March 2, 2024
Mild Hybrid Vehicle Market

Mild Hybrid Vehicle Market is expected to be Flourished by Rising Demand for Fuel Efficient Vehicles

The mild hybrid vehicle uses a smaller electric motor to provide assistance to the conventional internal combustion engine for improved fuel efficiency. The electric motor is charged by energy recuperated during braking and coasting and assists the engine primarily at start-up and acceleration to minimize emissions. Mild hybrid vehicles offer 10-15% improved fuel efficiency over conventional vehicles without compromising performance. Key applications of mild hybrid vehicles include passenger cars and commercial vehicles operating within city limits with frequent starts and stops.

The global mild hybrid vehicle market is estimated to be valued at US$ 115.17 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

As mentioned earlier, one of the key drivers for the mild hybrid vehicle market is the rising demand for fuel-efficient vehicles owing to increasing fuel prices and stringent emission regulations across countries. The mild hybrid system allows improved fuel efficiency of 10-15% over conventional vehicles, making it an attractive proposition for commercial fleet operators as well as individual customers. Furthermore, growing adoption of green technologies and demand for hybrid and electric vehicles will further propel the adoption of mild hybrid systems as an intermediate technology. However, high initial costs of battery packs and other related electronic components has remained a key challenge. Continuous reduction in battery prices and development of cost-effective packaging solutions is expected to boost market growth over the forecast period.

Segment Analysis

The mild hybrid vehicle market is dominated by the passenger cars segment which holds around 85% share of the overall market. Passenger cars segment is dominating as mild hybrid technology is majorly focused to be incorporated in passenger vehicles to improve their fuel efficiency without major changes in the vehicle architecture. Commercial vehicles segment is expected to show faster growth during the forecast period owing to the regulations mandating fuel efficiency improvement in commercial fleets.

PEST Analysis

Political: Stricter fuel economy and emission norms by regulatory bodies across major automotive markets are driving OEMs to adopt hybrid technologies. For instance, CAFE norms in USA and CO2 emission targets in Europe.

Economic: Volatile fuel prices and rising disposable income are key factors influencing consumers to opt for fuel efficient hybrid vehicles. However, high initial costs of these vehicles act as a restraint for widespread adoption.

Social: Increasing awareness about environmental protection and sustainable mobility is positively impacting the adoption of electrified vehicles including mild hybrids.

Technological: Advancements in battery technologies, downsizing of engines and development of more efficient powertrain components are enabling automakers to design and manufacture affordable mild hybrid vehicles.

Key Takeaways

The Global Mild Hybrid Vehicle Market Demand is expected to witness high growth during the forecast period. The global mild hybrid vehicle market is estimated to be valued at US$ 115.17 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031.

Regional analysis

Asia Pacific accounts for around 50% share of the overall mild hybrid vehicle market led by China and Japan. China is the largest producer and consumer of mild hybrid vehicles owing to supportive government policies. Japan is also a major automotive manufacturing hub and has presence of key domestic players like Toyota and Honda offering mild hybrid models.

Key players

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. Toyota is a global leader in hybrid technology with wide range of mild hybrid models. Nissan and Honda are also prominent players with hybrid expertise serving global markets.

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