Europe Mild Hybrid Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe Mild Hybrid Vehicles Market is segmented by Battery Type (Less than 48V, 48V, and Above), by Vehicle Type(Passenger, Commercial) and Geography (Germany, United Kingdom, Italy, France, Spain and Rest of Europe). The report offers the market size in value (USD billion), and forecasts for all the above segments.

Market Snapshot

Europe Mild Hybrid Vehicle Market-Summary.jpg
Study Period: 2018-2027
Base Year: 2021
CAGR: 3.9 %

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Market Overview

The Europe Mild Hybrid Vehicle Market was valued at USD 8.69 Billion in 2021 and is expected to reach USD 10.51 Billion by 2027, registering a CAGR of 3.90% during the forecast period (2022-2027).

The market was impacted negatively due to the manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic. Furthermore, the severe decline in automotive production coupled with reduced vehicle sales, the travelling restrictions, very high severity of the pandemic in countries like Italy and Spain and lack of labor significantly impacted the market. Since automotive manufacturers have resumed operations due to steadily rising automobile sales caused by the pent up demand, rising electrification of vehicles aand gradually loosening the COVID 19 realated restrictions in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, new model launches by major industry players and a rise in sales of electric and hybrid vehicles as well as adoption of strict vehicle emission norms and fuel efficiency standards are creating demand in the electric vehicles industry with a surge in sales of mild hybrid vehicles . The dominance of strong hybrids and Battery Electric Vehicles (BEVs) in markets like Germany, France, Sweden, Norway and the Netherlands is likely to be the major restraint for the growth for mild hybrid vehicles in Europe. 

Key players in the market are launching new models to cater to the increased demand for mild hybrid vehicles. For instance, in September 2022, Mitsubishi Motors Europe B.V. launched the new generation ASX SUV in Europe with a mild hybrid system. The vehicle will be made at Renault's Valladolid plant in Spain. In September 2022, Nissan Europe launched the fourth generation X Trail SUV in Europe including a mild hybrid version of the same vehicle.

The largest market is Spain because majority of the car buyers in Spain cannot afford full hybrid vehicles and Battery Electric Vehicles (BEVs) due to the low purchasing power compared to other countries like Germany, France, United Kingdom and Scandavanian countries.

Italy, Germany and France are the next biggest markets due to the sales of models like Volkswagen Golf which have mild hybrid systems as standard since 2016.

Thus the market for mild hybrid vehicles is anticipated to grow at a healthy CAGR due to the combination of above factors.

Scope of the Report

A mild hybrid vehicle is a vehicle that uses a combination of battery and an electric motor in conjunction with an IC engine to power the vehicle. The battery and electric motor can keep the vehicle running for a short distance in case the engine is shut off. Mild hybrid vehicles are often touted to be the first step towards electrification of vehicles however they are facing stiff competition from strong or full hybrid vehicles and battery electric vehicles. Unlike strong or full hybrid vehicles, mild hybrid vehicles cannot charge themselves and need an external charger to charge them.

The Europe mild hybrid vehicle market has been segmented by battery type, vehicle type, and geography.

By battery type, the market is segmented into Less than 48V, 48V, and Above.

By vehicle type, the market is segmented into Passenger Vehicles and Commercial Vehicles.

By geography, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, and Rest of Europe.

For each segment market sizing and forecast have been done on basis of value (USD billion).

Battery Type
Less than 48V
48V
above 48V
Vehicle Type
Passenger Cars
Commercial Vehicles

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Key Market Trends

Rising Electrification of Vehicles aid the Market Growth

The rise in the electrification of vehicles is driving the sales of mild hybrid vehicles in Europe due to many factors like strict emissions norms, higher fuel efficiency standards, and the ambitious targets set by various European countries to ban ICE mobility by 2030. 

European Parliament has set an ambitious goal to cut vehicle emissions by 40% between 2020 to 2025 from 2019 levels.

Since mild hybrid vehicles are seen as the first step toward electrification of vehicles they are experiencing a steady rise in sales in Europe.

Mild hybrid vehicles contributed 8.9% of total electric vehicle sales in Europe in 2021.

Mild hybrid vehicles offering a range of a minimum of 55 miles at least on a single full charge are to be sold in Europe from 2025. This has led to greater adoption of mild hybrid vehicles with battery type of 48V and Above.

The significant benefits of the Mild Hybrid system are its smooth engine start-up, battery charging with kinetic energy, and short distances that can be covered on electric power along with reduced overall fuel consumption.

Fully hybrid cars are an evolving market with a growing dependency on E.V. types. However, mild hybrids still offer fuel efficiency between 10 and 15% compared to any conventional gasoline/diesel engine cars. Also, the production of Mild hybrid vehicles is placed at lower prices as they are not quite as sophisticated as to a full hybrid vehicle becoming less expensive to its counterpart. Several high-profile companies are still producing mild hybrid cars, and these include VW, Audi, Renault, Nissan and Toyota.

48V battery dominated the market by battery type. so several manufacturers are launching mild hybrid vehciles equipped with 48V batteries. Thus many manufacturers are launching new models featuring mild hybrid systems equipped with 48V batteries. 

For instance,

  • In June 2022, Renault launched the new Austral SUV which features a mild hybrid system powered by a 48V battery.
  • In April 2022, BMW released the next generation of 7 Series in ICE, PHEV and BEV variants with deliveries starting from November 2022. The PHEV variant is equipped with a mild hybrid version driven by a 48V battery.
Europe Mild Hybrid Vehicles Market_48V batteries  to dominate the market

Spain Holds the Largest Market Share

Spain is the most dominant market followed by Italy, France and Germany.

Spain dominated the market because mild hybrid vehicles are much cheaper to purchase than strong hybrid and battery electric vehicles. The purchasing power of people in Spain is less than the people living in other countries like Germany, France, the UK, and Scandinavian countries which are major markets for strong hybrids and battery electric vehicles in Europe. The majority of the EV buyers in Spain cannot afford to buy strong hybrids and battery electric vehicles so mild hybrid vehicles are the most preferred type of electric vehicle in Spain.

Italy, Germany, and France are also major markets due to the large presence of automotive OEMs and the rising electrification of vehicles because of the adoption of stringent automotive emission norms and fuel economy standards which leads to high electric vehicle sales in these geographies.

Thus, with companies coming up with new launches in this segment and investments, the market for mild hybrid vehciles is expected to grow over the forecast period in Europe. For instance,

  • In September 2022, Mitsubishi Motors Europe B.V. announced the production of ASX mild hybrid SUV at Renault's plan in Valladolid in Spain.
  • In March 2022, Volkswagen Group and SEAT announced to invest EUR 7 billion to produce a range of electric vehicles including mild hybrids and batteries at their plants in Martorell, Valencia and Pamplona.
Europe Mild Hybrid Vehicles Market_Spain is the dominant market

Competitive Landscape

The Europe Mild Hybrid Vehicles Market is highly consolidated. The market is characterized by the presence of considerably large players who have long dominated the market. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.

Some of the major players dominating the European market are Volkswagen SE, Toyota Motor Corp., BMW Group, Nissan Motor Corp., and Mitsubishi Motors. Key players are launching new products to secure their market position and stay ahead of the market curve. For instance,

  • In March 2022, Nissan Motor Europe launched the new generation of Qashqai featuring E-POWER mild hybrid technology. 
  • In September 2022, Mazda Motor Europe launched their full-size SUV CX60 in Europe equipped with mild hybrid technology.

Major Players

  1. Volkswagen SE

  2. Toyota Motor Europe

  3. BMW Group

  4. Nissan Motor Europe

  5. Mitsubishi Motors Europe B.V.

Europe Mild Hybrid Electric Vehicle- Market Concentration.jpg

Recent Developments

  • In September 2022, Voith Germany and KEYOU announced the launch of a new hydrogen bus featuring DIWA NXT mild hybrid system at IAA Transportation 2022. The bus is 12 meters long and based on the chassis supplied by a leading European bus manufacturer. The bus is equipped with KEYOU's proprietary inside-hydrogen engine in association with DIWA NXT mild hybrid system. 
  • In July 2022, Kia Motors Europe released the sketches of the next-generation Xceed compact crossover which will have mild hybrid variants. The vehicle would be launched by the end of this year.
  • In May 2022, Solaris announced it won an order for 12 mild hybrid Urbino city buses from the town of Bar in Montenegro. The buses will be used to transport the citizens of the town from the city center to the port of the city. 
  • In June 2022, Peugeot launched the 408 hatchback in Europe including the mild hybrid variants. 

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size Value in USD billion)

    1. 5.1 Battery Type

      1. 5.1.1 Less than 48V

      2. 5.1.2 48V

      3. 5.1.3 above 48V

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

  6. 6. Geography

    1. 6.1 Europe

      1. 6.1.1 Germany

      2. 6.1.2 United Kingdom

      3. 6.1.3 Italy

      4. 6.1.4 France

      5. 6.1.5 Spain

      6. 6.1.6 Rest of Europe

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Vendor Market Share

    2. 7.2 Company Profiles

      1. 7.2.1 Volkswagen AG

      2. 7.2.2 Audi AG

      3. 7.2.3 BMW Group

      4. 7.2.4 Nissan Motors Co.

      5. 7.2.5 Toyota Motors

      6. 7.2.6 Diamler Ag

      7. 7.2.7 Hyundai Motor Company

      8. 7.2.8 Kia Motors Corporation

      9. 7.2.9 Volvo Group

      10. 7.2.10 Ford Motor Co.

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Europe Mild Hybrid Vehicles Market market is studied from 2018 - 2027.

The Europe Mild Hybrid Vehicles Market is growing at a CAGR of 3.9% over the next 5 years.

The Europe Mild Hybrid Vehicles Market is valued at 8 Billion USD in 2018.

The Europe Mild Hybrid Vehicles Market is valued at 10 Billion USD in 2027.

Volkswagen SE, Toyota Motor Europe, BMW Group, Nissan Motor Europe, Mitsubishi Motors Europe B.V. are the major companies operating in Europe Mild Hybrid Vehicles Market.

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