The global market for hybrid and electric vehicles (HEVs) is forecast to increase 22% per year through 2026, almost tripling to 30.5 million units. Sales rose dramatically in 2021 in spite of an overall weak environment for the global automotive industry, and rapid advances are expected to continue as governments worldwide provide expanded regulatory support for the adoption of EVs.
This report covers the global hybrid and electric vehicle market by powertrain, vehicle type, and region. Demand, production, and net exports are presented in unit terms.
Demand by powertrain is presented for:
Hybrid vehicles Full hybrid vehicles Plug-in hybrid vehicles Electric vehicles
Demand by vehicle type is presented for:
Light vehicles Medium and heavy vehicles
Demand is presented for 17 countries in the following regions:
North America Central and South America Western Europe Eastern Europe Asia/Pacific Africa/Mideast
Scope of the Report
This report covers the scope, size, and growth of the global hybrid and electric vehicle market, including key trends in powertrains, vehicle types, and regions. Historical data are provided for 2011, 2016, and 2021 for demand, production, and net exports, with forecasts for 2026 and 2031. Historical market volatility is also addressed. Data are provided in units. Also included is an analysis of key industry players and their global market shares and the impact of the COVID-19 pandemic.
Battery Electric Vehicles (BEVs) Solidifying Market Position
BEVs overtook full hybrids to become the most common type of HEV in 2021. Government regulations supporting HEVs are increasingly attempting to boost sales of BEVs specifically, as these products are preferred due to their status as zero-emissions vehicles. However, supply of batteries will be a critical factor in the growth of the BEV market, and automakers will need to continuously collaborate with battery firms in order to take full advantage of these subsidies.
The market for plug-in hybrid vehicles (PHEVs) is expected to contract quickly after peaking as early as 2022. These products were always intended as a transitional technology, and aggressive targets for BEV adoption will lead to a short window for PHEV sales. In contrast, while full hybrid vehicle sales could peak by the 2030s in high-income markets, the usability of these products in nations lacking EV charging infrastructure is expected to lead to ongoing sales growth globally for the next decade.
ICE Vehicle Phaseouts Approaching in Europe
European nations have been global leaders in adopting target dates for the complete phaseout of sales of new ICE vehicles – including hybrids. Norway has the most ambitious target, aiming to reach 100% electric in new car sales by 2025, while several other European nations have set deadlines of 2030 or 2035. The European Commission has also shown signals of potentially implementing an EU-wide phaseout date of 2035.
Western Europe already had the world’s highest penetration of HEVs in 2021, and the region is expected to account for an increased share of demand by 2026. Eastern Europe is expected to register even faster growth, as EV penetration rates in the region are much lower and EU countries in the area will need to quickly adapt in the event that the organization adopts a blanket phaseout date.
Market Penetration in US Continues to Trail
While the US was the world’s third largest HEV market in 2021, sales as a share of total motor vehicle sales were below the global average and well below levels seen in other high-income nations. US adoption of BEVs in particular has been hindered by cultural and geographic factors that lead to greater concern over EV vehicle range and performance. The US is expected to post strong growth in HEV adoption through 2026, but market penetration will continue to trail that in Europe and high-income Asian nations. However, the US could be a stronger driver of growth in the 2030s, when European HEV markets begin to mature.
Table Figure 1-1. Global Hybrid & Electric Vehicle Market
Impact of COVID-19 Pandemic
COVID-19 General Trends
Impact on the Economy
Table Global Gross Domestic Product, 2019 – 2023
Table Figure 2-1. Real GDP by Region, 2019 – 2022
Impact on the Hybrid & Electric Vehicle Industry
Table Annual Global Hybrid & Electric Vehicle Demand by Product, 2019 – 2022
Table Annual Global Hybrid & Electric Vehicle Demand by Vehicle Type, 2019 – 2022
Table Figure 2-2. Annual Global Hybrid & Electric Vehicle Demand by Vehicle Type, 2019 – 2024
Table Figure 3-1. Hybrid & Electric Vehicles: Product Examples
Table Global Hybrid & Electric Vehicle Demand, 2011 – 2021
Table Figure 3-2. Global Hybrid & Electric Vehicle Demand, 2007 – 2021
HEV Demand by Region
Table Global Hybrid & Electric Vehicle Demand by Region, 2011 – 2031
Table Figure 3-3. Global Hybrid & Electric Vehicle Demand by Region, 2011 – 2031
Largest HEV Country Markets
Table Figure 3-4. Hybrid & Electric Vehicles: Largest Country Markets, 2021
Fastest Growing HEV Markets
Table Figure 3-5. Hybrid & Electric Vehicles: Fastest Growing Country Markets, 2021 – 2026
Hybrid & Electric Vehicles in Use
Table Global Hybrid & Electric Vehicles in Use by Region, 2011 – 2031
Table Figure 3-6. Global Hybrid & Electric Vehicles in Use by Region, 2011 – 2031
HEV Production by Region
Table Global Hybrid & Electric Vehicle Production by Region, 2011 – 2031
Table Figure 3-7. Global Hybrid & Electric Vehicle Production by Region, 2011 – 2031
Table Global Hybrid & Electric Vehicle Net Exports & Sales from Inventory by Region, 2011 – 2031
Table Figure 3-8. Global Hybrid & Electric Vehicle Net Exports & Sales from Inventory for Selected Countries, 2021
Product Overview (Hybrid vs. All-Electric)
Table Global Hybrid & Electric Vehicle Demand by Product Type, 2011 – 2031
Table Figure 3-9. Global Hybrid & Electric Vehicle Demand by Product Type, 2011 – 2031
Vehicle Types (Light & Medium/Heavy)
Table Global Hybrid & Electric Vehicle Demand by Vehicle Type, 2011 – 2031
Table Figure 3-10. Global Hybrid & Electric Vehicle Demand by Vehicle Type, 2011 – 2031
Factors Impacting Vehicle Demand
Global Motor Vehicle Outlook
Demand by Region
Table Global Motor Vehicle Demand by Vehicle Type & Region, 2011 – 2031
Production by Region
Table Global Motor Vehicle Production by Vehicle Type & Region, 2011 – 2031
Motor Vehicles in Use
Table Global Motor Vehicles in Use by Vehicle Type & Region, 2011 – 2031
Renewable Energy Targets
Rebates & Incentives
Table Comparison of Hybrid & Electric Powertrain Types