Mild Hybrid Electric Vehicle (MHEV) Market Size, By Capacity (Less than 48V, 48 V and Above), By Vehicle (Passenger Cars, Commercial Vehicles), By Battery (Lithium-ion, Lead Acid), Forecast 2024 - 2032

Mild Hybrid Electric Vehicle Market Size

Mild Hybrid Electric Vehicle Market size was valued at USD 103.5 billion in 2023 and is estimated to register a CAGR of over 17.5% between 2024 and 2032, fueled by the increasing number of product launches from leading companies. As automotive manufacturers strive to meet stringent emissions regulations and consumer demand for more fuel-efficient vehicles, MHEVs have emerged as a popular choice. For instance, in March 2023, the latest iteration of the Mercedes-Benz G-Class introduced new mild-hybrid engines. The 2025 model underwent various enhancements, including the SUV receiving a power boost thanks to the integration of mild-hybrid technology.
 

These vehicles offer a cost-effective solution by incorporating mild hybrid technology, which includes features like start-stop functionality and regenerative braking. With major players consistently introducing new models equipped with MHEV systems, consumers have a wider range of options to choose from. Additionally, incentives and subsidies offered by governments to promote eco-friendly transportation further fuel the demand for MHEVs, driving market growth and innovation in the automotive industry.

The mild hybrid electric vehicle (MHEV) market is experiencing a surge in demand due to the expanding product introductions by companies venturing into new regions. As automotive manufacturers seek to address global concerns about emissions and fuel efficiency, they are increasingly expanding their product offerings of mild hybrid electric vehicles into previously untapped markets. By introducing MHEVs in new regions, automakers aim to cater to diverse consumer preferences and regulatory requirements worldwide.
 

As a result, the market for mild hybrid electric vehicles market is witnessing significant growth fueled by the expansion of product introductions into new regions. For instance, in November 2023, after successful prototype testing in Africa, Toyota launched a mild-hybrid variant of the Hilux in the European market. The goal was to enhance both fuel efficiency and driving performance, offering consumers in the region an upgraded and environmentally conscious option.
 

Fluctuating fuel prices and the uncertainty surrounding traditional fossil fuel reserves drive consumers to seek more fuel-efficient alternatives. MHEVs offer a solution by combining electric propulsion with conventional internal combustion engines, resulting in reduced fuel consumption. As fuel prices continue to rise, consumers are increasingly drawn to MHEVs for their cost-saving benefits over the long term. This factor contributes significantly to the growing demand for hybrid electric vehicles across various market segments.
 

While the MHEV market shows promising growth, several restraints hinder its full potential. The higher upfront cost of MHEVs than traditional vehicles deters some consumers despite potential long-term savings. Besides, limited charging infrastructure for plug-in hybrid variants may hinder adoption rates, especially in regions with inadequate infrastructure. Thirdly, concerns about battery lifespan and maintenance costs pose challenges, potentially impacting consumer confidence.
 

Moreover, technological limitations, such as range anxiety for electric modes and performance trade-offs in hybrid systems, may deter some buyers. Addressing these restraints through innovation, infrastructure development, and consumer education is crucial for maximizing the market potential of mild hybrid electric vehicles.
 

Mild Hybrid Electric Vehicle Market Trends

The mild hybrid electric vehicle (MHEV) industry is witnessing significant trends driven by the emergence of advanced parts from auto parts maker companies. As automotive manufacturers strive to enhance the performance, efficiency, and sustainability of MHEVs, they increasingly rely on specialized components from auto parts suppliers. These companies are at the forefront of innovation, introducing advanced technologies such as high-efficiency electric motors, lightweight battery systems, and sophisticated power electronics.
 

Moreover, advancements in regenerative braking systems, aerodynamics, and thermal management solutions are reshaping the landscape of MHEV design and engineering. As a result, the market is experiencing a shift towards more sophisticated and efficient MHEVs, offering consumers enhanced driving experiences and reduced environmental impact. Collaborations between automakers and auto parts makers drive these trends, paving the way for further advancements in MHEV technology.
 

Citing an instance, in February 2023, MTA engineered a 48 V unit specifically designed for Renault and Dacia mild hybrid vehicles. With this development, the component manufacturer anticipated a significant role in the hybridization of vehicles within the Renault Group.
 

Mild Hybrid Electric Vehicle Market Analysis

Based on capacity, the market is divided into less than 48V and 48 V and above. In 2023, 48V and above segment accounted for a market share of around 57% and is expected to cross over USD 230 billion by 2032. These higher voltage architectures enable more powerful electric propulsion and advanced features, enhancing overall vehicle performance and efficiency.
 

With consumers increasingly prioritizing fuel efficiency and environmental sustainability, MHEVs with 48 V and above capacity systems offer significant benefits, including improved fuel economy and reduced emissions. Additionally, advancements in hybrid technology and battery systems support the integration of higher voltage systems, driving further demand for MHEVs with 48 V and above capacity across various market segments.
 

Based on vehicle, the mild hybrid electric vehicle market is categorized into passenger cars and commercial vehicles. The passenger cars segment accounted for around 85% of the market share in 2023. Consumers increasingly prioritize fuel efficiency, sustainability, and reduced emissions, making MHEVs an attractive option for eco-conscious drivers. Furthermore, advancements in hybrid technology have improved the performance, driving dynamics, and overall experience of MHEVs in passenger cars.
 

Government incentives and regulations also play a role in driving demand for MHEVs in this segment. With a wide range of MHEV models available from various automakers, consumer interest in these vehicles continues to rise, fueling the demand for mild hybrid electric vehicles in the passenger car market.
 

Asia Pacific is the fastest-growing region in the global mild hybrid electric vehicle market with a major share of around 48% in 2023. Rapid urbanization, increasing disposable incomes, and growing environmental concerns drive the demand for fuel-efficient and eco-friendly transportation options. Moreover, government initiatives promoting clean energy and reducing carbon emissions further boost the adoption of MHEVs.
 

With a burgeoning middle class and expanding automotive industry in countries like China, Japan, and South Korea, the Asia-Pacific region presents a lucrative market for mild hybrid electric vehicles. As consumers seek sustainable mobility solutions, the demand for MHEVs in the Asia-Pacific region continues to grow, driving market expansion and innovation in hybrid vehicle technology.
 

Mild Hybrid Electric Vehicle Market Share

Ford Motor Company and Toyota Motor Corporation held significant market share of around 15% market share in 2023. Ford Motor Company invests heavily in hybrid and electrified vehicle technology as part of its broader strategy to transition towards more sustainable transportation solutions. The company also focuses on expanding its hybrid lineup by introducing new models and variants across different vehicle segments.
 

Toyota is a pioneer in hybrid technology, with its renowned Toyota Hybrid System (THS) used in vehicles like the Toyota Prius and Toyota Camry Hybrid. The company focuses on continuous improvement and innovation to enhance the efficiency, reliability, and affordability of its mild hybrid vehicles.
 

Mild Hybrid Electric Vehicle Market Companies

Major companies operating in the MHEV 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
   

Mild Hybrid Electric Vehicle Industry News

• In September 2023, Toyota globally introduced a 48-volt mild hybrid system for its Hilux and Land Cruiser Prado models. Specifically, Toyota confirmed that the Land Cruiser Prado's 1GD-FTV 2.8-liter inline-four turbo diesel engine will be integrated with the 48-volt mild hybrid system.
   
• In January 2024, Maruti Suzuki reintroduced its mild-hybrid technology in the top MT variants of the Brezza SUV. The 1.5-liter K15C mild-hybrid engine was offered in the ZXI MT and ZXI+ MT trims. Last July, the carmaker discreetly discontinued the mild-hybrid manual variants of the SUV. However, the technology has now returned, but exclusively in the higher-spec variants.
   

The mild hybrid electric vehicle (MHEV) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and Shipments (Units) from 2018 to 2032, for the following segments:

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Market, By Capacity

• Less than 48V
• 48 V and above

Market, By Vehicle

• Passenger cars
  • Less than 48V
  • 48 V and above
• Commercial vehicles
  • Less than 48V
  • 48 V and above

Market, By Battery

• Lithium-ion
• Lead Acid
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA