The mild hybrid vehicles market is expected to register a CAGR of over 4%, during the forecast period, 2020 - 2025.

  • The stringent emission standards, fuel efficiency, and government incentives are the major factors driving automakers and buyers to shift toward hybrid vehicles from conventional vehicles.
  • Asia-Pacific is expected to grow at a faster during forecast period. Although, certain trends in the emerging countries, like India, may hinder the sales growth of hybrid vehicle type, as the country has recently removed the subsidy for mild-hybrid vehicles under FAME scheme in 2017.
  • While North America and Europe regions are expected to have considerable growth for mild hybrid vehicles, as these regions have been focusing more toward pure electric or full hybrid vehicles growth.

Key Market Trends

48V and Above Mild Hybrid Vehicles Continue to Capture the Major Market Share

Currently, many automakers has started to launch 48V mild hybrid as a standard features in their new vehicle models over the past three years (2016-2018). For instance, Volkswagen, one of the major players in mild hybrid market, announced that it may launch 48V mild hybrid version of eighth generation Golf in 2019.

Additionally, in April 2019, Ford unveiled vehicle models namely Fiesta EcoBoost Hybrid and Focus EcoBoost Hybrid for the European market. These vehicle models feature a mild-hybrid architecture with a belt-driven integrated starter/generator (BISG) replacing the standard alternator, enabling recovery and storage of energy usually lost during braking and coasting to charge a 48-volt lithium-ion air-cooled battery pack.

With the increasing production of 48V and above voltage mild hybrid models from automakers, the growth rate of mild hybrid vehicles in the global market is likely to continue to grow positively during the forecast period.

Asia-Pacific Continues to Capture the Major Market Share

Across the regions, Asia-Pacific has been predominantly capturing the largest share in the market, owing to their highest vehicles sales, majorly from China. Many automotive companies made plans to invest in the Asia-Pacific market to take advantage of the strong demand for hybrid vehicles.

For instance, Toyota is focusing to be in-line with growing technologies in the automotive industry and is currently working with Panasonic to improve the battery technology. Low cost and less weight are major aspects of their research. The company anticipates to supply next-generation solid state batteries commercially by 2020.

Suzuki formed a joint venture (JV) with Toshiba and Denso to procure lithium ion batteries. The total value of the JV is USD 184 million, where Suzuki holds 50% share, Toshiba and Denso hold 40% and 10% shares, respectively. Lithium ion batteries account for 50% of the cost for an electric vehicle.

The above plans of the automakers toward battery development is anticipated to further boost their mild hybrid vehicle sales in the Asia-Pacific market during the forecast period.

Competitive Landscape

Some of the major players in the market include Toyota Motor Corporation, Audi AG, Nissan Motor Co. Ltd, Honda Motor Company Ltd, Suzuki Motor Corporation. Among them, Toyota, Nissan, Suzuki and Honda had nearly 50% share of the global mild hybrid vehicles market in 2019.

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