Market Size of Hybrid Vehicle Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 231.77 Billion |
| Market Size (2029) | USD 478.33 Billion |
| CAGR (2024 - 2029) | 12.83 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Hybrid Vehicle Market Analysis
The Hybrid Vehicle Market size is estimated at USD 231.77 billion in 2024, and is expected to reach USD 478.33 billion by 2029, growing at a CAGR of 12.83% during the forecast period (2024-2029).
- The COVID-19 pandemic positively impacted the hybrid vehicle market as the pandemic has crystallized attitudes toward the environment by revealing cleaner air and lower pollution levels during the lockdown. COVID-19 increased their environmental awareness, and these concerns are now reflected in intentions to purchase more sustainable electric and hybrid vehicles. The forecast period is expected to be optimistic as manufacturers plan to launch new models to attract customers. For instance, in November 2022, Toyota Australia announced several updates to its popular Corolla hatch and sedan lineups, including Toyota Connected Services functionality and the latest-generation hybrid powertrain.
- Over the long term, some of the major factors driving the market's growth are the enactment of stringent emission and fuel economy norms and government incentives for promoting the purchase and adoption of hybrid vehicles. Additionally, with governments taking stringent actions in the form of regulation and incentives, along with the increased initiatives for the provision of public charging stations for electric vehicles, the hybrid vehicle market is expected to grow at a high rate.
- For instance, in February 2022, According to the government of India, the subsidy under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program for fiscal 2023 is expected to be INR 2,908 crore (USD 351 million), which is more than three-and-a-half times the allocation of INR 800 crore (USD 96.5 million) for this fiscal year and nearly nine times the allocation for FY21.
- Major players in the hybrid vehicles market, such as BYD, Toyota, Nissan, Honda, Kia, and Hyundai, their active engagement in this segment creates a positive environment in the market. For instance, November 2022: Kia China announced that its EV6 compact battery electric SUV was on display at the CIIE and would be available in China in 2023. Kia will also launch 5 hybrid models in China in succession by 2026, beginning with the HEV model of the 5th generation Sportage compact SUV.
