by Mild hybrid vehicles use a combination of internal combustion engine and electric motor to improve fuel efficiency. They come equipped with features such as start-stop technology, battery recuperation, and regenerative braking which help in reducing fuel consumption and emissions. As environmental concerns regarding vehicular pollution grow, the adoption of such fuel-efficient vehicles is on the rise.
The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 billion in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising adoption of fuel-efficient vehicles is one of the major trends driving the growth of the mild hybrid vehicle market. Strict emission norms by governments across the globe regarding vehicular pollution are compelling automakers to focus on developing eco-friendly vehicles. Mild hybrid vehicles are more fuel efficient compared to conventional vehicles as they recuperate energy lost during braking which can be reused to provide assistance to the engine. Additionally, start-stop technology further enhances fuel efficiency by automatically turning off the engine when the vehicle comes to a halt and restarting it when accelerating. The technology is estimated to improve fuel efficiency by 5-10% depending on driving habits and conditions. This has increased their popularity among consumers who want better mileage without compromising on vehicular performance.
SWOT Analysis
Strength: Mild hybrid vehicles offer improved fuel-efficiency and reduced emissions compared to conventional vehicles due to features like engine start-stop systems and battery assistance. They are more affordable than full-hybrid and plug-in hybrid vehicles.
Weakness: Battery capacity in mild hybrid vehicles is smaller compared to full hybrids, limiting their power assistance and fuel savings potential. Driving range in electric-only mode is negligible or non-existent.
Opportunity: Stringent emission regulations worldwide are driving OEMs to focus on electrified vehicle technologies including mild-hybridization of their product lineups. Rising fuel costs are also prompting more consumers to opt for hybrid electric vehicles.
Threats: Strong competition from fully-electric vehicles and plug-in hybrids that offer superior performance and environmental benefits. Changing consumer preferences towards greener vehicle technologies could impact demand for mild hybrids.
Key Takeaways
The global mild hybrid vehicle market demand is expected to witness high growth over the forecast period supported by regulatory pushes for reduced emissions and fuel efficiency improvements. The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 billion in 2023 and is expected to exhibit a CAGR of 7.3% over the forecast period 2023 to 2030.
Asia Pacific currently dominates the mild hybrid vehicle sales led by major automobile markets of China, Japan, and India. Automakers in the region are focusing on introducing more affordable electrified vehicles, including large portfolios of mild hybrid models, to capture the growing hybrid electric vehicle demand. Strong government support for electrified vehicles along with a growing consumer base are driving the region’s lead. Europe is the second largest mild hybrid vehicles market led by Germany and UK where strict emission regulations are favoring uptake of hybrid electric vehicle technologies including mild hybrids. North America is also witnessing an accelerated adoption of electrified vehicles to meet CAFE standards.
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, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. The listed OEMs have integrated mild-hybrid technology into various vehicle segments from compacts to SUVs and are actively promoting their fuel efficiency and emission reduction benefits.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
