The hybrid electric vehicles (HEV) market is undergoing a significant transformation, driven by a global shift towards cleaner and more sustainable transportation options. HEVs combine an internal combustion engine with an electric motor, offering improved fuel efficiency and reduced emissions compared to traditional gasoline-powered vehicles. In recent years, the HEV market has experienced robust growth, with an expanding range of hybrid models from various automakers

The global market for hybrid electric vehicles is anticipated to showcase a stellar growth trajectory registering a CAGR of over 14% over the forecast period 2021-2031, according to Fact.MR. Gasoline hybrid vehicles are projected to surpass a value of over US$ 100 Million by 2031.

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Key Factors Influencing Market Growth

Several factors are driving the growth of the HEV market:

• Environmental Regulations: Stringent emissions regulations and targets set by governments around the world are pushing automakers to produce more fuel-efficient and lower-emission vehicles. HEVs help manufacturers meet these requirements while offering consumers a familiar driving experience.
• Consumer Demand: Increasing awareness of environmental issues and a desire for cleaner transportation options are motivating consumers to consider HEVs. The ability to reduce their carbon footprint without sacrificing convenience is a compelling factor.
• Technological Innovation: Advancements in battery technology, powertrain efficiency, and regenerative braking systems are making HEVs more appealing. Improved performance and longer electric-only driving ranges are enhancing the overall driving experience.
• Fuel Efficiency: Rising fuel prices and concerns about energy security make fuel-efficient vehicles like HEVs attractive to consumers looking to reduce their operating costs. HEVs typically offer better miles per gallon (MPG) compared to traditional vehicles.
• Government Incentives: Government incentives, such as tax credits and rebates, play a significant role in promoting HEV adoption. These incentives can significantly reduce the upfront cost of purchasing a hybrid vehicle.

Key Characteristics of Hybrid Electric Vehicles:

• Dual Power Sources: HEVs feature both an internal combustion engine (usually gasoline or diesel) and an electric motor, which can operate independently or in conjunction.
• Regenerative Braking: HEVs use regenerative braking systems to capture and store energy during braking, which is then used to recharge the vehicle’s battery.
• Fuel Efficiency: The integration of electric power assists in reducing fuel consumption, resulting in improved miles per gallon (MPG) and reduced greenhouse gas emissions.
• Various HEV Types: HEVs come in different configurations, including parallel hybrids, series hybrids, and plug-in hybrids (PHEVs), each offering distinct benefits and characteristics.

Competitive Landscape 

The global hybrid electric vehicles market is highly competitive in nature. Amid the growing competition in the hybrid electric vehicles market, leading players are focusing on strengthening their market position and gaining traction in the competitive global market.

• In April 2021, Ford Motor Company launched Mustang Mach-E SUV which has comfortably outfitted interior, seamless technology, and impressive range. This model is home to one truly iconic design paired with luxurious materials and standard driver-assist technologies like Ford Co-Pilot360™ 2.0.
• In July 2021, TotalEnergies signed a contract with Bolloré Group for the acquisition of ‘Blue Charge’. Upon the approval of the relevant authorities, TotalEnergies will manage and operate the largest electric vehicle charging network in Singapore, with more than 1,500 charge points installed in the city-state.
• This urban charging network represents around 85% of the charge points currently under operation in Singapore, access to electric vehicles owners as well as to the car sharing solution BlueSG.

Key Segments Covered

• By Power Source :
  • Stored Electricity HEVs
  • On-Board Electric Generator HEVs
• By Powertrain :
  • Series
  • Parallel
  • Combined
• By Vehicle :
  • Hybrid Electric Passenger Cars
  • Commercial Hybrid Electric Vehicles
  • Hybrid Electric Two Wheelers
  • Other HEVs (Golf Cart, etc.)

Market Drivers:

Several factors drive the demand for Hybrid Electric Vehicles:

• Environmental Regulations: Stringent emissions standards and environmental regulations worldwide push automakers to produce more fuel-efficient and eco-friendly vehicles, making HEVs an attractive option.
• Consumer Demand: Rising consumer awareness of environmental issues and the desire for improved fuel efficiency contribute to the popularity of HEVs.
• Technological Advancements: Ongoing advancements in battery technology, electric motor efficiency, and hybrid drivetrain systems enhance the performance and affordability of HEVs.
• Government Incentives: Many governments offer incentives, tax credits, and subsidies to promote the adoption of HEVs, making them more accessible to consumers.
• Urban Mobility: HEVs are particularly suitable for urban commuting due to their regenerative braking, electric-only modes, and reduced emissions in congested city environments.

Key Players:

• Delphi
• Continental AG
• BorgWarner
• ZF and Schaeffler
• Toyota Motor Corporation
• Ford Motor Company
• Volvo Cars
• Honda Motor Company
• Hyundai Motor Company
• Daimler AG
• Allison Transmission
• Nissan Motor Company Ltd.

Future Outlook:

The Hybrid Electric Vehicles market is expected to continue evolving as automakers invest in electrification and develop new hybrid models. PHEVs, in particular, are likely to grow in popularity as battery technology advances and electric-only driving ranges increase. Governments worldwide are expected to implement more stringent emissions regulations and incentives to drive HEV adoption further.

Hybrid Electric Vehicles represent a significant step towards reducing greenhouse gas emissions and improving fuel efficiency in the automotive industry. As consumers and governments increasingly prioritize environmental sustainability, HEVs are poised to play a vital role in the future of transportation. However, please be aware that industry trends and developments may have evolved since my last update in September 2021. Consulting recent industry reports and news sources for the latest information is advisable for a comprehensive understanding of the current Hybrid Electric Vehicles market landscape.