A mild hybrid vehicle utilizes a small electric motor and advanced battery pack integrated with the conventional combustion powertrain to provide additional torque assist and regenerative braking. It allows for better fuel efficiency compared to regular internal combustion engine (ICE) vehicles without compromising driving experience. Some key advantages of mild hybrid vehicles include starts/stops functionality, brake energy recuperation, torque assist during acceleration, and reduced idling time. Major automobile manufacturers like Toyota, Honda, Hyundai are increasingly offering their popular models as mild hybrid variants to achieve compliance with stringent emission regulations.
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% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing adoption of mild hybrid technology driven by stringent emission norms to boost fuel efficiency has been a major driver for the market. For example, European Union’s emission standards have mandated automakers to reduce average fleet emission to 95g of CO2 per km by 2021 which is driving OEMs to offer more hybridized vehicles including mild hybrid variants of popular models. In addition, the price point of mild hybrid powertrains is significantly lower compared to full hybrid or plug-in hybrid vehicles making them attractive for both automakers and customers. This has led more affordable small-mid sized cars to be offered with 48V mild hybrid systems. Moreover, the regenerative braking and start/stop functionality allows drivers to recoup lost energy back to the battery upon deceleration, improving city mileage. This technology aligns well with urban commutes globally and offers an accessible option to customers looking to adopt electrified transportation without comprising everyday practicality. Together, these factors have supported the growing demand for mild hybrid vehicles over the review period.
The mild hybrid vehicle market can be segmented into ICE vehicles and micro hybrid vehicles. ICE vehicles dominate the market with around 80% share as they provide sufficient fuel efficiency gains over conventional vehicles without much added costs. Micro hybrid vehicles offer start-stop functionality and battery assistance for a short period but have limited adoption due to higher costs.
Political: Stringent emission norms in regions like Europe favor adoption of hybrid vehicles. Tax benefits are offered in certain countries to boost electric vehicle sales.
Economic: Fluctuating fuel prices encourage consumers to opt for fuel-efficient hybrids. Lower maintenance and fuel costs attract buyers in the long run.
Social: Growing environmental concerns urge people to purchase green vehicles. Hybrids are seen as a practical and affordable sustainable mobility option.
Technological: 48V mild hybrid systems effectively capture and utilize energy lost during braking and coasting. Sophisticated battery and control technologies improve drivability over basic micro hybrids.
The Global Mild Hybrid Vehicle Market Growth is expected to witness high. The Asia Pacific region dominates with over 50% share owing to the large production and sales volumes in China and Japan. Demand is increasing in other Asian nations as well due to supportive policies and growing middle-class population.
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The Asia Pacific region leads the market with the largest share due to high sales in China, Japan, and emerging economies like India. China is the biggest producer and consumer of mild hybrids led by domestic automakers such as Geely and BYD. Japan also sees strong hybrid adoption encouraged by government measures to promote eco-friendly vehicles. Europe follows in terms of market size on the back of strict CO2 compliance norms. Germany and France have significant hybrid fleet supported by purchase incentives.
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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. Toyota is a pioneer in hybrid technology and leads the segment with its wide range of hybrid models like the Corolla and RAV4. Nissan also has a prominent share owing to hybrid versions of best-selling vehicles like the Altima sedan and Rogue SUV.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it