Hybrid Drivetrain Market Analysis

Hybrid Drivetrain Market Analysis

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.