Europe Mild Hybrid Vehicles Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.42 Billion |
| Market Size (2029) | USD 20.21 Billion |
| CAGR (2024 - 2029) | 4.25 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Mild Hybrid Vehicles Market Analysis
The Europe Mild Hybrid Vehicles Market size is estimated at USD 16.42 billion in 2024, and is expected to reach USD 20.21 billion by 2029, growing at a CAGR of 4.25% during the forecast period (2024-2029).
The Europe mild hybrid vehicle market is growing steadily. Several factors contribute to the growth of the mild hybrids in Europe, such as the growing awareness of environmental concerns, and shifting consumer preference for more eco-friendly transportation options.
Additionally, European governments are supporting the shift towards greener transportation. Incentives such as tax relaxation, and subsidies make mild hybrid vehicles more attractive choice to buyers. Further, the regulations aiming to reduce carbon emissions are also pushing both car manufacturers and consumers towards more sustainable options, creating a room for mild-hybrids to grow. For instance,
- From 2025 onwards, Regulation (EU) 2019/631 sets stricter EU-wide CO2 fleet targets: a 15% reduction by 2025 for both cars and vans and, from 2030, a 50% reduction target for vans and a 55% reduction target for cars, all relative to a 2021 baseline. It also sets a zero-CO2 emission target for new cars and vans from 2035 onwards.
However, the dominance of strong hybrids and battery electric vehicles (BEVs) in European countries such as Germany, France, Sweden, Norway, and the Netherlands is likely to act as a major restraint for the growth of mild hybrid vehicles in the region. The penetration of all-electric vehicles in the European region showcased considerable growth in recent years, with sales of battery electric vehicles (BEVs) touching 54.7% in July 2023 compared to the same month in 2022. Therefore, the adoption of mild hybrid models, which integrate an internal combustion engine (ICE) in their powertrain, is likely to witness slower growth as compared to its counterparts.
Over the long term, new model launches by major industry players and a rise in sales of electric and hybrid vehicles, as well as the adoption of strict vehicle emission norms and fuel efficiency standards, are expected to create demand in the electric vehicles industry with a surge in sales of mild hybrid vehicles. Key players in the market are launching new models to cater to the increased demand for mild hybrid vehicles. For instance,
- In September 2022, Mitsubishi Motors Europe B.V. launched the new generation ASX SUV in Europe with a mild hybrid system. The vehicle will be made at Renault's Valladolid plant in Spain. In September 2022, Nissan Europe launched the fourth generation X Trail SUV in Europe, including a mild hybrid version of the same vehicle.
Europe Mild Hybrid Vehicles Market Trends
Passenger Car Segment is Anticipated to Dominate the Market
Passenger cars are the leading segment by vehicle type in the Europe mild hybrid vehicle market primarily driven by a shift in consumer preferences towards low-emission vehicles. The stringent emissions norms, raised fuel efficiency standards, and targets set by European countries to phase out internal combustion engine (ICE) mobility by 2030 are crucial factors fuelling the demand for mild hybrid passenger cars in the region.
The European Parliament's goal to reduce vehicle emissions by 40% between 2020 and 2025 further underscores the importance for cleaner transportation solutions, positioning mild hybrid vehicles as a vital step towards the electrification of the automotive sector.
Mild hybrid systems offer significant advantages, including smooth engine start-up, kinetic energy-based battery charging, and the ability to cover short distances on electric power, all contributing to reduced overall fuel consumption. This has strong appeal especially among consumers seeking low-emission passenger cars, aligning with the rising popularity of mild hybrid vehicles.
Additionally, the cost-effectiveness of mild hybrid vehicles, attributed to their less sophisticated design compared to full hybrid counterparts, makes them a financially viable option for consumers.
Further, major automakers operating in Europe, such as Volkswagen, Audi, Renault, Nissan, and Toyota, are making substantial investments in the production of mild hybrid cars in Europe. These vehicles are designed to cater to the diverse needs and preferences of European consumers while addressing concerns about environmental impact. For instance,
- In November 2023, Jeep expanded its Avenger SUV lineup with the introduction of the mild-hybrid powertrain based Avenger e-Hybrid. The Avenger e-Hybrid is a 48V mild-hybrid system featuring a 21 kW electric motor integrated into the SUV's gearbox offering for low-speed EV-only driving for up to 1 km.
However, while the rising sales of all-electric vehicle models in countries like the United Kingdom, Germany, and France pose a potential challenge for the passenger car segment of the mild hybrid market, mild hybrid cars will continue their steady growth driven by their cost and fuel efficiency.
Spain is Expected to Showcase Fastest Growth among other European Countries
Spain is anticipated to be the fastest-growing market, followed by Italy, France, and Germany in the European region. The sales of mild hybrid vehicles in Spain are expected to showcase major growth, owing to the lower price of mild hybrid vehicles compared to battery-electric vehicles (BEVs) or plug-in hybrid electric vehicles (PHEVs). Additionally, the majority of EV buyers in Spain need financial aid to afford strong hybrids and battery electric vehicles. Therefore, mild hybrid vehicles are the most preferred choice of vehicle in Spain.
Further, to curb carbon emissions in the economy, the government of Spain identified various sectors having major contribution in carbon emissions, automotive industry being one of them. The government of Spain imposes stricter regulations to combat the sale of ICE vehicles to curb carbon emissions, there is expected to be a greater demand for low-emission vehicles such as mild hybrid vehicles in the market.
For instance, Spain produced nearly 261 million metric tons of carbon dioxide (MtCO) emissions in 2022, marking a 7% increase compared to 2021. It would help the country in limiting carbon emissions by shifting to an electrified ecosystem, which is expected to assist the growth of mild hybrid vehicles in the country.
Additionally, the market is witnessing the launch of various advanced mild hybrid vehicle models with improvements in battery technology as players operating in the market try to gain a competitive edge with the diversification of their product portfolio. For instance,
- In September 2022, Mitsubishi Motors Europe BV announced the production of the ASX mild hybrid SUV at Renault's plant in Valladolid, Spain.
Thus, with companies coming up with new launches and investments, the market for mild hybrid vehicles is expected to grow with a subtle rate over the forecast period in Spain.
Europe Mild Hybrid Vehicles Industry Overview
The European mild hybrid vehicles market is highly consolidated and competitive. The market is characterized by the presence of considerably large players that have long-dominated the market. Some of the major players dominating the European market are Volkswagen AG, Toyota Motors, BMW Group, Nissan Motor Corp., Audi AG, BMW Group, and Mercedes-Benz, among others.
Key players are launching new products to secure their market position and stay ahead of the market curve. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions. For instance,
- In September 2022, Mazda Motor Europe announced the launch of their full-size SUV CX60 in Europe. It will be equipped with mild hybrid technology, among other variants such as gasoline, diesel, and hybrid.
Europe Mild Hybrid Vehicles Market Leaders
Volkswagen AG
Audi AG
BMW Group
Nissan Motors Co.
Toyota Motors
*Disclaimer: Major Players sorted in no particular order
Europe Mild Hybrid Vehicles Market News
- November 2023: Toyota introduced its lifestyle pickup truck, the Hilux, with a mild-hybrid diesel engine for the European markets. Hilux features a 48V mild-hybrid system paired with a 204PS 2.8-litre four-cylinder diesel engine. Hilux is offered with the same diesel engine paired with 6-speed MT and 6-speed AT in India.
- June 2023: Volkswagen has globally unveiled the new generation Tiguan with multiple powertrain options, including a turbo diesel engine (TDI), turbo petrol engines (TSI), mild hybrid turbo petrol engines (eTSI) and plug-in hybrid systems (eHybrid), at its world premiere in Wolfsburg, Germany. The model will be first launch in various European markets starting early 2024, followed by the US market in the preceding months.
Europe Mild Hybrid Vehicles Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Favorable Government Initiatives to Promote the Adoption of Low-Emission Mild-Hybrid Vehicles
4.2 Market Restraints
4.2.1 Increasing Adoption of Battery Electric Vehicles (BEVs), and Plug-In Hybrid Vehicle can Deter the Growth of the Market
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Battery Type
5.1.1 Less than 48 Volt Battery
5.1.2 48 Volt Battery
5.1.3 Above 48 Volt Battery
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commerical Vehicles
5.3 By Country
5.3.1 Germany
5.3.2 United Kingdom
5.3.3 Italy
5.3.4 France
5.3.5 Spain
5.3.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Volkswagen AG
6.2.2 Audi AG
6.2.3 BMW Group
6.2.4 Nissan Motors Co.
6.2.5 Toyota Motors
6.2.6 Mercedes-Benz
6.2.7 Hyundai Motor Company
6.2.8 Kia Motors Company
6.2.9 Volvo Group
6.2.10 Ford Motor Co.
6.2.11 Mitsubishi Motors
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Enhancement in Mild-Hybrid Battery Technology Presents Growth Opportunities
8. MARKET SIZE AND FORECAST BASED ON VOLUME
9. AN OVERVIEW OF UPCOMING MILD HYBRID VEHICLE MODELS
10. AN OVERVIEW OF EMISSION REGULATIONS AND TAX SUBSIDIES PERTAINING TO MILD HYBRID VEHICLES IN EUROPE
Europe Mild Hybrid Vehicles Industry Segmentation
A mild hybrid refers to a vehicle with an internal combustion engine that is also supported by a small electric drive. The electric motor recovers braking energy (recuperation) and makes it available later as additional drive power to reduce overall fuel consumption. Mild hybridization always requires installing an e-machine with an inverter in the powertrain in addition to the combustion engine.
The Europe Mild Hybrid Vehicles Market is segmented by battery type, vehicle type, and country. By battery type, the market is segmented into less than 48 V battery, 48 V battery, and above 48 V battery. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By country, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, and rest of Europe. The report offers market size and forecasts for mild hybrid vehicles in value (USD) for all the above segments.
| By Battery Type | |
| Less than 48 Volt Battery | |
| 48 Volt Battery | |
| Above 48 Volt Battery |
| By Vehicle Type | |
| Passenger Cars | |
| Commerical Vehicles |
| By Country | |
| Germany | |
| United Kingdom | |
| Italy | |
| France | |
| Spain | |
| Rest of Europe |
Europe Mild Hybrid Vehicles Market Research FAQs
How big is the Europe Mild Hybrid Vehicles Market?
The Europe Mild Hybrid Vehicles Market size is expected to reach USD 16.42 billion in 2024 and grow at a CAGR of 4.25% to reach USD 20.21 billion by 2029.
What is the current Europe Mild Hybrid Vehicles Market size?
In 2024, the Europe Mild Hybrid Vehicles Market size is expected to reach USD 16.42 billion.
Who are the key players in Europe Mild Hybrid Vehicles Market?
Volkswagen AG, Audi AG, BMW Group, Nissan Motors Co. and Toyota Motors are the major companies operating in the Europe Mild Hybrid Vehicles Market.
What years does this Europe Mild Hybrid Vehicles Market cover, and what was the market size in 2023?
In 2023, the Europe Mild Hybrid Vehicles Market size was estimated at USD 15.72 billion. The report covers the Europe Mild Hybrid Vehicles Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Mild Hybrid Vehicles Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Mild Hybrid Vehicles Industry Report
Statistics for the 2024 Europe Mild Hybrid Vehicles market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Mild Hybrid Vehicles analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
