Mild Hybrid Vehicle Market Is Estimated To Witness High Growth Owing To Growing Environmental Concerns
Mild hybrid vehicles are automobiles with an integrated starter generator and a sealed battery pack that can recover energy lost during braking and coasting. Powered by gasoline engines, mild hybrid vehicles offer significant fuel savings and emission reductions compared to standard gasoline vehicles. They complement combustion engines with batteries and electric motors to improve fuel efficiency without requiring external charging. Popular mild hybrid vehicles include the Toyota Camry Hybrid, Honda Accord Hybrid, Ford Fusion Hybrid, and Hyundai Sonata Hybrid. The global mild hybrid vehicle market allows automakers to lower development costs while offering hybrid capabilities to budget-oriented customers.
The global mild hybrid vehicle Market is estimated to be valued at US$ 99.97 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the mild hybrid vehicle market is growing environmental concerns. As concerns around pollution, global warming and sustainability increase worldwide, automakers are under pressure to reduce emissions from their vehicles. Mild hybrid technology is an attractive solution as it results in fuel savings of 15-25% and offers a greener option compared to regular gasoline vehicles. Additionally, the mild hybrid system recuperates energy that is normally lost during braking and coasting, thereby improving fuel efficiency. Furthermore, governments of various nations have implemented stringent emission standards to curb air pollution from vehicles. Growing awareness about the need to lower carbon footprint will continue promoting adoption of fuel-efficient mild hybrid vehicles during the forecast period.
SWOT Analysis
Strength: Mild hybrid vehicles have good fuel efficiency and lower emissions compared to conventional vehicles. They utilize the kinetic energy recovered during braking to charge the battery, which supplements the engine during acceleration. The start-stop feature further helps in reducing fuel consumption in traffic. Mild hybrids are more affordable than other hybrid options as they do not require large and expensive battery packs.
Weakness: The electric motor is smaller in mild hybrids and provides assistance only during acceleration. They do not allow full electric-only driving like other hybrids. The fuel economy gains over conventional vehicles are also relatively lower. Mild hybrid powertrains add some weight and complexity over non-hybrid vehicles.
Opportunity: Rising environmental concerns and stringent emission norms are prompting more consumers and fleet operators to consider hybrid electric vehicles. Mild hybrids can attract first-time hybrid buyers as an affordable electrified option. Tighter CAFE and fuel economy standards especially in Europe and China also create opportunities. Growing demand for fuel-efficient powertrains presents a viable market for mild hybrid technology.
Threats: Continued drop in battery prices may make other hybrid configurations more affordable over time. Strong market penetration of battery electric vehicles can impact demand for hybrids including mild variants. High dependency on gasoline and diesel engines makes mild hybrids vulnerable to fluctuations in fuel prices.
Key Takeaways
The Global Mild Hybrid Vehicle Market Size is expected to witness high growth over the forecast period driven by stricter emission norms and rising environmental concerns. The Asia Pacific region currently dominates the market owing to large production and sales volumes in major countries like China, Japan, and India. Regional automakers are focusing on electrified solutions including mild hybrids to reduce emissions and comply with regulations.
Key players operating in the mild hybrid vehicle market are Toyota Motor Corporation, Nissan Motor Co. Ltd, Honda Motor Company Ltd, Hyundai Motor Company, Kia Motors Corporation, Suzuki Motor Corporation, Daimler AG, Volvo Group, Volkswagen Group, BMW AG, Ford Motor Company, Audi AG, Jaguar Land Rover Ltd, Chevrolet. Toyota is a prominent player in the mild hybrid space with large electrified vehicle portfolio including models such as Corolla and RAV4. The Japanese big three of Toyota, Nissan and Honda are leading suppliers of mild hybrid powertrains to other automakers as well.
The mild hybrid vehicle market is expected to grow at a CAGR of 18% between 2023-2030 reaching a value of over USD 99.97 billion by 2023. Regional analysis shows Asia Pacific accounting for over 45% of total sales led by China, India and Japan. North America and Europe are other major regions adopting mild hybrid technology to reduce emissions.
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