Hybrid Electric Vehicle (HEV) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Hybrid Electric Vehicle (HEV) market size was estimated at USD 79.2 billion in 2023 and is projected to reach USD 337.2 billion in 2030 at a CAGR of 23.1% during the forecast period 2023-2030.

One of the primary drivers is the implementation of strict pollution and eco-friendliness regulations by governments across the world. These regulations are aimed at reducing the harmful emissions from vehicles and promoting the use of cleaner technologies. Another factor that is driving the market's growth is the government incentives and subsidies that are being offered to encourage the purchase and use of hybrid vehicles. These incentives can take the form of tax credits, rebates, or other financial incentives that make hybrid vehicles more affordable for consumers. The growing awareness among the public about the harmful effects of vehicle emissions is also contributing to the market's growth. As people become more conscious of the impact of their actions on the environment, they are more likely to choose hybrid vehicles over traditional gasoline-powered vehicles. In response to the increasing regulatory pressure and consumer demand, automakers are investing heavily in the development of hybrid and electric vehicles. This has led to the introduction of new models with advanced features, improved performance, and better mileage.

The reason behind this development is the fact that hybrid vehicles emit fewer greenhouse gases compared to fuel and diesel vehicles, making them more eco-friendly. Governments in the United States and Europe are also contributing to this trend by reducing emission limitations and promoting vehicle eco-friendliness through regulations and incentives. For example, the US Department of Transportation has introduced Corporate Average Fuel Economy (CAFE) models to encourage automakers to produce more fuel-efficient vehicles. The combination of stricter regulations and government incentives is expected to drive the growth of the hybrid and electric vehicle market in the coming years. Major automakers are also investing in research and development to create innovative vehicles with better performance, quieter operations, and improved mileage.

The COVID-19 pandemic has had a negative impact on the hybrid electric vehicle industry, as it has caused persistent lockdowns and closures of manufacturing units. This has resulted in a reduction in the production levels of these vehicles. In addition to the lockdowns, there have also been supply chain difficulties that have led to an increase in the cost of hybrid vehicles. Despite these challenges, there has been an increase in the sales of hybrid electric vehicles after June 2020, when the lockdowns in many countries were lifted. This could be due to a growing awareness of the benefits of hybrid vehicles, such as their lower emissions and better fuel efficiency.

Delvens Industry Expert's Standpoint

Governments to promote the use of electric vehicles and reduce greenhouse gas emissions. These measures include regulations and incentives to encourage the adoption of electric vehicles, as well as the establishment of public charging stations to support their use. The increased use of electric components and engine systems in vehicles is driving demand for vehicle batteries, which are a critical component in providing power to these systems. The adoption of green technologies like hybrid and all-electric drive systems is further increasing the demand for car batteries. The cost of vehicle batteries is rapidly decreasing, making them more affordable and accessible to consumers. One of the primary reasons for the growing demand for HEVs is the rising levels of air pollution caused by vehicle exhaust emissions. This has led to increased awareness among the general public about the harmful effects of pollution on health and the environment. Another factor contributing to the popularity of HEVs is the trend of rising urbanization, which has led to increased traffic congestion and pollution in cities. HEVs are seen as a more environmentally friendly alternative to traditional gasoline-powered vehicles.

Additionally, the increasing purchasing power of individuals has made HEVs more accessible to a wider range of consumers. As the cost of HEVs continues to decrease, more people are opting for these vehicles as a more sustainable and cost-effective option. The development of road infrastructure and the expansion of road networks have also contributed to the growth of the HEV market. As more roads are built and existing ones are improved, the demand for vehicles that are more fuel-efficient and environmentally friendly is expected to increase.

Market Portfolio

Key Findings

• On the basis of type, The total hybrid class is expected to have the largest market share by volume during the projection time frame. This means that hybrid vehicles will be more popular than other types of vehicles, such as fully electric or gasoline-powered vehicles. The gentle hybrid industry is expected to grow at the fastest CAGR (compound annual growth rate) during the projection time frame. This means that the market for mild hybrid vehicles will expand at a faster rate than other types of hybrid vehicles. The expansion of the hybrid market can be attributed to increased eco-friendliness and lower emissions due to technological advancements. Hybrid vehicles are known for their lower emissions and better fuel efficiency compared to traditional gasoline-powered vehicles. As technology continues to improve, hybrid vehicles are becoming even more eco-friendly and efficient.

• On the basis of Technology, Original Equipment Manufacturers (OEMs) are increasingly relying on electrical components to meet the changing needs of customers, as they are more efficient and lightweight, making electric vehicles a more eco-friendly option. Hybrid electric vehicles (HEVs) are the next stage in this evolution, with most carmakers focusing on developing hybrid-fueled vehicles to meet the changing requirements of end-users and policymakers who are pushing for greener mobility solutions. HEVs offer a more eco-friendly transportation option than gas-fueled cars, as they use regenerative braking technology that returns energy to the battery when the brakes are applied, eliminating the need for external electric infrastructure. Regenerative braking is the most common hybrid vehicle technology, and its use, along with the lower cost of miniature and mild hybrids compared to plug-in hybrid electric vehicles (PHEVs), will increase demand for hybrid vehicles.
   
• On the basis of Application, The business vehicle sector, which includes commercial vehicles, holds the largest share of the overall market during the estimated time period. This sector is experiencing a surge in demand for electric vehicles due to various factors such as increasing environmental concerns, government regulations, and incentives for electric vehicles, and the need for cost-effective and efficient transportation solutions. Original Equipment Manufacturers (OEMs) and states are also contributing to the rising interest in electric vehicles by undertaking initiatives to promote the adoption of electric vehicles and investing in the development of charging infrastructure. The increasing demand for electric vehicles in the commercial vehicle sector is expected to drive the growth of the hybrid electric vehicle market in the coming years.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The Asia Pacific market is anticipated to grow quickly all through this projection period in nations like Japan, China, and South Korea. The deals of half breed cars have flooded.

Regional Analysis

North America to Dominate the Market

• The Asia Pacific region is home to key part like Honda, Toyota, BYD, Nissan, Hyundai, and Kia. This likewise adds to showcase development. China has noteworthy assembling capacities. They likewise have the ability to oblige client interest.
   
• China is a key part in the cross breed vehicle industry. The Chinese government embraced six serious contamination control norms to empower crossover autos to oversee contamination.

Competitive Landscape

• ZF
• Delphi
• BorgWarner
• Continental
• Schaeffler
• Ford
• Toyota
• Volvo
• Honda
• Hyundai
• Daimler
• Nissan
• Allison
• BMW
• Mercedes
• BYD
• Mitsubishi
• Renault

Recent Developments

• In November, 2022, Toyota South Africa Motors (TSAM) is importing RAV4 Plug-In Hybrid Vehicles (PHEV) to test customer response, vehicle behavior, infrastructure requirements, and educate customers on plug-in technology as part of their New Energy Vehicle (NEV) roll-out strategy.
   
• In October, 2022, Daihatsu Motor Co., Ltd plans to release a highly efficient hybrid minivan in 2023, using an improved series hybrid system to achieve a fuel efficiency of 30 kilometers per liter or higher.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Hybrid Electric Vehicle (HEV) Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

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