Plug-in Hybrid Electric Vehicles Market Outlook:
Plug-in Hybrid Electric Vehicles Market size was over USD 223.36 billion in 2025 and is poised to exceed USD 374.36 billion by 2035, growing at over 5.3% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of plug-in hybrid electric vehicles is estimated at USD 234.01 billion.
Plug-in hybrid electric vehicles are gaining popularity worldwide owing to their ability to bridge the gap between conventional vehicles (gasoline-based) and electric vehicles (battery-based). The strict environmental regulations on carbon emissions and the sustainability trend are augmenting the sales of plug-in hybrid electric vehicles. As per the Research Nester study, hybrid electric vehicle ownership has surged over 17 million, globally. In addition, companies are investing in developing novel products, to lower emissions. For instance, in May 2023, Toyota Motor Corporation announced its all-new Prius PHEV model, Z grade with better performance and design.
Modern plug-in hybrid electric vehicles employed with regenerative brakes that convert kinetic energy to electric energy comply effectively with sustainability trends, mitigating carbon emissions. From the first developed gasoline electric vehicle ‘Lohner-Porsche’ in mid-1889 to current modern plug-in hybrid electric vehicles, the powertrain and engines have drastically evolved owing to continuous technological advancements by key market players.
