Hybrid Drivetrain Market
Get a free sample of this report
Your inquiry has been received. Our team will reach out to you with the required details via email. To ensure that you don't miss their response, kindly remember to check your spam folder as well!
Form submitted successfully!
Error submitting form. Please try again.
Request Sectional Data
Your inquiry has been received. Our team will reach out to you with the required details via email. To ensure that you don't miss their response, kindly remember to check your spam folder as well!
Form submitted successfully!
Error submitting form. Please try again.
Hybrid Drivetrain Market size surpassed USD 80.69 billion in 2020 and is estimated to exhibit more than 27.2% CAGR from 2021 to 2027. Rising awareness pertaining to vehicular emissions will drive the industry growth.
Government incentives for low and zero-emission vehicles is likely to fuel the market demand. Financial stimuli, such as tax credits and tax exemptions, encourages vehicle adoption by decreasing the upfront costs. For instance, in Shenzhen (China), local authorities are offering support of USD 4 to 5 thousand for every New Energy Vehicle (NEV) to stimulate automotive sales, which was declined impelled by the COVID-19 epidemic. Such initiatives are generating a substantial demand for hybrid drivetrains.
Research, Development and Demonstration (RD&D) initiatives to lower the overall hybrid vehicle battery cost and resource-associated problems will positively influence the hybrid drivetrain market revenue. Lowering the battery cost and performance enhancement are important to attract more consumers to use hybrid vehicles. According to the International Energy Agency (IEA), the battery cost will lower from USD 5 to 8 hundred per kwh to USD 3 to 4 hundred per kwh to reach breakeven price in comparison with the ICE vehicle driving system.
Numerous automotive producers are reducing CO2 emissions due to strict new requirements taking effect in 2020 and 2025. For instance, in 2020, European Union has implemented the regulation that from 2021 onward the average fleet carbon emissions will be restricted to 95 g of CO2 per km, which is influencing the market demand.
Report Attribute | Details |
---|---|
Base Year: | 2020 |
Hybrid Drivetrain Market Size in 2020: | USD 80.69 Billion |
Forecast Period: | 2021 to 2027 |
Forecast Period 2023 - 2032 CAGR: | 27.2 |
2023 Value Projection: | USD 388.75 Billion |
Historical Data for: | 2017 to 2020 |
No of Pages: | 225 |
Tables, Charts & Figures: | 228 |
Segments Covered: | Level, Type, Component and Region |
Growth Drivers: |
|
Pitfalls Challenges: |
|
The PHEV segment is set to generate over USD 60 billion by 2027on account of increasing sales and production of plug-in hybrid electric vehicle production in the past few years. In emerging countries including Germany, Spain, and China, the potential of hybrid drivetrain sales is enormous. In 2020, plug-in hybrid electric vehicle production in China was nearly 260 thousand units. According to the U.S. Department of Energy, in 2019, the U.S. had over 20,000 charging stations, compared to 18,000 in 2018. Further, market participants are undertaking strategic agreements for innovative charging technology.
In 2020, the series-parallel type held around 65% of the hybrid drivetrain market share led by its higher operational output. The series-parallel drivetrain enables the car to be driven individually by electric motor or IC engine or by both operating together which improves operational range.
The battery component segment is expected to capture about 50% market share by 2027 in hybrid electric vehicles. The industry has witnessed some recent development such as newly developed nickel-metal hydride batteries, which has higher life cycle compared to lead-acid batteries and are safe. Decrease in battery cost is achievable with the improvement in chemistry and increase in production scale. Moreover, ongoing electric vehicle developments for automotive controls and batteries will increase the industry growth.
Europe hybrid drivetrain market size is forecast to register above 25% CAGR through 2027 owing to the growing government policies and initiatives for low and zero-emission vehicles. The expansion of charging infrastructure, improvements in electric vehicles, and enhancements in driving range will further support the regional market growth. Covid-19 significantly impacted hybrid electric vehicle production and sales in 2020. However, despite the forced lockdown and HEV production pause worldwide, the hybrid electric vehicles (HEV) market observed substantial growth. For instance, according to the European Automobile Manufacturers Association (ACEA) for 2020, the hybrid electric vehicles sales in Europe crossed 1.1 million units.
The hybrid drivetrain market is consolidated with the top ten players holding a significant share. Companies are involved in collaboration with hybrid electric vehicle manufacturers to have a competitive advantage over other players. Manufacturers are developing advanced solutions for high-performance electric vehicles to strengthen their market position.
Some of the key manufacturers of the industry are
Market, by Level
Market, by Type
Market, by Components
The above information is provided on a regional and country basis for the following:
The hybrid drivetrain industry share from the PHEV level segment could surpass USD 60 billion by 2027 due to the higher sales and production of plug-in hybrid electric vehicles over the past few years.
Demand for series-parallel type hybrid drivetrains reached nearly 65% of the overall market share in 2020 and will grow with the rising need for higher operational output.
Battery components are pegged to record close to 50% of the hybrid drivetrain market share by 2027 with higher adoption in electric vehicles.
Europe hybrid drivetrain industry size is poised to expand at a 25% CAGR up to 2027 driven by the rise in the number of government policies and initiatives for low and zero-emission vehicles in the region.
The hybrid drivetrain market revenue valued at around USD 80.69 billion in 2020 and will grow at a CAGR of over 27.2% up to 2027.