USD 79.0 billion
Hybrid Electric Vehicle Market Size, Share, and Growth Analysis
Hybrid Electric Vehicle Market By Propulsion Type (Plug-in Hybrids, Full Hybrids), By Configuration Type (Parallel HEV, Series HEV), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Power Source, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25C2174 |
Region:
Global |
Published Date: March, 2025
Pages:
195
|Tables:
120
|Figures:
70
Format -
Hybrid Electric Vehicle Market Insights
Hybrid Electric Vehicle Market size was valued at USD 79.0 billion in 2023 and is poised to grow from USD 95.75 billion in 2024 to USD 445.81 billion by 2032, growing at a CAGR of 21.2% during the forecast period (2025-2032).
Rising emphasis on the reduction of vehicle emissions around the world is slated to boost the demand for hybrid electric vehicles in the future. High investments in the development of hybrid technologies and hybrid powertrains coupled with advancements in battery technologies are also slated to present new business scope for market players. The imposition of stringent emission control regulations, rising cost of fuel, and the availability of incentives for the purchase of hybrid vehicles are also estimated to bolster the global hybrid electric vehicle market growth going forward. Increasing consumer awareness and emphasis on sustainability and emission reduction are also anticipated to promote the adoption of hybrid electric vehicles on a global level. On the contrary, high initial purchase costs, limited fuel savings compared to electric vehicles (EVs), dependence on expensive battery materials, and high complexity of hybrid powertrains are forecasted to impede the adoption of hybrid electric vehicles across the forecast period and beyond.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Full Hybrids
Fastest Growth
Plug-in Hybrids
Growth Rate
21.2% CAGR
Global Hybrid Electric Vehicle Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Hybrid Electric Vehicle Market Segments Analysis
Global Hybrid Electric Vehicle Market is segmented by Propulsion Type, Configuration Type, Vehicle Type, Power Source and region. Based on Propulsion Type, the market is segmented into Plug-in Hybrids, Full Hybrids, Mild Hybrids and Others. Based on Configuration Type, the market is segmented into Parallel HEV, Series HEV and Combination HEV. Based on Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicles, Two-Wheelers and Others. Based on Power Source, the market is segmented into Stored Electricity and On Board Electric Generator. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Vehicle Type
Hybrid electric passenger cars are projected to account for a major hybrid electric vehicle market share over the coming years. Growing emphasis of consumers on reducing emissions and utilizing vehicles with better mileage to deal with rising fuel prices are helping this segment hold sway over others in the future. Rising awareness regarding the potential benefits of hybrid electric vehicles over electric vehicles and no risk of range anxiety are also expected to bolster the adoption of hybrid electric passenger cars in the future. Availability of subsidies and incentives on hybrid passenger cars is also expected to cement the dominance of this segment.
On the other hand, the demand for commercial hybrid electric vehicles is projected to rise at an impressive pace in the long run. Imposition of stringent emission control mandated for commercial vehicles to reduce emissions is slated to primarily help this segment generate new opportunities. Enhanced fuel economy, compatibility with existing infrastructure, and advancements in hybrid technology are helping promote the sales of commercial hybrid electric vehicles going forward. Delivery trucks and urban freight transportation over a limited distance is expected to create new business scope for commercial hybrid electric vehicle suppliers in the long run.
Analysis by Type
The full hybrids segment is projected to hold a substantial share of the global hybrid electric vehicle market size in the future. High fuel efficiency, lower emissions than traditional vehicles, and no requirement of an external charging source are helping this segment bring in the most revenue for all market players. Ideal use of full hybrid electric vehicles for a wide variety of applications ranging from daily commute to transportation of goods are also slated to further bolster the high share of this segment going forward. Advancements in regenerative braking technologies are also improving the application scope of full hybrid electric vehicles.
Meanwhile, the demand for plug-in hybrid electric vehicles is projected to increase at a steady pace over the coming years. Plug-in hybrid electric vehicles are witnessing a notable rise in demand as consumers see it as the perfect transitional technology to go from fossil-powered vehicles to electric vehicles. Increasing investments in the development of EV charging infrastructure around the world and availability of incentives for purchase of these vehicles are offering new opportunities for market development. Developed countries are more likely to witness higher sales of plug-in hybrid electric vehicles as compared to developing countries in the long run.
Global Hybrid Electric Vehicle Market By Type
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Hybrid Electric Vehicle Market Regional Insights
Asia Pacific is projected to spearhead the global hybrid electric vehicle market forecast in the future. The presence of leading hybrid electric vehicle manufacturers, rising awareness regarding benefits of hybrid powertrains among consumers, and high emphasis on vehicle emission reduction are helping this region lead revenue generation. Honda, Toyota, BYD, Nissan, Hyundai, and Kia are some of the most prominent hybrid electric vehicle companies operating in the Asia Pacific. China followed by Japan, India, and South Korea are emerging as the most rewarding countries in this region owing to high automotive manufacturing activity and changing consumer preferences.
Meanwhile, the demand for hybrid electric vehicles in North America is slated to increase at a notable pace across the forecast period. The presence of multiple hybrid electric vehicle manufacturers, high investments in the development of charging infrastructure, and rising costs of fossil fuel are some key factors that offer new business opportunities in this region. Low maintenance and operational costs of hybrid electric vehicles are also driving up their popularity in the people of the United States allowing it to become the most opportune country in the North American region. Canada is also expected to witness a noteworthy increase in sales of hybrid electric vehicle across the study period and beyond.
Global Hybrid Electric Vehicle Market By Geography
- Largest
- Fastest
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Hybrid Electric Vehicle Market Dynamics
Hybrid Electric Vehicle Market Drivers
Emphasis on Emission Reduction
- Rapidly increasing global pollution levels and their worsening impact on the environment is pushing governments and consumers to opt for sustainable transportation solutions that reduce emissions. Policies such as the Corporate Average Fuel Economy (CAFE) standards in the U.S., Euro 6 norms in Europe, and China VI standards are expected to favor the global hybrid electric vehicle market outlook in the future.
Advancements in Battery and Powertrain Technologies
- Automotive manufacturers around the world are investing in the research and development of advanced hybrid powertrains and battery technologies to develop novel hybrid electric vehicles. lithium-ion battery technology, regenerative braking systems, and energy management software are some key areas of interest that are expected to make hybrid electric vehicles an appealing option for all types of consumers.
Hybrid Electric Vehicle Market Restraints
High Initial Purchase Costs
- Hybrid electric vehicles are generally more expensive than traditional gasoline or diesel-powered vehicles. These high costs can be linked to the use of advanced hybrid technologies and advanced battery systems. These high upfront costs of hybrid electric vehicles are expected to deter budget-conscious consumers from choosing an especially in price-sensitive markets.
Limited Fuel Savings as Compared to EVs
- Hybrid electric vehicles still rely on fossil fuels for their optimal operation, and this reduces their fuel cost savings significantly as compared to a completely electric vehicle. Growing development of EV charging infrastructure and rising affordability of EVs are expected to impede the sales of hybrid electric vehicles in the long run.
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Hybrid Electric Vehicle Market Competitive Landscape
Hybrid electric vehicle manufacturers should focus on enhancing the fuel efficiency of their products to maximize sales. Investing in the R&D of novel hybrid powertrains and use of solid-state batteries can also boost the revenue generation potential of market players. Targeting countries with eco-conscious consumers and underdeveloped charging infrastructure can help zzz suppliers boost their business scope.
Top Player’s Company Profiles
- Toyota Motor Corporation (Japan)
- Honda Motor Co., Ltd. (Japan)
- Ford Motor Company (USA)
- Hyundai Motor Company (South Korea)
- Kia Corporation (South Korea)
- General Motors Company (USA)
- BMW AG (Germany)
- Mercedes-Benz Group AG (Germany)
- Volkswagen AG (Germany)
- Stellantis N.V. (Netherlands)
- Nissan Motor Corporation (Japan)
- Renault S.A. (France)
- Volvo Cars (Sweden)
- BYD Company Ltd. (China)
- Geely Automobile Holdings Limited (China)
- Great Wall Motor Company Limited (China)
- Mitsubishi Motors Corporation (Japan)
- Subaru Corporation (Japan)
- Mazda Motor Corporation (Japan)
- Lucid Group, Inc. (USA)
Hybrid Electric Vehicle Key Market Trends
- Use of Lightweight Materials and Aerodynamic Designs: Hybrid electric vehicle manufacturers can focus on developing vehicles using aerodynamic designs and lightweight materials. Focusing on this hybrid electric vehicle market trend can help reduce the weight of vehicles as well contribute to better fuel efficiency and performance thereby making them an attractive alternative for consumers looking for performance with sustainability.
- Use of Solid-State Batteries for Future HEVs: Hybrid electric vehicle companies can focus on utilization of solid-state batteries for their offerings to enhance their performance and boost sales potential. Improvements in energy density, charging speed, and safety can be easily achieved in hybrid electric vehicles by incorporating advanced solid-state battery technologies over the coming years.
Hybrid Electric Vehicle Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing demand for fuel efficient vehicles and rising emphasis emission reduction from vehicles owing to high awareness regarding sustainability are projected to primarily drive sales of hybrid electric vehicles over the coming years. However, limited fuel cost savings as compared to electric vehicles and high initial purchase costs are slated to be key restraints for hybrid electric vehicle market development in the future. The Asia Pacific region is estimated to spearhead the global hybrid electric vehicle demand outlook owing to the presence of key hybrid electric vehicle manufacturers and underdeveloped EV charging infrastructure in countries such as Japan, China, and India. Use of lightweight materials and development of aerodynamic designs can also help companies stand out from their competition in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 79.0 billion |
| Market size value in 2032 | USD 445.81 billion |
| Growth Rate | 21.2% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Hybrid Electric Vehicle Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Hybrid Electric Vehicle Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Hybrid Electric Vehicle Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Hybrid Electric Vehicle Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Hybrid Electric Vehicle Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Hybrid Electric Vehicle Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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