Hybrid System Market

Hybrid System Market Size (2023-2028):

The Global Hybrid System Market was worth US$ 27.73 billion in 2022 and is anticipated to reach a valuation of US$ 48.04 billion by 2028 and is predicted to register a CAGR of 9.85% during 2023-2028.

Various driving factors of the global hybrid system market are the government's stringent rules for vehicle emission and government focus on decreasing carbon emission, reduced tail-pipe emission limits, tax benefits & incentives/subsidies for the adoption of electric vehicles.

Market Drivers:

The key factor driving the global hybrid system market's growth is the increasing demand for higher voltage systems to support hybridization. Hybridization reduced the system's downtime by improving the robustness during power-quality issues. The popularity of the hybrid system is supposed to steadily increase in the land and sea-based industry and commercial sectors, primarily due to the cost reduction of batteries and an increased energy density. Hybridization of systems improves flexibility and enhances the capacity to integrate a wide variety of standard battery bank voltages using a DC/DC converter. Therefore, the growing demand for hybridization of systems is expected to positively influence the global market's growth.

Market Restraints:

The key factor restraining the global hybrid system market is the lack of standardization of hybrid technologies like high-voltage batteries. Currently, there are no such particular industry norms or specifications. The components, such as electric motors, starter generators, and energy storage systems, could be standardized to decrease the R&D cost of developing hybrid systems. Standardizing the system components is difficult for the manufacturers, and this restrains market growth.

Market Recent Developments:

• In October 2017, Bosch launched a 48-volt battery for mild-hybrid systems to provide cost-efficient battery solutions to its customers.
• In April 2016, Delphi Automotive launched a 48-volt mild hybrid system that could be a pivotal solution for automotive manufacturers to adhere to future emission regulations and provide enhanced performance to its customers.

HYBRID SYSTEM MARKET REPORT COVERAGE:

Market Segmentation

Hybrid System Market - By System Type:

1. Start-Stop     
2. Regenerative Braking         
3. EV Drive        
4. eBoost 

The regenerative braking system is projected to be the largest segment of the global hybrid system market by value. The primary factor contributing to the massive demand for regenerative braking systems in mild hybrid cars is that it can reduce the fuel consumption of a car by 10–25%, according to the International Council on Clean Transportation (ICCT). The Asia Pacific region has the highest growth rate for the regenerative braking system in terms of volume and value owing to the increasing electric car sales volume in the area, followed by North America, where electric vehicle sales are growing significantly.

Hybrid System Market - By Vehicle Type:

• HEV
• PHEV
• EV

The EV drive system leads the hybrid system market in terms of value because of the high EV drive cost, which includes critical components such as high voltage battery, E-motor, and DC/DC Converter. The charge of high voltage batteries, which mainly comprises lithium-ion and nickel-based batteries, is supposed to decrease tremendously in the future. As per the ICCT (The International Council of Clean Transportation), the cost of battery packs for battery-electric vehicles was reduced to USD 295 per kWh in 2015. Further, it is anticipated that the price will come down to USD 154-212 per kWh by 2020. It is influencing the overall EV drive cost, as the critical component is a high-voltage battery.

Hybrid System Market - By Component:

• Battery
• DC/DC Converter
• DC/AC Inverter
• eMotor

The high-voltage battery is expected to control the largest market share by size in the hybrid system components market during the forecast timeframe. The high-voltage battery is one of the most critical and costly components in a plug-in hybrid or fully electric vehicle. A battery module's cost is up to 30–45% of a fully electric vehicle's total price. However, the manufacturers are trying to reduce the cost of battery packs used in EVs to make the electric vehicle's overall price cheaper and reachable to the mass market. The high-voltage battery market is predicted to remain the largest among the market for other hybrid system components.

Hybrid System Market - By Battery Type:

• Li-Ion
• Lead Acid
• NiMH

The lithium-ion battery type is estimated to control the largest market size during the outlook period. Acceptance in the high voltage battery market and its high power-to-weight ratio, good high-temperature performance, increased energy efficiency, and low self-discharge are the critical features of lithium-ion batteries. The majority of today's plug-in hybrid electric vehicles and fully electric vehicles use lithium-ion batteries, though the battery's cost is high. Nickel-based batteries were the second primary market as of 2016 after lithium-ion battery technology.

Market Regional Analysis:

The Global Hybrid System Market Report includes the segmentation of regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographically, the Asia Pacific market dominates the global hybrid system market in terms of revenue share. The primary factors driving the Asia Pacific market growth are increasing electric vehicle sales in developing countries such as India, China, Japan, and many others. Also, the Government of China is working towards transitioning the systems to end the production and sales of gasoline and diesel automobiles. Also, the Government of Japan had initiated the "Next-Generation Vehicle Strategy 2010", according to which it is estimated that the total market share of electric vehicle sales would be 50% of the entire automobile sales by the end of 2020. Nonetheless, North America is forecasted to emerge as the fastest-growing region during the forecast period 2016-2023. Because of the strict Corporate Average Fuel Economical (CAFE) regulations in the U.S., have supported the adoption of electric and hybrid vehicles in North America to improve light trucks and cars' fuel economy.

Impact of COVID-19 on Global Hybrid System Market:

The coronavirus pandemic had an immediate and critical impact on the globally integrated automotive industry. Symptoms include a disruption in Chinese parts exports, large-scale manufacturing interruptions across Europe, and assembly plants' closure in the United States. It is placing intense pressure on an industry already coping with a downshift in global demand, negatively impacting the global hybrid system market.

Furthermore, transportation restrictions and supply chain disruptions have created a logistical ordeal for market players, leading to severe automotive product shortages globally.

Market Key Players:

1. Bosch (Germany)
2. Continental (Germany)
3. Denso (Germany)
4. ZF (Germany)
5. Johnson Controls (U.S.).