The global hybrid cars market is characterized by the prevalence of intense competition among the prominent vendors such as Volkswagen, BMW, Honda, Nissan, Ford, Hyundai, General Motors, and Toyota. A report by Transparency Market Research (TMR) estimates that this competition is further going to be magnified owing to the innovations by the leading market vendors. The companies are constantly trying to launch new products in manner to lead the competition. It is expected that companies with global presence and huge product portfolio will dominate the market in the coming future.
In the report, Transparency Market Research has estimated that the market will attain value of US$398.90 bn by 2024, and it was valued at US$102.88 bn in 2015. During the forecast period of 2016-2024, the global market for hybrid cars is expected to expand at a rising CAGR of 16.50%.
In 2015, Asia Pacific dominated the market and accounted for 70% of the global market. The increasing awareness among the consumers, especially in Japan and China is expected to help Asia-Pacific sustain it lead over the forecast period. Among series parallel hybrid cars, plug-in hybrid, parallel hybrid, and series hybrid; series parallel hybrid cars are expected to experience high demand and drive the global market.
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Government Support for Low-Carbon Emitting Vehicles to Assist Market Growth
Consumers are adopting carbon-free products due to the alarming rise in the level of air pollution, which is continuously increasing the global temperature. Hybrid cars use electricity for their functioning instead of gasoline or diesel, helping to control carbon emission. This augmenting ecological awareness among consumers is expected to fuel the growth of the global market of hybrid cars.
Furthermore, governments in various countries have implemented strict rules to curb carbon emissions, which is motivating manufacturers to increase investment in the production of hybrid cars. Some governments are also providing various subsidies and incentives to buyers of hybrid cars, which is expected to fuel the demand for hybrid vehicles. For instance, for new passenger cars, the European Union norms of 2009 has set CO? emission level at 130g/km.
The Euro VI norm introduced in 2014, suggests new cars to keep the nitrogen oxide emission below 0.4g/kWh and other emissions below 0.01g/kWh. Analysts forecast that the countries such as Brazil, Russia, Mexico, and Australia will also implement stringent emission standards in the near future, which is most likely to increase the global sale of hybrid cars.
High Cost of Hybrid Cars could Hamper Global Market Growth
Hybrid cars are very expensive, which may hinder the growth of the market during the forecast period. Furthermore, electric cars are suspected to be the direct competitor of hybrid cars. Easy availability of electric cars may act as a restraint for the growth of the global market of hybrid cars. Nevertheless, the implementation of stringent emission standards is expected to be in the favor of hybrid cars, which is expected to result in growth of hybrid cars global market.
The hybrid cars are made up of lighter materials and have lighter engines, which make the car lighter, hence use less power for their functioning. As more consumers are adopting hybrid cars, these cars are started commanding higher resale values that traditional cars. This is motivating consumers to buy hybrid cars over traditional cars. The leading companies in this market are continuously spending on research and development practices of hybrid cars. These developments are expected to add an advantage for the growth of this market over the forecast period.
This information is taken from the report published by Transparency Market Research, “Hybrid Cars Market (Type – Series, Parallel, Plug-in, and Series-Parallel; Energy Source – ICE Hybrid, Fuel Cell Hybrid, Solar Hybrid, and Natural Gas Hybrid; Vehicle Type – Passenger Cars and Commercial Cars) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 – 2024.”