Who are the key players in Hybrid Vehicle Market?

Toyota Motor Corporation, Honda Motor Company Ltd, BYD Co.Ltd, Mercedes-Benz Group and BMW AG are the major companies operating in the Hybrid Vehicle Market. Read More

Which is the fastest growing region in Hybrid Vehicle Market?

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in Hybrid Vehicle Market?

In 2024, the Asia-Pacific accounts for the largest market share in Hybrid Vehicle Market. Read More

What years does this Hybrid Vehicle Market cover, and what was the market size in 2023?

In 2023, the Hybrid Vehicle Market size was estimated at USD 202.03 billion. The report covers the Hybrid Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hybrid Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

What are the government incentives for Hybrid Vehicles in different regions?

The government incentives for Hybrid Vehicles in different regions are a) Tax breaks b) Subsidies c) Potential variations across countries Read More

Hybrid Vehicle Market Size

Market Size of Hybrid Vehicle Industry

Study Period	2019 - 2029
Market Size (2024)	USD 231.77 Billion
Market Size (2029)	USD 478.33 Billion
CAGR (2024 - 2029)	12.83 %
Fastest Growing Market	Asia-Pacific
Largest Market	Asia-Pacific
Major Players *Disclaimer: Major Players sorted in no particular order

Hybrid Vehicle Market Analysis

The Hybrid Vehicle Market size is estimated at USD 231.77 billion in 2024, and is expected to reach USD 478.33 billion by 2029, growing at a CAGR of 12.83% during the forecast period (2024-2029).

The COVID-19 pandemic positively impacted the hybrid vehicle market as the pandemic has crystallized attitudes toward the environment by revealing cleaner air and lower pollution levels during the lockdown. COVID-19 increased their environmental awareness, and these concerns are now reflected in intentions to purchase more sustainable electric and hybrid vehicles. The forecast period is expected to be optimistic as manufacturers plan to launch new models to attract customers. For instance, in November 2022, Toyota Australia announced several updates to its popular Corolla hatch and sedan lineups, including Toyota Connected Services functionality and the latest-generation hybrid powertrain.
Over the long term, some of the major factors driving the market's growth are the enactment of stringent emission and fuel economy norms and government incentives for promoting the purchase and adoption of hybrid vehicles. Additionally, with governments taking stringent actions in the form of regulation and incentives, along with the increased initiatives for the provision of public charging stations for electric vehicles, the hybrid vehicle market is expected to grow at a high rate.
For instance, in February 2022, According to the government of India, the subsidy under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program for fiscal 2023 is expected to be INR 2,908 crore (USD 351 million), which is more than three-and-a-half times the allocation of INR 800 crore (USD 96.5 million) for this fiscal year and nearly nine times the allocation for FY21.
Major players in the hybrid vehicles market, such as BYD, Toyota, Nissan, Honda, Kia, and Hyundai, their active engagement in this segment creates a positive environment in the market. For instance, November 2022: Kia China announced that its EV6 compact battery electric SUV was on display at the CIIE and would be available in China in 2023. Kia will also launch 5 hybrid models in China in succession by 2026, beginning with the HEV model of the 5th generation Sportage compact SUV.

Hybrid Vehicle Industry Segmentation

Hybrid vehicles are powered by an internal combustion engine and an electric motor, which uses energy stored in batteries. The battery is charged through regenerative braking and by the internal combustion engine.

The hybrid vehicle market has been segmented by hybrid type, vehicle type, and geography. By hybrid type, the market is segmented into micro-hybrid, mild-hybrid, full-hybrid, and plug-in hybrid. By vehicle type, the market is segmented into passenger cars and commercial vehicles.

By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the world.

The report offers market sizes and forecasts in value (in USD) for all the above segments.

By Hybrid Vehicle Type
		Micro-hybrid
		Mild-hybrid
		Full-hybrid
		Plug-in Hybrid

By Vehicle Type
		Passenger Cars
		Commercial Vehicles

By Geography

North America
	United states
	Canada
	Rest of North america

Europe
	Germany
	United Kingdom
	France
	Italy
	Norway
	Netherlands
	Rest of Europe

Asia-Pacific
	China
	India
	Japan
	South Korea
	Rest of Asia-Pacific

Rest of the World
	South America
	Middle-East and Africa

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Hybrid Vehicle Market Size Summary

The hybrid vehicle market is poised for significant growth over the forecast period, driven by increasing environmental awareness and stringent emission regulations. The COVID-19 pandemic has heightened consumer awareness of environmental issues, leading to a surge in interest towards sustainable transportation solutions like hybrid vehicles. This shift in consumer behavior is supported by government incentives and regulations aimed at promoting the adoption of hybrid and electric vehicles. Major automotive manufacturers are actively expanding their hybrid vehicle offerings, with new models and technologies being introduced to meet the growing demand. The market is characterized by the involvement of key players such as Toyota, Honda, and BYD, who are investing in innovative solutions to enhance their product portfolios.

The Asia-Pacific region, particularly China, Japan, and South Korea, is expected to be a significant driver of market growth due to rising demand and supportive government policies. China, in particular, is a major player in the hybrid vehicle market, benefiting from substantial production capabilities and consumer demand. The Chinese government's continued support through subsidies and tax incentives is expected to further bolster the market. Additionally, the hybrid vehicle market is gaining traction in developing countries like Brazil, India, and Mexico, where strict emission regulations and government initiatives are encouraging the adoption of low or zero-emission vehicles. As a result, the hybrid vehicle market is anticipated to experience robust growth, with increasing investments and strategic partnerships shaping its future landscape.

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Hybrid Vehicle Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Drivers
  1. 1.1.1 Fuel Economy Norms and Government Incentives
2. 1.2 Market Restraints
  1. 1.2.1 Growing Demand For Battery Electric Vehicles
3. 1.3 Industry Attractiveness-Porter's Five Forces Analysis
  1. 1.3.1 Bargaining Power of Suppliers
  2. 1.3.2 Bargaining Power of Consumers
  3. 1.3.3 Threat of New Entrants
  4. 1.3.4 Threat of Substitute Products
  5. 1.3.5 Intensity of Competitive Rivalry
2. MARKET SEGMENTATION (Market Size in USD)
1. 2.1 By Hybrid Vehicle Type
  1. 2.1.1 Micro-hybrid
  2. 2.1.2 Mild-hybrid
  3. 2.1.3 Full-hybrid
  4. 2.1.4 Plug-in Hybrid
2. 2.2 By Vehicle Type
  1. 2.2.1 Passenger Cars
  2. 2.2.2 Commercial Vehicles
3. 2.3 By Geography
  1. 2.3.1 North America
    1. 2.3.1.1 United states
    2. 2.3.1.2 Canada
    3. 2.3.1.3 Rest of North america
  2. 2.3.2 Europe
    1. 2.3.2.1 Germany
    2. 2.3.2.2 United Kingdom
    3. 2.3.2.3 France
    4. 2.3.2.4 Italy
    5. 2.3.2.5 Norway
    6. 2.3.2.6 Netherlands
    7. 2.3.2.7 Rest of Europe
  3. 2.3.3 Asia-Pacific
    1. 2.3.3.1 China
    2. 2.3.3.2 India
    3. 2.3.3.3 Japan
    4. 2.3.3.4 South Korea
    5. 2.3.3.5 Rest of Asia-Pacific
  4. 2.3.4 Rest of the World
    1. 2.3.4.1 South America
    2. 2.3.4.2 Middle-East and Africa