Hybrid EV Battery Market

Growing Consumer interest in plug-in hybrid electric vehicles is driving the market growth

Market CAGR for hybrid EV batteries is driven by the rising demand for plug-in hybrid EVs due to rising fuel prices, environmental worries, and similar factors. Increasing fuel prices and environmental concerns among governments and customers have resulted in tight government guidelines for hybrid EV batteries, especially in industrialized nations. Businesses are developing battery swapping and battery-as-a-service (BaaS) models to facilitate the replacement of depleted EV batteries. As a result, customer happiness is improved. 

A major reason most individuals buy EVs is eliminated: the time needed to recharge the batteries. Fuel price increases over the projection period are expected to boost interest in hybrid electric vehicles and drive demand for hybrid EV batteries. Demand for hybrid EV batteries is predicted to rise due to high fuel prices and environmental concerns over the forecast period.

Additionally, rising concerns over the environmental impact of gasoline automobiles have stoked demand for hybrid and plug-in hybrid electric vehicles. The quick transition from gasoline to electric mode in hybrid vehicles poses a potential safety issue. Thus, the industry has been seeing the rise of hybrid electrified propulsion systems. Automotive original equipment manufacturers are focusing their R&D efforts on plug-in hybrid electric vehicles to profit from the need to reduce the likelihood of such incidents, conform to governing laws, and receive manufacturing rebates.

Demand for plug-in hybrid EVs is also anticipated to grow due to government-introduced tax rebates and credit incentives. Thanks to government incentives, hybrid electric vehicles (EVs) are becoming increasingly popular worldwide.

Aisin Seiki Ltd has created a micro-sized electric car motor. The new product uses the framework of the electric four-wheel-drive system known as E-four and is intended to be the primary motive behind the new class of ultra-compact electric vehicles. As a result, the demand for hybrid EV batteries is predicted to grow throughout the forecasted time due to rising innovations. Thus, the driving factor is the hybrid EV battery market revenue.

The Global Hybrid EV Battery Market Industry is experiencing a surge in demand driven by the increasing need for fuel-efficient vehicles. As consumers become more environmentally conscious, the shift towards hybrid electric vehicles is evident. In 2024, the market is projected to reach 15.7 USD Billion, reflecting a growing preference for vehicles that reduce fuel consumption and emissions. Governments worldwide are implementing stricter fuel economy standards, further propelling the adoption of hybrid technologies. This trend indicates a potential for significant growth, as manufacturers invest in advanced battery technologies to meet consumer expectations and regulatory requirements.

The expansion of charging infrastructure is essential for the growth of the Global Hybrid EV Battery Market Industry. As more charging stations become available, the convenience of owning hybrid vehicles increases, encouraging consumer adoption. Governments and private entities are investing in the development of comprehensive charging networks, which is likely to alleviate range anxiety among potential buyers. This infrastructure growth is expected to correlate with the market's upward trajectory, as it supports the integration of hybrid technologies into everyday life. The availability of charging options will be a key factor in determining the pace of market expansion in the coming years.

Government policies play a crucial role in the Global Hybrid EV Battery Market Industry. Many countries are offering incentives for hybrid vehicle purchases, such as tax rebates and subsidies, to encourage consumers to transition from traditional vehicles. Additionally, stringent emissions regulations are compelling manufacturers to innovate and produce cleaner technologies. This regulatory environment is likely to foster growth in the hybrid battery sector, as it aligns with global sustainability goals. The combination of financial incentives and regulatory pressures is expected to significantly boost market demand, facilitating the industry's expansion in the coming years.

The increasing awareness of environmental issues is a significant driver for the Global Hybrid EV Battery Market Industry. As climate change concerns rise, consumers are more inclined to choose vehicles that contribute to lower carbon emissions. Hybrid electric vehicles, which utilize both gasoline and electric power, present a viable solution to reduce the carbon footprint associated with transportation. This shift in consumer behavior is likely to enhance market growth, as more individuals seek sustainable alternatives. The industry's response to this demand will be critical in shaping future developments and ensuring that hybrid technologies remain competitive in the automotive landscape.

Technological innovations are pivotal in shaping the Global Hybrid EV Battery Market Industry. Recent advancements in battery chemistry, such as lithium-ion and solid-state batteries, enhance energy density and reduce charging times. These improvements not only increase the performance of hybrid vehicles but also contribute to lower production costs. As a result, the market is expected to expand significantly, with projections indicating a growth to 119.8 USD Billion by 2035. This trajectory suggests that ongoing research and development will continue to drive the industry forward, enabling manufacturers to offer more efficient and reliable hybrid solutions.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American hybrid EV battery market will dominate because of high demand as more people start driving electric and hybrid cars. In addition, the increasing demand for EVs, the growing need for energy storage solutions, and the expansion of renewable energy sources all contribute to a meteoric rise in the application of lithium-ion batteries.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Hybrid EV Battery Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe’s hybrid EV battery market accounts for the second-largest market share because of stringent environmental restrictions and the widespread adoption of battery-powered automobiles. Further, the German hybrid EV battery market held the largest market share, and the UK hybrid EV battery market was the fastest-growing market in the European region.

The Asia-Pacific hybrid EV battery market is expected to grow at the fastest CAGR from 2024 to 2032 due to a lot of time, and money spent creating advanced batteries for hybrid EVs to boost sales in the region. Hybrid electric vehicle (EV) battery packs are likely to be driven by effective actions taken by governments in countries like China, Japan, India, and Singapore, which have focused on investing in the development of charging duration and rechargeable battery packs.

Moreover, China’s hybrid EV battery market held the largest market share, and the Indian hybrid EV battery market was the most rapidly expanding market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the hybrid EV battery market grow even more. There are some strategies for action that market participants are implementing to increase their presence around the world's footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the hybrid EV battery industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the hybrid EV battery industry to benefit clients and increase the market sector. In recent years, the hybrid EV battery industry has offered some of the most significant technological advancements. Major players in the hybrid EV battery market, including Toshiba Corporation (Japan), LG Chem (South Korea), Samsung Sdi Co. Ltd (South Korea), Panasonic Corporation (Japan), Saft (France), GS Yuasa International Ltd.  (Japan), BYD Co.

Ltd. (China), Contemporary Amperex Technology Co., Ltd. (China), Hitachi Ltd. (Japan), Nissan Motor Corporation (Japan), Exide Industries Ltd. (India), and A123 Systems LLC (US), and others are attempting to growing market demand by investing in research and development operations.

Samsung SDI is a company that provides eco-friendly and sustainable energy solutions. They committed to offering consumers the most innovative and cutting-edge products for electric vehicles in the automotive industry. Samsung SDI intends to introduce distinctive goods based on cutting-edge technology to solidify its market leadership in the present markets. It will also focus on technology competitiveness and marketing expertise to get a competitive edge in the lucrative next-generation markets due to the projected continued growth of the premium TV and wearable device sectors.

It also plan to create a technique for swiftly delivering flexible display materials to dominate the industry for cutting-edge mobile phones. 

In March 2022, Samsung SDI disclosed that it had inked a contract with Sungkyunkwan University to launch a course on battery technologies. A signing ceremony was held on the campus of Sungkyunkwan University, and Dong-real Shin, the president of the university, as well as other senior administrators, participated. Following the agreement, the parties will establish and run a course that teaches students about creating future rechargeable batteries to produce experts in battery materials, cells, and systems.

Panasonic Corporation has been advancing culture since its establishment in 1918, trying to "improve and enhance society." To build an "ideal society" rich in monetary and spiritual prosperity, it will keep adding value by tackling social concerns head-on. The Panasonic Group transitioned to an operating company system on April 1, 2022, with Panasonic Holdings Corporation serving as a holding company with eight companies under its wing. The Panasonic Group is a leader in designing and producing cutting-edge electronics, buildings, automobiles, industries, communications, and energy systems.

In May 2023, Panasonic Industry Co., Ltd. created the high-thermal conductive film R-2400 for multilayer circuit boards. The film has set industry records in both areas with a high thermal conductivity of 2.7 W/mK and good resin flowability that permits the multilayering of circuit boards.