The market of hybrid vehicles is expected to grow at the CAGR of 8.94% from 2018 to 2025 as per the report of Markets and Markets. The factors responsible for this growth include the longer driving range than the electrical vehicle, Eco-friendly nature, promotion of such vehicles on the governmental level and fuel efficiency. At present, the global market for hybrid vehicles is dominated by fewer companies.
Passenger car segment for hybrid vehicles is expected to see the highest growth. The growth of passenger vehicles is depended upon the increased demand for a personal hybrid vehicle, improved lifestyle of people and increase in the income. The increased sale of these vehicles is also attributed to the strict laws regarding emission and the increasing demand for mid-range vehicles. The governmental policies regarding hybrid vehicles are also promoting the sale of these vehicles.
The Asia Pacific is expected to see the highest growth due to the increased sale of such vehicles in China and Japan. The Asia Pacific is also the region where some major manufacturers of hybrid vehicles are present, which is also contributing to the growth of vehicles. Governments in the Asia Pacific are supporting the growth of hybrid vehicles. The market for hybrid vehicles in North America is expected to grow steadily.
Parallel hybrid is one of the fastest growing markets because it has a less complex system and its performance is greater compared to normal vehicles. The energy loss in such vehicles is also minimum due to the connection of the battery to the motors. Hybrid vehicles are expected to dominate the market in the forecast period.