Hybrid Vehicle Market worth 7,593 Thousand Units by 2025
The market is driven by factors such as better fuel efficiency, longer driving range than other electric vehicles, less emissions, and government initiatives pertaining to hybrid vehicles and electric infrastructure. The parallel hybrid segment is estimated to be the fastest growing and the largest market in the hybrid vehicle market during the forecast period…
According MarketsandMarkets the hybrid vehicle market is estimated to be 4,169 Thousand Units in 2018 and is projected to reach a market size of 7,593 Thousand Units by 2025, growing at a CAGR of 8.94% during the forecast period. The market is driven by factors such as better fuel efficiency, longer driving range than other electric vehicles, less emissions, and government initiatives pertaining to hybrid vehicles and electric infrastructure. The parallel hybrid segment is estimated to be the fastest growing and the largest market in the hybrid vehicle market during the forecast period.
Parallel hybrid is one of the fastest growing markets by electric power train in the hybrid vehicle market due to its less complex system and high performance. It is also suitable for long distance travel. Also, the energy conversion losses are minimized in a parallel hybrid as the engine and battery are connected to the motor directly. The regenerative braking system is the most commonly used technology in hybrid vehicles. The use of the regenerative braking system and the lesser cost of micro and mild hybrids compared to PHEVs will boost the demand for parallel hybrids. Hence, the parallel hybrid segment is expected to dominate the hybrid vehicle market during the forecast period.
Passenger car segment to be the largest segment of the hybrid vehicle market, by vehicle type
The passenger car segment is projected to lead the hybrid vehicle market. The growth can be attributed to the high demand for personal mobility, increasing per capita income, and improved lifestyle, which are the driving factors of the sales of passenger cars. The high sales of passenger cars, stringent emission laws, and increasing demand for mid- and large-sized cars are propelling the growth of passenger cars in the hybrid vehicle market. Also, the governments in many countries are providing purchase grants and tax rebates on the purchase or lease of hybrid vehicles.
Asia Pacific is projected to be the fastest growing regional market for a hybrid vehicle
Asia Pacific represents the biggest market for green technologies in the world. The growth of hybrid vehicles in the region is mainly attributed to the huge sales volume in Japan and China. To combat rising emissions, countries in the region are focusing on deploying a large fleet of low-emission vehicles in the next few years. Also, Asia Pacific region is the home for major players in the hybrid vehicle market such as Toyota, Honda, Nissan, Kia, BYD, Hyundai, and others. Toyota has the highest share in the hybrid vehicle sales worldwide. Moreover, governments of Asian countries are supporting the growth by providing subsidies which are fueling the hybrid vehicle market in the region.
The hybrid vehicle market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Toyota (Japan), Ford (US), Volvo (Sweden), Continental (Germany), Daimler (Germany), Delphi (UK), and others.