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

Global Hybrid Vehicle Market size was valued at USD 272 Billion in 2022 and is poised to grow from USD 291.31 Billion in 2023 to USD 470.85 Billion by 2031, at a CAGR of 7.1% during the forecast period (2024-2031).

Rising emphasis on the reduction of vehicle emissions around the world and growing investments in the development hybrid technologies are projected to bolster sales of hybrid vehicles in the future. Advancements in battery technologies are projected to create new business scope for hybrid vehicle companies going forward. The surge in fossil fuel prices around the world and the imposition of stringent emission mandates are expected to drive hybrid vehicle market growth over the coming years. Rising popularity of hybrid SUVs and crossovers is also expected to positively impact the demand for hybrid vehicles through 2031 and beyond. Increasing availability of government subsidies and incentives for the purchase and manufacturing of hybrid vehicles will also boost revenue generation potential for hybrid vehicle companies in the long run. On the contrary, high initial costs of hybrid vehicles, competition from electric vehicles, dependence on fossil fuels, and battery disposal issues are slated to be key constraints for market development across the study period and beyond.