Europe Mild Hybrid Vehicles Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.42 Billion |
| Market Size (2029) | USD 20.81 Billion |
| CAGR (2024 - 2029) | 9.25 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Mild Hybrid Vehicles Market Analysis
The Europe Mild Hybrid Vehicles Market size is estimated at USD 16.42 billion in 2024, and is expected to reach USD 20.81 billion by 2029, growing at a CAGR of 9.25% during the forecast period (2024-2029).
The European mild hybrid vehicles market is experiencing growth, driven by the growing demand for fuel-efficient vehicles, stringent emission regulations, and the transition toward sustainable transportation solutions among consumers. These trends are expected to propel the market forward during the forecast period.
Mild hybrid vehicles offer cost-effective and various environmental benefits while minimizing the need for major infrastructure changes.
Additionally, European governments are supporting the shift toward greener transportation. Incentives such as tax relaxation and subsidies make mild hybrid vehicles more attractive choice to buyers. The regulations aiming to reduce carbon emissions are also pushing both car manufacturers and consumers toward more sustainable options, creating room for mild hybrids to grow.
- From 2025 onwards, Regulation (EU) 2019/631 will set stricter EU-wide CO2 fleet targets: a 15% reduction by 2025 for both cars and vans and, from 2030, a 50% reduction target for vans and a 55% reduction target for cars, all relative to a 2021 baseline. It will also set a zero-CO2 emission target for new cars and vans from 2035 onwards.
However, the dominance of strong hybrids and battery electric vehicles (BEVs) in European countries such as Germany, France, Sweden, Norway, and the Netherlands is likely to act as a major restraint for the growth of mild hybrid vehicles in the region. The penetration of all-electric vehicles in Europe has showcased considerable growth in recent years, with sales of battery electric vehicles (BEVs) touching 54.7% in July 2023 compared to the same month in 2022. Therefore, the adoption of mild hybrid models, which integrate an internal combustion engine (ICE) in their powertrain, is likely to witness slower growth compared to its counterparts.
France is one of the fastest-growing countries in the European automotive industry. French consumers are highly receptive to mild hybrid vehicles. Thus, companies are focusing on establishing a nationwide distribution network and launching new models.
The top automotive companies, such as Volkswagen and Suzuki, are making huge investments in R&D activities, technological advancements, product launches, and capacity and infrastructure expansions. This move will help make transitions in the automotive industry by launching mild hybrid engines, which are sustainable and fuel-efficient, along with the integration of smart technologies.
- In September 2023, FIAT presented the Fiat 600 Hybrid, MHEV Mild-Hybrid engine to reduce fuel consumption by up to 15%. The model is available for the Italian market at EUR 19,950 with scrapping and financing.
Thus, such investments made by automotive giants, coupled with various advancements in mild hybrid systems and strategic moves for various production activities, will drive market growth.
Europe Mild Hybrid Vehicles Market Trends
The Passenger Cars Segment is Anticipated to Dominate the Market
Over the long term, growing demand for alternative drive options other than traditional internal combustion engines, rising fuel prices, and strict rules set by governments in various European countries are expected to drive the demand for passenger cars.
Sales of passenger cars are high in the European automotive market due to their stylish design, compact size, and economic value. These cars are also considered the most common mode of transportation. Therefore, the growing demand for cars with advanced features and high fuel efficiency contributes to the market鈥檚 growth.
According to the European Automobile Manufacturing Association, the registration of new passenger cars in January 2024 reached 8,51,690 units, 12.7% higher than January 2023. Thus, an increase in the sales of passenger cars plays a very important role in the growth of the overall market.
Mild hybrid systems offer significant advantages, including smooth engine start-up, kinetic energy-based battery charging, and the ability to cover short distances on electric power, all contributing to reduced overall fuel consumption. They have strong appeal among consumers seeking low-emission passenger cars, aligning with the rising popularity of mild hybrid vehicles.
Additionally, the cost-effectiveness of mild hybrid vehicles, attributed to their less sophisticated design compared to full hybrid counterparts, makes them a financially viable option for consumers.
Considering the growth of passenger car sales with fuel-efficient engines, OEM companies are taking advantage of this trend to drive the market for mild hybrid vehicles. For example,
In November 2023, Jeep expanded its Avenger SUV lineup by introducing the mild-hybrid powertrain-based Avenger e-Hybrid. The Avenger e-Hybrid is a 48-volt mild-hybrid system featuring a 21 kW electric motor integrated into the SUV's gearbox, offering low-speed EV-only driving for up to 1 km.
However, while the rising sales of all-electric vehicle models in countries like the United Kingdom, Germany, and France pose a potential challenge for the passenger cars segment, mild hybrid cars will likely continue their steady growth driven by their cost and fuel efficiency.
Germany is Expected to Hold the Highest Market Share
Consumers in Germany are highly receptive to mild hybrid vehicles due to the adoption of eco-friendly vehicles and the government鈥檚 focus on promoting sustainable vehicles, contributing to market growth.
Germany is also famous for various car championships, such as the MXGP Championship, thus boosting the demand for high-performance cars in the country. Automakers are launching engine technologies that offer high performance and are sustainable.
In June 2023, RAM extended its portfolio lineup with the introduction of the 3.6-liter Pentastar V-6 with an eTorque mild-hybrid system, with plans to lower CO2 emissions. The powerful and high-performing engine, which delivers 305 horsepower and 364 Nm of torque, is available in Europe on the RAM 1500 Big Horn, RAM 1500 Laramie, and RAM 1500 Rebel models.
Mild hybrid SUVs have become increasingly popular, especially the models that are particularly well-received in Germany. These vehicles combine the advantages of electric and combustion engines, resulting in impressive performance and environmental compatibility. Despite higher acquisition costs and more complex maintenance, these vehicles act as an attractive option, offering fuel efficiency, driving comfort, and lower emissions.
According to the Center for Automotive Research, more than half of new cars sold in Germany in 2025 will be SUVs, thus boosting the demand rapidly and contributing to the market鈥檚 growth.
The rising development of mild hybrid SUVs integrated with high-end technologies, such as eTorque mild hybrid systems, is projected to offer lucrative growth opportunities for market players.
Considering the sales growth of SUVs, companies are also focusing on the launch of new models to gain a competitive edge over the market. For instance, in March 2024, German automaker Mercedes revealed its G-class SUV model with mild hybrid systems, which will be launched in 2025.
The government鈥檚 increasing focus on cutting subsidies on electric vehicles by 2025 is expected to promote the sales of mild hybrid vehicles as they also offer better fuel efficiency compared to electric vehicles. However, the total cost of ownership will be much lower than that of electric vehicles in the long run.
Thus, such factors, coupled with various new technological advancements, will have a positive impact on the market.
Europe Mild Hybrid Vehicles Industry Overview
The European mild hybrid vehicles market is consolidated and led by globally and regionally established players. The companies adopt strategies such as new product launches, collaborations, and mergers to sustain their market positions.
- In August 2023, Solaris won the tender called by Giubileo 2025 SpA for a total of 110 mild hybrid articulated city buses in Rome, which was released by the government to make use of mild hybrid buses for public transport.
Some of the major players in the market include Volkswagen AG, Toyota Motor Corporation, BMW Group, Nissan Motor Corp. Ltd, Audi AG, BMW Group, and Mercedes-Benz.
Europe Mild Hybrid Vehicles Market Leaders
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Volkswagen AG
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Audi AG
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BMW Group
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Nissan Motor Co. Ltd
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Toyota Motor Corporation
*Disclaimer: Major Players sorted in no particular order
Europe Mild Hybrid Vehicles Market News
- November 2023: Toyota introduced its lifestyle pickup truck, the Hilux, with a mild-hybrid diesel engine for the European markets. Hilux features a 48-volt mild-hybrid system paired with a 204 PS 2.8-liter four-cylinder diesel engine. Hilux is offered with the same diesel engine paired with 6-speed MT and 6-speed AT in India.
- June 2023: Volkswagen unveiled the new generation Tiguan with multiple powertrain options, including a turbo diesel engine (TDI), turbo petrol engines (TSI), mild hybrid turbo petrol engines (eTSI), and plug-in hybrid systems (eHybrid), at its world premiere in Wolfsburg, Germany. The model was planned to be first launched in various European markets starting early 2024, followed by the US market in the preceding months.
- April 2024: Mercedes announced the latest facelift of the G-Wagon with mild-hybrid technology. The entry-level variant, renamed G450d, retains the same 3.0-liter straight-six diesel engine paired with a 48-volt integrated starter generator (ISG). The engine pushes out 357 bhp and 750 Nm of peak torque with an additional 20 bhp and 200 Nm dished out by the electric motor.
Europe Mild Hybrid Vehicles Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Favorable Government Initiatives to Promote the Adoption of Low-emission Mild-hybrid Vehicles
4.2 Market Restraints
4.2.1 Increasing Adoption of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Vehicle Can Deter Market Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Battery Type
5.1.1 Less than 48 Volt Battery
5.1.2 48 Volt Battery
5.1.3 Above 48 Volt Battery
5.2 By Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commerical Vehicles
5.3 By Country
5.3.1 Germany
5.3.2 United Kingdom
5.3.3 Italy
5.3.4 France
5.3.5 Spain
5.3.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Volkswagen AG
6.2.2 Audi AG
6.2.3 BMW Group
6.2.4 Nissan Motors Co. Ltd
6.2.5 Toyota Motor Corporation
6.2.6 Daimler AG
6.2.7 Hyundai Motor Company
6.2.8 Kia Motors Company
6.2.9 Volvo Group
6.2.10 Ford Motor Co.
6.2.11 Mitsubishi Motors Corporation
6.2.12 Volvo Group
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Enhancement in Mild-hybrid Battery Technology Presents Growth Opportunities
8. MARKET SIZE AND FORECAST BASED ON VOLUME
9. AN OVERVIEW OF UPCOMING MILD HYBRID VEHICLE MODELS
10. AN OVERVIEW OF EMISSION REGULATIONS AND TAX SUBSIDIES PERTAINING TO MILD HYBRID VEHICLES IN EUROPE
Europe Mild Hybrid Vehicles Industry Segmentation
A mild hybrid refers to a vehicle with an internal combustion engine supported by a small electric drive. The electric motor recovers braking energy (recuperation) and makes it available later as additional drive power to reduce fuel consumption. Mild hybridization always requires installing an e-machine with an inverter in the powertrain in addition to the combustion engine.
The European mild hybrid vehicles market is segmented by battery type, vehicle type, and country. By battery type, the market is segmented into less than 48 volt battery, 48 volt battery, and above 48 volt battery. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By country, the market is segmented into Germany, United Kingdom, Italy, France, Spain, and Rest of Europe.
The report offers market size and forecasts for mild hybrid vehicles in value (USD) and volume (units) for all the above segments.
| By Battery Type | |
| Less than 48 Volt Battery | |
| 48 Volt Battery | |
| Above 48 Volt Battery |
| By Vehicle Type | |
| Passenger Cars | |
| Commerical Vehicles |
| By Country | |
| Germany | |
| United Kingdom | |
| Italy | |
| France | |
| Spain | |
| Rest of Europe |
Europe Mild Hybrid Vehicles Market Research FAQs
How big is the Europe Mild Hybrid Vehicles Market?
The Europe Mild Hybrid Vehicles Market size is expected to reach USD 16.42 billion in 2024 and grow at a CAGR of 9.25% to reach USD 20.81 billion by 2029.
What is the current Europe Mild Hybrid Vehicles Market size?
In 2024, the Europe Mild Hybrid Vehicles Market size is expected to reach USD 16.42 billion.
Who are the key players in Europe Mild Hybrid Vehicles Market?
Volkswagen AG, Audi AG, BMW Group, Nissan Motor Co. Ltd and Toyota Motor Corporation are the major companies operating in the Europe Mild Hybrid Vehicles Market.
What years does this Europe Mild Hybrid Vehicles Market cover, and what was the market size in 2023?
In 2023, the Europe Mild Hybrid Vehicles Market size was estimated at USD 14.90 billion. The report covers the Europe Mild Hybrid Vehicles Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Mild Hybrid Vehicles Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Mild Hybrid Vehicles Industry Report
Statistics for the 2024 Europe Mild Hybrid Vehicles market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. Europe Mild Hybrid Vehicles analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
