Global Mild Hybrid Vehicles Industry can achieve a healthy CAGR of 4.8% CAGR during the forecast period (2019-2025), asserts Market Research Future (MRFR).
Market Boosters and Key Restraints
Fuel efficiency has become a significant purchasing factor for consumers, given the rising need to curb fuel spending. Sensing the underlying opportunity in this scenario, several automakers like Hyundai and Mahindra are focusing on developing alternatives that deliver similar productivity but also high fuel efficiency. Such initiatives are expected to boost demand for mild hybrid vehicles market, as these promote fuel efficiency.
Vehicle electrification is another significant driver, contributing substantially to the growth of the mild hybrid electric vehicles market. Additionally, prominent economies like Michigan and China are keenly following the electrification method, which does wonders for the global market.
Governments all over the world are now offering valued perks to consumers that go for electric vehicles. This encourages and nurtures their goal to go green. To illustrate, the U.S. federal government provides an incentive of close to USD 7500 for electric vehicles. Likewise, the Chinese government is also taking initiatives to boost the sale of electric vehicles, in the form of a consumer subsidy program. In another instance, considerable funds by the German Federation for electric mobility projects under the Clean Air 2017-2020 emergency program present a host of opportunities for mild hybrid vehicles players in the market.
The worldwide mild hybrid vehicles market has been categorized in terms of capacity, vehicle type, and battery type.
Capacity-wise, the global mild hybrid vehicles market is considered for 12 V, 12 V to 24 V, and more than 24 V. The more than 24 V segment consists of 48 V mild hybrid cars.
With respect to the vehicle type, the global mild hybrid vehicles market can be narrowed down to passenger cars and commercial vehicle.
The types of battery are lithium-ion, lead-acid, and others.
The global mild hybrid vehicles market is mainly concentrated in the regions of North America, Asia Pacific (APAC), Europe, and the rest of the world (RoW).
Asia Pacific (APAC) controls a considerable share of the global mild hybrid vehicles market. The strong market growth in the region is in response to their highest vehicles sales in China. A large number of automotive companies are investing in the regional market, in a bid to capitalize on the high demand for hybrid vehicles. For instance, at present, Toyota’s main objective is to be in-line with advancing technologies within the automotive industry. Consequently, the company is collaborating with Panasonic to enhance the battery technology. Less weight, as well as low cost, are prominent aspects of their extensive research. The company is expected to sell next-generation solid-state batteries commercially by the year 2020.
With electric vehicles gaining immense favor in leading countries of Europe, the mild hybrid vehicles market players could be presented with major opportunities in the near future. Case in point, the year-to-date sales recorded by Kia Motors Europe this year was backed by the rising sales of their range of electric and hybrid models. Surging sales of hybrid and electric models in the market also provide a host of growth avenues for the manufacturers in the region. Norway, the Netherlands, France, and Germany are the main markets for mild hybrid vehicles in the region.
The mild-hybrid vehicles market in North America is primarily driven by the host of benefits associated with mild hybrid vehicles, such as increased driving range, low emission, and better fuel efficiency. Soaring demand for mid- and large-sized PHEV, as well as NGV cars coupled with government initiatives with regard to hybrid vehicles, are likely to boost market demand in North America.
Daimler Ag (Germany), Fiat Spa (Italy), Ford Motor Company (US), General Motors Company (US), Honda Motor Company Limited (Japan), Peugeot Sa (France), Suzuki Motor Corporation (Japan), Volkswagen Ag (Germany), Tesla Motors Incorporated (US), Toyota Motor Corporation (Japan), Renault–Nissan–Mitsubishi Alliance (Netherlands) Groupe PSA (France), Hyundai Motor Company (South Korea), BYD Co. Ltd (China), AB Volvo (Sweden) are the leading companies competing in the worldwide mild hybrid vehicles market.
Ford is working on developing electrified vehicles with mild hybrid and plug-in hybrid versions of the new Kuga compact SUV along with mild-hybrid versions of the new Puma subcompact SUV. In addition to this, the new plug-in hybrid Explorer large SUV can also be expected in the near future.