Mild Hybrid Vehicles Market

Mild Hybrid Vehicles Market Overview:

The Mild Hybrid Vehicles Market size was valued at USD 199.95 Billion in 2023. The Mild Hybrid Vehicles industry is projected to grow from USD 209.54 Billion in 2024 to USD 290.95 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.18% during the forecast period (2024 - 2032). Increasing demand for environmentally friendly vehicles, increasing government initiatives to enhance mild hybrid vehicles, and growing demand for alternative fuel efficiency are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mild Hybrid Vehicles Market Trends

• Increasing stringency of emission norms is driving the market growth

Market CAGR for mild hybrid vehicles is driven by the rising stringency of emission norms. Governments of various countries are developing strict vehicular carbon emission restrictions, considering the extreme impacts of pollutants on the atmosphere and human health. For instance, in July 2019, the US Department of Transportation implemented a 5.50 USD penalty rate for auto manufacturers that fail to concede with the Corporate Average Fuel Economy (CAFÉ) standards. These regulations have compelled manufacturers to enhance funding for the development & production of Mild Hybrid Cars.

New product launches by various automobile manufacturers are boosting the demand for mild hybrid vehicles market revenue over the forecast period. For instance, In August 2021, German automobile producer Mercedes Benz replaced its C-Class with a new refined model. The vehicle is available in petrol and diesel engine variants, all equipped with 48V mild hybrid technology. The car is also one of Germany's best-selling models for over a decade.

Increasing prices of fossil fuels due to the depletion in stocks and global politics coupled with awareness among people regarding emissions from IC engines have boosted the sale of electric vehicles. The International Energy Agency stated in their Global EV Outlook 2020 that in 2019, more than 2.1 million sales of electric cars were recorded worldwide, with a 40% year-on-year growth. The mild hybrid vehicle is a viable alternative to the traditional IC engine-powered vehicle, as it does not require significant modifications, which might result in high costs for OEMs and customers, and also provides considerable fuel savings and reduction in emission. Mild Hybrid Cars permit the engine to be turned off whenever the car is cruising, braking, or stopped, yet it restarts quickly. These vehicles employ regenerative braking to recharge the batteries. These benefits have prompted numerous OEMs to introduce Mild Hybrid Cars. For instance, VW Golf, Audi A4, BMW 3 Series, Mercedes-Benz C-Class, Fiat 500, Volvo KC 60 and 90 Series, Kia Ceed, and Ford Kuga are a few mild hybrid vehicle models available. Thus, the rising popularity of electric vehicles and a wide variety of options are driving the Mild Hybrid Vehicles Market.

Mild Hybrid Vehicles Market Segment Insights:

Mild Hybrid Vehicles Capacity Insights

The Mild Hybrid Vehicles Market segmentation, based on capacity, includes up to 12V, 12V to 24V, and more than 24 V. The more than 24 V segment dominated the market, accounting for 35% of market revenue (69.96 Billion). In developing economies, category growth is driven by an expanding demand for mild hybrid vehicles equipped with more than 24 V capacity has steadily grown in various countries across the globe. However, up to 12V is the fastest-growing category as leading manufacturers are launching vehicles with 12V mild-hybrid vehicles over the forecast period.

January 2020: Suzuki Corporation has declared that it is working on developing a 48V mild hybrid system in its best-selling car models, such as the Baleno, Ciaz, XL6, Ertiga, and XL6.

Mild Hybrid Vehicles Battery Type Insights

The Mild Hybrid Vehicles Market segmentation, based on battery type, includes lithium-ion, lead acid, and others. The lithium-ion category generated the most income. This is majorly due to the advantages that lithium-ion batteries offer. Lithium-ion batteries have a higher power density, indicating they can carry more energy in a smaller space, which benefits vehicles with limited space. However, the passenger car is the fastest-growing category as it is durable and provides dependable service.

Mild Hybrid Vehicles Vehicle Type Insights

The Mild Hybrid Vehicles Market segmentation, based on vehicle type, includes passenger cars and commercial vehicles. The commercial vehicles category generated the most income (70.4%). This is due to the enhanced adoption of hybrid heavy-duty vehicles in land-based freight operations. However, passenger car is the fastest-growing category as hybrid cars are best served for stop-and-go driving, where irregular utilization of the electric motor can enable significant fuel cost savings.

Figure 1: Mild Hybrid Vehicles Market, by Vehicle Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Mild Hybrid Vehicles Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American mild hybrid vehicles market will dominate this market due to government initiatives and strict emission standards. Moreover, the developments concerning electric vehicles and the benefits, such as affordability provided by the Mild Hybrid Cars, will boost the market growth in this region. Further, the US mild hybrid vehicles market held the largest market share, and the Canada mild hybrid vehicles market was the fastest growing market in the North American region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Mild Hybrid Vehicles Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's mild hybrid vehicles market accounts for the second-largest market share owing to the high presence of OEMs and the stringent emission norms encouraging the adoption of electric vehicles. Further, the German mild hybrid vehicles market held the largest market share, and the UK mild hybrid vehicles market was the fastest-growing market in the European region.

The Asia-Pacific mild hybrid vehicles market is expected to grow at the fastest CAGR from 2023 to 2032. This is owing to having the highest vehicle sales, majorly in China. Many automotive companies have planned to invest in this region to cater to the strong demand for Mild Hybrid Cars. For instance, In October 2021, General Motors launched its Buick GL8 Classic with a 48V mild hybrid powertrain in China. Moreover, China’s mild hybrid vehicles market held the largest market share, and the Indian mild hybrid vehicles market was the fastest-growing market in the Asia-Pacific region.

Mild Hybrid Vehicles Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the mild hybrid vehicles market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the mild hybrid vehicles industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global mild hybrid vehicles industry to benefit clients and increase the market sector. Major players in the mild hybrid vehicles market, including Toyota Motor Sales, USA, Inc., Ford Motor Company, AB Volvo, Continental AG, ZF Friedrichshafen AG, Hyundai Motor Company, and others, are attempting to increase market demand by investing in research and development operations.

Volvo Car AB is a subsidiary of Zhejiang Geely Holding Group Co., Ltd, a car manufacturing company. It manufactures various cars, including SUVs, wagons and sedans. Volvo Car markets its products under the Volvo brand. Its models include XC90, XC70, V70, V60, V60 Cross Country, S80, S60 and other related models. It provides fleet sales and concept cars. The company has product development, manufacturing, sales, technology and customer service operations in Sweden, Belgium, and China. It sells cars through a network of dealers worldwide. In November 2021, Volvo Cars launched a mild hybrid version of its flagship XC90 SUV in India. This mild hybrid petrol engine on the new Volvo XC90 replaces the 2-liter diesel engine that was previously available. The new petrol mild hybrid XC90 is available in a sole B6 Inscription trim, and the four-cylinder turbo-petrol unit works in conjunction with a 48V integrated starter-generator motor.

Mercedes-Benz Group AG, formerly Daimler AG, is an automobile company. It develops, manufactures and distributes premium and luxury cars and vans. The organization also offers several services, such as financing, leasing, car subscription, car rental, fleet management, insurance brokerage, digital charging and payment services, and innovative mobility services. The company strives to develop efficient powertrains and go all-electric in an emissions-free, software-driven environment. It has production facilities in Europe, North and Latin America, Asia and Africa. The company sells its vehicles and provides services in almost every country on all continents. In October 2021, Mercedes-Benz unveiled two models, GLE Coupé and GLE, as diesel mild hybrids. They are provided with the existing four-cylinder diesel engine OM 654 M, which has a second-generation integrated starter-generator (ISG) and provides 200 kW/272 hp. The ISG includes the 48V electrical system.

Key Companies in the Mild Hybrid Vehicles market include

• 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
• Mitsubishi Motors Corporation
• BYD Co. Ltd

Mild Hybrid Vehicles Industry Developments

June 2021: BMW announced that it would provide mild hybrid 48V powertrain options for its new X3 and X4 SUVs and the 4 Series Gran Coupé. The petrol and diesel line-up for both X3 and X4 models have been revamped with 48V mild hybrid technology, while the previously available plug-in hybrid also carries forward on the X3.

March 2021: Hyundai launched its new mild hybrid cars. A vacation hotspot also inspires the car's name, Bayon, in southwest France. The car has a 1-liter turbocharged petrol engine integrated with 48V mild hybrid technology.

Mild Hybrid Vehicles Market Segmentation:

Mild Hybrid Vehicles Capacity Outlook

• Up To 12V
• 12V To 24V
• More Than 24 V

Mild Hybrid Vehicles Vehicle Type Outlook

• Passenger Cars
• Commercial Vehicles

Mild Hybrid Vehicles Battery Type Outlook

• Lithium Ion
• Lead Acid
• Others

Mild-Hybrid (MHEV) Cars Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America
  •  

Mild Hybrid Vehicles Market Segmentation

Mild Hybrid Vehicles Capacity Outlook (USD Billion, 2018-2032)

• Up To 12V

• 12V To 24V

• More Than 24 V

Mild Hybrid Vehicles Vehicle Type Outlook (USD Billion, 2018-2032)

• Passenger Cars

• Commercial Vehicles

Mild Hybrid Vehicles Battery Type Outlook (USD Billion, 2018-2032)

• Lithium Ion

• Lead Acid

• Others

Mild Hybrid Vehicles Regional Outlook (USD Billion, 2018-2032)

• North America Outlook (USD Billion, 2018-2032)

  • North America Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • North America Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • North America Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • US Outlook (USD Billion, 2018-2032)

  • US Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • US Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • US Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • CANADA Outlook (USD Billion, 2018-2032)

  • CANADA Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • CANADA Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • CANADA Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

• Europe Outlook (USD Billion, 2018-2032)

  • Europe Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Europe Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Europe Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Germany Outlook (USD Billion, 2018-2032)

  • Germany Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Germany Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Germany Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • France Outlook (USD Billion, 2018-2032)

  • France Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • France Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • France Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • UK Outlook (USD Billion, 2018-2032)

  • UK Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • UK Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • UK Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • ITALY Outlook (USD Billion, 2018-2032)

  • ITALY Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • ITALY Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • ITALY Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • SPAIN Outlook (USD Billion, 2018-2032)

  • Spain Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Spain Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Spain Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Rest Of Europe Outlook (USD Billion, 2018-2032)

  • Rest Of Europe Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • REST OF EUROPE Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Rest Of Europe Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

• Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Asia-Pacific Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Asia-Pacific Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Asia-Pacific Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • China Outlook (USD Billion, 2018-2032)

  • China Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • China Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • China Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Japan Outlook (USD Billion, 2018-2032)

  • Japan Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Japan Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Japan Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • India Outlook (USD Billion, 2018-2032)

  • India Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • India Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • India Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Australia Outlook (USD Billion, 2018-2032)

  • Australia Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Australia Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Australia Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)

  • Rest of Asia-Pacific Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Rest of Asia-Pacific Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Rest of Asia-Pacific Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

• Rest of the World Outlook (USD Billion, 2018-2032)

  • Rest of the World Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Rest of the World Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Rest of the World Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Middle East Outlook (USD Billion, 2018-2032)

  • Middle East Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Middle East Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Middle East Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Africa Outlook (USD Billion, 2018-2032)

  • Africa Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Africa Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Africa Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others

  • Latin America Outlook (USD Billion, 2018-2032)

  • Latin America Mild Hybrid Vehicles by Capacity

    • Up To 12V

    • 12V To 24V

    • More Than 24 V

  • Latin America Mild Hybrid Vehicles by Vehicle Type

    • Passenger Cars

    • Commercial Vehicles

  • Latin America Mild Hybrid Vehicles by Battery Type

    • Lithium Ion

    • Lead Acid

    • Others