Plug-in Hybrid Electric Vehicles Market Trends

Growth Drivers

• Innovations in PHEV technology: The ongoing advancements in PHEV technology are fueling the performance of vehicles and aiding in the mitigation of greenhouse gas emissions. Manufacturers are integrating advanced lightweight materials and vehicle-to-grid infrastructure to increase the fuel efficiency of vehicles. They are also using AI in designing the car model to minimize its overall expense, oil usage, and carbon emission. The advancements in battery energy density are one of the latest PHEV market trends. Modern batteries with energy storage and distribution capabilities aid in longer travel time, appealing to a wider consumer base.
• Increasing public investment in fast chargers: Supportive government policies on electric vehicle adoption and increasing public and private investments in advancing charging infrastructure are set to significantly boost the sales of plug-in hybrid electric vehicles in the coming years. Publicly reachable fast chargers enable longer journeys and mitigate the need to buy personal charging systems. According to a 2022 report by the International Energy Agency, China has the highest publicly 40% accessible charging units compared to other EV markets. Followed by China, Europe has a large number of public fast-charging units of around 50,000.

Challenges

• Resistance to change: The lack of adoption of hybrid vehicles due to misconceptions or resistance to change can hinder the plug-in hybrid electric vehicles (PHEV) market growth to some extent. Many developing economies are witnessing this, as most vehicle owners are hesitant to adopt modern automobile technology due to a lack of knowledge and false information available.
• High cost of alternative fuel vehicles: The high cost of PHEV compared to its gasoline counterpart is negatively influencing the overall market growth. Modern hybrid vehicles are integrated with next-gen technologies, and the development of these systems requires extensive investment in R&D, which increases the final costs. The complex charging infrastructure in some economies also contributes to low sales of plug-in hybrid electric vehicles.