The global Hybrid Vehicles Market size is set to surpass USD 232,603.9 million in 2023. The market is anticipated to thrive at a CAGR of 21.6% from 2023 to 2033. The hybrid vehicles market is expected to reach a valuation of USD 1,644,192.6 million by 2033.
The global hybrid vehicles market is growing at a fast pace due to significant demand for electric mobility, increasing fuel prices, and stringent regulations framed by governments in various regions.
Apart from that, hybrid vehicles are more fuel efficient and generate lesser noise than conventional vehicles. Due to attractive incentives and subsidies offered by government authorities to support the sales of hybrid vehicles, their demand is expected to enhance during the forecast period.
Acceptance of luxury vehicles, enforcement of severe emission-related regulations, and high demand for electric vehicles are contributing to the expansion of the hybrid vehicles market.
The hybrid vehicles market holds about 25% to 30% of the global electric vehicles market. Major automobile manufacturers such as Daimler AG, General Motors, and Volkswagen Group are capitalizing on the trend of plug-in hybrid vehicles, thereby pushing the global hybrid vehicles market in the next decade.
| Attributes | Details |
|---|---|
| Hybrid Vehicles Market Share (2022) | USD 192,712.4 million |
| Hybrid Vehicles Market Share (2023) | USD 232,603.9 million |
| Hybrid Vehicles Market Share (2033) | USD 1,644,192.6 million |
| Hybrid Vehicles Market Share (2023 to 2033) | 21.6% |
| Collective Value Share: Top 5 Countries (2023) | 74.6% |
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From 2018 to 2022, the hybrid vehicles market exhibited expansion at 20.7% CAGR and is projected to grow at a CAGR of 21.6% in the forecast period. This increasing year-on-year growth in 2023 is higher as governments from all around the world have taken several initiatives to reduce carbon footprints from the transportation sector.
The transportation industry is the fastest-growing emitter of greenhouse gases (GHGs), and it will eventually account for more than 30% of all GHG emissions. It also produces a significant number of short-lived climate pollutants and contributes to air pollution.
The vehicle fleet is expected to be doubled by 2050 due to increasing demand from developing and middle-income countries, which is a major concern for governments and regulatory bodies.
High demand for public transportation, development of safer & more comfortable walking & cycling facilities, as well as cleaner & efficient on-road fleets, including electric & hybrid electric vehicles, must all be implemented globally in order to achieve a cleaner transportation sector.
Additionally, ongoing research & development (R&D) activities aimed at the introduction of new technologies, as well as the involvement of market participants in the launch of new & energy-efficient models of hybrid vehicles are some of the other factors fueling the market expansion.
On the other hand, the growing popularity of electric vehicles and increased demand for green mobility are anticipated to increase the potential of manufacturing businesses for commercial growth in the next decade.
Rising Popularity of Plug-in Hybrid Vehicles
Due to increasing per capita income and disposable income across the globe, the demand for personal vehicles and passenger cars is increasing day by day. With the rising fleet of automotive vehicles, the carbon emission rate is also increasing.
Due to surging fuel prices and rising awareness regarding global warming, the demand for substitute vehicles is growing at a rapid pace.
Since hybrid vehicles provide better fuel efficiency and have less carbon emission rate, the demand for hybrid electric vehicles is surging across the globe.
Various manufacturers are also focusing on the development and introduction of multiple models of hybrid vehicles in order to support the expansion of electro-mobility solutions.
With increasing sales of SUVs, luxury, and sports models, customers are not only looking for performance, but they want their vehicles to be equipped with advanced technologies.
Due to an increasing number of awareness campaigns conducted by various government and private agencies to promote electric mobility, consumers across the globe are demanding electric vehicles.
Higher practical benefits of plug-in hybrid vehicles have led to their immense popularity, as compared to hybrids and pure electric vehicles. Consumers of this type of vehicle tend to suffer from low-range anxiety as the internal combustion engine acts as a backup power source when the batteries run out of charge.
Batteries of these vehicles can be recharged through both internal combustion engines and an external source via a plug. Though sales of hybrid vehicles are higher than plug-in hybrids and pure battery vehicles, demand for plug-in hybrid vehicles is increasing across the globe.
Principal Consultant
Infrastructure Development Activities to Spur Sales of Hybrid Models
Due to increased focus on promoting green mobility and reducing carbon footprint across the globe, various governments are investing huge sums in developing infrastructure to support electric & hybrid vehicle production, which is further creating new growth opportunities for key players present in the hybrid vehicles market. Hybrid vehicles are more convenient and cost-effective than plug-in vehicles, which is why these vehicles are exhibiting higher demand than the plug-in segment. As per Future Market Insights, the hybrid vehicle segment is expected to hold more than 3/4th of the global hybrid vehicles market share in the upcoming decade.
Passenger Hybrid Automatic Cars to Gain Traction by 2033
By vehicle type, the passenger car segment is projected to remain at the forefront in the global hybrid vehicles market during the forthcoming years. Ongoing development of residential and commercial infrastructure to support hybrid vehicle commuting is expected to aid growth.
Besides, demand for hybrid vehicles is high in urbanized areas where customers tend to use these vehicles for routine commuting as these vehicles do not require a high drive range for battery capacity. The rapid development of plug-in hybrid systems is also projected to boost the popularity of hybrid vehicles amongst end users.
Apart from that, due to rising disposable income, the demand for personal cars has surged in developing economies. As per the International Energy Agency (IEA), sales of electric cars reached another record high in 2021.
In the same year, sales of electric cars, including plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) doubled year-on-year to 6.6 million. These numbers are projected to increase in the next decade, thereby pushing the passenger cars segment.
Investments in the United States Construction Sector to Propel Demand for Green Hybrids
The United States is a matured automotive market and has a high penetration of technologically advanced & high-cost products.
The United States government is supporting growth in the hybrid vehicles market by investing in the construction sector since the adoption of electric vehicles increases the demand for charging infrastructure in a variety of settings, including homes, workplaces, and public places.
To ensure driver convenience and raise confidence & awareness among potential drivers, infrastructure development in step with the growth of electric vehicles is essential.
Furthermore, rising sales of sports and luxury vehicles in the United States would push companies toward the adoption of advanced technologies. As per Future Market Insights, the United States hybrid vehicles market is expected to surpass revenues worth USD 36.5 billion by the end of 2023.
Inclination towards Sustainability to Fuel Demand for Hybrid SUVs in Japan
The hybrid vehicles market in Japan is anticipated to be valued at about USD 8,633.9 million in 2023. Japanese consumers believe hybrid vehicles to be dependable, safe, and simple to use. They are also willing to pay a premium price as they believe these vehicles offer good value.
According to a survey, less than half of Japanese consumers who plan to purchase a new car in the next two years say that when they think of electric vehicles, fewer carbon emissions or eco-friendly comes to mind. This is the reason why the demand for hybrid vehicles is increasing in Japan.
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Over the last few years, there has been an increasing number of acquisitions and growth strategies to increase the development & production of hybrid vehicles.
Major firms are also working on technology development. Contracts & agreements, new product developments, and partnerships are some of the growth strategies used by key firms to strengthen their market positions. Prominent automakers like BMW, Honda, and Toyota are also focusing on developing plug-in hybrid vehicles to expand their customer base.
Recent Developments Observed by FMI:
Ford Motor Company, Volkswagen, and Nissan Are Taking Several Initiatives to Turn Hybrid Vehicles into Hot Sellers
Ford Motor Company (Ford) is an American multinational vehicle manufacturer headquartered in Dearborn, Michigan, United States. Henry Ford established it, and on June 16, 1903, it was officially incorporated. Under the Ford brand, the corporation offers cars and commercial vehicles, and under the Lincoln premium brand, it sells luxury vehicles.
The Ford Escape Hybrid was unveiled in 2004. With this car, Ford became the third automaker with a hybrid electric vehicle and the first to offer a hybrid electric SUV. This was also the first hybrid electric car with the capacity to operate on E85 flexible fuel.
In April 2021, the Mustang Mach-E SUV was introduced by Ford Motor Company, and it features a cozy cabin, easy-to-use electronics, and a long range. The vehicle also features a really classic style, plush interior fittings, and standard driver-assistance features, including Ford Co-Pilot360 2.0.
Volkswagen, on the other hand, is a German automobile manufacturer located in Wolfsburg, Lower Saxony, Germany. In order to create a hybrid vehicle battery system, Volkswagen and Sanyo joined hands.
Martin Winterkorn, the CEO of Volkswagen, revealed that the business intends to produce small hybrid electric vehicles. Additionally, Volkswagen stated that it intended to release diesel-electric hybrid versions of its most well-known models starting with the new Jetta in 2012. The Golf Hybrid and Hybrid Passat models would then follow in 2013 and 2014, respectively.
In January 2022, Volkswagen revealed the development of its ID.5 model, which is based on the Skoda Enayaq iV. On a single charge, the car should go about 300 kilometers. Similarly, in April 2021, the company exhibited the 7-seater EV ID.6 Crozz and ID.6 X manufactured in China in partnership with FAW and SAIC.
These cars will only be offered in China. These are available with two battery sizes, namely 58 kWh and 77 kWh, and four different powertrain options.
Besides, Nissan Motor Co., Ltd. is a global Japanese automaker with its headquarters in Nishi-ku, Yokohama, Japan. The business offers its automobiles under the Nissan, Infiniti, and Datsun brands, along with its own line of Nismo-branded vehicles that have undergone performance tuning.
Nissan launched its first battery-electric car, the Nissan Altra, on December 29, 1997, at the Los Angeles International Auto Show. The Nissan Leaf was the most popular all-electric vehicle with highway capability ever sold.
In December 2020, the Leaf was introduced by Nissan in the United States The size of the car's battery can range from 40 kWh to 62 kWh. The range for the number of miles per charge is 149 to 226.
Key Players in the Global Market:
| Attributes | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia and the Pacific; Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Product Type, Vehicle Type, Engine Type, Powertrain Configuration, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
In 2023, the market is expected to be worth USD 232,603.9 million.
The market is expected to continue growth at an 21.6% CAGR until 2033.
From 2018 to 2022, the global market advanced at a CAGR of 20.7%.
The hybrid vehicle sector to contribute for more than three-quarters of the market.
The market is expected to be around USD 1,644,192.6 million by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Hybrid Vehicles 5.2. Plug-in Hybrid Vehicles 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Passenger Car 6.2. LCV 6.3. HCV 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Engine Type 7.1. Gasoline Electric 7.2. Diesel Electric 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Powertrain Configuration 8.1. Parallel Hybrid 8.2. Series Hybrid 8.3. Power Split Hybrid 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. South Asia and Pacific 9.6. East Asia 9.7. Middle East and Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. Key Countries Market Analysis 18. Market Structure Analysis 19. Competition Analysis 19.1. Tilley Inflatable Design & Engineering LTD 19.2. Ford Motor Company 19.3. General Motors Company 19.4. Honda Motor Co., Ltd. 19.5. Daimler AG 19.6. Volkswagen AG 19.7. Renault SAS 19.8. Toyota Motor Corporation 19.9. Nissan Motor Corporation 19.10. Mitsubishi Motor Corporation 19.11. Hyundai Motor Company 19.12. Bayerische Motoren Werke AG (BMW) 20. Assumptions & Acronyms Used 21. Research Methodology
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