Market Summary
Global Hybrid Powertrain Market Overview
Hybrid Powertrain Market Size was valued at USD 97.8 Billion in 2022. The Hybrid Powertrain market industry is projected to grow from USD 112.6 Billion in 2023 to USD 349.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.20% during the forecast period (2023 - 2032). Increased emphasis on reducing the carbon emissions and improving the fuel efficiency in transportation sector are the key market drivers enhancing the market growth.
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Hybrid Powertrain Market Trends
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Growing emphasis on minimizing the carbon emissions and improving fuel efficiency in the transportation sector is driving the market growth
Market CAGR for hybrid powertrains is being driven by the rising emphasis on reducing carbon emissions and improving the fuel efficiency in the transportation sector. As the automotive industry continues to evolve to meet sustainability goals, hybrid technology plays a pivotal role in providing a cleaner and more efficient alternative for both manufacturers and consumers. Governments worldwide are implementing stringent regulations to limit carbon emissions and promote cleaner technologies in the automotive industry. Hybrid powertrains, combining internal combustion engines with electric propulsion, offer a transitional solution to meet these regulations by significantly reducing emissions compared to traditional gasoline or diesel engines.
With a growing awareness of finite fossil fuel resources and the need to enhance fuel efficiency, hybrid powertrains present an attractive solution. By utilizing electric power during low-speed or stop-and-go conditions and seamlessly switching to the internal combustion engine at higher speeds, hybrids optimize fuel consumption, contributing to compliance with fuel efficiency standards. Consumers are becoming growingly conscious of their environmental footprint and are seeking greener alternatives in their purchasing decisions. The emphasis on reducing carbon emissions aligns with consumer preferences for vehicles that offer improved fuel efficiency and lower environmental impact, driving the demand for hybrid powertrains. Many companies are incorporating sustainability goals into their corporate strategies. Fleet operators and businesses with vehicle are choosing hybrid vehicles to meet emission reduction targets, reduce fuel costs, and demonstrate environmental responsibility, further fostering the growth of the hybrid powertrain market.
Ongoing advancements in hybrid powertrain technology, such as more efficient batteries, regenerative braking systems, and sophisticated control algorithms, enhance the overall performance and appeal of hybrid vehicles. These technological improvements contribute to increased reliability, range, and overall efficiency, making hybrid powertrains more attractive to a broader range of consumers. Governments in various regions are offering incentives, subsidies, and tax breaks in order to encourage the adoption of environmentally friendly vehicles, including hybrids. These financial incentives reduce the overall cost of ownership for consumers and businesses, stimulating greater interest and investment in hybrid powertrains. Thus driving the Hybrid Powertrain market revenue.
Hybrid Powertrain Market Segment Insights:
Hybrid Powertrain Type Insights
The Hybrid Powertrain Market segmentation, based on type, includes Full Hybrid (HEV), Mild Hybrid (MHEV), and Plug-In Hybrid (PHEV). The full hybrid (HEV) segment dominates the market, accounting for the largest market revenue due to its seamless integration of electric and internal combustion propulsion, allowing vehicles to operate in electric-only mode at low speeds. This versatility addresses a range of anxiety concerns associated with plug-in hybrids (PHEVs) and all-electric vehicles (EVs). Furthermore, HEVs offer fuel efficiency improvements without relying on external charging infrastructure, making them a practical and widely adopted choice for consumers and automakers alike. The mild hybrid (MHEV) category is the fastest-growing segment in the hybrid powertrain market due to its cost-effectiveness and ease of integration into existing vehicle platforms.
Hybrid Powertrain Vehicle Type Insights
The Hybrid Powertrain Market segmentation, based on the vehicle type, includes the Passenger Cars and Commercial Vehicles. The passenger cars category dominates the market due to the surging demand for fuel-efficient and environmentally friendly personal transportation. Consumers are seeking vehicles that offer a balance between performance and reduced emissions, making hybrid powertrains an appealing choice for everyday commuting. As major automotive manufacturers invest heavily in hybrid technology for their passenger car models, the availability and diversity of hybrid options in the passenger car segment contribute significantly to its market dominance.
Hybrid Powertrain Sales Channel Insights
The Hybrid Powertrain Market segmentation, based on sales channels, includes OEM Sales, Aftermarket, and Online Sales. The OEM sales category dominates the market due to the pivotal role major automotive manufacturers play in shaping industry trends. Leading OEMs leverage their extensive resources for research, development, and production, enabling them to introduce hybrid models with cutting-edge technology and performance. This dominance is reinforced by consumer trust in established brands, as well as the ability of OEMs to influence market preferences through strategic marketing, dealership networks, and comprehensive after-sales support.
Figure 1: Hybrid Powertrain Market, by Sales Channel, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Hybrid Powertrain Regional Insights
By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Hybrid Powertrain market dominates this market due to a combination of strong consumer demand for eco-friendly vehicles, stringent environmental regulations, and the proactive approach of major automotive manufacturers in the region to invest in and promote hybrid technology.
Further, the prime countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: Hybrid Powertrain Market Share By Region 2022 (Usd Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Hybrid Powertrain market accounts for the second-largest market share due to the stringent emissions regulations, strong government incentives promoting eco-friendly vehicles, and a growing consumer preference for sustainable transportation options. Further, the German Hybrid Powertrain market held the largest market share, and the UK Hybrid Powertrain market was the rapid-growing market in the European region.
The Asia-Pacific Hybrid Powertrain Market is forseen to grow at the rapid CAGR from 2023 to 2032. This is due to the increasing urbanization, a rising awareness of environmental sustainability, and supportive government policies incentivizing the adoption of eco-friendly vehicles. Moreover, China’s Hybrid Powertrain market held the largest market share, and the Indian Hybrid Powertrain market was the rapid -growing market in the Asia-Pacific region.
Hybrid Powertrain Key Market Players & Competitive Insights
Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Hybrid Powertrain market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Hybrid Powertrain industry must offer cost-effective items.
Manufacturing locally to minimize teh operational costs is one of the key business tactics used by the manufacturers in the global Hybrid Powertrain industry to benefit the clients and increase the market sector. In recent years, the Hybrid Powertrain industry has offered some of the most significant advantages to the automotive industry. Major players in the Hybrid Powertrain market, including Toyota Motor Corporation, Hyundai Motor Company, Mitsubishi Motors Corporation, Kia Corporation, Daimler AG, Nissan Motor Co. Ltd., AB Volvo, General Motors Company, Subaru Corporation, Ford Motor Company, and others, are attempting to increase market demand by investing in the research and development operations.
Hyundai Motor Company, headquartered in Seoul, South Korea, is a globally renowned automotive manufacturer that has become a major player in the international automotive market. The company is known for producing a wider range of vehicles, from the compact cars to SUVs and luxury models, and it has gained a reputation for offering high-quality, reliable vehicles at competitive prices. Hyundai has been a pioneer in promoting eco-friendly technologies and has made significant strides in the development and production of the hybrid and electric vehicles, contributing to the industry's shift toward sustainable mobility. In January 2023, Hyundai Motor Company and Kia Corporation signed a memorandum of understanding (MoU) with Infineon Technologies AG to develop and supply power semiconductors for their hybrid and electric vehicles (HEVs and EVs). The partnership will focus on the development of silicon carbide (SiC) power semiconductors, which are more efficient and have a longer lifespan than traditional silicon power semiconductors.
Continental AG, headquartered in Hanover, Germany, is a global automotive technology company that stands as a prominent player in the automotive and mobility industries. The company operates in multiple segments, including Chassis and safety, Interior Technologies, Powertrain, Tire, and ContiTech, providing a comprehensive range of solutions to automakers worldwide. Known for its innovation and technological advancements, Continental has been at the forefront of developing cutting-edge technologies such as advanced driver assistance systems, electric mobility solutions, and intelligent transportation systems. In February 2023, Continental AG and DeepDrive GmbH announced a partnership to develop core technologies for electric vehicles (EVs). The partnership will focus on the development of brake-in-wheel motors (BIWMs), which are a type of electric motor that is included into the wheel hub. BIWMs are more efficient and space-saving than traditional electric motors, and they can also improve vehicle handling.
Key Companies in the Hybrid Powertrain market include
- Hyundai Motor Company
- Mitsubishi Motors Corporation
- Kia Corporation
- Daimler AG
- Nissan Motor Co. Ltd.
- AB Volvo
- General Motors Company
- Subaru Corporation
Hybrid Powertrain Industry Developments
March 2023: BorgWarner Inc. announced the acquisition of Rheinmetall AG's powertrain business for €1.9 billion. The acquisition will expand BorgWarner's product portfolio to include hybrid and electric vehicle (HEV and EV) powertrain components.
May 2023: Denso Corporation and Mitsubishi Electric Corporation announced a partnership to develop and supply powertrain components for hybrid and electric vehicles (HEVs and EVs). The partnership will focus on the development of inverters and motors, which are key components of HEV and EV powertrains.
April 2023: Magna International Inc. announced the acquisition of Veoneer Inc. for $1.5 billion. The acquisition will expand Magna's product portfolio to include advanced driver-assistance systems (ADAS) and autonomous driving technologies.
Hybrid Powertrain Market Segmentation
Hybrid Powertrain Type Outlook
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
Hybrid Powertrain Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
Hybrid Powertrain Sales Channel Outlook
- OEM Sales
- Aftermarket
- Online Sales
Hybrid Powertrain Regional Outlook
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North America
- US
- Canada
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
- Middle East
- Africa
- Latin America
Market Size & Forecast
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 97.8 Billion |
| Market Size 2023 | USD 112.6 Billion |
| Market Size 2032 | USD 349.4 Billion |
| Compound Annual Growth Rate (CAGR) | 15.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Vehicle Type, Sales Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Toyota Motor Corporation, Hyundai Motor Company, Mitsubishi Motors Corporation, Kia Corporation, Daimler AG, Nissan Motor Co. Ltd., AB Volvo, General Motors Company, Subaru Corporation, Ford Motor Company |
| Key Market Opportunities | · The rising demand for greener and more sustainable transportation solutions. |
| Key Market Dynamics | · Increased emphasis on reducing the carbon emissions and improving fuel efficiency in the transportation sector. |
Major Players
Hybrid Powertrain Market Segmentation
Hybrid Powertrain Type Outlook (USD Billion, 2018-2032)
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
Hybrid Powertrain Vehicle Type Outlook (USD Billion, 2018-2032)
- Passenger Cars
- Commercial Vehicles
Hybrid Powertrain Sales Channel Outlook (USD Billion, 2018-2032)
- OEM Sales
- Aftermarket
- Online Sales
Hybrid Powertrain Regional Outlook (USD Billion, 2018-2032)
- North America Outlook (USD Billion, 2018-2032)
- North America Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- North America Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- North America Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- US Outlook (USD Billion, 2018-2032)
- US Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- US Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- US Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- CANADA Outlook (USD Billion, 2018-2032)
- CANADA Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- CANADA Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- CANADA Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Europe Outlook (USD Billion, 2018-2032)
- Europe Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Europe Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Europe Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Germany Outlook (USD Billion, 2018-2032)
- Germany Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Germany Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Germany Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- France Outlook (USD Billion, 2018-2032)
- France Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- France Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- France Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- UK Outlook (USD Billion, 2018-2032)
- UK Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- UK Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- UK Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- ITALY Outlook (USD Billion, 2018-2032)
- ITALY Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- ITALY Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- ITALY Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- SPAIN Outlook (USD Billion, 2018-2032)
- Spain Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Spain Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Spain Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Rest Of Europe Outlook (USD Billion, 2018-2032)
- Rest Of Europe Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- REST OF EUROPE Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- REST OF EUROPE Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Asia-Pacific Outlook (USD Billion, 2018-2032)
- Asia-Pacific Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Asia-Pacific Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Asia-Pacific Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- China Outlook (USD Billion, 2018-2032)
- China Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- China Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- China Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Japan Outlook (USD Billion, 2018-2032)
- Japan Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Japan Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Japan Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- India Outlook (USD Billion, 2018-2032)
- India Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- India Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- India Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Australia Outlook (USD Billion, 2018-2032)
- Australia Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Australia Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Australia Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
- Rest of Asia-Pacific Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Rest of Asia-Pacific Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Rest of Asia-Pacific Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Rest of the World Outlook (USD Billion, 2018-2032)
- Rest of the World Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Rest of the World Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Rest of the World Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Middle East Outlook (USD Billion, 2018-2032)
- Middle East Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Middle East Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Middle East Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Africa Outlook (USD Billion, 2018-2032)
- Africa Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Africa Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Africa Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Latin America Outlook (USD Billion, 2018-2032)
- Latin America Hybrid Powertrain by Type
- Full Hybrid (HEV)
- Mild Hybrid (MHEV)
- Plug-In Hybrid (PHEV)
- Latin America Hybrid Powertrain by Vehicle Type
- Passenger Cars
- Commercial Vehicles
- Latin America Hybrid Powertrain by Sales Channel
- OEM Sales
- Aftermarket
- Online Sales
- Rest of the World Hybrid Powertrain by Type
- Asia-Pacific Hybrid Powertrain by Type
- Europe Hybrid Powertrain by Type
- North America Hybrid Powertrain by Type
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