Global Hybrid Commercial Vehicle Market 2017-2021
About Hybrid Commercial Vehicle
Hybrid commercial vehicles use a combination of an IC engine and an electric motor to power the vehicles. The vehicle uses either a combination of both or the preferred engine as per requirement. The inclusion of an electric motor provides instant torque when required and helps to increase fuel efficiency and reduce emissions.
Technavio’s analysts forecast the global hybrid commercial vehicle market to grow at a CAGR of 19.57% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global hybrid commercial vehicle market for 2017-2021. To calculate the market size, the report considers the Unit shipments.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Hybrid Commercial Vehicle Market 2017-2021
Technavio recognizes the following companies as the key players in the global hybrid commercial vehicle market: Daimler, Hino Motors, PACCAR, and Volvo
Other Prominent Vendors in the market are: Mahindra & Mahindra, MAN, and Tata Motors.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Growing popularity of hydrogen fuel cell hybrid. There are two preferred fuel choices for hybrid vehicles: the dominant one is fossil fuel, and the other is hydrogen. Hydrogen fuel cell vehicles (HFCVs) have lately become extremely popular after major manufacturers invested a lot in the development and promotion of the technology. The working mechanism of fuel cells is very easy to understand as it generates electricity using hydrogen and oxygen with water as a by-product. HFCVs are ZEVs as pure water is the only waste produced. Hydrogen is considered an ideal replacement for fossil fuels as it is abundant in the universe.”
According to the report, one of the major drivers for this market is Decreasing price of Li-ion batteries. Electric and hybrid vehicles are the future of vehicles, and hence the Li market plays a key role in keeping the cost in check. Li-ion batteries cost 70% of the total cost of the vehicle. In 2012, the cost of Li-ion batteries was six times more than that of lead acid batteries and four times more than that of NiMH batteries. The cost of the batteries has decreased from $1,000 per kWh in 2010 to $227 per kWh in 2016. The cost of the batteries has been declining since 2013 because of the increase in production. The reduction in cost was also driven by the increase in the production of HEVs, BEVs, PHEVs, uninterruptible power supply (UPS) systems, and other non-automotive electronic appliances.
Further, the report states that one of the major factors hindering the growth of this market is High initial investment. The cost of a hybrid vehicle is 15%-30% higher than that of any conventional IC engine vehicle. Although governments are providing subsidies, these subsidies will phase out with time (i.e., each manufacturer will lose the subsidy after reaching a certain sales number). The high initial cost and the immaturity of battery technology are the biggest hurdles for the industry. Hybrid commercial vehicles need a bigger battery pack to power the engine, and the use of more electronic components will lead to a significant increase in the cost of the vehicle. Additionally, commercial vehicle sales in terms of units are lesser than that for passenger vehicles, which leads to higher manufacturing cost. This cost is pushed to the customer. The increase in the payback period renders buyers reluctant to buy hybrid vehicles. The higher price point is also slowing down the adoption process.
Daimler, Hino Motors, PACCAR, Volvo, Mahindra & Mahindra, MAN, and Tata Motors.