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Hybrid Drivetrain Market - By Level (Mild HEV, Full HEV, PHEV), By Type (Series, Parallel, Series-Parallel), By Component (HEV, PHEV) & Forecast, 2021-2027

  • Report ID: GMI4495
  • Published Date: Jun 2021
  • Report Format: PDF

Industry Trends

Hybrid Drivetrain Market size surpassed USD 80.69 billion in 2020 and is estimated to exhibit more than 27.2% CAGR from 2021 to 2027. Rising awareness pertaining to vehicular emissions will drive the industry growth.

Government incentives for low and zero-emission vehicles is likely to fuel the market demand. Financial stimuli, such as tax credits and tax exemptions, encourages vehicle adoption by decreasing the upfront costs. For instance, in Shenzhen (China), local authorities are offering support of USD 4 to 5 thousand for every New Energy Vehicle (NEV) to stimulate automotive sales, which was declined impelled by the COVID-19 epidemic. Such initiatives are generating a substantial demand for hybrid drivetrains.

Hybrid Drivetrain Market

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Research, Development and Demonstration (RD&D) initiatives to lower the overall hybrid vehicle battery cost and resource-associated problems will positively influence the hybrid drivetrain market revenue. Lowering the battery cost and performance enhancement are important to attract more consumers to use hybrid vehicles. According to the International Energy Agency (IEA), the battery cost will lower from USD 5 to 8 hundred per kwh to USD 3 to 4 hundred per kwh to reach breakeven price in comparison with the ICE vehicle driving system.

Numerous automotive producers are reducing CO2 emissions due to strict new requirements taking effect in 2020 and 2025. For instance, in 2020, European Union has implemented the regulation that from 2021 onward the average fleet carbon emissions will be restricted to 95 g of CO2 per km, which is influencing the market demand.

The rising adoption of PHEVs is likely to surge the industry proliferation

The PHEV segment is set to generate over USD 60 billion by 2027on account of increasing sales and production of plug-in hybrid electric vehicle production in the past few years. In emerging countries including Germany, Spain, and China, the potential of hybrid drivetrain sales is enormous. In 2020, plug-in hybrid electric vehicle production in China was nearly 260 thousand units. According to the U.S. Department of Energy, in 2019, the U.S. had over 20,000 charging stations, compared to 18,000 in 2018. Further, market participants are undertaking strategic agreements for innovative charging technology.

High power efficiency to enhance the series-parallel drivetrain installation

In 2020, the series-parallel type held around 65% of the hybrid drivetrain market share led by its higher operational output. The series-parallel drivetrain enables the car to be driven individually by electric motor or IC engine or by both operating together which improves operational range.

Reduction in battery cost to decrease vehicle ownership cost

Hybrid Drivetrain Market, By HEV Components

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The battery component segment is expected to capture about 50% market share by 2027 in hybrid electric vehicles. The industry has witnessed some recent development such as newly developed nickel-metal hydride batteries, which has higher life cycle compared to lead-acid batteries and are safe. Decrease in battery cost is achievable with the improvement in chemistry and increase in production scale. Moreover, ongoing electric vehicle developments for automotive controls and batteries will increase the industry growth.

Europe to lead the industry size

Hybrid Drivetrain Market, By Region

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Europe hybrid drivetrain market size is forecast to register above 25% CAGR through 2027 owing to the growing government policies and initiatives for low and zero-emission vehicles. The expansion of charging infrastructure, improvements in electric vehicles, and enhancements in driving range will further support the regional market growth. Covid-19 significantly impacted hybrid electric vehicle production and sales in 2020. However, despite the forced lockdown and HEV production pause worldwide, the hybrid electric vehicles (HEV) market observed substantial growth. For instance, according to the European Automobile Manufacturers Association (ACEA) for 2020, the hybrid electric vehicles sales in Europe crossed 1.1 million units.

The Hybrid Drivetrain industry to be consolidated

The hybrid drivetrain market is consolidated with the top ten players holding a significant share. Companies are involved in collaboration with hybrid electric vehicle manufacturers to have a competitive advantage over other players. Manufacturers are developing advanced solutions for high-performance electric vehicles to strengthen their market position.

Some of the key manufacturers of the industry are BAE Systems, Aisin Seiki, Delphi Automotive, ZF Friedrichshafen, BorgWarner Inc., Continental AG, Hofer Powertrain, Denso, JATCO Ltd., Magna International, Obrist Powertrain, Punch Powertrain Nanjing.

This market research report on hybrid drivetrain includes in-depth coverage of the industry with estimates & forecast in terms of volume in Thousand Units and revenue in USD million from 2017 to 2027 for the following segments

Market, by Level

  • Mild HEV
  • Full HEV
  • PHEV

Market, by Type

  • Series
  • Parallel
  • Series-Parallel

Market, by Components

  • HEV
    • Power Electronics
    • Battery
    • Electric Motor
    • Controller
  • PHEV
    • Power Electronics
    • Battery
    • Electric Motor
    • Controller

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Sweden
    • Norway
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • Australia
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Chile
  • Middle East & Africa
    • South Africa
Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

The hybrid drivetrain market revenue valued at around USD 80.69 billion in 2020 and will grow at a CAGR of over 27.2% up to 2027.

The hybrid drivetrain industry share from the PHEV level segment could surpass USD 60 billion by 2027 due to the higher sales and production of plug-in hybrid electric vehicles over the past few years.

Demand for series-parallel type hybrid drivetrains reached nearly 65% of the overall market share in 2020 and will grow with the rising need for higher operational output.

Battery components are pegged to record close to 50% of the hybrid drivetrain market share by 2027 with higher adoption in electric vehicles.

Europe hybrid drivetrain industry size is poised to expand at a 25% CAGR up to 2027 driven by the rise in the number of government policies and initiatives for low and zero-emission vehicles in the region.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 16
  • Tables & Figures: 228
  • Countries covered: 16
  • Pages: 225
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