The global mild hybrid electric vehicle market was valued at USD 103.5 billion in 2023 and is projected to be worth USD 432.6 billion by 2032, according to recent report by Global Market Insights Inc.
Mild Hybrid Electric Vehicle Market size is projected to expand at over 17.5% CAGR from 2024 to 2032, led by increasing environmental regulations and the surging demand for fuel-efficient vehicles.
Innovative developments in battery and hybrid systems are enhancing the performance and cost-effectiveness of mild hybrid electric vehicles (MHEVs). The high demand for such vehicles is encouraging manufacturers to come up with new product launches. For instance, in April 2024, Toyota launched a new mild-hybrid version of its Fortuner SUV in South Africa, featuring the same powertrain as the previously unveiled Hilux MHEV for offering enhanced performance and fuel efficiency.
The introduction of government incentives and subsidies for hybrid and electric vehicles is also boosting the product adoption. The rising fuel prices are encouraging consumers to seek more economical transportation options. The growing awareness of sustainable mobility solutions and the shift of the automotive sector towards electrification are complimenting the industry growth.
The mild hybrid electric vehicle industry is segregated into capacity, vehicle type, and region.
Rising Demand for Passenger Cars
The mild hybrid electric vehicle market is segmented by vehicle type into passenger cars and commercial vehicles. In 2023, the passenger cars segment dominated the market, accounting for approximately 85% of the share. Growing consumer emphasis on fuel efficiency, environmental sustainability, and reduced emissions has made MHEVs an appealing choice for eco-conscious drivers. Additionally, advancements in hybrid technology have enhanced the performance, driving dynamics, and overall experience of MHEVs in passenger cars, further boosting their appeal.
48V and above to gain traction
The mild hybrid electric vehicle market is categorised by capacity into less than 48V and 48V and above. In 2023, the 48V and above segment captured approximately 57% of the market share and is projected to exceed USD 230 billion by 2032. These higher-voltage systems provide enhanced electric propulsion and support advanced features, significantly improving vehicle performance and efficiency.
As consumer focus shifts toward fuel efficiency and environmental sustainability, MHEVs with 48V and above systems stand out for their ability to deliver superior fuel economy and lower emissions, making them an increasingly popular choice.
Asia Pacific to establish a notable presence
The Asia Pacific mild hybrid electric vehicle industry accounting for approximately 48% of the global share in 2023. This growth is driven by rapid urbanisation, rising disposable incomes, and heightened environmental awareness, which fuel the demand for eco-friendly and fuel-efficient transportation solutions. Additionally, government initiatives aimed at promoting clean energy and reducing carbon emissions further accelerate the adoption of MHEVs in the region.
Mild Hybrid Electric Vehicle Market Players
Major companies operating in the industry are Ford Motor Company, General Motors, Honda Motor Company Ltd, Hyundai Motor Company, Kia Motors Corporation, Mitsubishi Motors Corporation, Nissan Motor Co. Ltd., Suzuki Motor Corporation, Toyota Motor Corporation, Volkswagen AG.
Source – https://www.gminsights.com/industry-analysis/mild-hybrid-electric-vehicle-market
