Mild hybrid vehicles are equipped with a gasoline powered internal combustion engine and an electric motor to improve fuel efficiency without compromising engine power or driving range. The electric motor assists the engine during acceleration and captures energy through regenerative braking to charge the battery. This helps improve fuel efficiency by around 10-20% compared to conventional vehicles. The lower cost of batteries used in mild hybrids along with an extended driving range of over 500 km on a single tank makes it an affordable alternative for daily commutes.

The global Mild Hybrid Vehicle Market is estimated to be valued at US$ 99.97 billion in 2023 and is expected to exhibit a CAGR of 18.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The opportunity of battery's lower cost and extended driving range is expected to boost the adoption of mild hybrid vehicles. The batteries used in mild hybrids are smaller in size and cheaper compared to full hybrids, which helps reduce the upfront cost of vehicles. Additionally, mild hybrid powertrains don't require frequent charging and can deliver a driving range comparable to conventional ICE vehicles on a single tank. This overcomes the range anxiety associated with electric vehicles. As fuel prices continue to rise and consumers become more environment conscious, the added benefits of improved fuel efficiency and lower running costs offered by mild hybrids is driving their popularity. Manufacturers are also expected to leverage government incentives and subsidies for electrified vehicles to further bring down prices and make mild hybrids more accessible to mainstream buyers looking for an affordable green mobility solution.

Porter’s Analysis
Threat of new entrants: The mild hybrid vehicle market has moderate threat of new entrants with high capital requirements for R&D, manufacturing, consumer brand loyalty towards established brands. However, opportunities lies in government subsidies and tech advancements lowering entry barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives like ICE and EVs. However, offerings of improved fuel efficiency and performance attract new buyers.
Bargaining power of suppliers: Auto parts suppliers have low to moderate power due to established supply networks of key players and differentiated technologies requiring long-term collaborations and investments.
Threat of new substitutes: New propulsion options like strong hybrids and EVs pose high substitution threat but are more expensive. Mild hybrids offer a cost effective gas-electric solution.
Competitive rivalry: Intense due to dominance of leading global automakers and availability of close substitutes. Focus on technology, pricing and branding drives competition.

SWOT Analysis
Strengths: Improved fuel efficiency and performance over ICE vehicles. Lower emissions compliance and costs compared to hybrids.
Weaknesses: Higher costs than ICE. Limited all-electric range and mileage can impact adoption.
Opportunities: Government initiatives for greener vehicles. Expanding shared mobility market.
Threats: Stiff competition from EVs. Dependence on gasoline and fluctuating fuel prices.

Key Takeaways
The Global Mild Hybrid Vehicle Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by stringent emission norms. 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 18.5% over the forecast period 2023 to 2030.

Regional analysis: The Asia Pacific region accounts for over 40% of the global mild hybrid vehicle market led by China, Japan, and India. China is the largest producer and consumer of automobiles worldwide and has ambitious EV goals under its new energy vehicle mandate which is driving hybrid vehicle adoption. Japan and South Korea are major hybrid tech leaders with Toyota and Hyundai pioneering their development and commercialization. India has introduced FAME-II subsidy scheme for electrified vehicles to reduce oil imports and curb pollution in major cities, benefiting mild hybrid sales. Europe is the second largest mild hybrid vehicle market driven by stringent EU emission norms. Germany and UK contribute major share as leading automotive manufacturing hubs.

Key players: 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 pioneer in hybrid technologies and dominates the mild hybrid category with models like Corolla, RAV4, Highlander offering efficient powertrains.

 

Get more insights on this topic:
https://www.zupyak.com/p/3958618/t/the-global-mild-hybrid-vehicle-market-growth-accelerated-by-enhanced-fuel-efficiency