Market Challenges And Opportunities

Global Hybrid Vehicles Market Drivers:

Government initiatives to boost the demand for hybrid vehicles

Growth of hybrid vehicles has tremendously increased globally, as these vehicles are appealable to larger audience than fully electric vehicles. Hybrid vehicles combine the long-range drivability, reliability, and instant refueling benefits of diesel and petrol vehicles. Government of countries around the world are focusing on various initiatives including offering subsidies to customers that purchase electric and hybrid vehicles. As a result, the demand for hybrid vehicles is increasing all over the world, which is likely to aid in growth of the global hybrid vehicles market over the forecast period.

Positive impact of hybrid vehicles on environment to support the market growth

Hybrid vehicles offer benefits of both gasoline engines and electric motors. These vehicles provide higher fuel and power efficiency as compared to traditional vehicles. For instance, use of hybrid system can reduce nearly 35% of fuel consumption. Most of the hybrid vehicles use advanced technologies such as automated start/stop, which reduces the idling of vehicles as it stops the engine automatically and offers immediate acceleration when it’s restarting.

Global Hybrid Vehicles Market Opportunities:

Growing initiatives toward reducing cost of electric motors is a major factor creating growth opportunities in the global hybrid vehicles market over the forecast period. Some of the state government associations are supporting various private associations that are focusing on achieving the ‘EV Everywhere Grand Challenge’ to drive the adoption of electric vehicles all over the world by 2025. For stance, the Vehicle Technologies Office (VTO) is actively supporting research and development activities for improving the electric motors used in hybrid and plug-in EVs. Such initiatives are likely to create growth opportunities in the market.

Growing market in developing countries is also expected to support growth of the global hybrid vehicles market over the forecast period. Hybrid vehicles are anticipated to offer substantial opportunities in developing countries due to support and initiatives by governments in these region. For instance, the government of India offers incentives of nearly US$ 446 on a purchase of electric and hybrid vehicles in the country. Thus, the market is growing emerging countries creating growth opportunities for the global market.

Global Hybrid Vehicles Market Restraints:

High cost of these vehicles to hinder the market pace

Hybrid and electric vehicles cost more than conventional vehicles that run on gasoline or diesel. This in turn impeded adoption of these vehicles mostly in developing regions. This factor is further expected to hamper growth of the global hybrid vehicles market over the forecast period. However, production of EVs is increasing by manufacturers through implementation of concept of economies of scale in order to reduce the cost of manufacturing. This factor is likely to support growth of the market.

Shortage of suitable EV infrastructure to impede the market growth

EV infrastructures such as charging stations are crucial for any type of EVs. Several regions have lack of such infrastructure which further affects adoption of these vehicles. The process of building charging stations is a complex process and can be of high cost. Thus, this factor acts as a major restraining factor for the global hybrid vehicles market, specifically in countries such as Brazil and India.

Restraints & Challenges: