Mild hybrid vehicles use small electric motor-generators and batteries to assist the combustion engine. They recover energy from braking and coasting to charge the battery and use that stored energy to boost acceleration and efficiency. They are less expensive than full hybrids and plug-in hybrids while still providing better fuel efficiency than conventional gasoline or diesel vehicles.

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 7.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The mild hybrid vehicle market is primarily driven by rising concern towards environmental sustainability. Vehicles equipped with mild hybrid technology offer an economically viable solution to reduce emissions and improve fuel efficiency compared to conventional vehicles. They consume around 15–25% less fuel than equivalent conventional internal combustion engine vehicles. Additionally, mild hybrid vehicles are an intermediate technology between conventional and full hybrid vehicles, making them more affordable for mass market adoption. This increases their popularity among cost-conscious customers. Furthermore, favorable government policies and regulations aimed at curbing vehicular pollution also contribute to the growth of mild hybrid vehicles. Various nations provide purchase incentives and tax rebates for buying hybrid vehicles. This encourages automakers to invest in mild hybrid technologies.

SWOT Analysis

Strength: Mild hybrid vehicles have higher fuel efficiency compared to conventional vehicles resulting in lower operational costs for customers. They provide partial electrification which reduces emissions. Automakers find mild hybridization as an attractive stepping stone towards full electrification due to relatively lower investment needs.

Weakness: The mild hybrid powertrain provides limited all-electric driving range and fuel savings compared to strong hybrids and plug-in hybrids. The upfront costs of mild hybrid vehicles are also higher than conventional vehicles.

Opportunity: Stringent emission regulations worldwide are boosting demand for electrified vehicles including mild hybrids. Growing consumer preference for environment-friendly mobility is another driver. Developing markets offer vast growth opportunities due to rising vehicle ownership.

Threats: Potential switch to stronger hybrids and full electric vehicles poses a threat as they provide superior performance and savings. Fluctuating fuel prices can impact the cost benefits of mild hybrids versus conventional cars. Trade wars and economic slowdowns are key macro risks for the automotive industry.


Key Takeaways

The global mild hybrid vehicle market scope is expected to witness high growth. It grew at a CAGR of 7.3% during the 2023 to 2030 forecast period and its size for the year 2024 is estimated to be US$ 99.97 Billion.

Regional analysis related content comprises Asia Pacific dominates the mild hybrid vehicle market currently with largest volumes emerging from China, Japan and India. Europe and North America are other major regional markets driven by strict emission norms while demand is steadily rising in Middle East and Africa as well.

Key players related content comprises 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, and Chevrolet. Toyota Motor Corporation is the current global leader in sales of electrified vehicles including mild hybrids.

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