Hybrid Drivetrain Market Size

Hybrid Drivetrain Market Size

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.

To get key market trends

  Download Free Sample

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.