Automotive and Transportation Hybrid Electric Car Market Research Report, 2023 | Page 2

Hybrid Electric Car Market
The strict government regulations on the emission of carbon dioxide (CO 2 ) from vehicles and the fall in battery prices are
some of the reasons behind the growth of the hybrid electric car market. In 2017, the market generated a revenue of
$57,164.8 million, and it is expected to attain a size of $1,38,023.3 million by 2023, progressing at a 16.7% CAGR during
the forecast period (2018–2023). Hybrid electric cars use an internal combustion engine (ICE) with a battery, which is
charged by converting the kinetic energy produced during braking into electric energy.
On the basis of hybridization, the hybrid electric car market is bifurcated into full and mild. Of these, in 2017 the full
bifurcation held a larger revenue share of more than 85.0% in the market, and it is predicted to dominate it during the
2018–2023 period as well. However, mild hybrid cars are predicted to grow faster in the market during the forecast
period, especially in developing nations, such as India and China. This growth can be due to the low cost of mild hybrid
cars compared to full hybrid variants.
Further the mechanical integration of components and powertrains and properties, such as electric turbocharger, power
steering, and air conditioning, at a low cost is easier in mild hybrid cars. A full hybrid car is nearly $2,500–$3,500 costlier
than a similar conventional car. Even though a full hybrid car is more fuel-efficient than the mild one, the latter provides
a better cost-to-benefit ratio due to its comparatively low upfront cost. Furthermore, the cost-efficient aspect for
customers and the time-saving aspect for producers are boosting the growth of the hybrid electric car market.
P&S Intelligence