PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756484
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756484
Hybrid product portfolio of OEMs Market size was valued at USD 12.5 Million Units in 2024, expanding at a CAGR of 15.5% from 2024 to 2032.
A hybrid product portfolio of OEMs is a mix of traditional and new technology products offered by a company. In the automotive sector, OEMs offer internal combustion engine (ICE) vehicles alongside hybrid and electric vehicles. This approach helps them meet customer demands, follow environmental rules, and stay competitive. It also allows them to manage risk by not depending on just one type of product. A hybrid portfolio gives flexibility to shift focus based on market trends, regulations, and innovation, helping OEMs grow steadily in a fast-changing industry.
Hybrid Product Portfolio of OEMs Market- Market Dynamics
Stringent environmental regulations by the government
Stringent environmental regulations are compelling OEMs to diversify their product portfolios by including hybrid and electric models. Governments across the globe have introduced stricter emission norms and fuel efficiency standards to combat climate change and reduce pollution. For instance, the EU has set a fleet-wide CO2 emission target of 95 g/km for new cars, reducing it to 81 g/km by 2025. Regulation EU 2023/851 mandates all new cars and vans be zero-emission (e.g., BEVs or FHCVs) by 2035, aiming for a 100% CO2 reduction from 2021 levels. In contrast, the U.S. EPA focuses on tailpipe pollutants, with 2025 standards capping NMOG+NOx at 0.03 g/mi and limiting sulfur to 10 ppm in fuel. China's China 6 and India's Bharat Stage VI norms align with global efforts to cut vehicular pollution, setting strict limits on CO2 and other harmful emissions.
Hybrid Product Portfolio of OEMs Market- Key Insights
According to our research analyst, the global Hybrid product portfolio of OEMs Market is expected to develop at a CAGR of approximately 15.5% between 2024-2032.
Segmented by propulsion. In 2024, the HEV category dominated the market.
Based on body type segmentation, the SUV segment will lead during the forecast period.
Based on region, in 2024, Asia Pacific was the region with the highest revenue.
The global hybrid product portfolio of OEMs market is divided into two categories: propulsion, body type and region.
Based on propulsion, the market is categorised into ICE, HEV, PHEV and BEV. BEV segment had the highest market share in 2023. This can be due to strong global pushes for zero-emission transportation. Governments across Europe, China, and North America are offering incentives, imposing emission regulations, and setting future bans on ICE vehicles, which accelerate BEV adoption. BEVs operate solely on electric power, producing no tailpipe emissions, aligning perfectly with long-term climate goals. Advancements in battery technology have significantly improved driving range and reduced charging time, addressing earlier consumer concerns. According to the IEA, global BEV sales reached 9.5 million units in 2023 and are projected to grow significantly to 51 million by 2035. This surge is expected due to increasing consumer demand, supportive government policies, and OEMs' strategic shift toward zero-emission mobility across key global markets.
By body type, the market is segregated into hatchback, sedans, SUVs, and MPVs. The SUV segment is expected to lead in the forecast period. This growth is expected due to growing consumer preference for larger, versatile vehicles with advanced safety and comfort features. SUVs offer spacious interiors, higher ground clearance, and better road presence, making them ideal for both urban and off-road use. OEMs are increasingly introducing hybrid and electric variants of popular SUV models to cater to demand while meeting stricter emission norms. Advancements in battery technology and weight reduction techniques have made it easier to electrify larger vehicles like SUVs without compromising performance. The rising popularity of family-oriented and premium electric SUVs globally further supports the dominance of this segment in the hybrid product portfolio market.
Hybrid product portfolio of OEMs Market- Geographical Insights
Geographically, the Hybrid product portfolio of OEMs Market is distributed throughout North America, Asia Pacific, Latin America, Europe, the Middle East, and Africa. These regions are further divided based on the nations bringing in business.
North America led the global market in 2024. The region benefits from strong government support through subsidies, incentives, and policies aimed at reducing emissions. Countries like China, Japan, and India are at the forefront of electric and hybrid vehicle adoption, with automakers in these countries rapidly expanding their hybrid offerings. Technological advancements, such as improved battery efficiency and cost reductions, are driving the production of more affordable and efficient hybrid models. Also, the rising demand for eco-friendly vehicles, coupled with the growth of the middle class, is fueling the shift toward hybrid options, making the region a key player in the global hybrid vehicle market.
Europe region is predicted to experience the fastest growth during the projection period. Strict environmental regulations, such as emissions reduction targets, are driving the adoption of cleaner vehicle technologies like hybrids. Consumer demand for eco-friendly alternatives is increasing as awareness of climate change and sustainability grows. European Union's focus on reducing carbon emissions is pushing OEMs to expand their hybrid offerings. Governments are also providing incentives, including tax breaks and subsidies, to encourage the purchase of hybrid vehicles. Also, the growing availability of charging infrastructure and the continuous improvement in hybrid technology will further support the market's growth in Europe.
The competitive dynamics of the hybrid product portfolio of OEMs market are influenced by a combination of factors, including technological advancements, regulatory pressures, consumer demand, and strategic partnerships. OEMs are investing heavily in research and development to improve hybrid technologies, such as battery efficiency, powertrain integration, and energy management systems. Leading players such as Toyota, Honda, BMW, and Volkswagen are at the forefront, continuously expanding their hybrid vehicle offerings to meet consumer demand and regulatory requirements. These OEMs are focusing on developing efficient and cost-effective hybrid technologies, including improvements in battery performance and energy management systems. Also, the rise of new entrants, particularly from China, such as BYD and Geely, is intensifying competition. These companies are leveraging aggressive pricing strategies and local manufacturing to capture market share in both domestic and international markets. Partnerships and collaborations with tech firms to enhance vehicle software, connectivity, and autonomous features are also becoming common.
In January 2025, Maruti Suzuki announced the expansion of its green vehicle portfolio by introducing the Fronx Hybrid, expected to achieve over 30 km/l mileage. This model will feature Maruti's in-house developed strong hybrid powertrain, debuting in the facelifted Fronx in 2025. Maruti plans to launch four new affordable hybrid and electric vehicles.
In November 2024, Magna secured its first award for a Dedicated Hybrid Drive (DHD) Duo system from a leading Chinese OEM and commitment to innovation and sustainability in hybrid technology.