by Mild hybrid vehicles are equipped with a small battery, electric motor, and generator that provide a boost to the internal combustion engine during acceleration and recovers energy during braking. These vehicles improve fuel efficiency by 10–20% compared to standard vehicles without increasing vehicle costs substantially. With mounting concerns over rising fuel costs and emissions, mild hybrid vehicles offer an affordable and eco-friendly mobility solution.
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 18.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising Demand for Fuel Efficient Vehicles
The demand for fuel efficient vehicles is rising with increasing fuel prices and stringent emission regulations being introduced across the globe. Mild hybrid vehicles significantly improve fuel efficiency compared to conventional vehicles without requiring high battery capacity or external charging, making them a cost effective solution for consumers. Many major automakers like Toyota, Honda, and Hyundai have expanded their line up of mild hybrid vehicles featuring small gasoline engines coupled with electric components and regenerative braking systems. This is expected to drive the growth of the mild hybrid vehicle market during the forecast period.
SWOT Analysis
Strength: Mild hybrid vehicles offer higher fuel efficiency compared to conventional vehicles which helps in reducing fuel costs. Their engine starts in auto start-stop function which contributes to reduced emissions.
Weakness: The battery capacity of mild hybrid vehicles is smaller compared to regular hybrids which limits their ability to run entirely on electric power. Their fuel efficiency improvement over conventional vehicles is also less pronounced compared to full hybrids.
Opportunity: Stringent emission regulations worldwide are driving demand for hybrid technologies. Growing environmental awareness among consumers is increasing the acceptance of hybrid vehicles.
Threats: Fluctuating fuel prices impact the total cost of ownership calculations for hybrids. Development of other green technologies like battery electric vehicles can reduce future demand for mild hybrids.
Key Takeaways
The Global Mild Hybrid Vehicle Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by stringent emission norms. 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 18.5% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the mild hybrid vehicle market with the largest market share owing to high vehicle production and sales in countries like China, Japan, and India. North America and Europe are other major regional markets for mild hybrid vehicles. Stringent emission regulations in these regions coupled with rising consumer preference for fuel-efficient vehicles are supporting the growth of hybrid electric vehicles including mild hybrids. Government incentives and initiatives promoting green vehicles also contribute to market development.
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, and Chevrolet. These players are focused on introducing new mild hybrid models and upgrading existing powertrains to comply with emission norms and improve fuel efficiency. They are also investing in hybrid technology development to enhance battery and motor capacities for improved performance.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
