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Hybrid Powertrain Market Size - By Type (Full Hybrid (HEV), Mild Hybrid (MHEV), Plug-In Hybrid (PHEV)), Vehicle Type (Passenger Cars and Commercial Vehicles), Sales Channel (OEM Sales, Aftermarket, And Online Sales), Regional Outlook & Forecast, 2023 – 2032

  • Report ID: GMI6865
  • Published Date: Oct 2023
  • Report Format: PDF

Hybrid Powertrain Market Size

Hybrid Powertrain Market size was valued at USD 97 billion in 2022 and is estimated to grow at a CAGR of 14.8% between 2023 and 2032. A hybrid powertrain, frequently employed in vehicles, merges multiple power sources to propel the vehicle. This entails the integration of an internal combustion engine, like gasoline or diesel, with an electric motor or battery system.

Hybrid Powertrain Market

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A hybrid powertrain is a favored technology for automobiles, offering a balance between combustion engines and electric motors. Hybrid powertrains are implemented in a wide range of vehicles, from sedans and SUVs to trucks and buses, due to their fuel efficiency and reduced emissions benefits.

The hybrid powertrain market depends on a variety of factors, and unsustainable practices in the automotive sector can impact environmental sustainability and ecosystem health. Alternatives like fully electric and hydrogen fuel cell technology pose competition to hybrid powertrains in specific applications. Market demand for hybrid powertrains can fluctuate due to economic factors, government incentives, and consumer preferences, which may influence acceptance rates and potentially hinder industry growth.

COVID-19 Impact

The hybrid powertrain market experienced setbacks with construction projects delayed or halted during lockdowns and labor shortages, impacting the demand for hybrid vehicles used in building and infrastructure sectors. The reduced consumer spending on non-essential items influenced the demand for hybrid powertrains in automotive applications. Consequently, the declining number of COVID-19 cases and the implementation of governmental and non-governmental strategies are expected to stimulate growth in the market in the coming years.

Hybrid Powertrain Market Trends

The hybrid powertrain industry is experiencing heightened demand driven by an increased emphasis on sustainability and responsible manufacturing practices in response to growing environmental awareness and regulations. There is a notable focus on reducing carbon emissions and promoting circular economy principles within the hybrid powertrain production process. Growing interest is observed in hybrid powertrains due to their consistent performance, versatility, and potential cost savings in the automotive sector. Additionally, specialized hybrid powertrain solutions are emerging for specific applications, such as electric and hybrid systems designed for commercial vehicles, contributing to the accelerated growth of the market.

Hybrid Powertrain Type Market Analysis

Hybrid Powertrain Market Size, By Type, 2021 - 2032 (USD Billion)

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The hybrid powertrain market from full hybrid (HEV) segment dominated around USD 66 billion revenue in 2022. Mild hybrid (MHEV) powertrains incorporate a small electric motor and battery to assist the internal combustion engine, enhancing fuel efficiency. In contrast, plug-in hybrid (PHEV) powertrains have larger batteries that can be charged via an external power source for extended electric-only driving range, further reducing emissions.


Hybrid Powertrain Market Revenue Share, By Vehicle Type, (2022)

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The passenger cars segment accounted for 60% of the hybrid powertrain market share in 2022. Hybrid powertrains are increasingly adopted in commercial vehicles like trucks and buses to reduce fuel consumption and emissions during frequent stop-and-start city driving, enhancing environmental sustainability and cost-efficiency.

The hybrid powertrain market from OEM sales segment is anticipated to witness 19.4% CAGR through 2032, due to growing presence in the aftermarket and online sales channels. As consumers seek eco-friendly transportation solutions, hybrid powertrain components and systems are increasingly available through aftermarket suppliers, offering opportunities for retrofitting existing vehicles.

U.S. Hybrid Powertrain Market Size, 2020- 2032 (USD Billion)

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U.S. hybrid powertrain market size held over USD 11.1 billion in 2022, driven by increasing environmental awareness and government incentives. Consumers and businesses alike are seeking vehicles that offer reduced emissions and improved fuel efficiency.

Hybrid Powertrain Market Share

Some of the major companies operating in the hybrid powertrain market are:

  • Toyota Motor Corporation
  • Honda Motor Co., Ltd.
  • Ford Motor Company
  • Hyundai Motor Company
  • General Motors Company
  • Volkswagen Group
  • BMW AG
  • Daimler AG (Mercedes-Benz Group AG)
  • Subaru Corporation
  • Fiat Chrysler Automobiles (FCA)
  • Porsche AG
  • Nissan Motor Co. Ltd.
  • Kia Corporation
  • AB Volvo
  • Mitsubishi Motors Corporation

These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.

Hybrid Powertrain Industry News:

  • September 2023, Toyota Motor Corporation launched a new version of its chauffeur-driven Century model in Japan, with a monthly base sales volume of 30 units. The Century model will be fully customizable on a global basis. The production of the latest model will be done in the Tahara Plant.
  • In January 2023, General Motors Company invested USD 918 million in four powertrain production facilities in the U.S. With this investment, GM will set up four plants to produce sixth-generation small block V8 powertrains and EV components.

This hybrid powertrain market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Thousand Units from 2018 to 2032, for the following segments:

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Market, By Type

  • Full Hybrid (HEV)
  • Mild Hybrid (MHEV)
  • Plug-in Hybrid (PHEV)

Market, By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

Market, By Sales Channel

  • OEM Sales
  • Aftermarket
  • Online Sales
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Indonesia
    • Malaysia 
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • Saudi Arabia
    • UAE


Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of hybrid powertrain reached USD 97 billion in 2022 and is set to cross USD 390.3 billion by 2032, led by the increased emphasis on sustainability and responsible manufacturing practices in response to growing environmental awareness and regulations.

Full hybrid (HEV) powertrain industry generated USD 66 billion in revenue in 2022, due to their superior fuel efficiency, reduced emissions, and increased focus on sustainable transportation solutions worldwide.

U.S. market accounted for USD 11.1 billion in revenue in 2022, propelled by the increasing environmental awareness and government incentives.

Some major hybrid powertrain companies are Toyota Motor Corporation, Honda Motor Co., Ltd., Ford Motor Company, Hyundai Motor Company, General Motors Company, Volkswagen Group, BMW AG, Daimler AG (Mercedes-Benz Group AG), Subaru Corporation, and Fiat Chrysler Automobiles (FCA).

Hybrid Powertrain Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 173
  • Countries covered: 17
  • Pages: 150
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