Hybrid Market Expected to Reach $193B by 2024
Feb. 7, 2017—According to a Transparency Market Research report, the global hybrid vehicles market is expected to reach $193.3 billion by 2024.
The hybrid market was valued at $75.5 billion in 2015. Between 2016 and 2024, the report predicts the market will expand at a CAGR of 10.3 percent.
The top four players in the global hybrid vehicles market are Toyota, Hyundai, Ford and General Motors. These companies collectively accounted for a share of 19.5 percent in the global market in 2015. Transparency Market Research states that the continuous investment and ardent efforts to introduce new products that cater to the consumer needs are expected to keep these companies in the lead throughout the forecast period.
"The players are also expected to focus on strategic partnerships and penetration into emerging economies in the coming few years," states the lead author of the research report.
On the basis of type of vehicle, the global market is segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. Of these, the passenger vehicles segment made a significant contribution to the soaring revenue of the global market. By the end of forecast period, the passenger vehicles segment is expected to account for a share of 56.6 percent. Design and development of eco-friendly passenger vehicles is expected to boost this segment in the coming years.
The report states hybrid vehicles have been gaining traction over the past few years as they are being specifically designed to have low emission and thus environment friendly. The rising concerns pertaining to the environment amongst consumers and governments have augmented the demand for hybrid vehicles across the globe. The soaring price of fuel is also expected to lure consumers toward hybrid vehicles as they are known to be fuel efficient.
Though the hybrid systems are being positioned as the future of the automotive industry, their future remains dependent on the high research and development costs, according to the report, which states that the high cost of researching and developing hybrid vehicles is expected to hamper the global market in the coming years.
This cost eventually adds up to the selling price, which makes the new-age vehicles unaffordable for consumers. The market is also likely to be restrained by the lack of awareness about hybrid vehicles amongst end users.