The mild hybrid vehicle or 48V system pairs a small electric motor with a combustion engine to provide a small boost of electric torque assistance and regenerative braking, enhancing fuel efficiency. Mild hybrid vehicles are equipped with features such as stop-start and regenerative braking that automatically shut off the engine at stops to reduce fuel consumption and emissions. It charges its lithium-ion battery through regenerative braking and restarts the engine when required utilizing battery power assistance. Mild hybrid vehicles offer up to 15% better mileage compared to conventional vehicles while reducing carbon emissions. Major automakers such as Toyota, Nissan, and Honda have launched various mild hybrid models to capitalize on rising demand.
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 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing environmental concerns globally along with stringent emission norms have prompted automobile manufacturers to shift their focus on developing fuel-efficient vehicles. Mild hybrid systems offer compelling benefits of higher fuel efficiency and emissions reduction with lower development and manufacturing costs compared to regular hybrids. This has encouraged OEMs to actively invest in 48V mild hybrid technology. Further, incentives and subsidies by governments especially in Europe and China for adoption of green vehicles is also facilitating the demand for mild hybrid vehicles. Stringent norms such as Corporate Average Fuel Efficiency (CAFE) standards in the U.S. obligate automakers to improve their fleet-wide performance which can be achieved with mild hybrid systems at affordable costs. The rising demand for fuel-efficient vehicles combined with supportive government policies and initiatives is expected to drive the growth of the mild hybrid vehicle market over the forecast period.
Segment Analysis
The mild hybrid vehicle market is dominated by the Sedan sub-segment which accounts for more than 35% share of the total market. Sedans offer high fuel economy and emissions reductions compared to conventional vehicles which has increased their demand among consumers seeking efficiency without compromising on car size and utility. Hatchbacks form the second largest sub-segment, followed by SUVs. Hatchbacks are popular for their affordable prices and compact sizes suitable for city driving conditions. SUV body type is gaining market share fast on account of increasing preferences of consumers for spacious interiors and taller driving positions along with hybrid capabilities.
PEST Analysis
Political: Stringent emissions regulations in regions such as Europe are promoting uptake of hybrid vehicles. Europe has mandated that automakers need to lower fleetwide average CO2 emissions which is boosting demand for hybrids.
Economic: Falling battery prices and cheaper hybrid technology is making mild hybrids more affordable compared to their full hybrid counterparts. This is expanding the potential customer base for automakers.
Social: Rising environmental consciousness among urban populations is driving preferences for green vehicles. Mild hybrids are viewed as a practical yet environment-friendly option.
Technological: Advancements in battery cell chemistry and electric motor design are enhancing the driving range and performance of mild hybrid powertrains. This is improving the driving experience for customers.
Key Takeaways
The global mild hybrid vehicle market share is expected to witness high growth over the forecast period supported by regulatory tailwinds and evolving consumer preferences for sustainable mobility solutions. 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 7.3% over the forecast period 2023 to 2030.
Regional analysis: Asia Pacific accounts for the largest share of over 35% of the total mild hybrid vehicle market. Countries such as China, Japan and South Korea have strong production bases for hybrids led by Toyota, Honda and Hyundai. Europe is the second largest regional market driven by stringent CO2 norms. Germany, UK, France and Italy are among the major European countries offering tax incentives for hybrid electric vehicles.
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, and Chevrolet. Toyota is the global leader in hybrid vehicles with prominent models such as Toyota Prius, Corolla, and Camry featuring its Hybrid Synergy Drive technology. Nissan, Honda and Hyundai also have wide ranges of hybrid vehicles led by the X-Trail, CR-V, Ioniq respectively.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
