U.S. Hybrid Electric Vehicles Market

U.S. Hybrid Electric Vehicles Market Outlook (2022-2032)

Sales of hybrid electric vehicles in the U.S. reached a market valuation of US$ 15.2 billion in 2021. Projections are that the U.S. hybrid electric vehicles market will expand rapidly at 13.8% CAGR to top US$ 55.5 billion by the end of 2032.

Report Attributes	Details
U.S. Hybrid Electric Vehicles Market Size (2021A)	US$ 13.4 Billion
Estimated Market Value (2022E)	US$ 15.2 Billion
Forecasted Market Value (2032F)	US$ 55.5 Billion
U.S. Market Growth Rate (2022-2032)	13.8% CAGR
South-West U.S. Market Share (2021)	~29.8%
South-West U.S. Growth Rate (2022-2032)	~14.6% CAGR
Market Share of Top 5 Companies	~62%
Key Companies Profiled	General Motors Ford Motor Company Tesla Motors Inc. Magna International Plc Honda Motor Co. Ltd. Toyota Motor Corporation

The market for hybrid electric vehicles in the U.S. is surging on the back of several factors, amongst which, curbing carbon emissions and improving fuel efficiency are prominent, and are expected to majorly drive demand for hybrid electric vehicles in the country over the coming years.

U.S. Hybrid Electric Vehicle Sales Analysis (2017-2021) Vs Market Predictions (2022-2032)

Hybrid electric vehicles combine an electric propulsion system with a conventional internal combustion engine. The presence of an electric powertrain aids in achieving better fuel economy than a conventional vehicle and also provides several other benefits such as low maintenance costs, reduced operational costs, and less pollution.

The hybrid electric vehicles market in the United States is witnessing technological breakthroughs with manufacturers fulfilling the demands of consumers preferring fully hybrid or mild-hybrid vehicles. The market is also seeing high demand for electric car battery chargers.

Thus, rising inclination of end users towards electric vehicles and hydrogen vehicles is estimated to provide a gain of 270 BPS to the United States hybrid electric vehicles market during the assessment period.

• Short Term (2022 Q2 to 2025): Demand is anticipated to increase on the back of the several benefits of electric vehicles as compared to conventional vehicles, such as lower fuel costs, reduced emissions, etc.
• Medium Term (2025-2028): Ongoing factors such as climate change and commitments to reach net-zero emissions will drive demand for hybrid electric automobiles.
• Long Term (2028-2032): Long-term investments in electric vehicles and ongoing research & development on fuel efficiency are likely to propel market growth.

The United States hybrid electric vehicles market expanded at the rate of 10.3% from 2017 to 2021. According to Fact.MR, a market research and competitive intelligence provider, the U.S. market is projected to surge ahead at 13.8% CAGR through 2032.

Market share analysis of hybrid electric vehicles by power source and region is provided in the above image. Under power source, stored electricity hybrid electricity vehicles dominated the market with 78.3% share in 2021.

Why are Hybrid Electric Vehicle Sales Surging across the U.S.?

“Rapidly Rising Awareness about Electric Vehicle Benefits”

Electric vehicles aid in improving fuel economy and reducing carbon emissions. The transportation sector in the United States accounted for nearly 30% of total U.S. energy needs and approximately 70% of the United States' consumption of petroleum.

The use of energy-efficient vehicles, such as electric automobiles, can aid in supporting the economy and lead to the diversification of the transportation fleet. Several fuel sources to generate electricity are resulting in a more secure energy source for the electrified portion of the transportation sector, leading to the security of the nation.

In addition, hybrid electric vehicles (HEVs) use less fuel than conventional vehicles as they come with electric-drive technologies, thereby boosting vehicle efficiency via regenerative braking. These electric vehicles are capable of being powered solely by electricity.

All these factors will go on to support hybrid electric automobiles market growth in the U.S, during the forecast years of 2022-2032.

“Need for Fuel Efficiency to Drive Hybrid Electric Automobile Sales”

The fuel efficiency of hybrid electric vehicles is being revolutionized with the help of newer and smarter algorithms. Electric vehicles are dependent on an energy management system, helping them to maintain an equilibrium between the internal combustion engine and the electric motor. Technical teams at several universities are now developing highly-nuanced algorithms to calculate the optimum energy consumption of vehicles.

• For instance, a new algorithm developed by a team at Technical University can calculate optimal energy use faster than other systems, and this can increase fuel efficiency by nearly 50%.

As these algorithms are highly complex, upcoming research is likely to focus on reducing the computational efforts of algorithms to improve drivability. Overall, this increase in fuel efficiency is anticipated to bolster demand for hybrid electric vehicles in the U.S. market during the forecast years.

Region-wise Insights

Which Regional Market Holds Higher Share in the U.S. Hybrid Electric Vehicles Industry?

The South-West U.S. hybrid electric vehicles market dominates with 29.8% share in the overall market and is projected to rise at the rate of 14.6% CAGR during the assessment period.

The region will witness significant uptake in infrastructure, costs, and product innovation as President Biden announced that by end of 2030, approximately 50% of new vehicles sold will be all-electric, plug-in hybrid, or hydrogen-powered vehicles.

It was also announced that the National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA) will be tasked with developing aggressive long-term rules to support 2030 targets, including medium and heavy-duty vehicles.

Category-wise Insights

Will Stored Electricity Vehicles Continue Ruling the U.S. Market Space?

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

Stored electricity vehicles dominate the market with 78.3% and are projected to rise at 14.1% CAGR over the assessment period. Segment growth is attributed to the several benefits offered by stored electricity hybrid electric vehicles. For instance, they reduce fuel costs and aid in achieving better fuel economy.

On-board electric generator vehicles hold 21.7% share in the overall market and are projected to register 13.6% CAGR during the forecast years.

Should Market Players Focus on Hybrid Electric Passenger Cars?

Under vehicle type, the hybrid electric automobiles market is segmented into passenger cars, commercial vehicles, two-wheelers, and others.

The passenger cars segment dominates the market with 37.8% share. The segment is projected to expand at 14.4% CAGR over the decade.

• According to the International Energy Agency (IEA), approximately 2/5 or 40% of vehicles will be electric passenger vehicles by the year 2030.

Seeing this trend, companies are launching electric vehicles into new areas such as serving urban transportation demands such as taxis, supporting segmental growth.

Two-wheelers and commercial vehicles hold 25.4% and 21.2% share, respectively, in the overall market. Both these segments are projected to rise at 13.9% and 13.5% over the decade.

Competitive Landscape: Top Companies in Hybrid Electric Vehicles Market

The U.S. market for hybrid electric vehicles is in its nascent stage and is likely to propel on the back of healthy investments, both from market players and the government. Along with this, rising infrastructure is also poised to support market growth over the coming years.

Rising interest in electric vehicles on the back of emission control needs presents lucrative opportunities for new manufacturers to enter the market. Additionally, prominent market players are investing in research and development to innovate their product offerings and offer fuel-efficient hybrid vehicles over the coming years.

• Tesla Inc. received approval for nearly four of its vehicle variants in the Indian market. The company got approval from the Ministry of Road Transport and Highways in 2021. The company also intends to enter the Indian market by forming a subsidiary called Energy Private Ltd. and Tesla Indian Motors.
• General Motors Company has started increasing its investments in electric vehicles in 2019 to grow its electric vehicles portfolio and lead the EV race. The company plans that more than 40% of its vehicles in the United States will be battery-operated electric vehicles by 2025.

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

U.S. Hybrid Electric Vehicles Industry Analysis by Category

• U.S. Hybrid Electric Vehicles Market by Power Source :

  • Stored Electricity Hybrid Electric Vehicles
  • On-Board Electric Generator Hybrid Electric Vehicles

• U.S. Hybrid Electric Vehicles Market by Powertrain :

  • Series Hybrid Electric Vehicles
  • Parallel Hybrid Electric Vehicles
  • Combined Hybrid Electric Vehicles

• U.S. Hybrid Electric Vehicles Market by Vehicle Type :

  • Passenger Cars
  • Commercial Vehicles
  • Two-Wheelers
  • Others

• U.S. Hybrid Electric Vehicles Market by Region :

  • West U.S.
  • South-West U.S.
  • Mid-West U.S.
  • North-East U.S.
  • South-East U.S.