The 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% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
A mild hybrid vehicle uses a small battery and motor to assist the conventional gasoline engine. It offers better fuel efficiency compared to traditional internal combustion engine vehicles without requiring external charging. Mild hybrid technology allows the vehicle to recuperate energy during braking and coasting, providing power assist during acceleration. It is considered an optimal transition technology towards fully electric vehicles for automobile manufacturers.
The growth of the mild hybrid vehicle market is driven by stringent emission regulations regarding fuel efficiency and carbon emissions from vehicles. Various regions and countries have implemented corporate average fuel economy (CAFE) standards and emission standards such as EURO 6 that compel automakers to optimize their fleet fuel consumption. This has boosted the adoption of hybrid technologies including mild hybrid systems. Furthermore, mild hybrid systems offer significant cost savings compared to full hybrid systems while providing better fuel efficiency than traditional internal combustion engine vehicles. The lower development and integration cost of mild hybrid systems enables mass adoption by automakers, thereby supporting the market growth over the forecast period.
The mild hybrid vehicle market is dominanted by the passenger vehicle segment with over 80% share. Mild hybrid technology is majorly adopted in passenger ICE vehicles to improve their fuel-efficiency and comply with stringent emission norms. Mild hybrid systems are economical to integrate in comparison to regular hybrids making them a viable option for passenger vehicle OEMs.
Political: Strict emission regulations in regions like Europe are driving automakers to adopt electrified technologies like mild-hybridization. Governments provide subsidies to boost adoption of such fuel-efficient vehicles.
Economic: Volatile fuel prices and rising ownership costs are compelling consumers to opt for hybrids. Mild hybrids with their lower costs are attracting cost-conscious buyers.
Social: Growing environmental consciousness is increasing demand for green vehicles. Mild hybrids are marketed as a fuel-efficient and affordable electrified option.
Technological: Advancements are making mild hybrid components more compact and affordable to integrate. 48V mild hybridization is gaining traction allowing automakers to electrify more models.
Global Mild Hybrid Vehicle Market Demand is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing stringent emission regulations globally. The market size for 2023 is estimated to be US$ 99.97 Bn.
Regional analysis: Asia Pacific dominates the mild hybrid vehicle market with over 40% share led by countries like China, Japan and India. Strong volumes of electrified vehicles from manufacturers like Toyota, Honda and Hyundai backed by supportive government policies are driving the regional market. Europe is another major regional market adopting mild hybridization to meet stringent CO2 targets.
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 leads the segment with its wide range of electrified vehicles including numerous mild hybrid models. Daimler, Honda, Hyundai are also actively pursuing 48V mild hybridization of their lineups.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it