Global Plug-In Hybrid Electric Vehicle (PHEV) Market Witnesses Outstanding Growth, Propelled by Environmental Concerns and Technological Advancements

DUBLIN, Aug. 29, 2023 /PRNewswire/ -- The "Plug-in Hybrid Electric Vehicle Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F Segmented By Vehicle Type, By Powertrain, By Range, By Battery Capacity, By Region, Competition" report has been added to  ResearchAndMarkets.com's offering.

The global plug-in hybrid electric vehicle (PHEV) market has witnessed remarkable growth in the year 2021, surpassing total sales from 2020.

Plug-in hybrid vehicles, featuring both an internal combustion engine and an electric motor, are powered by gasoline and batteries respectively. The ability to charge PHEV batteries through regenerative braking, wall outlets, or charging equipment provides flexibility to users. These vehicles can operate purely on electric motors until the battery is depleted, automatically switching to the internal combustion engine. The market growth is further propelled by various components such as the battery pack, charging port, electric generator, electric traction motor, and more.

Steady Expansion of the Electric Vehicle Market

The global electric vehicle market has showcased significant expansion in 2021. The PHEV market has notably increased its share and is projected to exhibit gradual growth in the upcoming years. Alongside plug-in hybrid electric passenger vehicles, a diverse range of light-duty plug-in hybrid electric vehicle models are currently available in the market.

Challenges Faced by the Vehicle Industry

The automotive industry experienced a sales decline in 2020 and 2021 due to the impact of COVID-19, leading to weaker economic growth. Import restrictions from China impacted manufacturing plants and assembly lines worldwide, affecting vehicle production. The International Organization of Motor Vehicle Manufacturers (OICA) estimates a 13% decrease in global vehicle manufacturing in 2021 compared to 2019.

Growing Demand for PHEVs

The rising trend toward zero-emission vehicles, coupled with the need for short-range commutes of 40-60 km, has driven global demand for electric vehicles. Governments worldwide are focused on reducing greenhouse gas emissions and supporting low-carbon energy alternatives. Electric vehicle technology advancements have contributed to the growth of the electric vehicle market, with over 6.8 million units sold in 2021. Notably, China's PHEV sales doubled in 2021 compared to 2020, exceeding 600,000 units.

Preference for Short-Distance Travel Boosts PHEV Demand

Consumer preference for electric vehicle range has led to a push for longer ranges by automakers. New plug-in hybrid vehicle models in 2021 showcased an 8.5% increase in average driving range, exceeding 60 km. This enhanced range caters to daily short commute travel needs, further driving demand for PHEVs. China, Europe, and the United States capture the majority of the global electric vehicle market, while developing nations are also witnessing growth. Total global plug-in hybrid vehicle sales grew by over 90% in 2021 compared to the previous year, with a significant portion attributed to China.

Challenges in Initial Cost

Despite their benefits, plug-in hybrid vehicles come with a higher initial purchasing cost due to larger batteries and advanced components. While maintenance costs are lower than internal combustion engines, the higher upfront cost slows down adoption in some regions. Fuel savings and incentives can offset these costs, but the overall cost difference remains a factor affecting the pace of market growth.

Leading Industry Players

Prominent players in the global PHEV market include Renault SA, Nissan Motor Corporation Ltd., Volkswagen AG, Honda Motor Company Ltd., General Motors, Ford Motor Company, Daimler AG, Bayerische Motoren Werke AG, Mitsubishi Heavy Industries Ltd., and Toyota Motor Corporation.

In-Depth Segmentation

The comprehensive report encompasses several segments within the global PHEV market:

Vehicle Type:

• Passenger Car
• Light Commercial Vehicle
• Medium & Heavy Commercial Vehicle

Powertrain:

• Series Hybrid
• Parallel Hybrid
• Combined Hybrid

Range:

• Up to 40 km
• 40 to 60 km
• Above 60 km

Battery Capacity:

• Less than 10 kWh
• 10 to 20 kWh
• More than 20 kWh

For more information about this report visit https://www.researchandmarkets.com/r/elpvyj

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