Hybrid Trucks Market size was reached over USD 22.3 Billion in 2022 and is projected to grow at CAGR of 7.5% through 2023 - 2032. By the end of the forecast period, the market is expected to reach a valuation of around USD 41.5 Billion.
A hybrid truck that combines two or more power sources, typically an internal combustion engine and an electric motor, to provide propulsion. Hybrid truck has been gaining traction in recent years, as there is increasing interest in reducing fuel consumption and emissions in the transportation sector. There are different types of hybrid trucks, ranging from mild hybrids to plug-in hybrids. Mild hybrids use the electric motor to assist the engine during acceleration and to power some auxiliary systems, but the engine is still the main source of propulsion. Plug-in hybrids have a larger battery that can be charged from an external source, allowing them to travel longer distances on electric power alone. Hybrid truck has many potential benefits, including improved fuel efficiency, reduced emissions, and lower operating costs over the life of the vehicle. Hybrid trucks can also be used in a variety of applications, from local delivery to long-haul transportation.
The market for hybrid trucks is being driven by a combination of government regulations, cost savings, public perception, technological advancements, fuel price volatility, improved performance, and sustainability goals. Government regulations in many regions mandate reduced emissions and improved fuel efficiency, providing incentives and tax breaks for the purchase of hybrid and electric vehicles, is slated to boost the market growth.
For instance, in 2020, there was a significant rise in sales of electrically-chargeable trucks in the European Union, as reported by the European Automobile Manufacturers' Association. The sales surged by 32.8%, with 1,656 units registered, of which half were recorded in Germany (829 units). Consequently, the market share of electrically-chargeable vehicles grew from 0.5% in 2021 to 0.6% in the same year.
Top Trends in the Hybrid Trucks Market: Rising Adoption of Lithium-ion Batteries
Rechargeable lithium-ion batteries are commonly used in hybrid vehicles to store the energy generated while applying brakes, which is then used to accelerate the vehicle. However, the battery in a heavy electric vehicle (HEV) is too heavy and can only store a small amount of energy.
To enhance the efficiency of hybrid vehicles, manufacturers have developed lithium-ion batteries, which are considered the most suitable existing technology and an upcoming trend in the hybrid trucks market. These batteries offer several advantages, including high energy efficiency, no memory effect, and a relatively long life cycle compared to lead-acid and nickel-metal hydride batteries. They also have a lower self-discharge rate, making them long-lasting once charged.
Moreover, the use of lithium-ion batteries in hybrid vehicles has the potential to improve the reliability of solar and wind power. This trend is expected to drive the overall hybrid trucks market, thereby boosting the automotive industry.
COVID-19 Impact on Automotive Industry:
The COVID-19 pandemic has had a significant impact on the global automotive sector, with both short-term and long-term effects. The pandemic has disrupted the global supply chain, leading to shortages of critical automotive parts, components, and raw materials, such as semiconductors, steel, and aluminum. Many automakers had to suspend production or reduce production capacity due to the pandemic, resulting in lower sales and revenue. As a result of the pandemic, many people were hesitant to purchase new vehicles due to economic uncertainty, job losses, and travel restrictions. This led to a decline in sales and revenue for automakers.
To adapt to the pandemic, many automakers shifted their sales focus to online channels, such as virtual showrooms and digital sales platforms. With the pandemic restricting travel and public transportation, there has been an increased demand for personal transportation, such as cars and bikes. Furthermore, the pandemic has accelerated the shift towards electric and autonomous vehicles, as many governments and consumers are looking for cleaner and more efficient modes of transportation.
The hybrid trucks market is expected to continue to grow in the coming years, with projections indicating significant growth potential in regions such as North America, Europe, and Asia-Pacific. The market is being driven by increasing demand for eco-friendly transportation options, as well as the development of new technologies and the expansion of charging infrastructure. The hybrid trucks market in North America refers to the industry that manufactures and sells hybrid trucks in the region.
Recent Development (Product Launched/Expansion/Merger & Acquisition/Partnership):
- In May 2022, US Hybrid, a subsidiary of Ideanomics and a pioneer in advanced battery and hybrid electric vehicle technology, has introduced a near-zero-emission natural gas-powered parallel hybrid powertrain technology for long-haul trucks and drayage. US Hybrid's agnostic technology will offer more power, greater range, and a more efficient powertrain than diesel engines or other CNG or RNG alternatives.
- June 2022, Hyliion Inc. introduced the Hypertruck Electric Range Extender (ERX), an electrified powertrain solution designed for long-distance travel in Class 8 commercial vehicles. This technology offers outstanding performance, reduces emissions, and provides cost savings to the worldwide trucking sector.
- In September 2020, Scania has debuted its first series production range of electric trucks, marking an important step in the company's journey towards a more sustainable transportation system. The new vehicles, which include a high-performance plug-in hybrid and fully electric truck, will first target urban applications such as retail distribution.
Leading manufacturers includes in the global hybrid trucks market are:
- Nissan Motor Corporation
- General Motors
- Liebherr Group
- Toyota Motor Corporation
- BYD Motors Inc.
- Hyliion Inc.
- Eaton Corp.
- Nikola Motor Company
- Daimler AG
- Ford Motor Company
- Renault Trucks
- DAF Trucks
- Azure Dynamics Corp
- Mercedes Benz
- AB Volvo
- Fiat Chrysler Automobiles
- Other Key Players
In-depth analysis of hybrid trucks market along with industry coverage and forecasting for the following segments:
Market Value Insights, By Technology
- Series Hybrid
- Parallel Hybrid
- Series-parallel Hybrid
- Plug-in Hybrid
Market Value Insights, By Hybrid Type
- Full Hybrid
- Micro Hybrid
- Mild Hybrid
Market Value Insights, By Vehicle Type
- Heavy-duty Trucks
- Light-duty Trucks
Market Value Insights, By Region
- North America
- Asia Pacific
- Middle East and Africa
- Latin America