The global hybrid vehicle market is poised to grow at a steady pace over the next decade. Hybrid vehicles combine an internal combustion engine with an electric motor and a battery pack to provide better fuel economy compared to conventional vehicles. Numerous manufacturers have introduced hybrid variants of their popular vehicle models to tap the growing demand for fuel-efficient mobility solutions. Hybrid technology allows vehicles to run mainly on electric power for short distances and rely on the conventional engine for longer journeys, enabling reduced emissions and lower operating costs for users. The global hybrid vehicle 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 from 2024 to 2030.

Key Takeaways

Key players operating in the Hybrid Vehicle Market Growth are Wings Corporation, Lion Corporation, and Procter & Gamble Co. Wings Corporation is a leader in hybrid powertrain technologies while Lion Corporation specializes in electric buses and trucks. Procter & Gamble Co produces batteries for hybrid and electric vehicles.

Growing environmental awareness and stringent emission norms are fueling demand for hybrid vehicles globally. Their lower carbon footprint and cost advantages over diesel/petrol variants are convincing more customers to opt for hybrid models. Various nations are providing purchase incentives for hybrids to boost sustainable mobility.

Leading automakers are expanding their hybrid offerings and production capacities internationally to tap opportunities in emerging markets. Japan and Europe currently have extensive hybrid vehicle fleets and infrastructure but growth markets like China, India, and Southeast Asian countries are witnessing a ramp up in local manufacturing of hybrid models. Collaboration between automotive giants and battery experts will be crucial to hybrid vehicle adoption worldwide.

Market Key Trends

One of the major trends driving growth in the hybrid vehicle market is the electrification of commercial vehicles. Companies are developing hybrid technology for trucks, buses and other fleet vehicles. This helps commercial operators lower operating costs while meeting emission regulations. Battery and powertrain technologies are advancing to allow larger hybrid vehicles to travel longer distances without recharging. This is expected to significantly boost the sales of hybrid buses, delivery vans and trucks in the coming years.

Porter’s Analysis

Threat of new entrants: Low investment requirements and established supply chains lower the threat of new entrants into the hybrid vehicles market.

Bargaining power of buyers: Individual consumers have moderate bargaining power in the hybrid vehicles market due to the availability of substitutes, while fleet operators have higher bargaining power.

Bargaining power of suppliers: Major component suppliers like battery producers have significant bargaining power over automakers in the hybrid vehicles market.

Threat of new substitutes: Electric vehicles pose a major threat of substitution in the hybrid vehicles market due to improving technology and rising consumer awareness.

Competitive rivalry: Strong competition exists among established automakers in the hybrid vehicles market to launch new fuel-efficient models.

Geographical regions with market concentration: Asia Pacific accounts for the largest share in the hybrid vehicles market, with China and Japan being the major markets due to supportive government policies and consumer push for fuel-efficient vehicles.

Fastest growing region: The hybrid vehicles market is expected to witness fastest growth in Europe during the forecast period led by stringent emission norms and incentives for electric vehicles in several countries.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it