Hybrid Electric Vehicle Market Size, Share, Growth & Forecast 2025-2033

Market Overview: The hybrid electric vehicle market is experiencing rapid growth, driven by stringent emission regulations and environmental policies, advancements in battery and hybrid technology and rising consumer demand for fuel-efficient vehicles. According to IMARC Group’s latest research publication, “Hybrid Electric Vehicle Market Size, Share, Trends and Forecast by Propulsion Type, Configuration Type, Vehicle Type, Power Source, and Region, 2025-2033”, The global hybrid electric vehicle market size was valued at 12.93 Million Units in 2024. Looking forward, IMARC Group estimates the market to reach 104.43 Million Units by 2033, exhibiting a CAGR of 25.78% from 2025-2033. This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis. Grab a sample PDF of this report: https://www.imarcgroup.com/hybrid-electric-vehicle-market/requestsample Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Hybrid Electric Vehicle Market

• Stringent Emission Regulations and Environmental Policies:

Governments around the world are enforcing strict emission standards to tackle climate change and reduce air pollution. This is significantly driving the hybrid electric vehicle (HEV) market. Agencies like the U.S. Environmental Protection Agency (EPA) and the European Union’s Euro 7 standards require lower carbon emissions, pushing automakers to create cleaner options like HEVs. For example, China’s New Energy Vehicle (NEV) policy encourages the adoption of hybrid vehicles to meet ambitious carbon reduction goals. These regulations promote HEVs, as they emit less pollution compared to traditional internal combustion engine vehicles. This appeals to environmentally conscious consumers and fleet operators who want to comply with low-emission zones.

• Advancements in Battery and Hybrid Technology:

Technological advancements in battery efficiency, electric motors, and energy management systems are advancing the HEV market. Innovations like lightweight lithium-ion batteries and improved thermal management systems have increased battery life and lowered costs, making HEVs more appealing. For instance, Toyota’s launch of the C-HR Plus in Europe, which includes a 57.7 kWh battery with a range of 455 km, demonstrates how modern battery technology improves vehicle performance. These developments address consumer concerns about range and dependability, making HEVs a sensible option for those moving from traditional vehicles to electric transportation.

• Rising Consumer Demand for Fuel-Efficient Vehicles:

Rising awareness of fuel efficiency and environmental sustainability is driving up demand for HEVs. Consumers are looking for vehicles that provide better fuel economy and lower operating costs without giving up performance. In regions like Asia-Pacific, where fuel prices are increasing, companies like BYD have experienced significant sales of hybrids, selling over 2.5 million hybrid vehicles in 2024. HEVs, which combine gasoline engines with electric motors, offer a cost-effective solution, especially in places with limited charging infrastructure. This demand is also boosted by government incentives, such as tax credits, that make HEVs more affordable for a wider range of consumers.

Key Trends in the Hybrid Electric Vehicle Market

• Growing Popularity of Plug-in Hybrid Electric Vehicles (PHEVs):

Plug-in hybrid electric vehicles (PHEVs) are gaining traction as a transitional technology between traditional engines and fully electric vehicles. PHEVs offer the flexibility of electric-only driving for short distances while relying on gasoline for longer trips, addressing range anxiety. In China, PHEV sales have grown significantly, with their share in total electric vehicle sales rising from 15% in 2020 to nearly 30% in 2024. Automakers like Honda and Hyundai are expanding their PHEV lineups, catering to urban consumers seeking greener mobility. This trend is supported by expanding charging infrastructure, making PHEVs a practical choice for diverse driving needs.

• Expansion of Charging Infrastructure:

The global push for electric vehicle (EV) charging infrastructure is indirectly benefiting the HEV market, particularly PHEVs. Governments and private companies are investing heavily in charging stations, easing concerns about accessibility. For example, India’s FAME India scheme approved a $96.13 million subsidy to establish 7,432 public EV charging stations by 2025, enhancing the appeal of PHEVs. This infrastructure development reduces barriers to adoption, as consumers can rely on external charging for electric mode operation. As charging networks grow, HEVs become a more viable option, especially in regions with limited prior access to charging facilities.

• Shift Toward Sustainable Mobility in Asia-Pacific

The Asia-Pacific region is emerging as a leader in HEV adoption, driven by consumer preferences, government policies, and regional automakers’ innovations. Countries like Japan, China, and South Korea are seeing a surge in hybrid vehicle sales, with companies like Toyota and BYD leading the market. In 2024, China’s hybrid vehicle sales were boosted by customer subsidies and a competitive pricing environment. This trend reflects a broader shift toward sustainable mobility, as rising fuel costs and stricter emission regulations encourage consumers to opt for HEVs. The region’s focus on eco-friendly transportation is shaping global market dynamics, with Asia-Pacific projected to maintain a significant market share. Leading Companies Operating in the Hybrid Electric Vehicle Industry:  

• Toyota Motor Corporation
• Honda Motor Co. Ltd.
• Ford Motor Company
• Volkswagen Aktiengesellschaft
• General Motors Company
• Hyundai Motor Company
• Nissan Motor Corporation Ltd.

Hybrid Electric Vehicle Market Report Segmentation: By Propulsion Type:

• Full Hybrids
• Mild Hybrids
• Plug-in Hybrids
• Others

Plug-in Hybrids lead the market with 29.7% share in 2024, offering longer electric-only ranges and appealing to eco-conscious consumers due to environmental concerns and government incentives. By Configuration Type:

• Series HEV
• Parallel HEV
• Combination HEV

Parallel HEVs dominate the market in 2024 due to their efficient design that optimizes fuel efficiency and power output, making them attractive for both consumers and manufacturers. By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Two-Wheelers
• Others

Passenger Cars represent 85.7% of the market in 2024, driven by consumer demand for fuel-efficient and environmentally-friendly options, supported by advancements in battery technology and government incentives. By Power Source:

• Stored Electricity
• On Board Electric Generator

Stored Electricity holds a 70.0% market share, enhancing fuel efficiency and reducing emissions by efficiently utilizing battery power replenished through regenerative braking and the internal combustion engine. Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

North America captures over 40.9% market share in 2024, fueled by strong consumer demand, government incentives, and a robust charging infrastructure, with the U.S. leading in PHEV and HEV production. Research Methodology: The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability. Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations. About Us: IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research. Contact Us: IMARC Group 134 N 4th St. Brooklyn, NY 11249, USA Email: sales@imarcgroup.com Tel No:(D) +91 120 433 0800 United States: +1-631-791-1145