Hybrid Electric Vehicles Market
Hybrid Electric Vehicles Market Analysis By Power Source (Stored Electricity HEVs, On-Board Electric Generator HEVs), By Powertrain (Series, Parallel, Combined Hybrid Electric Vehicles), By Vehicle, By Region - Global Insights 2021-2031
Hybrid Electric Vehicles Market Outlook
The global market for hybrid electric vehicles is anticipated to showcase a stellar growth trajectory registering a CAGR of over 14% over the forecast period 2021-2031, according to Fact.MR. Gasoline hybrid vehicles are projected to surpass a value of over US$ 100 Million by 2031.
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By 2021, the market is projected to reach US$ 29 Bn. Growth is majorly stimulated by an overall tilt towards fuel-efficient automobiles with the objective of alleviating environmental costs associated with fossil fuel consumption.
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Consumption Analysis of Hybrid Electric Vehicles from 2016-2020 Vs Market Outlook for 2021 to 2031
As per Fact.MR – market research and competitive intelligence provider, from 2016 to 2020, the global market for hybrid electric vehicles expanded at a CAGR worth 9% to reach a high valuation.
Hybrid electric vehicles come with a variety of benefits like reduced operational and maintenance costs and less pollution. With technological breakthroughs, the portfolio for electric vehicles is ever-expanding with many consumers in different regions preferring to go in for fully hybrid or mild hybrid vehicles.
Thus, considering these factors, the market for hybrid electric vehicles is projected to witness immense growth, registering nearly 14% CAGR through the 2021-2031 assessment period.
How are Power-Split and Gasoline Powered Hybrid Electric Vehicles Acquiring Traction?
Amongst all hybrid vehicle architectures, the power-split hybrid electric vehicles (PS-HEVs) have been proven to be the most efficient and are projected to hold a majority of the revenue share in the global hybrid vehicles market.
Gasoline hybrid vehicles are favored over diesel hybrid vehicles due to improved performance, high fuel efficiency, and low tailpipe emissions. A vehicle uses only a small fraction of the energy available in gasoline to operate.
Gasoline is the dominant transportation fuel in the United States. On an energy content basis, finished motor gasoline accounted for 62% of total U.S. transportation energy use in 2020, while distillate fuels, mostly diesel, accounted for 24%, and jet fuel accounted for 10%.
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How are the Algorithmic Trends Stepping up Fuel Efficiency in Hybrid Electric Vehicles?
Newer and smarter algorithms are all set to revolutionize the fuel efficiency of hybrid electric vehicles. Owing to these trends, hybrid electric vehicles will capture a large market share of around US$ 29 Bn in the year 2021.
Hybrid electric vehicles are largely dependent on an energy management system that helps them to maintain an equilibrium between the electric motor and the internal combustion engine. Many new universities are now pioneering algorithms to help achieve this objective.
Technical teams at several universities are developing highly nuanced algorithms that can calculate the energy consumption of a hybrid vehicle in a very optimal manner.
For instance, a team at the Technical University of Dresden developed a new algorithm that could calculate optimal energy use up to one hundred thousand times faster than systems in use today. According to researchers, this method could increase fuel efficiency by as much as 50%.
This would help to enhance fuel efficiency by at least 50% thus bolstering the demand for hybrid electric vehicles during the forecast period. Since these algorithms have been found to be highly complex, future research will focus on reducing the computational effort of these algorithms. This will improve drivability.
How are Refillable Batteries Generating Opportunities for HEV Sales?
Hybrid electric vehicles induce considerable anxiety amongst motorists due to the limited availability of charging stations and range limitations. This can now be offset with scientists working on refillable or flow batteries that can be refueled in minutes at any gas station.
In April 2021, BYD announced the launch of 4 new electric vehicles equipped with an ultra-safe battery technology developed by the company itself. Pure electric vehicles come with blade batteries. The brand has always ensured the safety offered by its batteries by conducting various safety standard tests and thereafter installing them in their vehicles.
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What Potential Do the Innovative Technology Fluids Hold?
Key market players are rushing to reach the finish line by innovating a broad line of fluids and lubricants for the electric and hybrid-electric fleet of cars.
For instance, Total is massively consolidating its position by introducing a range of fluids that are specially designed for electric and hybrid vehicles. Total’s research and development teams are all geared up to meet the cooling and lubrication needs of these modern and differently-abled engines.
This is done to ensure that they maintain their peak condition throughout the engine’s lifecycle. Their new product line consists of an eclectic mix such as Total Quartz EV fluid and Total Rubia EV fluid for a wide range of hybrid and electric vehicles.
These dynamic fluids help to fulfill myriad applications such as boosting dielectric properties of the engine, compatibility with new electric components, lubrication for transmission, and a solution for temperature constraints.
In addition to this, in July 2021, TotalEnergies and Technip Energies signed a Technical Cooperation Agreement to jointly develop low-carbon solutions for Liquefied Natural Gas (LNG) production and offshore facilities to accelerate the energy transition.
What is the Growth Outlook for Hybrid Electric Vehicles in India?
India is expected to remain lucrative during the forecast period owing to the presence of industry giants, rapid urbanization, and government initiatives. A market share worth 20% is projected for the Indian market in the forthcoming decade.
The Government of India announced the imposition of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) in October 2019. As part of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME), the Indian government announced the acquisition of 7,000 electric buses, 55k four-wheelers, and 10,00,000 two-wheelers.
What is Bolstering the Market in the U.S?
The U.S will witness major growth as the research and development in the region have made way for significant uptakes in infrastructure, costs, and product innovation. A CAGR of 7% is projected for the region through 2031.
In April 2021 President Biden announced that he wants 50 percent of all new cars sold in the United States in 2030 to be an all-electric, plug-in hybrid, or hydrogen-powered.
In addition to this, he also announced that he will sign an executive order that tasks the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) to develop aggressive long-term rules to support his 2030 target, ones that include medium and heavy-duty vehicles as well.
How is Europe Emerging as an Attractive Market for HEVs?
The European region is projected to be the largest revenue contributor to the global market for hybrid electric vehicles through 2031, emerging as one of the frontrunners, capturing a significant market share of nearly 16% by the end of the forecast period.
Many countries in Europe have affiliated themselves with a project known as ECOCHAMPS. The challenge taken up by the ECOCHAMPS consortium of 26 partners is to gain a leading position in hybrid powertrain technology. Extending the use of this technology will significantly reduce CO2 emissions from road transport and have a positive effect on air quality.
With improved functionalities, users will have a lot of flexibility and the introduction of hybrid electric vehicles in the European market space would become easier. Moreover, according to the Federal Motor Transport Authority (KBA), sales of full-electric vehicles in Germany increased three-fold to 194,163 units in 2020.
How is the Passenger Cars Segment Performing?
According to International Energy Agency (IEA), electric vehicles will make 40% of all passenger vehicles by 2040. The estimation may not be surprising as electric vehicle makers like Tesla have already made a foray into new areas that serve the urban transportation demands like taxis.
Most prominently, the hybrid vehicles market registers demand from vehicle types such as passenger cars, light commercial vehicles, and heavy commercial vehicles. Nearly 2/5th of total HEV sales will comprise of passenger cars.
The global hybrid electric vehicles market is highly competitive in nature. Amid the growing competition in the hybrid electric vehicles market, leading players are focusing on strengthening their market position and gaining traction in the competitive global market.
- In April 2021, Ford Motor Company launched Mustang Mach-E SUV which has comfortably outfitted interior, seamless technology, and impressive range. This model is home to one truly iconic design paired with luxurious materials and standard driver-assist technologies like Ford Co-Pilot360™ 2.0.
- In July 2021, TotalEnergies signed a contract with Bolloré Group for the acquisition of ‘Blue Charge’. Upon the approval of the relevant authorities, TotalEnergies will manage and operate the largest electric vehicle charging network in Singapore, with more than 1,500 charge points installed in the city-state.
- This urban charging network represents around 85% of the charge points currently under operation in Singapore, access to electric vehicles owners as well as to the car sharing solution BlueSG.
Key Segments Covered
Power Source :
- Stored Electricity HEVs
- On-Board Electric Generator HEVs
- Series Hybrid Electric Vehicles
- Parallel Hybrid Electric Vehicles
- Combined Hybrid Electric Vehicles
- Hybrid Electric Passenger Cars
- Commercial Hybrid Electric Vehicles
- Hybrid Electric Two Wheelers
- Other HEVs (Golf Cart, etc.)
- FAQs -
According to Fact.MR, the hybrid electric vehicles market is projected to reach US$ 29 Bn by 2021
As per Fact.MR, sales of hybrid electric vehicles surged at a CAGR of 9% from 2016 to 2020
According to Fact.MR, the global hybrid electric vehicles market is projected to grow at nearly 14% CAGR through 2031.
Fact.MR anticipates that the market will bolster owing to the increasing number of government initiatives to promote EV usage
Newer and smarter algorithms to introduce various energy combinations are currently driving demand.
The passenger cars segment is likely to open new expansion frontiers, comprising 2/5th of global demand
The market across the U.S is projected to be highly lucrative, growing at a CAGR of 7%
India is projected to be highly lucrative, expected to generate around 20% revenue
Stored electricity and On-Board Electric generators are the main power sources for hybrid electric vehicles.
The European region is projected to be highly lucrative during the forecast period, accounting for a revenue share of nearly 16%
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