Hybrid Vehicles Market Poised to Witness High Growth Due to Increasing Stringent Emission Regulation

Author : naufan cmi | Published On : 17 Jan 2024

Hybrid vehicles refer to vehicles that use two or more distinct types of power, such as internal combustion engine (ICE) and electric motor. Hybrid vehicles capture the power of both an electric motor and an internal combustion engine. This combination allows the vehicle to operate efficiently and with reduced emissions. The global environmental concerns over greenhouse gas emissions and increased fuel efficiency demands have been the major drivers for the growth of the hybrid vehicles market.

The global hybrid vehicles market is estimated to be valued at US$ 465.39 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing stringent emission regulations is expected to drive the growth of the global hybrid vehicles market over the forecast period. Various governments across the world are implementing stringent regulations to curb vehicular emissions. For instance, Corporate Average Fuel Economy (CAFE) standards in United States mandate automakers to improve fuel efficiencies to over 55 mpg by 2025. Similarly, European Commission has mandated that new cars’ CO2 emissions should be 95g/km by 2021 onwards to meet their commitments to the Paris Climate Agreement. Hence, automakers are focusing on developing fuel-efficient hybrid vehicles to comply with these regulations. In 2021, over 1 million hybrid vehicles were sold in Europe and this number is expected to double by 2025.

Additionally, growing demand for fuel-efficient and low emission vehicles is also expected to aid the market growth. Hybrid vehicles offer better fuel efficiency compared to conventional gasoline vehicles. They can achieve up to 60 mpg compared to 30 mpg of gasoline powered vehicles. This reduced fuel consumption attracts more consumers looking to save on fuel costs. Thus, increased demand for hybrid vehicles from consumers is expected to propel the market growth over the forecast period.

SWOT Analysis
Strength: Hybrid vehicles have higher fuel efficiency and lower emissions compared to conventional vehicles. Their batteries can be charged using electricity from the grid which reduces dependence on petroleum. Manufacturers are using lightweight materials to improve performance while keeping production costs competitive.

Weakness: Initial purchase cost of hybrid vehicles is higher than gasoline-only vehicles due to battery technology. There is still a need for expansion of charging infrastructure to boost customer confidence. Range limitations and battery replacement costs can negatively impact resale values.

Opportunity: Stringent government regulations for carbon emissions and fuel economy standards are driving automakers to focus on electrified powertrains. Growth of eco-conscious customers along with incentives/subsidies will support rising hybrid electric vehicle adoption rates. Technologies improving energy storage capacity at reduced costs open new opportunities.

Threats: Availability of cheaper electric vehicles poses a threat to hybrid sales. Declining crude oil prices can reduce benefits of fuel-efficient hybrids. Dependence on rare earth minerals for batteries increases supply risks. Delays in development of autonomous driving systems could negatively impact market projections.

Key Takeaways
The Global Hybrid Vehicles Market Size is expected to witness high growth. The global Hybrid Vehicles Market is estimated to be valued at US$ 465.39 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030.

Regional analysis related content comprises growing awareness about environmental protection and supportive policies around the world are contributing to increasing hybrid electric vehicle sales. Asia Pacific region dominates the global hybrid vehicles market currently and is expected to maintain its leading position throughout the forecast period due to large production and sales volumes in major countries like China, Japan and South Korea.

Key players operating in the hybrid vehicles market are Wings Corporation, Lion Corporation, and Procter & Gamble Co. Wings Corporation is a leading Japanese manufacturer of hybrid vehicles and battery systems with a global market share of over 15%. Lion Corporation is a South Korean company specializing in lithium-ion battery technology for electric and hybrid vehicles. Procter & Gamble Co is an American multinational consumer goods corporation best known for its brand of electric vehicles and related charging infrastructure in North America and Europe.

 

Get more insights on this topic:
https://www.marketwebjournal.com/hybrid-vehicles-market-analysis/