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.
“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.
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Components of Hybrid Electric Vehicles( FCB034B )
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