Plug-in Hybrid Electric Vehicles Market Size

Plug-in Hybrid Electric Vehicles Market size was USD 146.6 billion in 2024 and is estimated to reach USD 482.8 billion by the end of 2037, expanding at a CAGR of 9.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of plug-in hybrid electric vehicles (PHEV) will be valued at USD 160.7 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.