Hybrid Truck Global Market Report 2025

Hybrid trucks are heavy vehicles equipped with a hybrid propulsion system that incorporates one or more electric motors powered by batteries, in addition to an internal combustion engine. These trucks are designed with features such as larger tires, flexible suspension, and a high ground clearance ratio, enabling them to operate effectively on unpaved and forest roads with uneven, low-traction surfaces.

The main technology types employed in hybrid trucks include parallel hybrid, series hybrid, series-parallel hybrid, and plug-in hybrid. In a series hybrid, the vehicle's basic drivetrain design relies on a battery to power the motor that drives the wheels. Various types of hybrid trucks are available, including light-duty trucks and heavy-duty trucks suitable for applications in construction, as well as pick-up and delivery vehicles.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and ensuing trade tensions in spring 2025 are placing significant strain on the transport sector, especially in areas such as fleet maintenance and logistics. Increased duties on imported commercial vehicles, tires, and engine parts have driven up operating costs for trucking and freight firms, forcing them to either raise shipping rates or accept lower profit margins. Airlines and maritime operators are also under pressure, as tariffs on aircraft components and shipbuilding materials have pushed capital expenditures higher. Meanwhile, retaliatory tariffs in key export markets have weakened demand for U.S.-manufactured transportation equipment, further squeezing revenues. To cope, the industry is turning to fuel efficiency measures, alternative supply sources, and greater automation to manage rising costs while maintaining dependable service.

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The hybrid truck market size has grown strongly in recent years. It will grow from $23.41 billion in 2024 to $24.65 billion in 2025 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to fuel efficiency requirements, environmental regulations, cost savings and operational efficiency, government incentives and subsidies, rise in awareness of carbon footprint.

The hybrid truck market size is expected to see strong growth in the next few years. It will grow to $31.58 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to advancements in battery technology, expansion of green logistics, global transition to sustainable transport, stringent emission standards, economic and regulatory support. Major trends in the forecast period include expansion of autonomous and semi-autonomous features, emphasis on aerodynamic design for fuel economy, introduction of regenerative braking systems, focus on last-mile delivery solutions, implementation of predictive maintenance technologies.

The forecast of 6.4% growth over the next five years reflects a modest reduction of 1.0% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through tariffs on dual-powertrain control units, electric motors, and high-capacity batteries sourced from Asia and Europe, increasing total cost of ownership for hybrid commercial fleets.The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

A significant increase in government regulations and policies targeting diesel and gasoline-powered vehicles is projected to drive the growth of the hybrid truck market. New government initiatives aimed at reducing greenhouse gas emissions and enhancing pollution control are prompting truck manufacturers to create vehicles that utilize alternative fuel sources. These regulations and policies are facilitating the expansion of the hybrid truck market. For example, in March 2023, the World Economic Forum, a Switzerland-based NGO, reported that EU member states approved a groundbreaking law mandating zero CO2 emissions for all new cars by 2035, effectively phasing out diesel and petrol vehicles. Additionally, the law requires a 55% reduction in CO2 emissions by 2030 compared to 2021 levels. Consequently, the surge in government regulations and policies against diesel and gasoline-powered vehicles is fueling the growth of the hybrid truck market.

The growth of the hybrid truck market is further driven by rising fuel prices. Escalating fuel costs incentivize the adoption of hybrid trucks owing to their enhanced fuel efficiency, achieved by combining electric power with conventional engines. As fuel prices increase, businesses seek more economical and sustainable transportation options. For example, recent data from the UK's Office for National Statistics indicates a notable rise in motor fuel prices between September and October 2023. The average gasoline price increased by 1.5 pence per liter, reaching 155.1 pence per liter, while the average diesel price surged by 4.8 pence per liter, reaching 162.2 pence per liter during the same period. Consequently, the rise in fuel prices is a significant driver behind the growth of the hybrid truck market.

A key trend in the hybrid truck market is technological advancement. Major companies in the market are investing in advanced technologies, such as zero-emission hybrid powertrain technology, to maintain their competitive positions. In May 2022, US Hybrid introduced near-zero-emission natural gas-powered parallel hybrid powertrain technology for drayage and long-haul trucks. This technology offers increased power, reduced fuel consumption, enhanced efficiency, and near-zero emissions. It provides a practical solution for long-haul fleet operators seeking near-zero-emission capabilities, reflecting the industry's commitment to versatility and environmental responsibility.

Product innovation, particularly in the form of ecoboost petrol engines, is a focus for major companies operating in the hybrid truck market. Ecoboost petrol engines are recognized for their turbocharged, direct-injection gasoline engines that deliver fuel efficiency without compromising performance. For instance, Ford launched the Ranger Plug-in Hybrid in Europe in September 2023. Featuring a 2.3-liter EcoBoost petrol engine, an electric motor, and an electric range exceeding 45 km, this truck aligns with sustainability goals by reducing emissions and improving fuel efficiency. The innovative design includes 4WD off-road capability, selectable drive modes, driver assist features, and Pro Power Onboard for using power tools via embedded outlets, making it an ideal choice for various work settings amid the increasing implementation of low-emission zones in European cities.

In October 2024, Bharat Forge Limited, an India-based forging company, purchased American Axle & Manufacturing Holdings Inc. for $64.76 million. This strategic acquisition is intended to strengthen Bharat Forge's global presence and broaden its product range in the automotive and industrial sectors. American Axle & Manufacturing Holdings Inc. is a U.S.-based producer of driveline and drivetrain components and systems for automobiles.

Major companies operating in the hybrid truck market market include AB Volvo Group, Daimler Truck Holding AG, Nissan Motor Co., BYD Auto Industry Company Limited, DAF NV., Dongfeng Motor Corporation Ltd., Hino Motors Ltd., Chevrolet, Nikola Corporation, Toyota Motor Corporation, Ford Motor Company, Mitsubishi Motors Corporation, Liebherr, General Motors, Fiat Chrysler Automobiles, Peterbilt, Freightliner, Isuzu Motors Limited, Industrial Vehicles Corporation, Foton Motor, Ashok Leyland, Tata Motors Limited, Navistar International Corporation, Hyliion, Dongfeng Motor Corporation, First Automobile Works, Shanghai Automotive Industry Corporation, Eicher Motors, Volkswagen Truck & Bus GmbH, Stellantis

North America was the largest region in the hybrid truck market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global hybrid truck market during the forecast period. The regions covered in the hybrid truck market market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the hybrid truck market market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The hybrid truck market consists of sales of full hybrid, micro hybrid and mild hybrid trucks. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Hybrid Truck Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on hybrid truck market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for hybrid truck ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The hybrid truck market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Technology Type: Parallel Hybrid; Series Hybrid; Series-Parallel Hybrid; Plug-In-Hybrid
• 2) By Vehicle Type: Light Duty Truck; Heavy Duty Truck
• 3) By Application: Construction; Pick Up And Delivery Vehicle
• Subsegments:
• 1) By Parallel Hybrid: Mild Hybrid; Full Hybrid
• 2) By Series Hybrid: Range-Extender Hybrid
• 3) By Series-Parallel Hybrid: Combination Of Electric And Combustion Engines
• 4) By Plug-In Hybrid: Rechargeable Hybrid With External Power Source; Extended Electric Range Hybrid
• Companies Mentioned: AB Volvo Group; Daimler Truck Holding AG; Nissan Motor Co.; BYD Auto Industry Company Limited; DAF NV.; Dongfeng Motor Corporation Ltd.; Hino Motors Ltd.; Chevrolet; Nikola Corporation; Toyota Motor Corporation; Ford Motor Company; Mitsubishi Motors Corporation; Liebherr; General Motors; Fiat Chrysler Automobiles; Peterbilt; Freightliner; Isuzu Motors Limited; Industrial Vehicles Corporation; Foton Motor; Ashok Leyland; Tata Motors Limited; Navistar International Corporation; Hyliion; Dongfeng Motor Corporation; First Automobile Works; Shanghai Automotive Industry Corporation; Eicher Motors; Volkswagen Truck & Bus GmbH; Stellantis
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.