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Automotive Parallel Hybrid Power System Market Size - By Component, By Vehicle, By Propulsion, By Application, By Technology, Analysis, Share, Growth Forecast, 2025 - 2034
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Automotive Parallel Hybrid Power System Market
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Base Year: 2024
Companies covered: 20
Tables & Figures: 200
Countries covered: 21
Pages: 170
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Automotive Parallel Hybrid Power System Market Size
The global automotive parallel hybrid power system market was valued at USD 63.2 billion in 2024 and is projected to grow at a CAGR of 8.2% between 2025 and 2034. Policies that seek to achieve a reduction in the emission of greenhouse gases and an improvement in the efficiency of fuel utilization are the main cause pushing the evolution to hybrid electric systems with a cleaner power. Almost every state has signed a pledge to lower emissions, and together with these new targets there are different forms of policies employed: tax cuts, subsidies, and even the encouragement of hybrid electric vehicles.
Looking broadly at the world, following the decision made by the European Union to set new emissions targets for new passenger vehicles in January 2023, the bloc imposed a 95g CO2/km average limit on the fleet of cars to which the policy is to apply. This policy measure provided motivation for automotive companies to speed up the transition to hybrid and electric vehicles that would allow them to fulfill legal requirements while also catering to consumer expectations for quick and environmentally sustainable transportation options. Other examples of such efforts include a focus on fuel efficiency and lowering GHG emissions in the design of hybrid power systems.
Inefficient internal combustion engine fueled cars are losing people’s attention due to prevalence of cost because of the spiraling fuel prices, and in similar lines, parallel hybrid vehicles have been developed to enhance fuel economy by optimizing the combined connection between IC engines and electric motors. In return, this minimizes the fuel consumption as well as the overall cost of operating the vehicle. This economic gain that hybrid vehicles provide, especially in comparison to ICE vehicles, is crucial in their general acceptance and usage in cost-oriented regions.
Automotive Parallel Hybrid Power System Market Trends
The rising concern about vehicle emissions and climate change, there is an unprecedented demand for hybrid cars that allow for an eco-friendly alternative. Hybrid cars reduce tailpipe emissions but still use the internal combustion engine, so they serve as an intermediate option for full electric vehicles. The automotive sector, including the government, is making serious efforts to manifest cars that are environmentally friendly and promote sustainability. In light of the increase in target customers who are willing to go green, there is an emerging global trend towards hybrid power systems.
Firstly, parallel hybrids and hybrid power systems are emerging as an intermediate option between fully electric and ICE cars, vehicles, and EVs. Selling points for hybrids include clean electric propulsion while enhancing the efficiency of conventional engines. As hybrid systems become more efficient and affordable, this trend is expected to grow over time.
With the gradual evolution of hybrid batteries, the hybrid power systems market is continually blooming. In addition, next-generation technologies like solid and lithium-sulphur batteries are expected to have quicker charging and better safety, alongside significantly improved gravimetric energy density. Because of these enhancements, the cost and weight of hybrid systems would decrease significantly, resulting in manufacturers increasing the span of their hybrid vehicles and making them easier to market to society.
In July 2023, Connect Robotics, in lithium AI’s Meta Chang, and QuantumScape, a pioneer in next-generation battery technology, announced they have developed a solid-state lithium metal battery and intend to sell these for EV and hybrid applications. When compared to traditional lithium-ion batteries, these have higher energy density and faster charging speed, suggesting that these would solve problems related to hybrid power systems.
Automotive Parallel Hybrid Power System Market Analysis
Based on component, the market is segmented into electric motor, ICE, battery, power electronics, and transmission system. In 2024, the ICE holds around market share of 39% and is expected to exceed USD 50 billion by 2034.
Based on the vehicle, the automotive parallel hybrid power system market is divided into passenger cars, two-wheelers and commercial vehicles where the passenger cars segment held around 64% of the share in 2024.
In 2024, the U.S. region accounted for a automotive parallel hybrid power system market share of over 78% and is expected to exceed USD 30 billion by 2034.
The growth of automotive parallel hybrid power system market in Europe is largely driven by the advancements in hybrid technology, environmental concerns and stringent EU regulations.
The growth of automotive parallel hybrid power system market in Asia Pacific is largely driven by the stringent regulations and industry initiatives.
Automotive Parallel Hybrid Power System Market Share
Automotive Parallel Hybrid Power System Market Companies
Major players operating in the automotive parallel hybrid power system industry are:
The competition in the automotive parallel hybrid power system market is among automakers, who have been around for some time and firms that specialize in technology. Such a competition exists owing to the increase in demand for environmentally friendly and fuel-efficient vehicles. Such integration is the goal of the traditional automakers that are seeking to modify their compact cars, sport vehicles and luxury vehicles with Integrated Parallel Hybrid Systems.
The traditional automotive industry is investing vast amounts of money towards embedded-switching research to meet set emission targets without compromising battery life and performance. Such a strategy is widely adopted in conjunction with working together with electronics and battery suppliers, assisting with hybrid system development SOI or System on Interposer.
Automotive Parallel Hybrid Power System Industry News
The automotive parallel hybrid power system market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) & shipment (Units) from 2021 to 2034, for the following segments:
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Market, By Component
Market, By Vehicle
Market, By Vehicle
Market, By Application
Market, By Technology
The above information is provided for the following regions and countries: