Hybrid Truck Market: Global Industry Analysis and Forecast (2023-2029)

Hybrid Truck Market was valued at US$ 22.87 Bn. in 2022. Global Hybrid Truck Market size is estimated to grow at a CAGR of 5.88% over the forecast period.
Hybrid Truck Market Overview:
Hybrid heavy-duty vehicles are electric hybrids designed for off-road and on-road heavy-duty applications. The Hybrid heavy-duty vehicles use combustion engines in conjunction with hybrid electric powertrain technologies to generate vehicle driving momentum. The electric motor does the job while the onboard range extender internal combustion engines keep the battery charged because hybrid heavy-duty trucks are designed for long journeys and heavy freight hauling. On hybrid heavy-duty trucks, larger tires and a flexible suspension system are standard, resulting in a higher ground clearance ratio and allowing these high-traction vehicles to go across uneven and bumpy roads.



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Hybrid Truck Market Dynamics:
Regulatory agencies are enacting more stringent emission limits as public awareness of pollution develops. As pollution restrictions become more stringent, automakers are being driven to build hybrid and electric vehicles. Automobiles that run on gasoline or diesel emit more greenhouse gases than hybrid ones. Governments in the United States and Europe are working on lowering pollution regulations and boosting automotive fuel economy in order to minimize greenhouse gas emissions. The US Department of Transportation, for example, created the Corporate Average Fuel Economy (CAFE) requirements for automobiles.

Despite the fact that electrification of MHDV powertrains has long been recognized as a way to reduce fuel costs and emissions for the nation's freight movement, the development of a competitive market for electrified commercial vehicles has lagged well behind that of light trucks. In the 1930s, the United Parcel Service used electric delivery vans. In the last ten years, battery performance has improved and battery costs have reduced, making MHDV electrification more appealing. According to industry sources, these low pricing have yet to be realized in the MHDV sector due to low volume purchases and unique pack needs. Electric commercial vehicles are being reevaluated, and they are now being used in freight, package delivery, and buses on the road.

Buses are the most popular electric commercial vehicle in the world, with large numbers in China and Europe. According to the American Public Transit Association, US transit agencies had 9,821 electrified buses in 2022, with 538 of these being battery electric vehicles (BEVs). A range of incentives and laws have aided this business. The National Academies of Sciences, Engineering, and Medicine released a report in 2022 on the state of battery-electric buses in the United States, which included a survey of 21 transportation organizations that have previously deployed electric buses.

By 2029, MMR predicts that approximately 160,000 battery-electric trucks will be delivered annually. China accounted for 79% of global battery-electric truck deliveries in 2022, but that figure is expected to drop to 80 percent by 2029. The global battery-electric bus market will be dominated by intercity buses, which will account for 31% of the market. This is owing to China's heavy subsidies on hybrid and electric intercity buses, which will account for the great bulk of worldwide demand over the predicted period. Yutong and BYD are the market leaders in both China and the rest of the world.

Restraints:

The rising demand for battery electric cars (BEVs) and fuel cell electric vehicles will be one of the major obstacles to the expansion of hybrid vehicles (FCEVs). There is a range of models and types of BEVs in the passenger car category, including hatchbacks, sedans, and SUVs. BYD (China), Tesla (USA), and Volkswagen (Germany) are just a few of the automakers putting more attention on BEV research.

FCEVs features a long-range, fast recharging, silent operating, and no greenhouse gas or air pollution emissions. As a result of these benefits, demand for FCEVs is increasing. Governments are also taking initiatives to promote and support the use of fuel cells in transportation, which might boost demand for fuel cells in the automotive and transportation industries.

Hybrid Trucks Cost Challenges:

According to the 'California Hybrid, Efficient, and Advanced Truck Research Center,' which validates the cost-effectiveness of electrification, electric delivery trucks will be ready for extensive commercial deployment by 2022, with a 3- to 5-year return-on-investment. A fully electric vehicle, also known as a battery-electric vehicle (BEV), requires the development and optimization of a completely electric powertrain, which comprises the battery, power electronics, electric machine, sensors, and control system, all of which takes time and money.
Hybrid Truck Market Segment Analysis:
The Hybrid Truck Market is being driven by the Parallel Hybrid Segment:

Based on the kind of electric powertrain, the hybrid heavy-duty vehicle market is segmented into parallel and series hybrids. The parallel hybrid segment is estimated to hold the largest market share by volume throughout the forecast period. This market is likely to grow as the adoption of regenerative braking technology increases. A regenerative braking system returns energy to the battery when the brakes are used. As a result, there is less of a requirement for external electric infrastructure. The regenerative braking system is the most common technology in hybrid vehicles. The use of regenerative braking and the reduced cost of micro and mild hybrids compared to PHEVs will improve parallel hybrid demand.

Based on hybrid type, the Hybrid Truck market is segmented into Full hybrid, micro-hybrid, and mild hybrid. The fully hybrid segment accounted for a 38% market share with 21% YOY growth owing to increasing electrification in the pickup trucks and heavy-duty segment. Moreover, lowering of battery prices in APAC and EU region is expected to adhere to the marker growth of the fully hybrid vehicle segment.

 Based on Vehicle Type, the market is segmented into light-duty, heavy-duty, and long haul. The light-duty segment is dominating the market with a 62% market share owing to the increasing penetration of light-duty and pickup trucks in North America and the European region and growing consumer demands for light-duty trucks across the globe.
Hybrid Truck Market Regional Insights:
Because of strict pollution control rules in the United States and Canada, North America dominates the hybrid heavy-duty vehicle industry. Furthermore, the federal government has regulated the usage of diesel-powered vehicles in the region, which is increasing the demand for system integration and heavy-duty vehicle electrification. In 2022, the hybrid vehicle market in APAC will grow at the fastest rate, with Japan accounting for the largest market share. The rise of the region is due to increased sales of hybrid autos in Japan, China, and South Korea. Furthermore, major hybrid automobile manufacturers such as Toyota, Honda, Nissan, Kia, BYD, and Hyundai are situated in the Asia Pacific area. Toyota has the largest hybrid vehicle market share in the United States.

The objective of the report is to present a comprehensive analysis of the global Hybrid Truck Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Hybrid Truck Market dynamic, structure by analyzing the market segments and projecting the Hybrid Truck Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Hybrid Truck Market make the report investor’s guide.
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Hybrid Truck Market


Base Year
2022
Forecast Period
2023-2029


Historical Data
CAGR
Market Size in 2022
Market Size in 2029


2018 to 2022
5.88%
US$ 22.87 Bn
US$ 34.11 Bn


Segments Covered


by Technology
Parallel hybrid
Series hybrid
Series-parallel hybrid
Plug-in hybrid
by Hybrid Type
Full hybrid
Micro hybrid
Mild hybrid
by Vehicle Type
Buses
Trucks
by Power Train Type 
Series
Parallel


Regions Covered


North America
United States
Canada
Mexico
Europe
UK
France
Germany
Italy
Spain
Sweden
Austria
Rest of Europe
Asia Pacific
China
S Korea
Japan
India
Australia
Indonesia
Malaysia
Vietnam
Taiwan
Bangladesh
Pakistan
Rest of APAC
Middle East and Africa
South Africa
GCC
Egypt
Nigeria
Rest of ME&A
South America
Brazil
Argentina
Rest of South America



Hybrid Truck Market Key Players
1 AB Volvo (Sweden)
2 Daimler AG (Germany) (Mercedes Benz Group)
3 Nissan Motor Corporation (Japan)
4 Azure Dynamics Corp. (USA)
5 Hino Motors, Ltd. (Japan)
6 General Motors (USA)
7 Nikola Motor Company (USA)
8 Fiat Chrysler Automobiles (Italy)
9 Volkswagen AG (Germany)
10 Renault Trucks (France)
11 DAF (Netherlands)
12 BYD Motors Inc. (China)
13 Danfoss (Denmark)
14 Dongfeng Motor Corporation (China)
15 Ford Motor Company (USA)
16 Toyota Motor Corporation. (Japan)
17 Liebherr Group (Germany)
18 MAN SE (Germany)

Frequently Asked Questions:

1] What segments are covered in the Global Market report?
Ans. The segments covered in the Market report are based on Vehicle Type, Manufacturing Method, and Material Type

2] Which region is expected to hold the highest share in the Global Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Market.

3] What is the market size of the Global Market by 2029?
Ans. The market size of the Market by 2029 is expected to reach US$ 34.11 Bn.

4] What is the forecast period for the Global Market?
Ans. The forecast period for the Market is 2023-2029.

5] What was the market size of the Global Market in 2022?
Ans. The market size of the Hybrid Truck Market in 2022 was valued at US$ 22.87 Bn.