The rise of eco-friendly transportation expected to drive growth in Hybrid Vehicles Market

 

Hybrid vehicles are powered by both conventional combustible fuel as well as electricity or alternative fuel. They contain a battery pack, electric motor in addition to conventional internal combustion engine. Hybrids provide enhanced fuel-efficiency compared to gasoline-only vehicles while reducing harmful emissions. Major hybrid vehicles available are hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and micro hybrid vehicles. Key OEMs offer hybrid variants for passenger cars as well as commercial vehicles.

Market Dynamics:

The Hybrid Vehicles Market is primarily driven by stringent emission regulations across nations aimed at curbing vehicle pollution. Several countries have outlined plans to phase out combustion engine vehicles and promote electric based vehicles in coming years. For instance, the UK and Germany have announced ban on new diesel and petrol vehicles by 2030 and 2035 respectively. This is prompting automakers to accelerate development of hybrid and electric vehicle programs. Additionally, higher fuel efficiency of hybrids allowing savings on fuel costs is encouraging consumers to opt for these over conventional vehicles. However, high initial costs of hybrid and electric vehicles compared to petrol/diesel variants continue to restrain broader consumer acceptance to some extent. OEMs are focusing on lowering battery prices to make electric vehicles more affordable.

The hybrid vehicles market can be segmented into parallel hybrid, series hybrid, and plug-in hybrid. Among these, parallel hybrid is the dominating segment as it uses both an internal combustion engine and electric motor to propel the vehicle. They seamlessly switch between gasoline and electric power depending on factors like speed and power requirements. This makes parallel hybrid vehicles more efficient compared to conventional vehicles without compromising performance.

 

 

Political:Strong government support through subsidies and tax credits promote the adoption of hybrid and electric vehicles in various countries. For instance, the US provides a tax credit of up to $7,500 for purchases of qualifying electric vehicles.

 

Economic: Rising fuel prices and cost of ownership make hybrid vehicles an attractive option. Their higher upfront costs versus gasoline vehicles get offset over time through savings on fuel.

 

Social: Growing environmental awareness among consumers is driving the preference for green vehicles. More people are accepting hybrids as a sustainable mobility solution to reduce emissions.

 

Technological: Continuous advancements in battery technology boost the capacity and lifespan of batteries in hybrids. This enhances their electric range and makes hybrid powertrains more viable and affordable.

 

 

The Global Hybrid Vehicles Market Demand is expected to witness high growth, exhibiting a CAGR of 18% over the forecast period, due to increasing stringent emissions standards worldwide. The zero-emission criteria of countries are compelling automakers to shift towards electrified vehicles, thereby supporting the hybrid vehicle demand.

 

The Asia Pacific region is expected to dominate the hybrid vehicles market owing to the large production and sales volumes in major countries like China, Japan, and South Korea. China has emerged as the largest hybrid car market globally primarily due to supportive FDI policies and government initiatives such as subsidies on purchases.

 

Key players operating in the hybrid vehicles market are Toyota Motor Corporation, Nissan Motor Co. Ltd., Honda Motor Company Ltd., Hyundai Motor Company, Kia Motors Corporation, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Mitsubishi Motors Corporation, and BYD Co. Ltd. Toyota is the leader in hybrid vehicles and has strong brand recognition for popular models like Prius, Camry Hybrid, and RAV4 Hybrid.