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APAC Mild-Hybrid Vehicles Market Size (2024 - 2029)

The Asia-Pacific mild hybrid vehicles market is poised for significant expansion over the forecast period, driven by a resurgence in economic activities and vehicle production following the COVID-19 pandemic. The market's growth is supported by increasing environmental concerns, stringent emissions and fuel economy regulations, and government initiatives promoting the adoption of mild hybrid vehicles. However, challenges such as the lifting of subsidies for electric vehicles in certain regions may impede market growth.

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Market Size of APAC Mild-Hybrid Vehicles Industry

APAC Mild-Hybrid Vehicles Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 22.71 Billion
Market Size (2029) USD 66.91 Billion
CAGR (2024 - 2029) 18.88 %
Market Concentration Medium

Major Players

Asia-Pacific Mild-Hybrid Vehicles Market Major Players

*Disclaimer: Major Players sorted in no particular order

Asia Pacific Mild Hybrid Vehicles Market Analysis

The APAC Mild-Hybrid Vehicles Market size is estimated at USD 22.71 billion in 2024, and is expected to reach USD 66.91 billion by 2029, growing at a CAGR of 18.88% during the forecast period (2024-2029).

  • The COVID-19 pandemic compelled about 95% of all automotive-related companies to put their workforces on hold during the lockdowns. The repercussions of the lockdown were immense and unprecedented due to the halt of manufacturing activities across the region. However, the market was expected to regain its momentum as economic activities resumed and vehicle production rose in 2022 across the region and was likely to witness major growth for the market during the forecast period.
  • Over the medium term, growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives in terms of subsidies and benefits for increasing the adoption of mild hybrid vehicles across the region.
  • Mild hybrid is considered a transitional technology and not a solution to stop carbon emissions. The 48V system can meet the average fuel consumption limit of passenger cars in the fourth and fifth stages (the fourth stage: 5.0L/100km (2020); the fifth stage: 4.0L/100km (2025) with a reduction of 42%), but it is difficult to realize the goal in the sixth stage (3.2L/100km (2030)).
  • Incidents of lifting and reduced subsidies for the purchase of electric vehicles may hinder the growth of the market in the region. In India, for instance, the government, in 2017, lifted subsidies on mild-hybrid vehicles under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme (the State of Karnataka lost a subsidy of INR 75 crores from the central government).

Asia Pacific Mild Hybrid Vehicles Industry Segmentation

Mild hybrid vehicles have an internal combustion engine (ICE) equipped with an electric motor, which allows the engine to be turned off whenever the vehicle is coasting, braking, or stopped and restart quickly. Mild hybrid vehicles do not have an exclusive electric-only mode of propulsion. These vehicles employ regenerative braking and some level of power assist to the internal combustion engine (ICE).

The Asia-Pacific mild-hybrid vehicles market is segmented into capacity type, vehicle type, and country. Based on the capacity type, the market is segmented into less than 48 V, 48 V, and above. Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles. Based on the country, the market is segmented into China, India, Japan, South Korea, and the rest of Asia-Pacific.

For each segment, the market sizing and forecast have been done based on the value (USD).

By Capacity Type
Less than 48V
48V and Above
By Vehicle Type
Passenger Car
Commercial Vehicles
By Geography
China
India
Japan
South Korea
Rest of Asia-Pacific
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APAC Mild-Hybrid Vehicles Market Size Summary

The Asia-Pacific mild hybrid vehicles market is poised for significant growth, driven by increasing environmental concerns and the implementation of stringent emissions and fuel economy regulations. The market is expected to expand substantially over the forecast period, with a focus on the adoption of mild hybrid technology as a transitional solution to meet regulatory standards. The introduction of 48V systems has become a standard feature in many new vehicle models, as automakers strive to enhance fuel efficiency and reduce carbon emissions. This technological advancement is supported by government initiatives offering subsidies and benefits to encourage the adoption of mild hybrid vehicles across the region. However, the market faces challenges such as the lifting of subsidies in certain countries, which could potentially hinder growth.

Key players in the Asia-Pacific mild hybrid vehicles market, including Toyota, Nissan, Honda, and Hyundai, are heavily investing in research and development to innovate and enhance their product offerings. The market is witnessing a surge in the production of mild hybrid models, with several automakers launching new vehicles equipped with advanced mild hybrid powertrains. These developments are expected to positively impact the market, as companies continue to focus on integrating mild hybrid technology to comply with evolving regulatory standards and meet consumer demand for more sustainable vehicle options. The market's growth trajectory is further supported by strategic collaborations and investments in research and development centers across the region, aimed at advancing mild hybrid technology and expanding its application in the automotive industry.

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APAC Mild-Hybrid Vehicles Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Fuel Efficiency and Lower Carbon Emission are Likely to Catalyze the Growth Run

    2. 1.2 Market Restraints

      1. 1.2.1 High Initial Cost

    3. 1.3 Porters Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD Billion)

    1. 2.1 By Capacity Type

      1. 2.1.1 Less than 48V

      2. 2.1.2 48V and Above

    2. 2.2 By Vehicle Type

      1. 2.2.1 Passenger Car

      2. 2.2.2 Commercial Vehicles

    3. 2.3 By Geography

      1. 2.3.1 China

      2. 2.3.2 India

      3. 2.3.3 Japan

      4. 2.3.4 South Korea

      5. 2.3.5 Rest of Asia-Pacific

APAC Mild-Hybrid Vehicles Market Size FAQs

The APAC Mild-Hybrid Vehicles Market size is expected to reach USD 22.71 billion in 2024 and grow at a CAGR of 18.88% to reach USD 66.91 billion by 2029.

In 2024, the APAC Mild-Hybrid Vehicles Market size is expected to reach USD 22.71 billion.

APAC Mild Hybrid Vehicles Market Report Snapshots

Asia-Pacific Mild Hybrid Vehicles Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)