MILD HYBRID VEHICLE MARKET ANALYSIS

The global mild hybrid vehicle market was valued at US$ 71.19 Bn in 2021 and is forecast to reach a value of US$ 333.27 Bn by 2030 at a CAGR of 18.5% between 2021 and 2030. The mild hybrid vehicle market is experiencing strong growth due to immense growth and innovation of the OEMs globally, increasing transitions towards the electrification and the rising environmental concerns are some major factors propelling the market growth. However, the significant rise in demand of battery electric vehicles is a factor expected to hamper growth of the market. Based on the segment the market is divided by capacity type, and vehicle type.

Global Mild Hybrid Vehicle Market: Regional Insights

Based on geography, the global mild hybrid vehicle market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa.

Among regions, North America is expected to gain highest share in the mild hybrid vehicle market due to the government initiatives and the strict emission standards. Moreover, the developments taking place with respect to the electric vehicles and the benefits such as affordability that is provided in mild hybrid vehicle in comparison to the full hybrid vehicle is projected to propel the growth of the global mild hybrid vehicle market in the region. 

Furthermore, Europe is also expected to witness robust growth in the global mild hybrid vehicle market as the demand for mild hybrid cars is growing significantly in Germany over the past few years owing to several factors, such as people are opting for low or zero-emission vehicles. New product launches by many automobile manufacturers are also increasing the demand for mild hybrid cars in Germany which is anticipated to aid the growth of the global mild hybrid vehicle market. For instance, In August 2021, the German automobile producer Mercedes Benz altered its C-Class with a new refined model. The car is used in both diesel and petrol engine variants which are all equipped with 48-volt mild-hybrid technology. The car is also one of the best-selling models for more than a decade in Germany.

Figure 1. Global Mild Hybrid Vehicle Market Share (%), By Region, 2021

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Global Mild Hybrid Vehicle Market Drivers:

Hybrid vehicles are known to be the middle-ground amongst Internal Combustion Engine (ICE) vehicles and Battery Electric Vehicles (BEV). As part of their vision for net- zero carbon emission in a targeted duration, governments of many regions across the world have executed several policies and incentives to boost the use of hybrid vehicles in the direction of transitioning entirely to electric vehicles which is anticipated to drive the growth of global mild hybrid vehicle market.

Furthermore, India is planning to execute strict European-style emission regulations (Euro 7) for the automobile industry in the country by April 2022. In line with this agreement, automakers will have to cut emissions by nearly 13% per kilometer valuing around 113 grams. Such strict rules are bound to turn the buyers and manufacturers towards mild hybrid vehicles as viable substitute which is expected boost the growth of the global mild hybrid vehicle market.

Global Mild Hybrid Vehicle Market Opportunities:

Electric vehicles can claim high initial investments in spite of various incentives provided by governments globally. However, fleet owners can substitute this by utilizing mild hybrid systems that provide high fuel efficiency. Moreover the optimum fuel efficiency provided by the Mild Hybrid System vehicles poses a great opportunity for fleet owners which is projected to fuel the growth of the global mild hybrid vehicle market.

The Mild hybrid vehicles can offer excellent opportunities for companies that provide products in the Mobility as a Service (MaaS) domain. Since the fuel-efficient measures at around 5% more than conventional ICE vehicles, it opens up a wide range of opportunities for both service providers and their users, providing lower expenses on a total which is expected to boost the growth of the global mild hybrid vehicle market.

Global Mild Hybrid Vehicle Market Trends:

The prospective for higher fuel efficiency also concerns the OEMs. The producers can meet these vehicles' rising stringent emission rules while also reaching their carbon emission targets. Various new models introduced by OEMs about this, highlight the high future strength and durability mild hybrid vehicles have in them which is anticipated to boost the growth of the global mild hybrid vehicles market.

Moreover, with additional components such as 48V battery, motor, and power control unit, the technology also offers significant opportunities for relevant suppliers. The huge demand in the rising number of new and innovative models and the prospects of growth for part suppliers to fulfil the demand is anticipated to act as a rising trend in the global mild vehicle market. 

Global Mild Hybrid Vehicle Market Restraints:

The additional torque and silent engines in the mild hybrid vehicle is projected to hamper the mild hybrid vehicle market growth. Simple nature of the car and affordable cost of electricity can attract the end users. Though these features are not accessible in the mild hybrid vehicle and thus are anticipated to impede the market.

The delay in production of new models and decreasing research and development in the time of pandemic is anticipated to hinder the growth of the global mild hybrid vehicle market. Due to the rising cases of pandemic in many regions there was a halt in production of goods in the manufacturing units which impeded the growth of global mild hybrid vehicle market.                                    

Figure 2. Global Optical Transport Network Market Share (%), By Vehicle Type, 2021

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Global Mild Hybrid Vehicle Market Segmentation:

The global mild hybrid vehicle market report is segmented into capacity type and vehicle type

Based on the capacity type, the market is segmented into less than 48V and 48 and above. Out of which the segment with less than 48V is expected to dominate the market over the forecast period as vehicles with less than 48V are being launched by the automobile manufacturers in several countries across the globe. For instances, in October 2021, the European automaker Renault launched its new petrol engine. The 1.3- liter turbo petrol engine is equipped of advanced technology as the engine is designed with the 12V mild-hybrid technology.

The 48V and above segment is also expected to witness robust growth in near future, as 48V battery was introduced due to the rising need for power supply to electronic devices, such as compressor, heater, power steering, and electric pumps. Many automakers started approving 48V mild-hybrid as standard features in their new automotive models over the past three years. For instance, in December 2021, the Cadillac division of General Motors Corporation Limited (SAIC-GM) granted the new XT4 compact crossover SUV.

Based on vehicle type, the market is segmented into commercial vehicle and passenger car. Out of which the passenger car segment is expected to dominate the market over the forecast period as demand for mild-hybrid passenger cars is rising. In the passenger cars, over the past few years, the mild-hybrid technology has gained momentum due to the increasing number of new product launch. For example, on 3rd March 2021, the renowned automobile manufacturer Hyundai revealed its all-new crossover SUV Bayon.

The commercial vehicles segment is also projected to witness significant growth in the near future as the mild-hybrid technology has been vastly identified in light commercial vehicles that comprise pick-up trucks and vans. As the demand for light commercial vehicles is increasing globally, the major OEMs, such as RAM, Daimler, etc. are involved in the production and approval of the new products with new technologies. For instances, in May 2021, the American commercial vehicle manufacturer Ram has launched its pick-up truck 1500 DT in Australia.

Global Mild Hybrid Vehicle Market: Key Developments

In August 2021, Toyota declared its new BEV series, Toyota bZ, in launch of a full line-up of electrified vehicles. A concept version of the first model in the series was revealed at Auto Shanghai, and 15 BEVs are projected to be introduced worldwide by 2025.

In September 2021, Toyota enhanced the awareness about EVs and hybrids in India. In line with the government of India’s mission to foster acquirement of electrified automotive and following the Toyota Environmental Challenge 2050, Toyota Kirloskar Motor (TKM) approved the xEV SHIKSHA web app.

In October 2019, Toyota Glanza added a new variant in its line-up, the G MT, and approved into the Indian market. The rebadged version of the Maruti Suzuki Baleno, the Glanza's newest base design comes powered by the 1.2-liter VVT petrol engine albeit without the mild-hybrid system.

In February 2021, the third-generation Nissan Qashqai was uncovered, before going on sale in international markets. The Qashqai is accessible with an option of two electrified petrol powertrains, the more conventional of which pairs a 1.3-liter turbo-petrol engine with a 12V mild-hybrid system.  The 12V setup recovers energy under deceleration to power on-board systems when the engine is immobile and offers a small force boost when accelerating.

Global Mild Hybrid Vehicle Market: Key Companies Insights

The global mild hybrid vehicle market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global 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

 *Definition: Mild hybrid vehicle is also called micro hybrids which employ a battery and electric motor to support power the vehicle and can permit the engine to shut off when the vehicle stops such as at traffic lights or in stop-and-go traffic, hence enhancing fuel economy.