Hybrid Electric Car Market Growth Opportunities, and Emerging Technologies


Posted September 6, 2021 by Rahul_Gautam

Hybrid Electric Car Market Statistics and Growth, Regional Analysis, Development History & Forecast
 
Due to the increasing problem of air pollution, governments around the world are implementing stringent policies to control greenhouse gas (GHG) emissions from automobiles. For instance, the Euro 6 standards have been implemented in Europe and Bharat Stage VI standards in India to ensure the transition to cleaner variants of gasoline and diesel vehicles. Such policies have impelled automakers to change the technology of the engines, to make them compatible with the newer fuels. As a result, conventional automobiles are becoming more expensive, which is taking them out of the reach of an increasing number of people, especially in developing countries.

As per P&S Intelligence, cost issues with the conventional automobiles compliant with the new regulations will be a key factor in taking the hybrid electric car market to $138.0 billion by 2023 from $57.2 billion in 2017, at a 16.7% CAGR between 2018 and 2023. Though more-polluting than a battery electric vehicle (BEV), hybrid electric vehicles (HEVs) are cheaper than the former. This is because the battery, which is the most-important component of any EV, decides its final purchase cost. As the battery is not as important to an HEV as to a BEV, an HEV is a cost-effective option.

In addition, a hybrid electric car can achieve up to 25% fuel economy than a conventional internal combustion engine (ICE) car, which, combined with its lower cost than a fully electric car, makes it popular. However, the battery price has started to fall, owing to manufacturers increasing their production capacity and coming up with ways to decrease the production cost. From $1,000 per kilowatt-hour (kWh) in 2016,the cost of a battery pack for electric cars reduced to $227 per kWh in 2016. This will make HEVs more-cost effective, thus helping increase their penetration among the masses.

As this decline is being primarily witnessed in lithium-ion (Li-ion) batteries, their integration in HEVs will pick up faster than nickel-metal hydride (NiMH) batteries, which are currently more popular on account of their lower cost and higher safety features. Apart from the declining cost, factors that will boost the usage of Li-ion batteries in HEVs are their higher energy density, which means that for a similar size as a NiMH battery, Li-ion variants can hold more charge, therefore offer a longer driving range per charge, as well as their lower maintenance requirement and slow self-discharging.
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Categories Automotive , Business , Industry
Tags hybrid electric car market , hybrid electric car market demand , hybrid electric car market share , hybrid electric car market size
Last Updated September 6, 2021