The hybrid drivetrain market is expected to witness substantial growth by 2027 due to growing awareness about fuel efficiency and surging global demand for hybrid vehicles. Moreover, increasing focus on vehicle electrification across the globe is also expected to facilitate market expansion through the forecast period.
With rising climate consciousness, all industries have been working on making their operations as environment-friendly as possible. The automotive sector, in particular, has been focusing on reducing greenhouse gas emissions, investing in energy-efficient components, and promoting decarbonization of the economy.
Studies have found that consumer adoption of fuel-efficient vehicles plays a major role in enhancing the energy efficiency of the light-duty vehicle sector. To increase adoption of these vehicles, policymakers have drafted various policies, including incentives, zero emission vehicle mandate, and fuel economy standards, among others.
Purchase motivations like environmental friendliness, technical innovation, fuel economy, and cost are massively impacting market adoption. Hybrid cars use more than one means of propulsion by integrating an electric motor with a petrol diesel engine. These vehicles offer several benefits like lower fuel consumption and CO2 emission than traditional petrol- or diesel-based vehicles.
Due to their various advantages, hybrid vehicles have seen a rise in demand, which is positively impacting market dynamics across key regions. Industry players are capitalizing on emerging trends in the sector, and thus, improving hybrid drivetrain market outlook. For instance, in June 2021, Lexus, Toyota’s luxury vehicle division, introduced the 2022 Lexus NX - the first car to carry its plug-in hybrid drivetrain.
The vehicle is equipped with the new plug-in hybrid vehicle (PHEV) system, which is intended to reinforce the Lexus Electrified vision through performance and the characteristic silence of a PHEV model. The plug-in hybrid drivetrain runs on a 2.5-liter inline-4 engine, with an 18.1kWh lithium-ion battery as well as front and rear electric motors.
For comprehensive assessment, the hybrid drivetrain market has been segmented on the basis of level, type, component, and region. In terms of type, the market has further been bifurcated into series, parallel, and series-parallel.
The series sub-segment was valued at USD 6.0 billion in 2020 and is projected to rise at a considerable pace over 2021-2027. In series drivetrain, the electric motor is connected to the battery system which is solely responsible for propulsion of the vehicle. The battery is charged by gasoline engine and has a dedicated controller that determines the amount of power needed to propel the vehicle.
On the regional spectrum, the Middle East & Africa hybrid drivetrain market is estimated to observe substantial growth at a notable CAGR through the assessment timeframe driven by increasing product demand in the region.
The Middle East region is gaining momentum owing to fast-developing countries, such as Turkey, Israel, Iran, Saudi Arabia, and UAE. Rapid economic growth and government efforts aimed at diversifying the economy have boosted the sales of hybrid, electric, and plug-in hybrid vehicles across the region, which is expected to propel market demand over the analysis time period.