Mild Hybrid Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The mild-hybrid vehicle's market is valued at USD 71.19 Billion and expected to reach USD 190.95 Billion by 2027 registering a CAGR of over 17.45%, during the forecast period, 2022-2027.
The COVID-19 pandemic has compelled about 95% of all automotive-related companies to put their workforces on hold during the lockdowns. Globally, the repercussions of the lockdown have been immense and unprecedented due to the halt of manufacturing activities. However, the market is expected to regain its momentum as economic activities resume and vehicles' production also rises across the world.
The stringent emission standards, fuel efficiency, and government incentives are the major factors driving automakers and buyers to shift toward hybrid vehicles from conventional vehicles. However, demand for Battery-electric vehicles is growing significantly which might hinder the growth of the mild-hybrid vehicle market.
Asia-Pacific is expected to grow faster during the forecast period. Although, certain trends in the emerging countries, like India, may hinder the sales growth of hybrid vehicle types, as the country has recently removed the subsidy for mild-hybrid vehicles under FAME scheme. While North America and Europe regions are expected to have considerable growth for mild hybrid vehicles, as these regions have been focusing more toward pure electric or full hybrid vehicles growth.
Key Market Trends48V and Above Mild Hybrid Vehicles Continue to Capture the Major Market ShareRecently, many automakers have started launching 48V mild-hybrid as a standard feature in their new vehicle models over the past three years. The demand for mild hybrid vehicles equipped with less than 48V capacity has steadily grown in various countries across the globe.
The automobile manufacturers in various countries globally are launching vehicles with a mild hybrid system less than 48V capacity, which is further increasing the demand of the less than 48V capacity such as for instance,
Leading vehicle manufacturers such as Suzuki Corporation, Mahindra, Hyundai, etc. have been launching vehicles with a 12V mild-hybrid vehicles in the past. With increasing demand from end-users, manufacturers are now focusing on developing vehicles with a 48V mild hybrid system, which is expected to challenge the growth of the market over the forecast period. For instance:
Across the regions, Asia-Pacific has been predominantly capturing the largest share in the market, owing to their highest vehicles sales, majorly from China. Many automotive companies made plans to invest in the Asia-Pacific market to take advantage of the strong demand for hybrid vehicles.
In order to realize the zero-emission goal, Chinese automakers are working on strong HEV, PHEV, high-efficiency engines, and other advanced technologies while introducing the 48V mild-hybrid technology so as to prompt long-term development. For instance,
The Government of India has also undertaken multiple initiatives to promote the manufacturing and adoption of electric vehicles in India to reduce emissions pertaining to international conventions and develop e-mobility in the wake of rapid urbanization.
The National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME I and II) helped create the initial interest and exposure for electric mobility. The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME) program, which was first implemented in 2015 and updated in 2019, provides consumers and domestic companies with various incentives. For instance, in phase two of FAME, the government announced an outlay of USD 1.4 billion through 2022. This phase focuses on electrification of public and shared transportation through subsidizing, 7090 e-buses, 500,000 electric three wheelers, 550,000 electric passenger vehicles, and 1,000,000 electric two-wheelers.
The above plans of the automakers and governments towardelectric mobility is anticipated to further boost their mild hybrid vehicle sales in the Asia-Pacific market during the forecast period.
Competitive LandscapeSome of the major players in the market include Nissan Motor Co., Ltd, Volkswagen Group, Suzuki Motor Corporation, Hyundai Motor Company, Ford Motor Company, Toyota Motor Corporation among others.
New product launches by various automobile manufacturers is also rising the demand of the mild hybrid cars. For instance,
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