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Europe Hybrid Electric Vehicles Market

Europe Hybrid Electric Vehicles Market

Europe Hybrid Electric Vehicles Market Analysis By Power Source (Stored Electricity & On-Board Electric Generator Hybrid EV) By Power Train (Series, Parallel & Combined Hybrid Electric Vehicles) By Vehicle Type & By Country – Europe Market Insights 2022 to 2032

Europe Hybrid Electric Vehicles Market
  • May-2022
  • List of Tables : 99
  • List of Figures : 98
  • 170 Pages
  • Automotive

Europe Hybrid Electric Vehicles Market Outlook (2022-2032)

Sales of hybrid electric vehicles in Europe are projected to increase at an impressive CAGR of 14.2% to reach a market valuation of US$ 15.7 billion by the end of 2032. As such, the Europe hybrid electric vehicles market is poised to generate an absolute dollar opportunity worth US$ 11.6 billion over the next ten years.

Report Attributes


Europe Hybrid Electric Vehicles Market Size (2021A)

US$ 3.6 Billion

Estimated Market Value (2022E)

US$ 4.1 Billion

Forecasted Market Value (2032F)

US$ 15.7 Billion

Europe Market Growth Rate (2022-2032)

14.2% CAGR

Germany Market Share (2021)


Germany Growth Rate (2022-2032)

~15.2% CAGR

Market Share of Top 5 Companies


Key Companies Profiled

  • Bayerische Motoren Werke AG
  • Volkswagen AG
  • Daimler AG
  • Renault SA
  • Robert Bosch GmbH
  • Delphi Technologies Inc.
  • Continental AG
  • ZF Friedrichshafen AG
  • Schaeffler AG

Rising environmental awareness and the need for sustainable development along with government subsidies and supportive measures for electric vehicles are major factors expected to support market growth over the coming years.

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Europe Hybrid Electric Vehicles Demand Analysis (2017-2021) Vs. Market Estimates (2022-2032)

Hybrid electric vehicles are power-driven by an electric motor and an internal combustion engine, and they use energy stored in batteries through regenerative braking and by an internal combustion engine.

The enactment of stringent emission controls, government incentives, fuel economy norms, etc., are promoting the adoption of hybrid electric vehicles in Europe, which will also drive demand for electric car battery chargers.

Also, initiatives by European governments to make provisions for public charging stations for electric vehicles are likely to support market growth over and are projected to provide a gain of 210 BPS to the European hybrid electric vehicles market over the decade.

  • Short Term (2022 Q2 to 2025): Rising adoption of electric vehicles on the back of growing consumer awareness of environmental protection is likely to support market growth in the short term.
  • Medium Term (2025-2028): Supportive government policies and regulations along with provisions for subsidies and other tax exemptions to support market growth in the medium term.
  • Long Term (2028-2032): Product innovation and development trends in hybrid electric vehicles to support demand growth in the long term.

The European market for hybrid electric automobiles witnessed growth at 10.6% CAGR during the years 2017-2021. According to Fact.MR analysis, the market is projected to register 14.2% CAGR over the assessment years 2022-2032.

Europe hybrid electric vehicles market forecast by Fact.MR

Market share analysis of vehicle type and countries is provided in the image in a nutshell. Under vehicle type, passenger cars dominated the market with 37.8% share in 2021.

Why are Hybrid Electric Vehicle Sales Expected to Surge across Europe?

“Rising Government Subsidies on Electric Vehicles across Europe”

Governments across Europe are offering subsidies such as incentives and tax rebates for consumers to go for hybrid electric vehicles. These, along with new investments, are likely to boost the European hybrid electric vehicles market in the long run. Surging demand for low or zero-emission vehicles along with stringent emission regulation standards will also drive the market going forward.

Governments in Europe are focusing on lowering emissions to limit greenhouse gas effects and improve the fuel economy of vehicles.

  • The United Kingdom government is committed to net-zero emissions by the end of 2050 and has proposed a ban on polluting vehicles by 2035.
  • Germany also plans a cut of 55% in greenhouse gas emissions by 2030, and by 95% by 2050.

Thus, government regulations and policies to encourage the consumption of hybrid electric vehicles will provide an optimistic environment for market players to grow over the forecast years, including those producing hydrogen vehicles.

“Innovative Technology Fluids to Represent Lucrative Potential”

Prominent market players are focusing on an innovative broad line of lubricants and fluids in terms of hybrid-electric and electric cars. Players in the market are launching a range of fluids that are designed especially for hybrid and electric vehicles and can meet the cooling and lubrication needs of modern and differently-abled engines.

This ensures that peak conditions are maintained throughout the engine’s lifecycle and this can fulfill applications such as compatibility with new electric components, boost in dielectric properties of engines, temperature constraint solutions, lubrication for transmission, etc.

Furthermore, companies are looking to develop low-carbon solutions for offshore facilities and Liquefied Natural Gas (LNG), thereby accelerating energy transitions. All these factors are likely to propel demand growth of the hybrid electric vehicles market in Europe during the assessment period.

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Country-wise Insights

Why is the Europe Hybrid Electric Vehicles Market Led by Germany & NORDICS?

Germany's hybrid electric vehicles market and NORDICS hold 21.2% and 19.3% shares, respectively, in the European hybrid electric vehicles industry, and are projected to progress rapidly at 15.2% and 14.9% CAGRs during the assessment years.

This high growth is attributed to the factors such as escalating demand for fuel-efficient automobiles and rising environmental consciousness among consumers in these regions. Also, high emphasis on the development of innovative designs and advanced technologies to produce low or zero-emission vehicles with high-performance engines and soundless operations is boosting market growth.

In addition, favorable government initiatives for sustainable development are promoting the adoption of electric vehicles, positively impacting the market. Sales of hybrid electric automobiles are also surging with the provision of tax benefits, rebates, parking privileges, utility rate reductions, etc.

Category-wise Insights

What Makes Stored Electricity Hybrid Electric Vehicles So Popular across Europe?

Under power source, the market is segmented into stored electricity hybrid electric vehicles and onboard electric generator hybrid electric vehicles.

Stored electricity hybrid electric vehicles hold 77.6% market share, and thus dominate the market. The segment is projected to rise at 14.4% CAGR over the years on the back of the many advantages of stored electricity hybrid electric vehicles.

For example, they aid in reducing fuel costs through better fuel economy. Onboard electric generator hybrid electric vehicles hold 22.4% of the market share and are projected to register 14.1% CAGR over the forecast period.

Will Passenger Hybrid Electric Vehicles Continue Ruling the European Market?

The Europe market for hybrid electric vehicles, under vehicle type, is segmented into passenger cars, commercial vehicles, two-wheelers, and others.

Amongst them, passenger cars hold 38.2% market share and therefore lead the market. The segment is projected to rise at 14.8% CAGR over the decade owing to factors such as rising interest in electric vehicles by the population across Europe. Key players in the market are also launching electric vehicles in new use case areas such as taxis, etc., which is promoting segmental growth.

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Competitive Landscape: Top Companies in Hybrid Electric Vehicles Market

The hybrid electric vehicles market in Europe is likely to surge from a nascent stage on the back of healthy investments by private players in the market and supporting regulatory policies and regulations by governments.

In addition, the rising interest of consumers in electric vehicles on the back of controlling emissions will pave the way for new opportunities in the market. Investments and research & developmental activities undertaken by market players to innovate their product offerings will also aid market growth and development.

  • Volkswagen AG, as part of the expansion of its electric vehicles business, acquired 25% stake in 24M technologies in 2022, including investment in QuantumScape, a battery-related start-up.
  • Robert Bosch GmbH is supporting the electrification of transportation, ranging from bicycles to cars. The new technology introduced by Bosch in 2021 in electric motors and inverters with silicone carbide technology offers efficiency in the system by up to 97%. The company is also preparing for the large-scale production of fuel cells in cars and trucks.

Fact.MR has provided detailed information about the price points of key manufacturers of hybrid electric vehicles positioned across countries in Europe, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Europe Hybrid Electric Vehicles Industry

  • Europe Hybrid Electric Vehicles Market by Power Source :

    • Stored Electricity Hybrid Electric Vehicles
    • On-Board Electric Generator Hybrid Electric Vehicles
  • Europe Hybrid Electric Vehicles Market by Power Train :

    • Series Hybrid Electric Vehicles
    • Parallel Hybrid Electric Vehicles
    • Combined Hybrid Electric Vehicles
  • Europe Hybrid Electric Vehicles Market by Vehicle Type :

    • Passenger Cars
    • Commercial Vehicles
    • Two-Wheelers
    • Others
  • Europe Hybrid Electric Vehicles Market by Country :

    • Germany
    • Italy
    • France
    • Spain
    • U.K.
    • Rest of Europe

- FAQs -

The Europe hybrid electric vehicles market stands at US$ 4.1 billion in 2022 and is anticipated to surpass US$ 15.7 billion by 2032-end.
From 2017 to 2021, Europe hybrid electric vehicles market grew at 10.6% CAGR.
Leading manufacturers of hybrid electric vehicles are Volkswagen AG, Renault SA, and Robert Bosch GmbH.
Germany tops the Europe hybrid electric vehicles market accounting for 21.2% market share in 2022.
Stored electricity hybrid electric vehicles account for 77.6% market share.

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