by The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 Bn in 2023 and is expected to exhibit a CAGR of 18 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Mild hybrid vehicles use a small electric motor and battery that supplements the power of an internal combustion engine. They offer advantages like improved fuel economy up to 15% compared to conventional vehicles and reduced emissions. The technology is increasingly being adopted by major automakers to comply with stringent emission norms without major modifications to existing powertrains.
Market key trends:
One of the key trends in the mild hybrid vehicle market is the increasing sales projections of major automakers like Toyota and Honda. Toyota expects its annual sales of mild hybrid vehicles to reach 1 million units by 2025 driven by strong demand in Europe and other markets. Similarly, Honda has set an internal target of 25% of its global vehicle sales to come from hybrid and electric vehicles by 2030, with most comprising mild hybrids. Additionally, several new model launches with 48V mild hybrid technology across segments by Volkswagen, Renault-Nissan, and Hyundai-Kia will further drive the growth of mild hybrid vehicle sales over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the mild hybrid vehicle market is moderate as the upfront investments required for production are significant and there are intense competition from well-established players. However, growing demand can provide new opportunities.
Bargaining power of buyers: The bargaining power of buyers in the mild hybrid vehicle market is high due to the availability of alternative fuel efficient vehicles. The possibility of switching between various fuel-efficient technologies provides more negotiating power to buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key components such as batteries, electric motors and engine are highly specialized with minimal options for substitution. However, established automakers can influence suppliers’ dependency.
Threat of new substitutes: The threat of substitutes is high due to the growing popularity of electric vehicles, plug-in hybrids and hydrogen vehicles. Moreover, technological advancements are continuously enhancing the performance of alternative fuel options.
Competitive rivalry: The competitive rivalry in the mild hybrid vehicle market is high owing to presence of well-established global automakers.
Key Takeaways
Global Mild Hybrid Vehicle Market Demand is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing stringency of emission regulations and rising demand for fuel-efficient vehicles.
Regional analysis: Asia Pacific region is expected to dominate mild hybrid vehicle market, with China emerging as the largest producer and consumer. The region is estimated to account for around 48% of the total mild hybrid vehicles sales by 2030 supported by proactive government policies and subsidies. Europe is also set to hold a significant share in the mild hybrid vehicle market supported by stringent emission norms.
Key players: Key players operating in the mild hybrid vehicle market are Toyota Motor Corporation, Nissan Motor Co. Ltd, Honda Motor Company Ltd, Hyundai Motor Company, Kia Motors Corporation, Suzuki Motor Corporation, Daimler AG, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. Toyota is the global leader in hybrid vehicle sales with their Prius models. Nissan is also strengthening its hybrid offerings such as X-Trail.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
