Hybrid Vehicles Market Will Grow At Highest Pace Owing To Rising Fuel Efficiency And Emission Standards

Hybrid vehicles integrate a conventional internal combustion engine(ICE) system with an electric propulsion system. This helps lower operating costs and emissions by allowing the vehicle to run sometimes on just the engine, sometimes just on the battery and sometimes using both. Hybrid vehicles are gaining popularity among consumers looking for enhanced fuel efficiency without compromising performance. The global hybrid vehicle market mostly comprises mild-hybrid, plug-in hybrid and full-hybrid vehicles. Automakers are focused on developing affordable hybrids to attract more customers. Regulatory authorities across regions are implementing stringent fuel efficiency and emission norms to curb pollution levels, thereby propelling the demand for hybrid vehicles.

The Global hybrid vehicles Market is estimated to be valued at US$ 536.13 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2030.

Key Takeaways
Key players operating in the hybrid vehicles are Wings Corporation, Lion Corporation, and Procter & Gamble Co. Wings Corporation is a leading manufacturer known for its wide range of mild-hybrid and full-hybrid vehicles. Lion Corporation is focused on developing affordable plug-in hybrid vehicles for commercial use.

With growing environmental concerns, consumers are showing inclination towards electric and hybrid vehicles. Various countries are offering subsidies and tax rebates on purchase of hybrids to encourage sustainable mobility. This has boosted the sales of hybrid vehicles in recent years.

Automakers are investing heavily in research and development of advanced lithium-ion batteries, electric motors and power electronics for hybrid vehicles. Technologies such as regenerative braking, idle stop-start system help improve the fuel efficiency of hybrid vehicles. Introduction of wireless charging and self-charging hybrids will further fuel the demand.

Market Trends
The biggest trends in the hybrid vehicles market include growing popularity of micro-hybrid vehicles and introduction of plug-in hybrid electric vehicles (PHEVs). Micro-hybrid vehicles with start-stop system and regenerative braking offer significant fuel savings at affordable costs. Their sales are expected to rise sharply in emerging economies with price-sensitive customers.

Automakers are also focusing on plug-in hybrid vehicles that can be charged from an external electrical source and offer an increased all-electric range. This allows hybrid vehicles to run longer distances on electric power before switching to gasoline. Cities around the world are actively promoting PHEVs with supportive infrastructure and policies.

Market Opportunities

One of the key opportunities for Hybrid Vehicle Market Growth is increased adoption from shared mobility and logistics sectors. Since these sectors entail high annual mileage, companies can optimize their operational costs substantially through fuel-efficient hybrid fleets.

Growing demand for hybrid electric vehicles in commercial spaces like public transport and cargo transportation is another major opportunity. Government incentives and stricter emission norms will drive more municipalities and logistics players towards hybrid electric buses and trucks.

Impact of COVID-19 on Hybrid Vehicles Market Growth

The COVID-19 pandemic has significantly impacted the hybrid vehicles market. During the initial lockdown phases in 2020, the automotive industry witnessed a major decline in production and sales. Factory closures disrupted the supply chain and created shortage of components. This led to postponing of launch of new hybrid models. With people avoiding public transportation due to virus spread concerns, demand for personal mobility rose. However, lower income levels impacted new vehicle purchases. Gradual easing of restrictions in late 2020 saw sales recovering, supported by pent up demand and preference for personal vehicles over shared mobility options. Contactless purchase and service experiences boosted consumer confidence.

Government initiatives in major economies to promote green vehicles worked in favor of hybrid sales post lockdown. Increased adoption of work from home practices reduced daily commutes, benefiting hybrids with their superior fuel efficiency. Rising environmental consciousness also drove the 'Greener is Cleaner' narrative. Hybrids emerged as a practical and responsible personal mobility alternative. Manufacturers strategized production according to demand trends. While full recovery may take longer, the hybrid vehicles market is set to grow steadily on back of technological advancements, evolving consumer preferences and supportive regulatory policies.

As far as geographical concentration is concerned, North America accounts for the major share of the global hybrid vehicles market in terms of value currently. This is attributed to early introduction and large-scale adoption of hybrid technology in the US and Canada. The availability of a wide variety of hybrid models from leading automakers like Ford, Toyota and GM has boosted regional sales. Growing environmental concerns and stringent emission regulations have further increased consumer inclination towards eco-friendly mobility solutions.

China has emerged as the fastest growing regional market for hybrid vehicles. Aggressive electrification targets by the Chinese government through initiatives like new energy credits/points system have accelerated hybrid and electric vehicle deployment. Domestic automakers like SAIC, BYD and Geely are widening their hybrid portfolios to cater to rising domestic demand. Planned expansion of charging infrastructure and purchase incentives are expected to further support the growth trajectory of China's hybrid vehicle market in the coming years.