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The military hybrid electric vehicle and electric vehicle market is forecast to increase by USD 13,468.6 billion, at a CAGR of 18.47% between 2023 and 2028. The analysis of market growth hinges on several pivotal factors. Firstly, there is a strong push towards the adoption of green (eco-friendly) automobiles, driven by growing environmental awareness and regulatory pressures. Stringent regulations on emissions and fuel efficiency further accelerate this shift, compelling automakers to innovate towards cleaner technologies. Additionally, the increasing sales of Hybrid Electric Vehicles reflect consumer preferences for vehicles that offer reduced environmental impact without sacrificing performance. These factors collectively drive the market towards sustainable mobility solutions, fostering advancements in electric and hybrid propulsion technologies. As the automotive industry continues to evolve, manufacturers are increasingly investing in research and development to meet regulatory standards and consumer expectations for greener transportation options worldwide.
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Military vehicles in the defense industry are transitioning from traditional internal combustion engines to electric powertrains, giving birth to the market. This shift is driven by the need to reduce reliance on fossil fuels, improve mission effectiveness, and enhance logistics. Military HEV and EVs come in various forms, including armored personnel carriers, light utility vehicles, tactical trucks, transport trucks, support vehicles, and unmanned ground vehicles. These vehicles use advanced battery technologies, such as lithium-ion and nickel-metal hydride, to provide high energy density and faster charging capabilities. Electric propulsion systems, using electric motors instead of conventional engines, offer silent operation and increased torque. Military forces worldwide are adopting these vehicles to improve their operational capabilities while reducing their carbon footprint. The market for Military HEV and EVs is expected to grow significantly due to the increasing demand for mission effectiveness and the need to reduce fuel consumption. Our researchers analyzed the data with 2023 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.
Push toward the adoption of green (eco-friendly) vehicles is the key factor driving the growth of the market. The development and introduction of green cars and automobiles are considered important solutions for reducing greenhouse gas concentrations in the atmosphere to acceptable levels. These automobiles run on only electricity, hybrid power, and other energy sources such as solar, wind, and biofuels. The demand for green automobiles emerged as the main driver for the military HEV and EV market.
Further, the incentives and tax credits set by governments of various countries attract automobile manufacturers to invest in military HEV and EV production expansion in their region. The global auto shows and conceptual car exhibitions by different OEMs are marked with several fuel-efficient hybrid cars titled 'green' mainstream. It is believed that the green automobiles push will drive the market growth during the forecast period.
High-density, high-power, and small-size Li-ion batteries is the primary trend in the market. Current hybrid systems include heavily built battery packs to facilitate electric drive functions when the engine is off. The battery pack can supply the energy needed for acceleration, recharging is done by regenerative braking, and it doesn't deplete much. However, this electric propulsion function is required only for a small portion of the time when the engine works in the inefficient range, which is while starting and sudden acceleration of the automobiles.
Therefore, the heavy battery pack gives no additional benefits. Furthermore, heavy battery packs can cause increased time for recharging. Align with market trends and analysis, unlike EVs, HEVs must be recharged through the engine and regenerative braking. Therefore, the efficiency of an HEV depends on the time rate at which energy can be taken out or pushed back into the battery pack and not on the electric drive mode. This can be achieved with small-size and high-density battery packs. Such factors are expected to drive the market growth and trends during the forecast period.
The high total cost of ownership of HEVs is a major challenge to the growth of the market. Military HEVs have a higher total cost of ownership than conventional internal combustion engine (ICE) automobiles. This is due to the use of advanced electronic components and design considerations, as well as the additional high-capacity batteries used in military HEVs. The cost of military HEVs depends on mileage provided, hours of use, fuel cost, and government subsidies. One of the best-selling economic hybrid automobiles, the Nissan Leaf, has a 24 kWh battery that costs USD12,000; in this amount, a plush sedan model of an ICE car can be availed.
Further, another example is the Chevrolet Volt, which uses a 6 kWh battery pack with an additional price of USD 5,000 compared with ICE automobiles. In addition, it has fewer hours of operation and miles/charge (range). After-sales costs such as services such as repairing hybrid automobiles components are costly due to the immature local market and the unavailability of hybrid automobiles replacement parts. Service facilities for military HEVs are few compared to established centers for regular ICE vehicles. Such factors will hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Market Customer Landscape
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 17 companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The manned military HEV and EV segment will account for a major share of the market's growth during the forecast period. Manned HEVs and EVs are suitable for large-scale operations and have a low risk of technical failure. Such factors are the primary reasons for the adoption of manned HEVs and EVs over unmanned military HEVs and EVs. Therefore, increasing favorability due to the many advantages of manned HEVs and EVs is expected to drive the growth of the manned HEVs and EVs segment in the global HEVs and EVs market during the forecast period.
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The manned military HEV and EV segment was valued at USD 4,215.80 billion in 2018. One or more people operate the manned military HEV and EV market. Manned military HEVs and EVs will help move fuel, cargo, and passengers for relocation. Manned military HEVs and EVs can operate more efficiently than unmanned HEVs and EVs, which require more autonomy with limited command and control. Such factors will increase segment growth during the forecast period.
Type Segment Analysis:
Based on type, the market has been segmented into AC charging and DC charging. The AC charging segment will account for the largest share of the type segment. Alternating current (AC) EV charging adapters convert alternating current to direct current before feeding the battery pack. Converters, known as onboard chargers, are inside HEVs and EVs and convert AC power to DC power. This is one of the most popular charging methods for electric vehicles. The charging speed depends on the output power of the charging point and the converter's ability to convert the power to DC. AC chargers for electric vehicles require up to 22 kWh. This type of charging is mainly used in parking lots, where vehicles are parked for long periods of time. These factors will facilitate segment growth during the forecast period.
North America is estimated to contribute 41% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The demand for hybrid vehicles is increasing in North America because the government is focused on shifting to eco-friendly military HEV and EVs. Additionally, military HEV manufacturers are ramping up their dealerships to increase awareness and availability of hybrid vehicles. These factors are likely to increase the demand for HEVs. The Capital District Transportation Authority (CDTA) public transportation system in Albany, New York uses hybrid buses more than 20% of the time on its routes. For instance, in April 2022, according to a statement from Army Futures Command, the US Army selected six companies, including Royal Oak, Coritech Services, Inc, Czero, Inc., Fermata Energy, PC Krause and Associates, PC Krause and Associates, and Wright Electric to support Army's Next-Generation Combat Vehicle (NGCV) modernization effort and the Ground Vehicles Systems Center program. Such factors will increase the growth of the market in this region during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Military vehicles in the defense industry are transitioning from traditional internal combustion engines to electric powertrains, giving birth to the Military Hybrid Electric Vehicles (MHEV) and Electric Military Vehicles (EMV) market. This shift is driven by the need to reduce logistical burdens, improve energy efficiency, and reduce environmental impact. MHEVs and EMVs are being integrated into various military applications such as armored vehicles, transport trucks, and support vehicles. Electric drivetrains, energy storage systems, and electric propulsion systems are key components of these vehicles. The Power Conversion segment plays a crucial role in converting electrical energy from the battery into mechanical energy for vehicle propulsion. Electric military vehicles offer several advantages over their fuel-based counterparts. They provide stealth capabilities due to the absence of engine noise, enhance reconnaissance capabilities, and are ideal for special operations. Furthermore, they offer improved energy security and reduced carbon emissions, aligning with global environmental initiatives.
Further, the advanced battery technologies with high energy density and faster charging capabilities are fueling the growth of the market. The medium voltage segment is expected to dominate the market due to its high energy efficiency and fuel efficiency. The adoption of electric vehicle technology in the defense industry is expected to continue, with defense budgets and defense contractors investing in this area to enhance operational capabilities and mission success. Further, by reducing fuel consumption and Acoustic signature, these vehicles offer Silent mobility and Lower maintenance, ideal for rugged terrains and battle zones. Superior acceleration and instantaneous torque redefine performance, while companies like Pravaig Dynamics introduce electric tactical vehicles with stealth capabilities for various Military applications. Challenges like Engineering challenges and High energy requirements persist, yet with Battery technology advancements and increased Energy density, the future of the market promises prolonged operations and enhanced performance on the battlefield.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.47% |
Market Growth 2024-2028 |
USD 13,468.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.14 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, India, UK, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AeroVironment Inc., Alke s.r.l., BAE Systems Plc, Elbit Systems Ltd., Ford Motor Co., General Atomics, General Dynamics Corp., General Motors Co., Honeywell International Inc., L3Harris Technologies Inc., Lockheed Martin Corp., Logos Technologies LLC, Milrem AS, Nikola Corp., Northrop Grumman Corp., Oshkosh Corp., QinetiQ Ltd., Singapore Technologies Engineering Ltd., The Boeing Co., and Zero Motorcycles Inc. |
Market dynamics |
Parent market growth 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 market 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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