Press Releases

Hybrid EV Components Market to See 15.7% Annual Growth Through 2023

September 03, 2018

WELLESLEY, Mass., Sep. 03, 2018–High fuel prices, global warming, calls for environmentally-friendly cars and fossil fuel depletion are conspiring to drive growth of the hybrid electric vehicle components market, according to a report by BCC Research.

The industry expects to see a compound annual growth rate (CAGR) of 15.7% through 2023, when it is expected to reach more than $150.6 billion, according to the report Components of Hybrid Electric Vehicles.

Major players in the market include Toyota, Honda, Ford, Chevrolet, Volvo and BYD.

Research Highlights

  • Component growth will be led by the engine, CVT, EPS and braking segment, which expects a CAGR of 16.3%, although by size, the market will be led by the batteries, ultracapacitors and ECUs segment, which will have an estimated 2023 value of nearly $43 billion.
  • By 2023, batteries and battery software will command 22.4% of the market, followed by engines at 10.5%, CVTs at 4.1%, and IGBT inverters at 4.0%.
  • Growth in engines will be lead by PHTV SUVs, with an estimated CAGR through 2023 of 25%, followed by PHEV cars at 23.9% and mild hybrid cars at 19.5%.

“Today, hybrid technology is widespread and is one of the most promising new markets for OEMs,” the report notes. “Backed by government initiatives, environmental concerns and rising oil prices, many countries have declared targets for alternative fuel vehicles adoption. Plug-in hybrid electric vehicles (PHEVs) are rising in popularity and their demand is expected to speed up in coming years.”

Market Restraints Include High Costs, Reduced Tax Benefits

Cost remains the biggest problem in hybrid development, the report adds. Mild hybrids cost at least $1,000 more than their non-hybrid counterparts, with some models seeing a $10,000 difference. While the extra cost is justified in the long term, customer perception of the premium remains strong. Meanwhile, high sales of hybrids in recent years were partly due to government incentives, and those incentives are now being reduced as attention is put on pure electric and plug-in hybrid electric vehicles. While the impact of higher prices for hybrids can be offset by lowered prices from manufacturers, there is no indication that tax incentives for hybrids will return.

Editors/reporters requesting analyst interviews should contact Eric Surber at press@bccresearch.com.

Components of Hybrid Electric Vehicles( FCB034B )
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