MILD HYBRID VEHICLE MARKET ANALYSIS

Mild Hybrid Vehicle Market Size and Trends

Global mild hybrid vehicle market is estimated to be valued at US$ 107.72 billion in 2024 and is expected to reach US$ 311.09 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 16.4% from 2024 to 2031.

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Global mild hybrid vehicle market is expected to witness significant growth over the forecast period. With stringent emission norms and rising environmental concerns, automakers across the world are focusing on electrifying their product portfolio. Mild hybrid vehicles provide a cost-effective option to automakers for meeting emission standards while ensuring operational efficiency. Therefore, many leading manufacturers are introducing more mild-hybrid models. The technology is also gaining acceptance among customers as it offers good fuel economy as compared to conventional internal combustion engine vehicles. Furthermore, technological advancements aimed at enhancing the driving range and performance of mild hybrids can boosts their adoption. However, high purchase price remains a challenge, especially in price-sensitive developing markets.

Reduced Fuel Consumption and Emission Levels

Mild hybrid vehicles help to reduce fuel consumption and emission levels as compared to conventional vehicles which depend solely on internal combustion engines. The integration of battery and electric motor assists the engine especially during acceleration and helps capture energy during braking which is then stored in the battery. This allows the engine to run more efficiently at optimal speeds and loads. Owners benefit from lower fuel costs as these vehicles tend to provide higher fuel economy in city driving conditions. The regenerative braking feature is particularly useful in stop-start traffic situations common in urban transportation. This directly impacts the operating costs for owners in a positive way.

Lower fuel consumption translates to reduced emission of pollutants from the vehicle. As more automakers focus on expanding their electrified vehicle portfolio to comply with tightening emission regulations, mild hybrids serve as a sensible transitional technology. The hybrid system helps optimize the internal combustion engine operations to boost efficiency. Although not as extensive as full hybrids, mild hybrid setups cut down significantly on harmful exhaust from the tailpipe. This benefits the environment as well as the reputation of automakers striving to be seen as sustainable mobility providers. The hybrid technology provides partial electrification benefits without the high battery costs of full hybrids, making it an attractive choice for those looking to minimize their carbon footprint from personal transport. For instance, according to research report published by U.S. Environmental Protection Agency in December, 2023, vehicle fuel efficiency hit an all-time high, while emissions hit a record low in 2022. Additionally, the report confirms that all 14 major manufacturers have met the requirements of the light-duty greenhouse gas program for the reporting period up to MY 2022

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Mild hybrid technology enhances the acceleration and overall driving experience offered in conventional vehicles. The integrated electric motor is capable of providing an instant torque boost during take-off and acceleration phases. This allows the engine to work in a more linear operating range for smooth power delivery. The driver feels a stronger and more responsive throttle response resembling that of a vehicle with a more powerful engine. The electric assist compensates for any lag typically experienced with a solely combustion-powered vehicle. This makes overtaking and merging into fast-moving traffic safer and easier.

The improved torque output from the combination of engine and electric motor results in better performance acceleration times. Drivers feel a sense of quickness despite the added weight and complexity of the hybrid system. During regular city commuting, the hybrid technology preserves the drivability and thrill of driving without any drawbacks of lower performance. Automakers are able to package the hybrid drivetrain without compromising on interior or trunk space either. This maintains the practicality expectations of buyers