Hybrid Car Market Report 2025 (Global Edition)

Global Hybrid Car Market Report 2025 Market Size Split by Degree of Hybridization Outlook: (Mild-hybrid, Full-hybrid, Plug-in-hybrid), by Vehicle Type Outlook: (Sedan, Hatchback, SUV), by Application ...

Hybrid Car Market Report Description

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Hybrid Car Market Insights Video

Competitive Landscape of the Hybrid Car Market

The competitive landscape of the hybrid car market is dominated by major automotive manufacturers, including Toyota, Honda, Ford, and Hyundai, all of which offer a range of hybrid and plug-in hybrid models. These companies are competing through innovation, with advancements in battery technology, fuel efficiency, and eco-friendly features. Additionally, new entrants and electric vehicle specialists like Tesla are influencing market dynamics. Competitive strategies focus on affordability, performance, government incentives, and expanding hybrid offerings to meet growing consumer demand for sustainable vehicles.

In Jan 2023, Toyota Motor Corporation (Toyota) launched all-new Prius Series Parallel Hybrid (HEV) models and Plug-in Hybrid (PHEV) models in Japan. The new model will be equipped with a fifth-gen hybrid system with a company-claimed fuel efficiency of 28km/lit. (Source: https://global.toyota/en/newsroom/toyota/38482540.html) In Oct 2022, Ashok Leyland, a leading commercial vehicle manufacturer in India, and the Indian Institute of Technology’s (IIT-Madras) National Centre for Combustion Research and Development (NCCRD) collaborated to develop hybrid electric vehicles using micro gas turbine technology. (Source: https://www.ashokleyland.com/pressrelease/ashok-leyland-and-iit-madras-researchers-join-forces-to-develop-hybrid-electrical-vehicles-using-turbine-technology#:~:text=Chennai%2C%2010th%20October%202022%3A%20Ashok,NCCRD)%20collaborated%20for%20development%20and) In Oct 2022, Daihatsu Motor Co., Ltd intended to release a hybrid minivan in the fall of 2023. The series hybrid system used in the compact hybrid vehicle (HV) Rocky will be significantly improved for mini vehicles to achieve a fuel efficiency of 30 kilometers per liter (WLTC mode) or higher, which would be among the best in the micro-mini class. (Source: https://www.daihatsu.com/news/2021/20211101-2.html)

Top Companies Market Share in Hybrid Car Industry: (In no particular order of Rank)

• Toyota Motor Corporation (Japan)
• Honda Motor Co.
• Ltd. (Japan)
• BYD Company Ltd. (China)
• Ford Motor Company (U.S.)
• Hyundai Motor Company (South Korea)
• Kia Motors Corporation (South Korea)
• Nissan Motor Corporation (Japan)
• Daimler AG (Germany)
• Volkswagen AG (Germany)
• AB Volvo (Sweden)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Hybrid Car Market

Which Region Dominates the Hybrid Car Market in 2024?

According to Cognitive Market Research, North America is expected to maintain its dominance in the hybrid car market in 2024, driven by strong demand in the United States and Canada. The region benefits from a combination of favorable government policies, including tax incentives for electric and hybrid vehicles, alongside increasing consumer awareness of environmental sustainability. Major automakers in North America are investing heavily in hybrid technology, with expanded model offerings across various segments. Furthermore, rising fuel prices and tightening emission regulations are propelling the shift towards fuel-efficient vehicles, solidifying North America's position as the leading market for hybrid cars.

Which Region is Expanding at the Fastest CAGR?

The Asia-Pacific region is expanding at the fastest compound annual growth rate (CAGR) in the hybrid car market. This growth is driven by rapid urbanization, increasing environmental concerns, and supportive government policies promoting electric and hybrid vehicles in countries like China, Japan, and India. Major automotive manufacturers are heavily investing in hybrid technology to meet the rising demand for fuel-efficient cars. Additionally, governments are offering incentives to encourage consumers to transition to greener vehicles, further accelerating the adoption of hybrid cars across the region. The Asia-Pacific market is poised for substantial growth in the coming years.

The current report Scope analyzes Hybrid Car Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Hybrid Car

According to Cognitive Market Research, the global Hybrid Car market size was estimated at USD 275184.56 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 110073.82 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Hybrid Car market with a market size of USD 86848.25 million in 2024 and is projected to grow at a CAGR of 7.7% during the forecast period. In the US, government incentives, fuel price volatility, and stricter emissions regulations are driving hybrid car adoption.
• The Canada Hybrid Car market had a market share of USD 13208.86 million in 2024 and is projected to grow at a CAGR of 8.7% during the forecast period. In Canada, eco-conscious consumers and government rebates are fueling the growth of the hybrid car market.
• The Mexico Hybrid Car market is projected to witness growth at a CAGR of 8.4% during the forecast period, with a market size of USD 10016.72 million in 2024.

Europe Hybrid Car

According to Cognitive Market Research, the global Hybrid Car market size was estimated at USD 275184.56 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 82555.37 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.

• The United Kingdom Hybrid Car market had a market share of USD 13869.30 million in 2024 and is projected to grow at a CAGR of 9.0% during the forecast period. The UK’s strong environmental policies, high fuel prices, and low-emission zones are boosting hybrid car demand.
• The France Hybrid Car market is projected to witness growth at a CAGR of 7.4% during the forecast period, with a market size of USD 7595.09 million in 2024.
• According to Cognitive Market Research, the German Hybrid Car market size was valued at USD 16345.96 million in 2024 and is projected to grow at a CAGR of 8.4% during the forecast period. In Germany, stringent emission standards, government incentives, and the shift to eco-friendly transportation are supporting market growth.
• The Italy Hybrid Car market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 7099.76 million in 2024.
• The Russia Hybrid Car market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 12796.08 million in 2024.
• The Spain Hybrid Car market is projected to witness growth at a CAGR of 7.3% during the forecast period with a market size of USD 6769.54 million in 2024
• The Luxembourg Hybrid Car market is projected to witness growth at a CAGR of 8.3% during the forecast period, with a market size of USD 2559.22 million in 2024.
• The Portugal Hybrid Car market is projected to witness growth at a CAGR of 8.0% during the forecast period, with a market size of USD 1733.66 million in 2024.
• The Greece Hybrid Car market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 990.66 million in 2024.
• The Rest of Europe's Hybrid Car market is projected to witness growth at a CAGR of 6.9% during the forecast period, with a market size of USD 12796.08 million in 2024.

Asia Pacific Hybrid Car

According to Cognitive Market Research, the global Hybrid Car market size was estimated at USD 275184.56 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 63292.45 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.7% from 2024 to 2031.

• According to Cognitive Market Research, the China Hybrid Car market size was valued at USD 28481.60 million in 2024 and is projected to grow at a CAGR of 11.2% during the forecast period. In China, government subsidies, air pollution concerns, and growing middle-class demand for fuel-efficient vehicles drive hybrid adoption.
• The Japan Hybrid Car market is projected to witness growth at a CAGR of 10.2% during the forecast period, with a market size of USD 8734.36 million in 2024.
• The India Hybrid Car market had a market share of USD 7595.09 million in 2024 and is projected to grow at a CAGR of 17.2% during the forecast period. In India, rising fuel costs, government support, and increasing awareness of environmental benefits are promoting hybrid vehicle growth.
• The South Korean Hybrid Car market is projected to witness growth at a CAGR of 10.8% during the forecast period, with a market size of USD 6329.24 million in 2024.
• The Australian Hybrid Car market is projected to witness growth at a CAGR of 11.4% during the forecast period, with a market size of USD 3291.21 million in 2024.
• The South East Asia Hybrid Car market is projected to witness growth at a CAGR of 12.7% during the forecast period, with a market size of USD 4367.18 million in 2024.
• The Rest of Asia Pacific Hybrid Car market is projected to witness growth at a CAGR of 11.5% during the forecast period, with a market size of USD 4493.76 million in 2024.

South America Hybrid Car

According to Cognitive Market Research, the global Hybrid Car market size was estimated at USD 275184.56 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 13759.23 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.1% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Hybrid Car market size was valued at USD 5888.95 million in 2024 and is projected to grow at a CAGR of 9.7% during the forecast period. In Brazil, fuel price hikes and government incentives are pushing consumers toward more fuel-efficient hybrid cars.
• Argentina's Hybrid Car market had a market share of USD 2311.55 million in 2024 and is projected to grow at a CAGR of 10.0% during the forecast period. In Argentina, economic challenges and government tax breaks for hybrid vehicles are encouraging their adoption.
• Colombia Hybrid Car market is projected to witness growth at a CAGR of 8.9% during the forecast period, with a market size of USD 1224.57 million in 2024.
• Peru Hybrid Car market is projected to witness growth at a CAGR of 9.3% during the forecast period, with a market size of USD 1128.26 million in 2024.
• Chile Hybrid Car market is projected to witness growth at a CAGR of 9.4% during the forecast period, with a market size of USD 990.66 million in 2024.
• The Rest of Latin America's Hybrid Car market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 2215.24 million in 2024.

Middle East Hybrid Car

According to Cognitive Market Research, the global Hybrid Car market size was estimated at USD 275184.56 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 5503.69 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.4% from 2024 to 2031..

• The GCC Countries Hybrid Car market is projected to witness growth at a CAGR of 10.2% during the forecast period, with a market size of USD 2355.58 million in 2024. In the GCC, government initiatives and the growing demand for fuel-efficient vehicles are driving the hybrid car market.
• The Egypt Hybrid Car market is projected to witness growth at a CAGR of 9.7% during the forecast period, with a market size of USD 577.89 million in 2024.
• The South Africa Hybrid Car market is projected to witness growth at a CAGR of 10.4% during the forecast period, with a market size of USD 869.58 million in 2024. In South Africa, rising fuel costs and increasing awareness of environmental sustainability are promoting hybrid car adoption.
• The Turkey Hybrid Car market is projected to witness growth at a CAGR of 8.9% during the forecast period, with a market size of USD 473.32 million in 2024.
• The Nigeria Hybrid Car market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 577.89 million in 2024.
• The Rest of the MEA Hybrid Car market is projected to witness growth at a CAGR of 8.4% during the forecast period, with a market size of USD 649.44 million in 2024.

Hybrid Car Market Analysis

How are Segments Performing in the Global Hybrid Car Market?

Hybrid Car Market Degree of Hybridization Segment Analysis

According to Cognitive Market Research, The mild-hybrid segment remains the largest in the hybrid car market, driven by its widespread adoption across various vehicle categories. Mild-hybrids use a small electric motor that assists the internal combustion engine without enabling the car to operate solely on electric power. This type of hybrid is often more affordable due to its simpler design and lower battery capacity compared to full-hybrids and plug-in hybrids. Its increasing popularity is propelled by the growing demand for cost-effective, fuel-efficient vehicles that offer improved performance and reduced emissions. Automakers are integrating mild-hybrid systems in a broad range of models, including compact cars, sedans, and SUVs, to attract eco-conscious consumers while keeping costs lower than more complex hybrid variants.

The plug-in hybrid (PHEV) segment is the fastest-growing in the hybrid car market, driven by rising consumer interest in electric-only driving capabilities and longer driving ranges. Plug-in hybrids offer significant fuel savings by allowing drivers to recharge their batteries and drive longer distances using electricity alone, with a gasoline engine for extended range. The rapid expansion of charging infrastructure, government incentives, and the growing trend of electrification in the automotive industry contribute to this segment's growth. PHEVs are gaining momentum in both the consumer and commercial markets as they provide a perfect balance between electric and traditional driving, reducing dependence on fossil fuels while offering the flexibility of long-distance travel.

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Hybrid Car Market Vehicle Type Segment Analysis

According to Cognitive Market Research, The sedan segment dominates the hybrid car market, accounting for the largest share due to its widespread appeal among consumers seeking a balance between performance, comfort, and fuel efficiency. Sedans are often the preferred choice for urban commuters, offering an ideal combination of affordability, practicality, and reduced emissions. The rise in consumer preference for environmentally friendly transportation has further cemented the sedan's position in the market, as hybrid sedans offer significant fuel savings compared to traditional vehicles. With major automakers focusing on enhancing the design and hybrid technology of sedan models, this segment is expected to maintain its leadership through increased consumer adoption driven by the need for more sustainable and cost-effective vehicle options.

The SUV segment represents the fastest-growing category in the hybrid car market, driven by changing consumer preferences towards larger, more versatile vehicles. Hybrid SUVs offer consumers the opportunity to enjoy the benefits of reduced fuel consumption and lower emissions while still retaining the space and power that many families and adventure-seekers desire. As the demand for eco-friendly vehicles expands, automakers have increasingly focused on introducing hybrid variants of popular SUV models, which combine performance, utility, and fuel efficiency. With growing concerns over environmental impact and the rising popularity of hybrid technologies, the SUV segment is poised to experience sustained growth, attracting both traditional buyers and environmentally-conscious consumers.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Hybrid Car Application Outlook: Segment Analysis

Hybrid Car Market Application Segment Analysis

According to Cognitive Market Research, The home use segment holds the largest share in the hybrid car market. As urbanization continues to rise, consumers are increasingly prioritizing fuel-efficient and environmentally friendly options for personal transportation. Hybrid vehicles offer a practical solution, delivering enhanced fuel economy and reduced emissions, which appeals to eco-conscious buyers. The segment benefits from widespread government incentives, such as tax rebates and subsidies, making hybrid cars more affordable for everyday consumers. Furthermore, hybrid vehicles are seen as a viable long-term investment, providing significant savings on fuel costs and contributing to lower carbon footprints. The growing focus on reducing personal environmental impact makes the home-use segment a key driver in the hybrid car market.

The commercial use segment is expanding at the fastest pace, driven by the increasing need for businesses to adopt fuel-efficient, cost-effective, and sustainable vehicles. Hybrid cars in this category are increasingly used in corporate fleets, delivery services, and public transportation systems, offering significant savings in operational costs through better fuel efficiency. Commercial fleets are adopting hybrid technology to meet stricter environmental regulations and reduce carbon emissions. Businesses are also attracted by the long-term cost benefits, as hybrid vehicles reduce fuel expenses and offer lower maintenance costs. As governments push for greener solutions in public transport and logistics, the commercial use segment is set to experience rapid growth in the hybrid car market.

• Home Use
• Commercial Use

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Sumedha Gosavi

Research Associate at Cognitive Market Research

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