Mild hybrid vehicles incorporate a small electric motor, battery and engine start-stop feature to help improve fuel efficiency. They offer advantages like reduced emissions and improved mileage without adding significant costs. The technology enables reducing emissions from conventional vehicles to meet strict norms.
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.
Market Opportunity:
Opportunity for Reduced Emissions
Governments across countries are implementing stringent emission norms to curb air pollution and reduce the carbon footprint of the transportation sector. The mild hybrid technology offers a feasible solution to automakers to comply with emission standards at minimal costs as compared to full hybrids. It enhances fuel efficiency and lowers emissions without requiring electric-only driving capabilities. The technology provides an opportunity for automakers to upgrade their existing ICE vehicles and gain compliance with emission regulations, thereby gaining increased market share. This factor is expected to boost the adoption of mild hybrid vehicles globally during the forecast period.
Porter's Analysis
Threat of new entrants: The mild hybrid vehicle market has moderate threat of new entrants due to established brands and technology. However increasing emission norms are providing opportunities for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives however features like fuel efficiency are increasing their preference for mild hybrids.
Bargaining power of suppliers: Major suppliers include battery, electric motor and engine suppliers who have moderate bargaining power due to established relationships with automakers.
Threat of new substitutes: Threat from other fuel efficient technologies like strong hybrid, plug-in hybrid and electric vehicles is moderate as they offer better performance but at high costs.
Competitive rivalry: The market has high competitive rivalry due to presence of established automakers and focus on expanding mild hybrid lineups.
SWOT Analysis
Strength: Mild hybrids provide 10-15% higher fuel efficiency over conventional vehicles. Lower costs make them affordable alternatives.
Weakness: They provide modest fuel savings compared to other hybrids and EVs. Technology is dependent on internal combustion engines.
Opportunity: Stringent emissions norms are increasing sales potential particularly in Asia Pacific and Europe. Growing middle class is expanding customer base.
Threats: Electric vehicles offer better performance and lower emissions posing risk. Volatility in fuel prices can impact their appeal versus EVs.
Key Takeaways
The Global Mild Hybrid Vehicle Market Growth is expected to witness high over the forecast period supported by stringent emission regulations worldwide. The Asia Pacific region currently dominates the market led by China, Japan and India on back of large automobile production bases and growing middle class demanding fuel efficient vehicles.
Regional analysis shows the Asia Pacific region is forecast to maintain its dominance through 2030 on back of increasing sales in China, Japan and India where governments are strongly supporting hybrid electric vehicles to curb emissions. Growing middle class is expanding the customer base in the region for affordable hybrid options like mild hybrids.
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, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. Automakers are focusing on expanding their mild hybrid lineups to meet emission norms particularly in Europe and China which are the major markets.
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