"Market Intelligence for High-Geared Performance"

Hybrid Vehicle Market Size, Share & COVID-19 Impact Analysis, By Electric Powertrain (Parallel, Series), By Degree of Hybridization (Full, Mild, Micro), By Vehicle Type (Passenger Car, Commercial Vehicle) and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI105435

 

KEY MARKET INSIGHTS

The global hybrid vehicle market size was USD 157.48 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with hybrid vehicles witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a negative growth of -8.34% in 2020 as compared to the average year-on-year growth during 2016-2019. The market is projected to grow from USD 144.34 billion in 2020 to USD 280.75 billion in 2027 at a CAGR of 10.0% in the 2020-2027 period. The rise in the CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


Hybrid vehicles are powered by a combination of an electric motor (one or more), which uses energy stored in batteries (produced via regenerative braking), along with an ICE (internal combustion engine).


The demand for hybrid electric vehicles has increased significantly in recent years, owing to the benefits offered by these vehicles, such as high power and range, like that of a conventional vehicle. However, the increasing adoption of pure electric and fuel cell electric vehicles is anticipated to hamper these vehicles sales. Hence, these factors are expected to influence the hybrid vehicle market growth.


Production Delay of New Models and Reduced R&D Funding amid COVID-19 to Hinder Market Growth


The COVID-19 pandemic has had a severe impact on the automotive industry, with the extended lockdown across major economies resulting in the shutdown of large automotive assembly units across the globe. The halt in production activities and a significant drop in the demand for vehicles have led to a shortage of funds for R&D activities, as companies are more focused on survival than on research & development activities in the current scenario. Research initiatives aimed at reducing the cost of electric vehicles are expected to be delayed due to the aforementioned reasons. Furthermore, trade restrictions during the first quarter of 2020 owing to the pandemic have further compounded the lack of flexibility of the supply chain networks of major manufacturers.


For instance, owing to the pandemic-induced lockdown, several manufacturers (particularly US-based automakers) were forced to delay the production of their upcoming hybrid models. The production of the 2021 Ford F-150 (the first to be equipped with a hybrid powertrain), the 2021 Acura MDX, and the 2021 Toyota Sienna have all been delayed because of the pandemic. However, the demand for these vehicles has remained steady, particularly in Europe, which can be attributed to the stringent government regulations over vehicular carbon emissions. For instance, according to the European Automobile Manufacturers Association (ACEA), hybrid car sales in Germany increased 91.2% in the third quarter (Q3) as compared to Q3 2019.


Hence, reduced funding for R&D initiatives over the short term, delays in the production of new vehicle models, and an increase in the total hybrid vehicles market share, especially in developed countries, are some of the most prominent impacts of COVID-19 on the automotive industry.


LATEST TRENDS


Request a Free sample to learn more about this report.


Automobile Electrification in Emerging Markets to be the Design Direction for Carmakers


In developing economies such as China and India, the increased focus on reducing vehicular emissions along with the increased government support (for example, tax rebates, custom duty exemption on lithium-ion battery components, manufacturing incentives, and greater adoption of hybrid commercial vehicles) will lead to a rise in the adoption of hybrid type of vehicles. For instance, the Indian government is providing tax incentives of up to USD 3,423 for the purchase of hybrid & electric vehicles. Similarly, the Brazilian government is providing tax incentives for the purchase of hybrid & electric vehicles under its Rota 2030 program.


Hence, the increased focus on the deployment of eco-friendly vehicles will positively influence the growth of the market over the forecast period.


DRIVING FACTORS


Increasing Stringency of Emission Norms to Drive the Growth of the Market


Governments of various countries are coming up with stringent vehicular carbon emission regulations, considering the severe impacts of pollutants on the environment and human health. For example, in July 2019, the US Department of Transportation implemented a USD 5.50 penalty rate for auto manufacturers that fail to comply with the Corporate Average Fuel Economy (CAFÉ) standards. Such regulations have compelled manufacturers to increase funding for the development & production of electric and hybrid vehicles.


Hybrid vehicles enable improved fuel economy without sacrificing performance. Hence, stringent emission standards are expected to drive the growth of the market over the forecast period.


Positive Environmental Impact to Augment Growth


Hybrid vehicles combine the benefits of electric motors and gasoline engines. These vehicles offer greater power and fuel efficiency compared to conventional vehicles. For instance, fuel consumption can be reduced by up to 35% by using hybrid systems, which is equivalent to an increase in fuel economy by more than 50%. The majority of the hybrids use advanced technologies such as automatic start/stop, reducing the idling of the vehicle via automatic shutdown of the engine when the vehicle stops and immediate acceleration during restart.


Furthermore, the electric motor provides power using energy recaptured via regenerative braking. This can be used to assist the engine during passing, hill-climbing, or accelerating. Moreover, the electric motor can also be used to drive the vehicle independently at low speeds, the range at which combustion engines are least efficient. Hence, the positive environmental effects of hybrid systems are driving the growth of the market.


RESTRAINING FACTORS


Increasing Adoption of FCEV and BEV to Restrain Growth


Major automobile manufacturers, such as Volkswagen, BYD, and Tesla, are heavily focused on the development of battery electric vehicles (BEV) or pure electric vehicles. These vehicles eliminate the dependency on the combustion engine and conventional fuel, among other advantages. Similarly, fuel cell electric vehicles (FCEV) also offer benefits such as net-zero emissions, high driving range, easy refueling, & quiet operation. Hence, governments are actively encouraging the sale of BEVs and FCEVs through various initiatives. For instance, the Clean Vehicle Rebate Program (CVRP), as implemented by the California Air Resources Board (CARB), offers rebates of up to USD 7,000 for the purchase or lease of FCEVs and BEVs. Thus, the increased adoption of BEVs and FCEVs is expected to restrain the growth of the market.


SEGMENTATION


By Electric Powertrain Analysis


Parallel Hybrids to Hold Largest Hybrid Vehicle Market Share Backed by Lower Costs and Higher Efficiency


By electric powertrain, the global market is segmented into parallel and series. Parallel hybrids offer better flexibility to switch between ICE and electric motor power along with higher power efficiency during long-distance driving and cruising. Furthermore, as compared to series hybrids, only one electric motor is required and it can be designed to be less powerful than the combustion engine. Hence, these factors are fueling the growth of this segment.


The series hybrid segment is anticipated to show significant growth in the market owing to the high efficiency for city driving and the ability to operate the ICE in the narrow rpm range (which is the most efficient range) of these hybrids.


By Degree of Hybridization Analysis


To know how our report can help streamline your business, Speak to Analyst


Full Hybrid Segment Dominated in 2019 Fueled by Flexible Operation


Based on the degree of hybridization, the market is segmented into a full hybrid, mild hybrid, and micro-hybrid. The full hybrid segment held the largest market share in 2019. These vehicles can operate on just batteries, or the combustion engine, or a combination of both. Additionally, the majority of the hybrid models manufactured by key players such as Toyota and Lexus are also full hybrids and continuous improvements have been achieved over the last few years in terms of fuel efficiency. Hence, these factors are aiding the dominance of the full hybrid segment.


The mild-hybrid vehicle segment is expected to grow at a higher CAGR over the forecast period as these vehicles offer benefits, such as more powerful acceleration, reduced engine load especially in an urban driving situation, and are generally more affordable than full hybrids.


By Vehicle Type Analysis


Passenger Car Segment Dominated in 2019 Supported by Fuel-Efficient Operations


Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. Hybrid cars are best suited for stop-and-go driving, where intermittent use of the electric motor can enable significant fuel cost savings. Hence, the passenger car segment is expected to hold the largest share of the market over the forecast period.


The commercial vehicle segment is also anticipated to show considerable growth in the market. This growth can be attributed to government initiatives across the globe aimed at increasing the hybridization of public transit vehicles and the increased adoption of hybrid heavy-duty vehicles in land-based freight operations.


REGIONAL INSIGHTS


Asia Pacific Hybrid Vehicle Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The market in Asia Pacific is characterized by government initiatives to promote the manufacturing and sale of eco-friendly vehicles. In India, for instance, the second phase of the FAME (Faster Adoption & Manufacturing of Hybrid & Electric Vehicles) scheme commenced in April 2019, with a budget of INR 10,000crore. Similarly, in China, owing to the New Energy Vehicle mandate, the share of hybrid buses in public transit has increased exponentially over the last few years. Hence, these factors are anticipated to fuel the growth of the Asia Pacific market at a higher CAGR over the forecast period.


The North America market is expected to show good growth over the forecast period. The US accounted for the majority of the market share, with 400,746 hybrid vehicles sold in 2019. This represents a 15% increase over 2018. Benefits such as state incentives for vehicle purchase & infrastructure development, parking incentives, and fuel savings, among others, have boosted the sales of these vehicles in this region. Hence, these factors are propelling the growth of the regional market.


The market in Europe is also expected to show healthy growth in the market owing to the highest stringency of permissible emission limits and government policies aimed at increasing the share of alternative fuel commercial vehicles.


KEY INDUSTRY PLAYERS


Automotive Giants to be the Leading Players in the Market


Key players in the market include Volkswagen AG, AB Volvo, Toyota Motor Company, Honda Motor Co., Ltd., Hyundai Motor Company, and BYD Company Ltd., among others. The majority of the market players are focused on diversifying supply chain networks and strategic partnerships with regional players, with a focus on increasing product penetration in emerging economies. For example, in February 2020, Toyota Kirloskar Motor launched the Vellfire, a new luxurious self-charging hybrid electric vehicle (SHEV) in India. The Vellfire offers superior performance via dual motors yet providing a quieter drive and high efficiency. Moreover, it can operate 60% of the time in electric mode with the engine off. Thus, the launch of new eco-advanced vehicles will boost the demand for these vehicles over the forecast period.


LIST OF KEY COMPANIES PROFILED:



  • Toyota Motor Corporation (Toyota City, Japan)

  • Honda Motor Co., Ltd. (Tokyo, Japan)

  • BYD Company Ltd. (Shenzhen, China)

  • Lexus (Nagoya, Japan)

  • Ford Motor Company (Michigan, United States)

  • Hyundai Motor Company (Seoul, South Korea)

  • Kia Motors Corporation (Seoul, South Korea)

  • Nissan Motor Corporation (Kanagawa, Japan)

  • Daimler AG (Stuttgart, Germany)

  • Volkswagen AG (Wolfsburg, Germany)

  • AB Volvo (Gothenburg, Sweden)


KEY INDUSTRY DEVELOPMENTS:



  • In July 2021, a leading global supplier of semiconductors, STMicroelectronics, and French automotive manufacturer, Renault Group, recently announced their strategic partnership. The partnership involves designing, producing, and supplying power electronic systems for improved electric and hybrid vehicle performance.

  • In July 2021, XL Fleet announced a partnership with NFI’s ARBOC, one of the leading global bus manufacturers. The partnership involves XL Fleet to electrify ARBOC Freedom low floor buses with XL Hybrid electric propulsion system.

  • In June 2021, a global automotive engine product and drive system manufacturer Dayco has entered a strategic partnership with Ningbo Physis Technology Co., Ltd., a leader in the design and manufacture of products and solutions for fields of energy conservation and energy management. The partnership will develop hybrid solutions for light & heavy duty automotive manufacturers worldwide.

  • In July 2021, Japanese automaker Mitsubishi has revealed its plans to introduce Plug-in hybrid models of its new Outlander with a fully evolved new–generation PHEV system. The vehicle is expected to roll out in the USA in the second half of 2022.


REPORT COVERAGE


An Infographic Representation of Hybrid Vehicle Market

To get information on various segments, share your queries with us



The global hybrid vehicle market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.


Report Scope & Segmentation











































   ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion) & Volume (Thousand Units)



Segmentation



By Electric Powertrain



  • Parallel

  • Series



By Degree of Hybridization



  • Full

  • Mild

  • Micro



By Vehicle Type



  • Passenger Cars

  • Commercial Vehicle



By Geography



  • North America (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • U.S. (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Canada (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Mexico (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)



  • Europe (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • U.K. (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Germany (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • France (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Rest of Europe (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)



  • Asia-Pacific (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • China (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Japan (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • India (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • South Korea (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)

    • Rest of Asia Pacific (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)



  • Rest of the World  (By Electric Powertrain, By Degree of Hybridization, By Vehicle Type)



Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 157.48 billion in 2019 and is projected to reach USD 280.75 billion by 2027.

In 2019, the Asia Pacific market value stood at USD 79.96 billion.

Registering a CAGR of 10.0%, the market will exhibit promising growth in the forecast period (2020-2027).

The parallel hybrid segment is expected to be the leading segment in this market during the forecast period.

Increasing stringency of emission norms is the key factor driving the growth of the market.

Toyota Motor Corporation, Honda Motor Co., Ltd, and BYD Company Ltd. are the major players in the global market.

Asia Pacific held the largest share in the market in 2019.

The positive environmental impacts along with significant incentives for the purchase or lease and ownership of these vehicles are expected to drive the adoption of these vehicles over the forecast period.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
Hybrid Vehicle Market Size, Share and Global Industry Trend Forecast till 2026
  • Jun, 2021
  • 2019
  • 2016-2018
  • 200

    CHOOSE LICENSE TYPE

  • $4850
    $6850
    $8850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Automotive & Transportation Clients

Deloitee
KIA
Hitachi
Hyundai
GM

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X