Hybrid Vehicle Market Size, Share, Growth Analysis, By Vehicle Type (Passenger Car, Commercial Vehicle), By Degree of Hybridization (Full, Plug-in), By Component (Body, Chassis), By Region -Industry Forecast 2024-2031

Drivers

• High Demand for Fuel Efficiency

Rising costs of fossil fuels and growing emphasis on sustainability and vehicle emission reduction are key factors promoting the demand for hybrid vehicles. Hybrid technology optimizes fuel consumption by combining electric and gasoline power, reducing dependency on fossil fuels. Easy integration of hybrid technology with current engines is also expected to bolster hybrid vehicle market growth.

• Growing Investments in Hybrid Technology Development

Automotive manufacturers around the world are focusing on developing new hybrid technologies and increasing their investments in the same. Development of novel battery technology, powertrains, and energy management systems is projected to further enhance the efficiency of hybrid vehicles and thereby boost their popularity in the future.

Restraints

• Competition from Electric Vehicles

Electric vehicles are becoming more and more advanced and providing better range, which was their major weakness. Increasing affordability of electric vehicles and availability of government subsidies for the purchase of same are expected to boost the sales of electric vehicles thereby slowing down the demand for hybrid vehicles as well.

• Dependence on Fossil Fuels

Hybrid vehicles still rely mostly on fossil fuels for their optimal operation and volatility in pricing of these fossil fuels is projected to hurt hybrid vehicle sales going forward. Growing emphasis of consumers on achieving full sustainability and eliminating emissions is expected to impede the global hybrid vehicle market outlook in the long run.