Hybrid Electric Vehicle Sales in Europe and Opportunity Analysis

Hybrid Electric Vehicle Sales Outlook for Europe (2024 to 2034)

As revealed in a recently updated market analysis by Fact.MR, revenue from the sales of hybrid electric vehicles in Europe is projected to reach US$ 5.09 billion in 2024. The market has been forecasted to expand at a CAGR of 14.2% and reach US$ 19.21 billion by the end of 2034.

Increasing environmental concerns and surging requirements for sustainable development along with supportive measures and government subsidies for electric vehicles are contributing to the increasing demand for hybrid electric vehicles. The growing adoption of electric vehicles with increasing initiatives against environmental protection is supporting market growth.

Several countries in Europe have affiliated with a project, ECOCHAMPS. The consortium of 26 partners in ECOCHAMPS is significantly adopting hybrid powertrain technology. Surging use of the technology is expected to help in reducing CO2 emissions caused by transportation and improve air quality. Improved functionalities lead to the introduction of more advanced and efficient hybrid electric vehicles in the regional market.

• As per a report published by KBA (Federal Motor Transport Authority), sales of electric vehicles increased three-fold to 194,163 units in Germany in 2020.

Report Attributes	Details
Hybrid Electric Vehicle Sales in Europe (2024E)	US$ 5.09 Billion
Projected Sales (2034F)	US$ 19.21 Billion
Demand Growth (2024 to 2034)	14.2% CAGR
Sales of Stored Electricity-based Hybrid Electric Vehicles (2034F)	US$ 11.51 Billion
Market Share of Passenger Cars (2034F)	62.8%
Sales in France (2034F)	US$ 2.94 Billion
Sales in Russia (2034F)	US$ 818 Million
Key Companies Profiled	Robert Bosch GmbH; Bayerische Motoren Werke AG; Schaeffler AG; Volkswagen AG; ZF Friedrichshafen AG; Daimler AG; Continental AG; Renault SA; Delphi Technologies Inc.

What is Responsible for Growing Demand for Hybrid Electric Vehicles in Europe?

“Increasing Government Subsidies for Electric Vehicles”

Governments in more countries in Europe are providing subsidies, such as tax rebates and incentives for consumers to opt for hybrid electric vehicles. Increasing demand for zero or low-emission vehicles and the implementation of stringent regulation standards are also driving market growth. Governments in the regional countries are taking initiatives to reduce emissions of greenhouse gases and their effects. In addition, efforts to improve the fuel economy of vehicles are also driving demand for hybrid electric vehicles.

“Focus on Developing Specialized Lubricants to Meet Unique Lubrication and Cooling Needs”

Some of the key market players are focusing on offering an innovative line of fluids and lubricants for electric and hybrid cars. They are launching a wide range of fluids, specifically designed for electric and hybrid vehicles, matching the lubrication, and cooling requirements of modern as well as differently abled engines. It ensures maintaining peak conditions throughout the lifecycle of the engines. Temperature constraint solutions, dielectric properties of engines, and lubrication for transmission are some key fulfilling applications of these more advanced vehicles.

More companies are working on the development of low-carbon solutions for LNG (liquefied natural gas) and offshore facilities, thereby accelerating energy transitions. These factors are contributing significantly to increased demand for hybrid electric vehicles.

Which Key Challenge is Encountered by Market Players in Europe?

“Accelerating Demand for FCEVs and BEVs”

Growing demand for FCEVs (fuel cell electric vehicles) and BEVs (battery electric vehicles) is creating challenges for the manufacturers of hybrid electric vehicles. There are several types and models of BEVs, such as sedans, SUVs, and hatchbacks in passenger cars. Automotive manufacturers in the region, such as Volkswagen and others, are focusing on the development of BEVs to generate more profit, which is adversely impacting demand for hybrid electric vehicles.

Country-wise Insights

Why is Demand for Hybrid Electric Vehicles Rising Rapidly in Germany?

“Growing Preference for Fuel-efficient Automobiles Due to Rising Environmental Concerns”

Attribute	Germany
Market Value (2024E)	US$ 837 Million
Growth Rate (2024 to 2034)	11.4% CAGR
Projected Value (2034F)	US$ 2.45 Billion

Germany is evaluated to account for 12.8% share of the market in Europe by the end of 2034. This noteworthy growth in the country is attributed to several factors, such as a growing preference for fuel-efficient automobiles along with increasing environmental concerns. An increased emphasis has been given to the development of advanced technologies and innovative designs for manufacturing zero or low-emission vehicles with soundless operations and high-performance engines.

Will France Emerge as a Hub for Hybrid Electric Vehicle Manufacturers?

“Government Initiatives Promoting Sustainable Development”

Attribute	France
Market Value (2024E)	US$ 744 Million
Growth Rate (2024 to 2034)	14.7% CAGR
Projected Value (2034F)	US$ 2.94 Billion

France is forecasted to occupy 15.3% share of the Europe market by 2034. Favorable government initiatives are imposed for sustainable development to promote the adoption of electric vehicles. Increasing sales of hybrid electric vehicles are driven by the provision of parking privileges, tax benefits, rebates, utility rate reductions, and other factors in France.

Category-wise Insights

Which Vehicle Category Accounts for a Substantial Market Share?

“Passenger Hybrid Electric Cars Enabling Fuel Cost Savings”

Attribute	Passenger Cars
Segment Value (2024E)	US$ 3.47 Billion
Growth Rate (2024 to 2034)	13.3% CAGR
Projected Value (2034F)	US$ 12.06 Billion

According to the recently updated analysis by Fact.MR, a market research and competitive intelligence provider, passenger cars are evaluated to account for 62.8% share of the Europe market by 2034. Growing demand for hybrid electric passenger cars is attributed to the active involvement of more market players in launching new vehicles in use case areas, including taxis. In addition, these cars are good for stop-and-go driving, where electric motors have intermittent use enabling fuel cost savings. Thus, there is a growing preference for hybrid electric passenger cars in the region.

Why are Stored Electricity-based Hybrid Electric Vehicles Popular?

“Preference for Stored Electricity-based Hybrid Electric Vehicles for Higher Energy Efficiency”

Attribute	Stored Electricity
Segment Value (2024E)	US$ 2.92 Billion
Growth Rate (2024 to 2034)	14.7% CAGR
Projected Value (2034F)	US$ 11.51 Billion

Based on power source, stored electricity-based hybrid electric vehicles are analyzed to capture a share of 59.9% of the regional market by 2034. Vehicles based on stored energy are becoming popular for their fuel economy. In addition, modern hybrid electric vehicles generally use technologies for efficiency improvement, such as regenerative brakes, which help in converting the kinetic energy of vehicles to electric energy, which is stored in a supercapacitor or battery.

Competition Landscape

The Europe market is at a nascent stage with growing investments by manufacturers of hybrid electric vehicles. In addition, supportive government regulations and policies promoting the adoption of hybrid electric vehicles are also creating lucrative opportunities for market players in the region.

For instance

• Volkswagen AG, in 2022, acquired one-fourth of stakes in 24M Technologies for expanding its electric vehicle business. The company also invested in QuantumScape, a start-up offering batteries.
• Robert Bosch GmbH, in 2021, came up with new technology in electric motors and inverters equipped with silicone carbide technology with improved effectiveness. The company is expanding its production capacities in fuel cells used in trucks and cars.

Fact.MR provides detailed information about the price points of leading companies manufacturing hybrid electric vehicles in the European market, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Hybrid Electric Vehicle Study in Europe

• By Vehicle Type:

  • Passenger Cars
  • Two-wheelers
  • Commercial Vehicles

• By Power Source:

  • Stored
  • On-Board

• By Power Train:

  • Series
  • Parallel
  • Combined

• By Region/Country:

  • Western Europe
    • Germany
    • Italy
    • France
    • United Kingdom
    • Spain
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Hungary
    • Poland
    • Balkan & Baltics
    • Rest of Eastern Europe