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The hybrid electric vehicle (HEV) market size is forecast to increase by USD 456.4 billion at a CAGR of 23.87% between 2023 and 2028.
The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market is experiencing significant growth due to increasing regulatory pressure to reduce vehicle emissions and customer demand for more eco-friendly transportation options. Hybrid vehicles offer improved efficiency compared to traditional internal combustion engine (ICE) vehicles, as electric motors can operate at any speed, unlike ICEs that require a minimum RPM to generate torque. This efficiency advantage, along with the ability to recharge energy during braking through regenerative braking, makes HEVs an attractive choice for meeting emission standards. Moreover, advancements in battery technology, particularly lithium-ion batteries, have improved the range and performance of electric vehicles (EVs), further boosting the market.
Financial incentives, such as tax incentives, grants, and subsidies, also encourage the adoption of HEVs and EVs. The market includes various types, including full hybrids, mild hybrids, and plug-in hybrids, as well as applications in passenger cars, commercial vehicles, and two-wheelers. The integration of vehicle-to-grid technology enables stored electricity to be fed back into the power grid, making HEVs an essential component of the renewable energy ecosystem. Performance enhancements, such as the integration of infotainment options and renewable energy sources like solar and wind energy, further add to the appeal of HEVs and EVs. Fleet adoption and the transition to low-carbon transportation are key trends driving the market growth.
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The Passenger cars segment was valued at USD 51.90 billion in 2018 and showed a gradual increase during the forecast period.
Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market In the Asia Pacific (APAC) region is experiencing significant growth, driven by increasing focus on eco-friendly transportation. China is expected to lead the global HEV market due to strong government and private sector initiatives promoting the adoption of battery electric vehicles (BEVs) and hybrids. The demand for HEVs in APAC is primarily due to the push towards reducing vehicle emissions and addressing climate change, air pollution, and greenhouse gas emissions, including carbon dioxide, nitrogen oxides, and particulate matter. The region's HEV market includes various types, such as full hybrids, mild hybrids, and plug-in hybrids (PHEVs). Sales of PHEVs and mild hybrids may be sluggish in Japan, as the country is following the fuel cell HEV trend.
HEVs integrate both internal combustion engines and electric propulsion systems, using regenerative braking to store electricity. Vehicle-to-grid technology allows HEVs to feed electricity back to the grid. Battery technology, particularly lithium-ion batteries, plays a crucial role In the performance and efficiency of HEVs. Financial incentives, such as tax incentives, grants, and subsidies, also contribute to the market's growth. The market includes various players, including OEMs manufacturing conventional cars and those specializing in electric vehicles. The market also includes various battery, electric motor, and internal combustion engine technologies. Renewable energy sources, such as solar and wind energy, are increasingly being integrated into HEVs for performance enhancements.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The push toward the adoption of green (eco-friendly) vehicles is the key driver of the market.
Hydrogen as an upcoming alternative fuel is the upcoming market trend.
The high total cost of ownership of HEVs is a key challenge affecting the industry growth.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence In the industry.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Hybrid Electric Vehicles (HEVs) represent a significant shift In the automotive industry's approach to reducing vehicle emissions and improving fuel efficiency. These vehicles integrate both internal combustion engines (ICEs) and electric propulsion systems, creating a more sustainable and efficient transportation solution. The HEV market encompasses various vehicle types, including passenger cars and commercial vehicles, as well as two-wheelers. The technology's versatility allows for different configurations, such as full hybrids, mild hybrids, and plug-in hybrids. In full hybrids, the electric motor and ICE work together to power the vehicle, while in mild hybrids, the electric motor assists the ICE during acceleration.
Moreover, plug-in hybrids offer the ability to charge the battery externally, extending the vehicle's electric-only range. Series HEVs and parallel HEVs are two primary configurations for these vehicles. In series HEVs, the electric motor is connected to the wheels directly, while in parallel HEVs, the electric motor assists the ICE in powering the vehicle. Combination HEVs employ both series and parallel configurations, offering the benefits of both systems. The integration of HEV technology brings several advantages. Regenerative braking recaptures energy usually lost during braking, storing it In the battery for later use. This stored electricity can be used to power the vehicle or fed back into the power grid, known as Vehicle to Grid (V2G), offering additional revenue streams for vehicle owners.
Furthermore, battery technology plays a crucial role In the success of HEVs. Lithium-ion batteries are commonly used due to their high energy density, long cycle life, and rapid charging capabilities. These advancements enable HEVs to offer a competitive range and performance compared to conventional cars. Financial incentives, such as tax incentives, grants, and subsidies, have been instrumental in driving the adoption of HEVs. Governments worldwide recognize the importance of reducing vehicle emissions and combating climate change, air pollution, and greenhouse gas emissions, including carbon dioxide, nitrogen oxides, and particulate matter. Traffic congestion is another concern addressed by HEVs, as they offer improved fuel efficiency and reduced emissions in stop-and-go traffic.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 23.87% |
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Market growth 2024-2028 |
USD 456.4 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
22.39 |
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Key countries |
China, US, Germany, France, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Propulsion
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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