Despite being a relatively niche market in a thriving automotive industry, the hybrid cars market presents astounding potential. And this can be seen in the way auto bigwigs such as Volkswagen, General Motors, Nissan, Hyundai, BMW, Ford, Honda, and Toyota have jumped on the hybrid bandwagon.
According to findings by a report published by Transparency Market Research, the global hybrid cars market is anticipated to expand from a value of US$102.88 bn in 2015 to US$398.90 bn by 2024. If these values hold true, the market is poised to register an impressive CAGR of 16.50% over the course of the forecast period.
Main reason behind the introduction of hybrid cars and what continues to drive their adoption
For over a decade now, countries around the world have raised serious concerns regarding the alarming rise in air pollution levels and a surge in carbon emissions, mainly emitted by vehicles. This has resulted in a growing interest in ways of curbing these emissions and governments in various countries have begun encouraging people to turn to environment-friendly ways of commuting. This led to the introduction of hybrid cars. These eco-friendly vehicles are powered by electricity, enabling them to emerge as the perfect solution to solving air pollution on a global scale.
Governments around the world continue to play a major role in the expansion of the hybrid cars market as they have not only mandated the adherence of stringent emission norms and regulations but have also been offering various subsidies and incentives to get more and more people to opt of hybrid cars. This factor presently accounts for a major part in the development of the market and is slated to reflect positively in terms of sales in the coming years.
Asia Pacific to Emerge as The Leading Market for Hybrid Cars
China and Japan have been exhibiting a high level of consumer awareness when it comes to carbon emissions and adopting environment-friendly vehicles. The innumerable benefits offered by hybrid cars are not lost on consumers in these countries and an increasing number of people have been switching from conventional to unconventional means of transportation. This can also be supplemented by immense support shown by the governments in Japan and China. Various initiatives to encourage as well as promote the uptake of hybrid cars has boded well for these countries.
It is, therefore, no surprise that Asia Pacific dominates the global market for hybrid cars and in 2015, accounted for a massive 70.0% share. If ongoing trends continue to impact this regional market the way they have in the past, the APAC hybrid market is poised to exhibit a strong cumulative average growth rate over the course of the next seven years.