by Hybrid vehicles use two or more distinct types of power, such as internal combustion engine and electric motor, to provide propulsion. Hybrids can achieve better fuel economy than conventional vehicles, decreasing dependence on petroleum. They serve as a transition technology towards fully electric vehicles. One of the main advantages of hybrid vehicles is their lower emissions and better fuel efficiency compared to traditional vehicles. Government agencies across regions have introduced stringent emission standards to curb air pollution and reduce carbon footprint. Such regulations are augmenting demand for greener vehicles like hybrids.
The global Hybrid Vehicles Market is estimated to be valued at US$ 465.39 Bn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Plug-in hybrid electric vehicles (PHEVs) that can charge their batteries externally are gaining popularity as they offer even better performance and lower running costs than conventional hybrids. Tax incentives and subsidies provided by governments on purchasing of electric vehicles including plug-in hybrids are stimulating their adoption rate. For instance, the U.S. government offers a tax credit up to US$ 7,500 per electric vehicle. Also, many states and municipalities provide tax exemptions, parking benefits, and access to HOV (high-occupancy vehicle) lanes for electric cars. Such favorable policies are augmenting the growth of hybrid electric vehicles segment over the forecast period.
Porter’s Analysis
Threat of new entrants: Low- moderate. High manufacturing costs and existing patents pose barriers for new companies. However, increasing demand and government focus on hybrid vehicles provides opportunities.
Bargaining power of buyers: Moderate-high. Large fleet buyers can negotiate better prices while availability of substitutes gives them power. However, brand loyalty retains some customers.
Bargaining power of suppliers: Moderate. Parts suppliers need to adhere to quality standards of vehicle makers. Short product lifecycles reduce their influence.
Threat of new substitutes: Moderate-high. Electric vehicles provide better mileage and performance posing threats. Technology upgrades make substitutes more affordable over time.
Competitive rivalry: High. Major players compete intensely on technology, features and pricing. Alliances help smaller players against industry giants.
Key Takeaways
The Global Hybrid Vehicles Market Size is expected to witness high growth.
Regional analysis: North America follows APAC with rising preference for green vehicles especially in the US and Canada. Stringent emission norms drive hybrid vehicles.
Key players operating in the Hybrid Vehicles market are Wings Corporation, Lion Corporation, and Procter & Gamble Co. Wings leads with wide hybrid models while Lion focuses on commercial hybrid vehicles. Procter & Gamble entered through acquisition and aims to expand hybrid offerings.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
