Mild Hybrid Vehicles Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Germany, France, UK - Size and Forecast 2023-2027

Mild Hybrid Vehicles Market Forecast 2023-2027

The Mild Hybrid Vehicles Market size is forecast to increase by 5,196.97 thousand units, at a CAGR of 31.04% between 2022 and 2027. 

The growth of the market hinges on various factors, notably the imposition of stringent emission and fossil fuels economy standards aimed at reducing environmental impact. With an ever-expanding fleet, driven by rising population and urbanization, there's a growing need to address challenges related to vehicle performance. Automobile manufacturers are pressed to innovate, aiming to meet consumer demands for more efficient, eco-friendly vehicles without compromising power and comfort. As such, the industry is witnessing a surge in research and development initiatives geared towards enhancing vehicle technologies to align with evolving market requirements.It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. 

What will be the size of the Mild Hybrid Vehicles Market During the Forecast Period?

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The market is witnessing significant growth driven by various factors, foremost among them being the stringent emission standards imposed by regulatory bodies worldwide. Consumers, or buyers, are increasingly gravitating towards battery-electric vehicles and 48V and Above The environmental benefits and fuel efficiency. Technological advancements like engine start-stop technology are making mild hybrid vehicles a more cost-effective option for buyers, especially in segments like SUVs and trucks. Moreover, there's a surge in demand for environmentally friendly vehicles driven by government initiatives and alternative fuel efficiency goals.

Market Dynamics

Fuel efficiency remains a paramount concern for both governments and automakers, driving the adoption of hybrid vehicles and regenerative braking technology. Government incentives further incentivize the transition towards greener transportation options. As regulations continue to evolve, the 48V mild hybrid technology is emerging as a key solution in shaping the future of the automotive industry. New product launches are frequent, catering to the evolving preferences of consumers. Notably, Germany's best-selling models are increasingly incorporating mild hybrid technology to meet emission norms and avoid vehicular carbon emission restrictions that could lead to penalty rates for non-compliance. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Market growth is being driven significantly by the stringent emission control regulations that have been put in place due to growing concerns about environmental pollution in the US and European countries. The US EPA has recently updated its vehicle emissions regulations, which are causing changes in emission regulations and fueling growth in the global mild hybrid vehicle market as these cars comply with the new regulations.

The automotive industry is also being pressured by growing consumer awareness of environmental protection and the strict emission regulations imposed by regulatory agencies to manufacture light hybrid and electric automobiles that emit fewer greenhouse gases than gasoline and diesel automobiles. Governments in Gulf Cooperation Council countries have responded to this need by launching electric and light hybrid modes of transportation, such as Dubai's Roads and Transport Authority's initiative to convert half of the Emirate's taxis to mild hybrids by 2021. These factors are expected to drive market growth during the forecast period.

Market Trend

Recent developments are the primary trend in the market. Recent developments are the primary trend in the market. Some of the key product developments in the global market include General Motors launching its Buick GL8 Classic with a 48V mild hybrid powertrain in China in 2021, Chevrolet launching five new Orlando variants in China, which feature 48V mild hybrid technology in 2020, and Nissan working on a mild-mild hybrid GT-R model in 2021, which is expected to be launched by the end of 2022. These are some recent developments that will increase the demand for such automobiles during the forecast period.

Market Challenge

Rising demand for BEVs and FCEVs is a major challenge impeding market growth. Rising demand for BEVs and FCEVs is a major challenge impeding market growth. Automakers such as Tesla Inc. and Volkswagen AG are more focused on the development of such BEVs. Furthermore, the advantages of the FCEVs are a longer driving range, quick refueling, quiet operation, and zero emission of greenhouse gases and air pollution. These benefits are driving the demand for FCEVs. Governments are implementing measures and encouraging the use of fuel-cell automobiles in the transportation sector, which will increase the demand for fuel cells in the automotive and transportation industries. Such factors are expected to curb the growth of the focused market during the forecast period.

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Mild Hybrid Vehicles Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Renault SAS - The company operates in one reportable segment which is further divided into four heads which are automotive excl. AVTOVAZ, AVTOVAZ, sales financing, and mobility services. The key offerings of the company include mild hybrid automobiles. 

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Bayerische Motoren Werke AG
• China FAW Group Co. Ltd.
• FCA Italy S.p.A.
• Ford Motor Co.
• General Motors Co
• Great Wall Motor Co. Ltd.
• Honda Motor Co. Ltd
• Hyundai Motor Group
• Mahindra & Mahindra Ltd.
• Mercedes Benz Group AG
• Stellantis NV
• Suzuki Motor Corp.
• Tata Sons Pvt. Ltd.
• Toyota Motor Corp.
• Volkswagen AG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

OEMs are adapting to this shift by offering mild hybrid vehicles across different segments, catering to customers seeking fuel savings and reduction in emissions. Notable models like VW Golf, Audi A4, BMW 3 Series, Mercedes-Benz C-Class, Fiat 500, Volvo KC 60 and 90 Series, Kia Ceed, and Ford Kuga are leading the way. The market segment encompasses vehicles with up to 12V, 12V to 24V, and more than 24V systems, with developing economies driving the category's growth. Automobile manufacturers like Suzuki Corporation are spearheading innovation with their 48V mild hybrid system, evident in models like Baleno, Ciaz, XL6, and Ertiga. The market is witnessing significant traction, driven by the increasing demand for 48V and Above Mild Hybrid Vehicles. These vehicles leverage engine start-stop technology to enhance fuel efficiency, making them a cost-effective option for consumers, particularly in the SUVs and trucks segments. With growing concerns about the environment, there's a surge in demand for environmentally friendly vehicles, supported by government initiatives and alternative fuel efficiency goals. Auto manufacturers are investing heavily in the development & production of mild hybrid cars to meet emission norms and avoid penalty rates for vehicular carbon emissions. The market is witnessing a slew of new product launches, especially in regions like Germany, where are becoming best-selling models.

By Type

The market share growth by the passenger vehicle segment will be significant during the forecast period. The dominance of passenger vehicles in the automotive industry is the primary reason behind the majority share of this segment in the global market.

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The passenger vehicle segment was valued at USD 197.69 thousand units in 2017 and continued to grow until 2021. A key factor that is driving the growth of the segment in the global market is the implementation of stringent emission and fuel economy norms and government incentives that promote the purchase and adoption of mild hybrid vehicles. The more fuel-efficient than traditional passenger cars because they use electricity from automotive batteries for start-stop functions or to attain cruising speeds. In addition, the combination of an internal combustion engine along an electric system makes a mild hybrid car more affordable and simple to operate, particularly in congested metropolitan areas. Hence the segment is predicted to grow rapidly throughout the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

China, India, South Korea, and Japan were the leading revenue contributors to the APAC automotive industry in 2022. These countries are global leaders in automobile sales and manufacturing. Significant developments in infrastructure and industrialization have resulted in a significant demand for electric vehicles (EVs) in APAC. India, China, and Japan are predicted to account for the bulk of new vehicle purchases globally in the coming years. People discretionary income has grown as the economic conditions in nations such as China and Japan have improved. As a result, automobile sales in these nations have soared. China is a significant vehicle market both in APAC and globally, with large volume sales of passenger cars and electric cars. The increased demand in China may be ascribed to various reasons, including rising disposable incomes and an increase in the number of affluent younger Millennials. These reasons are also contributing to the widespread acceptance of luxury automobiles. As a result, there will be a high demand in the coming years. For instance, over 0.7 million new plug-in mild hybrid electric vehicles (PHEV) were sold in China in 2021. Such instances are expected to encourage market players to set up operations in the country.

In addition, the Indian government has launched a number of initiatives to promote the manufacturing and adoption of electric vehicles in India in order to reduce emissions in accordance with international conventions and develop e-mobility in the wake of rapid urbanization. The National Electric Mobility Mission Plan (NEMMP) and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME I and II) schemes have aided in raising awareness and interest in electric mobility. The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) program, which was first implemented in 2015 and then updated in 2019, offers various incentives to consumers and domestic companies. For example, the government announced a USD 1.4 billion investment in Phase II of FAME through 2022. These factors, as well as rising vehicle production in China, India, Japan, and other APAC nations, will fuel the demand for mild hybrid vehicles in the region during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest market trends and growth opportunities from 2017 to 2027. 

• Type Outlook
  • Passenger vehicle
  • Commercial vehicle

• Capacity Outlook
  • 48V and above
  • Less than 48V

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The automotive landscape is experiencing a paradigm shift towards sustainable transportation, prominently represented by the rise of Mild Hybrid Vehicles. This innovative automotive segment focuses on fuel efficiency and eco-friendly solutions through the integration of hybrid powertrains. Mild hybrid vehicles utilize electric propulsion and regenerative braking, showcasing a commitment to energy recuperation and reduced environmental impact.

The development of hybrid drivetrains and advanced battery systems reflects the automotive industry's dedication to automotive innovation and greener alternatives. As hybrid vehicle technology continues to evolve, mild hybrid vehicles play a pivotal role in driving the transition towards sustainable mobility, offering a compelling solution for environmentally conscious consumers. Embracing hybrid engines and incorporating eco-friendly features, these vehicles epitomize the future of automotive transportation, heralding a new era of energy-efficient and environmentally responsible driving.

Vehicle electrification represents a pivotal shift in the automotive industry towards sustainability and reduced carbon emissions. This movement encompasses the development and adoption of eco-friendly vehicles that utilize electric or hybrid powertrains to propel them. Green vehicles, including electric vehicles (EVs) and hybrid vehicles, are gaining traction as consumers and governments prioritize environmental conservation and seek alternatives to traditional internal combustion engine vehicles. Electric vehicles, in particular, run solely on electric power stored in batteries, eliminating tailpipe emissions and significantly reducing greenhouse gas emissions over their lifetime. Hybrid vehicle development represents a transitional phase towards full electrification, combining traditional combustion engines with electric propulsion systems. These electric cars offer improved fuel efficiency and reduced emissions compared to conventional electric cars, making them an attractive option for consumers seeking greener transportation solutions.

The advancement of vehicle electrification technologies is driving innovation in battery technology, electric drivetrains, and charging infrastructure. Automakers are investing heavily in research and development to enhance the performance, range, and affordability of electric and hybrid vehicles, driving the mass adoption of eco-friendly transportation options. Government incentives, regulations, and emissions targets are also driving the growth of electric cars with electrification, encouraging automakers to accelerate the development and production of green vehicles. With ongoing advancements in technology and increasing consumer demand for sustainable transportation options, vehicle electrification is poised to play a significant role in shaping the future of mobility and reducing the environmental impact of transportation.

Market Scope
Report Coverage	Details
Page number	161
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 31.04%
Market growth 2023-2027	5,196.97 thousand units
Market structure	Concentrated
YoY growth 2022-2023(%)	29.32
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 46%
Key countries	US, China, Germany, France, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Bayerische Motoren Werke AG, China FAW Group Co. Ltd., FCA Italy S.p.A., Ford Motor Co., General Motors Co, Great Wall Motor Co. Ltd., Honda Motor Co. Ltd, Hyundai Motor Group, Mahindra & Mahindra Ltd., Mercedes Benz Group AG, Renault SAS, Stellantis NV, Suzuki Motor Corp., Tata Sons Pvt. Ltd., Toyota Motor Corp., Volkswagen AG, Volvo Car Corp., BYD Electronic Co. Ltd., and Mitsubishi Corp.
Market dynamics	Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research  Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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