by The hybrid vehicles market is gaining traction owing to improvements in battery technologies that enhance vehicle efficiency. Hybrid vehicles use two or more distinct forms of onboard power and have both electric motors and internal combustion engines. They offer advantages like fuel efficiency and reduced emissions compared to conventional vehicles. Governments across countries are also promoting hybrids to meet environmental targets. The Global Hybrid Vehicles Market is estimated to be valued at US$ 536.13 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the hybrid vehicles market are Wings Corporation, Lion Corporation, and Procter & Gamble Co. These companies are investing in R&D to develop advanced hybrid powertrain systems and batteries with improved energy densities.
There are significant opportunities for hybrid vehicles adoption in developing economies as people become environment conscious and governments roll out subsidies. Fleet operators are also increasingly procuring hybrids to lower fuel bills.
Technological advancements in lithium-ion batteries have enhanced the electric range of hybrids. Battery costs are reducing steadily, making hybrid vehicles more affordable. New transmission technologies further optimize the performance of hybrid powertrains.
Market Drivers
Stringent emission norms worldwide are a key driver for the hybrid vehicles market. Many countries have set timelines to ban conventional vehicles, driving new hybrid and electric vehicle sales. Growing consumer acceptance of green vehicles is also boosting demand.
Tax exemptions and purchase incentives by various governments encourage buyers to opt for hybrids over gasoline variants. Lower operating costs of hybrids due to improved fuel economy translate into higher savings over time, attracting more customers.
Current Challenges in Hybrid Vehicles Market
The Hybrid Vehicle Market Growth is still in a nascent stage as it accounts for a marginal share of the overall automotive industry. High upfront costs of hybrid vehicles when compared to conventional internal combustion engine vehicles is one of the major challenges inhibiting widespread adoption. Persuading customers to pay a premium for hybrid vehicles despite lower fuel costs over the long run remains a challenge for automakers. Infrastructure for electric vehicle charging and lack of standardization also poses technical challenges. Automakers need to work on bringing down battery costs and improving performance parameters like range to make hybrid vehicles a more attractive value proposition for customers.
SWOT ANALYSIS
Strength: Hybrid vehicles help reduce dependence on fossil fuels and results in lower fuel costs for customers compared to conventional vehicles. They also allow automakers to comply with stringent emission regulations.
Weakness: High battery and manufacturing costs result in increased upfront costs of hybrid vehicles. Range constraints and lack of standardization for charging infrastructure also pose limitations.
Opportunity: Growing environmental awareness and policy support in the form of incentives/subsidies can help boost hybrid vehicle demand. Also, technological advancements are making batteries cheaper and more powerful over time.
Threats: Declining gasoline prices reduce the cost benefit of owning a hybrid vehicle. Entry of new players in the electric vehicle space also increases competition.
Geographical Regions with Highest Hybrid Vehicles Market Share
Currently, North America and Europe hold the largest share of the global hybrid vehicles market in terms of value sales. Stringent emission regulations and subsidies/incentives for electric vehicles in countries like the US, Canada, Germany, UK, and France have helped drive hybrid vehicle adoption in these regions.
Fastest Growing Regional Market for Hybrid Vehicles
The hybrid vehicles market in Asia Pacific region is witnessing the fastest growth and the region is expected to surpass North America during the forecast period of 2024 to 2030. China has emerged as a major hub for hybrid vehicle production led by domestic automakers. Increasing purchasing power, growing environmental concerns, and supportive government policies are fueling hybrid vehicle demand across major Asian countries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
