- Summary
- Table Of Content
- Methodology
Plug-in Hybrid Electric Vehicles Market Size:
Plug-in Hybrid Electric Vehicles Market Size is estimated to reach over USD 115.53 Billion by 2032 from a value of USD 41.99 Billion in 2024 and is projected to grow by USD 46.92 Billion in 2025, growing at a CAGR of 15.2% from 2025 to 2032.
Plug-in Hybrid Electric Vehicles Market Scope & Overview:
Plug-in hybrid electric vehicles combine gasoline engines and electric motors, with a battery that can be recharged by plugging into an external power source. It allows for longer electric driving range as compared to other hybrid electric vehicles. PHEVs also yield lower levels of emissions, depending on the electricity source. Further, with plug-in hybrid engines, vehicles have a range of up to 100 km in 100% electric mode.
Plug-in Hybrid Electric Vehicles Market Dynamics - (DRO):
Key Drivers:
Advancements in battery technology are driving the plug-in hybrid electric vehicles market expansion
Advancements in hybrid vehicle technology have significantly transformed the global market growth. One prominent advancement includes the development of more efficient powertrain systems that seamlessly integrate electric motors with traditional internal combustion engines. These advanced powertrains offer improved fuel efficiency and reduced emissions, addressing the growing concerns regarding environmental sustainability and fuel consumption. Further, advancements in battery technology have played a crucial role in enhancing the performance of plug-in hybrid vehicles. Lithium-ion batteries offer higher energy density and longer driving ranges compared to earlier battery technologies, thereby increasing the need of hybrid vehicles. Moreover, the integration of smart technology and connectivity features have added a new dimension to hybrid vehicles, enhancing user experience and convenience. It includes regenerative braking systems, predictive energy management, and advanced driver assistance systems (ADAS), which optimize vehicle performance and efficiency.
- For instance, in October 2024, CATL launched Freevoy super hybrid battery. The hybrid battery was designed for extended range electric vehicles (EREVs) and PHEVs, to free drivers from the constant need to charge, while offering the convenience of one charge to power for whole week commute.
Thus, according to the plug-in hybrid electric vehicles market analysis, the growing advancements in battery technology are driving the plug-in hybrid electric vehicles market size and trends.
Key Restraints:
Battery limitations are affecting the plug-in hybrid electric vehicles market demand
The concerns about battery life remain a significant restraint for both manufacturers and consumers. The limited lifespan of batteries is a major concern, as it directly impacts the vehicle's overall cost of ownership and resale value. One of the primary concerns is the gradual degradation of battery capacity over time.
Lithium-ion batteries, which are commonly used in electric vehicles, experience a reduction in capacity with each charge-discharge cycle. This degradation can lead to a decrease in the vehicle's driving range and overall performance, affecting consumer confidence in electric vehicles. Thus, the above analysis depicts that the aforementioned factors would further impact on the plug-in hybrid electric vehicles market size and trends.
Future Opportunities:
Technological advancements in improving PHEVs efficiency and performance are expected to create potential growth for plug-in hybrid electric vehicles market opportunities
Advancements in battery technology have significantly improved energy storage capacity and lifespan. Moreover, research into next-generation battery chemistries, such as solid-state batteries are enhancing energy storage and safety, while revolutionizing the hybrid vehicle landscape. In addition to this, developments in powertrain technology have led to the creation of more sophisticated hybrid systems. Integrated motor generators and power-split devices optimize the distribution of power between the internal combustion engine while electric motor provide smoother transitions between driving modes and improved fuel efficiency. Additionally, advancements in regenerative braking systems capture and store kinetic energy during deceleration, further augmenting the overall efficiency of hybrid vehicles by harnessing wasted energy. Additionally, cloud-based connectivity enables over-the-air updates for software optimization, ensuring that hybrid vehicles remain at the forefront of technological innovation throughout their lifecycle.
- For instance, in November 2022, Toyota Australia updated its Corolla hatchback and sedan ranges by introducing Toyota Connected Services, a new multimedia system and next-generation hybrid powertrain. With this launch, the automaker has improved the performance of its passenger cars, with 13kW increase in peak power along with a combined output of 103kW for hybrid variants.
Thus, based on the above plug-in hybrid electric vehicles market analysis, the growing technological advancements in electric vehicles are expected to drive the plug-in hybrid electric vehicles market opportunities and trends.
Plug-in Hybrid Electric Vehicles Market Segmental Analysis :
By Power Source:
Based on power source, the plug-in hybrid electric vehicles market is segmented into stored electricity and on-board electric generator.
Trends in power source:
- As the infrastructure for electric vehicles continues to expand globally, the demand for advanced on-board charging solutions is expected to grow. Companies are focusing on developing chargers with faster charging capabilities and broader compatibility with different power sources, ensuring PHEVs can be charged conveniently at home or at public charging stations.
- The increased power output helps improve acceleration, top speeds, and overall load capacity, ensuring that hybrid electric vehicles can compete with their internal combustion counterparts in terms of performance, particularly in industries requiring high operational demands.
- Thus, the above factors are driving the plug-in hybrid electric vehicles market demand.
The stored electricity segment accounted for the largest revenue in the year 2024.
- The expansion of charging infrastructure and advancements in smart grid technologies are facilitating the integration of PHEVs into the energy ecosystem, thereby supporting their widespread adoption.
- The convenience of home charging is a significant advantage for PHEV owners, allowing them to recharge their vehicles overnight and start each day with a full battery. As more consumers adopt PHEVs, the demand for residential charging solutions is expected to grow, driving the development of more efficient, user-friendly, and cost-effective charging technologies.
- Thus, based on the above analysis, these factors are further driving the plug-in hybrid electric vehicles market growth.
The on-board electric generator segment is anticipated to register the fastest CAGR during the forecast period.
- On-board electric generators can generate electricity from the rotating wheels, while braking, transferring that energy back to the traction battery pack. They are used to recharge the battery when the ICE is running.
- These generators are integrated directly into the vehicle, allowing for convenient and efficient charging without the need for external charging equipment.
- Companies are focusing on developing chargers with faster charging capabilities and broader compatibility with different power sources, ensuring PHEVs can be charged conveniently at home or at public charging stations.
- Thus, based on the above analysis, these trends are expected to drive the plug-in hybrid electric vehicles market share during the forecast period.
By Powertrain:
Based on powertrain, the plug-in hybrid electric vehicles market is segmented into series hybrid, parallel hybrid, and combined hybrid.
Trends in powertrain:
- Automakers are continuously assessing the factors to determine the most suitable powertrain for each PHEV model, balancing cost, performance, and emissions considerations.
- The ongoing development of advanced control systems and energy management algorithms is enabling more efficient operation of all powertrain types, further enhancing the competitiveness of hybrid vehicles against traditional internal combustion vehicles. These advancements are contributing to the overall growth of the market, as more consumers recognize the benefits of hybrid powertrains in achieving sustainable transportation goals.
The parallel hybrid segment accounted for the largest revenue in the year 2024.
- Parallel powertrains allow both the electric motor and ICE to drive the vehicle, either independently or simultaneously. This flexibility enables PHEVs with parallel powertrains to optimize power delivery based on driving conditions, providing enhanced performance and fuel efficiency.
- The ability to seamlessly switch between power sources or combine them as needed makes parallel powertrains well-suited for a variety of driving scenarios, including highway cruising and long-distance travel. As a result, many automakers are incorporating parallel powertrains into their PHEV offerings to cater to consumers seeking versatile and efficient transportation solutions.
- For instance, MAHLE Modular Hybrid Powertrain (MHNP) provides scalable solution for a high efficiency parallel hybrid powertrain for vehicle applications. It incorporates turbocharged gasoline ICE, generator, traction motor, and bespoke transmission in a fully integrated package.
- Thus, based on the above analysis, these factors would further supplement the global market share.
The combined hybrid segment is anticipated to register the fastest CAGR during the forecast period.
- The combined powertrain, also known as the series-parallel powertrain, integrates the features of both series and parallel configurations. This type of powertrain provides the highest level of flexibility, allowing for optimized energy management and performance across a wide range of driving conditions.
- Combined powertrains can switch between series and parallel modes, adapting to the specific demands of the driver and environment. This adaptability makes them an ideal choice for PHEVs designed for diverse driving routines, offering a balanced blend of efficiency, power, and cost-effectiveness. As technology advances, the complexity of combined powertrains is being managed more effectively, enhancing their appeal in the PHEV market.
- For instance, in March 2025, Volkswagen announced that they will introduce new hybrid powertrains in 2026. The new hybrid powertrain is the second generation, comprises of internal combustion engine combined with an electric motor and battery. The technology will get a hybrid setup in the T-RoC, Skoda Octavia, and the Golf.
- These developments in the automotive industry are anticipated to further drive the plug-in hybrid electric vehicles market trends during the forecast period
By Vehicle Type:
Based on vehicle type, the plug-in hybrid electric vehicles market is segmented into passenger cars, commercial vehicles, two wheelers, and others.
Trends in vehicle type:
- Automakers are responding to the demand by expanding their portfolios with plug-in hybrid models that cater to various consumer preferences, such as compact city cars, luxury sedans, while offering advanced features and improved electric range.
- Manufacturers are investing in research and development to improve battery technology, drivetrain efficiency, and overall vehicle integration. These innovations are resulting in hybrid vehicles that offer better fuel economy, longer driving ranges, and enhanced driving experiences, further driving market growth across both passenger and commercial vehicle types.
The passenger cars segment accounted for the largest revenue share of 39.42% in the year 2024.
- In the passenger car segment, hybrid vehicles are gaining popularity due to their improved fuel efficiency and reduced emissions compared to traditional internal combustion engine vehicles. Consumers are increasingly drawn to hybrid passenger cars as they offer a balance between environmental sustainability and practicality, with a range of options available across various price points and vehicle sizes.
- As urban populations continue to rise, the need for sustainable and convenient transportation options is fuelling the adoption of PHEVs in the passenger cars segment.
- For instance, in February 2024, BYD launched Seal 06, in the plug-in hybrid car lineup. The passenger vehicle exhibits dimensions of 4830 mm in length, 1875mm in width, and 1495 mm in height, with a wheelbase of 2790 mm.
- Thus, based on the above analysis, these developments in the passenger vehicles segment are driving the plug-in hybrid electric vehicles market growth.
The commercial vehicles segment is anticipated to register the fastest CAGR during the forecast period.
- Logistics and delivery services, as well as public transportation fleets, are exploring PHEV options to reduce operational costs and meet emissions targets. The versatility of PHEVs, with their ability to transition between electric and gasoline modes, makes them an attractive choice for commercial applications.
- This flexibility allows fleet operators to optimize fuel usage and minimize downtime, contributing to overall business efficiency. As battery technology continues to evolve, enabling longer electric ranges and faster charging, the commercial vehicle segment is expected to see a more significant uptake of hybrid vehicles in the coming years.
- For instance, in November 2024, Volkswagen Commercial Vehicles has electrified the California and Multivan with plug-in hybrid setup. The effective drive system combines all electric driving with traction. The hybrid system consists of four-cylinder engine and electric drive motor on the front axle and second electric drive motor on the rear axle.
- These developments in the commercial vehicles segment are anticipated to further drive the plug-in hybrid electric vehicles market trends during the forecast period.
Regional Analysis:
The global market has been classified by region into North America, Europe, Asia-Pacific, MEA, and Latin America.
Asia Pacific plug-in hybrid electric vehicles market expansion is estimated to reach over USD 28.73 billion by 2032 from a value of USD 9.97 billion in 2024 and is projected to grow by USD 11.19 billion in 2025. Out of this, the China market accounted for the maximum revenue split of 36.58%. Asia Pacific is emerging as a significant market for plug-in hybrid electric vehicles, driven by major economies such as China, Japan, and South Korea. These countries are investing in automotive electrification and infrastructure development, supported by government incentives and initiatives aimed at promoting clean energy vehicles. Further, China's push for electric vehicle adoption, including hybrid vehicles, is a key driver of regional growth, with the government setting ambitious targets for vehicle electrification and emissions reduction. These factors would further drive the regional plug-in hybrid electric vehicles market share during the forecast period.
- For instance, in December 2024, BYD, the Chinese car manufacturer, sold 509,440 electric passenger vehicles and plug-in hybrid vehicles, which includes 207,734 EVs, bringing the total annual sales of battery-powered cars to 1.76 million. The company's overall annual sales rose by 41% compared to the previous year.
North America market is estimated to reach over USD 39.90 billion by 2032 from a value of USD 14.76 billion in 2024 and is projected to grow by USD 16.47 billion in 2025. North America holds a significant share in the global market, owing to its established automotive industry, technological expertise, and robust consumer demand. Further, the United States hosts several major automakers and component suppliers, contributing to the region's market dominance. Moreover, the region's focus on advanced safety features, vehicle electrification, and autonomous driving technologies presents lucrative opportunities for vehicle manufacturers, further solidifying North America's position in the global market. These factors would further drive the plug-in hybrid electric vehicles in the regional market.
- For instance, in June 2023, Toyota Motor North America, Inc. announced the investment of USD 50 million, to construct laboratory facility in Michigan. The new facility will evaluate batteries for regional electric and hybrid vehicles. In addition to battery development, the lab will also offer several activities related to level 2 and level 3 charging capabilities, while assessing connectivity to power source and infrastructure.
Additionally, according to the analysis, the plug-in hybrid electric vehicles industry in Europe is projected to witness significant development during the forecast period. Countries such as Germany, France, and the United Kingdom witnessed significant adoption of hybrid vehicle, supported by robust charging infrastructure and consumer incentives. Additionally, the emphasis on sustainability and the growing awareness of environmental issues among European consumers played a pivotal role in driving the market share of hybrid vehicles in the region.
Additionally, countries such as Brazil and Chile are executing policies aimed at advancing the adoption of electric vehicles. Governments are offering subsidies, tax subsidies, and improving charging infrastructure to encourage the transition. Further, countries such as Saudi Arabia and UAE are becoming early adopters of electric vehicles in the GCC region. Further, market players in the region are launching new products to expand their product portfolio and implementing initiatives to bring down fuel emissions, which will support the vehicle charging infrastructure.
Top Key Players & Market Share Insights:
The global plug-in hybrid electric vehicles market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the plug-in hybrid electric vehicles industry include-
- BMW AG (Germany)
- Daimler AG (Germany)
- Renault SA (France)
- Toyota Motor Corporation (Japan)
- Volkswagen AG (Germany)
- Ford Motor Company (U.S.)
- General Motors (U.S.)
- Honda Motor Company Limited (Japan)
- Mitsubishi Heavy Industries Ltd. (Japan)
- Nissan Motor Corporation Limited (Japan)
Recent Industry Developments :
Product Launch:
- In February 2025, Mercedes launched its compact GLC model in plug-in hybrid variant. The GLC 350e 4MATIC features a 2.0 litre four-cylinder engine, paired with an electric motor and a 24.8 kWh battery pack.
Plug-in Hybrid Electric Vehicles Market Report Insights:
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 115.53 Billion |
| CAGR (2025-2032) | 15.2% |
| By Power Source |
|
| By Powertrain |
|
| By Vehicle Type |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the Plug-in Hybrid Electric Vehicles Market? +
Plug-in Hybrid Electric Vehicles Market Size is estimated to reach over USD 115.53 Billion by 2032 from a value of USD 41.99 Billion in 2024 and is projected to grow by USD 46.92 Billion in 2025, growing at a CAGR of 15.2% from 2025 to 2032.
Which is the fastest-growing region in the Plug-in Hybrid Electric Vehicles Market? +
Asia-Pacific is the region experiencing the most rapid growth in the market.
What specific segmentation details are covered in the Plug-in Hybrid Electric Vehicles (PHEV) report? +
The plug-in hybrid electric vehicles report includes specific segmentation details for power source, powertrain, vehicle type, and region.
Who are the major players in the Plug-in Hybrid Electric Vehicles Market? +
The key participants in the market are BMW AG (Germany), Daimler AG (Germany), Ford Motor Company (U.S.), General Motors (U.S.), Honda Motor Company Limited (Japan), Mitsubishi Heavy Industries Ltd. (Japan), Nissan Motor Corporation Limited (Japan), Renault SA (France), Toyota Motor Corporation (Japan), Volkswagen AG (Germany), and others.
