July 22, 2024
Mild Hybrid Vehicle Market

Mild Hybrid Vehicle Market Driven By Growing Need To Reduce Emissions

Mild hybrid vehicles employ a lithium-ion battery and belt-driven motor generator to recover energy lost during braking and coasting, store it in the battery, and use it to power a boost to the engine during acceleration. Mild hybrid systems provide advantages such as improved fuel economy, reduced emissions, and increased performance over conventional vehicles. The growing demand for efficient and eco-friendly vehicles across the globe has encouraged automakers to increasingly adopt mild hybrid technology. Governments are also promoting hybrid and electric vehicles through incentives and regulations to curb emissions from the transport sector.

The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the mild hybrid vehicle market is the increase in shift towards electrification of vehicles. Major automakers are investing heavily in developing mild hybrid systems as a transition technology which can reduce emissions without requiring extensive charging infrastructure. Mild hybrid technology supplements combustion engines with electric power to boost fuel efficiency and performance. It allows automakers to cost-effectively comply with stringent emission norms while still catering to customers preferring conventional vehicles. Governments around the world are also promoting hybrids through purchase incentives which is encouraging more consumers to opt for mild hybrid vehicles and driving the market growth.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the mild hybrid vehicle market is moderate as large investments are required to build a brand, distribution network and achieve scale of production.

Bargaining power of buyers: The bargaining power of buyers is moderate to high as vehicle manufacturers provide various incentive schemes to attract more customers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as key components like electric motors, batteries are supplied by few specialized manufacturers globally.

Threat of new substitutes: The threat of new substitutes is high as full electric vehicles provide similar driving range and performance with lower fuel costs.

Competitive rivalry: The competitive rivalry is high among key players to gain market share through new product launches and upgrades.

Key Takeaways

The Global Mild Hybrid Vehicle Market Demand  is expected to witness high growth. Regional analysis comprises North America dominates the mild hybrid vehicle market currently due to adoption of stringent emission norms in the US and Canada. Asia Pacific region is expected to grow at a highest CAGR during the forecast period with China and India being the major markets.

Key players operating in the mild hybrid vehicle market are Toyota Motor Corporation, Nissan Motor Co. Ltd, Honda Motor Company Ltd, Hyundai Motor Company, Kia Motors Corporation, Suzuki Motor Corporation, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. Key players are focusing on new product development through advanced technologies for better performance and efficiency. For instance, in 2022, Toyota introduced new Corolla Cross Hybrid SUV in international markets with a 1.8-liter gas engine mated to an electric motor and battery.

The global mild hybrid vehicle market size was valued at US$ 99.97 billion in 2023 and is expected to reach over US$ 188 billion by 2030, expanding at a CAGR of 18% during the forecast period. Asia Pacific is anticipated to continue dominating the regional demand for mild hybrid vehicles owing to rising vehicle production and sales in major countries such as China and India.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it