducing transportation emissions, mild hybrids are poised to play a significant role over the coming years.
Threat of new entrants: The mild hybrid vehicle market has moderate threat of new entrants due to the presence of established automotive players and requirement of high initial investment.
Bargaining power of buyers: The bargaining power of buyers is high due to availability of various brand options. Buyers can easily switch to other available alternatives based on pricing and features.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers have to rely on a limited number of OEMs for selling their products and services.
Threat of new substitutes: The threat of new substitutes is low as mild hybrid vehicles offer better efficiency and performance compared to conventional fuel-based vehicles.
Competitive rivalry: The competitive rivalry is high among key players to gain higher market share by launching new models with advanced features and customized branding.
The Global Mild Hybrid Vehicle Market Size is expected to witness high growth. The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 Bn in 2023 and is expected to exhibit a CAGR of 18.5% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the mild hybrid vehicle market owing to the presence of emerging economies like China and India with high vehicle demand. Stringent emission norms by governments in the region are further driving the adoption of hybrid electric vehicles.
Key players: Key players operating in the mild hybrid vehicle market are Toyota Motor Corporation, Nissan Motor Co. Ltd, Honda Motor Company Ltd, Hyundai Motor Company, Kia Motors Corporation, Suzuki Motor Corporation, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. Toyota Motor Corporation dominates the market with its robust portfolio of hybrid electric vehicles across different segments.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it