Mild hybrid vehicles incorporate a lithium-ion battery, electric motor/generator, and integrated starter generator which assist the combustion engine during acceleration by recovering energy lost during braking and coasting through regenerative braking. This enhances fuel efficiency and reduces emissions. The vehicles offer savings in fuel costs without compromising driving range and performance of conventional vehicles. As concern for vehicular pollution and need for sustainable transportation grows worldwide, adoption of mild hybrid vehicles is increasing.
The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 115.17 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
one of the key trends driving the mild hybrid vehicle market growth is government initiatives in various countries to curb vehicular emissions. For instance, European Union has stringent regulations like 95g/km carbon dioxide emission targets for 2021. Also, governments offer subsidies to buyers of electrified vehicles which encourages their adoption. Manufacturers are developing new mild hybrid technologies like belt-driven motor generators and 48V mild hybrid systems to improve fuel efficiency by at least 15% compared to conventional vehicles and meet the emission norms. With advancement of battery technologies batteries required for mild hybrids are becoming smaller in size and lighter in weight allowing automakers to easily integrate the technology in existing vehicle designs at affordable costs. This increasing popularity of electrified vehicles worldwide will continue to drive the mild hybrid vehicle market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The mild hybrid vehicle market is moderately concentrated with the presence of established players such as Toyota, Nissan and Honda. Large investment required to setup and design electric motor assistance poses barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power as mild hybrid vehicles provide better fuel efficiency and lower emissions compared to conventional vehicles. However, presence of substitutes provide options to buyers.
Bargaining power of suppliers: Major component suppliers such as battery manufacturers have significant influence on OEMs due to specialized knowledge and limited number of suppliers.
Threat of new substitutes: Threat from fully electric vehicles and plug-in hybrid vehicles is medium as they provide higher fuel efficiency. However, constraints regarding range and charging infrastructure limits adoption of substitutes.
Competitive rivalry: Competition is high among established automakers to gain market share through new product launches and upgrades. Differentiation strategies around technology and branding have increased rivalry.
Key Takeaways
The Global Mild Hybrid Vehicle Market Growth is expected to witness high over the forecast period supported by stringent emission norms and demand for fuel-efficient vehicles. The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 115.17 Mn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031.
Regional analysis: Asia Pacific accounts for around 45% of the total mild hybrid vehicle market share led by China, Japan and India. Presence of key automakers and growing preference for hybrids from customers drives the regional market. Europe is the second largest market favored by incentives and regulations promoting use of hybrids.
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 is the segment leader with wide range of hybrid models like Corolla, Camry and RAV4 plug-in hybrid.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it