Hybrid Vehicle Market Size

Hybrid Vehicle Market size was over USD 291.18 billion in 2024 and is projected to cross USD 692.49 billion by the end of 2037, witnessing more than 6.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of hybrid vehicle is estimated at USD 307.49 billion.

The growth of the market can be attributed to growing pollution owing to the emission of carbon from vehicles. The annual carbon dioxide emissions from a typical passenger car are around 4.6 metric tonnes in United States. This assumes that the typical petrol car on the road gets about 22.0 miles per gallon of fuel and travels roughly 11,500 miles annually. 8,887 grammes of carbon dioxide are produced for every gallon of fuel used in this region. Hence the demand for hybrid vehicle is estimated to increase, as a result of the fact that hybrid vehicles have two engines, less fuel is used, which reduces CO2 emissions from the tailpipe, improving air quality and lowering carbon footprint.

Moreover, petrol vehicles are not only responsible for carbon emission but it also leads to emission of various other greenhouse gases. Methane (CH4), nitrous oxide (N2O), and hydrofluorocarbon emissions are all produced by automobiles through their tailpipes and leaking air conditioners, respectively. These gases emit fewer emissions than CO2, however since they have a larger global warming potential (GWP) than CO2, they could still have a significant impact. Hence, government of different countries are setting certain standard for the emission which is estimated to boost the hybrid vehicle market growth. In China, a limit for tailpipe N2O emission between 20 and 30 mg/km was established under the country's stage 6 emission standard which was estimated to be applied from July 2020.