Hybrid Electric Vehicle Sales in United States and Opportunity Analysis
Study on Hybrid Electric Vehicles in United States by Stored Electricity and On-Board Electric Generators for Passenger Cars, Commercial Vehicles, and Two-Wheelers from 2024 to 2034
Analysis of Hybrid Electric Vehicle Industry Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Hybrid Electric Vehicle Sales Outlook for United States (2024 to 2034)
As per the latest study by Fact.MR, sales of hybrid electric vehicles in the United States are estimated at US$ 22.2 billion in 2024. The United States market is calculated to expand at a CAGR of 13.8% and reach US$ 80.87 billion by the end of 2034.
Demand for hybrid electric vehicles in the United States has been surging due to several factors such as the high need to curb carbon emissions and increase fuel efficiency. Hybrid electric vehicles combine an electric propulsion system with a conventional internal combustion engine. Presence of an electric powertrain aids in achieving better fuel economy than a conventional vehicle and also provides several other benefits such as low maintenance costs, reduced operational costs, and less pollution.
The market in the United States is witnessing technological breakthroughs with manufacturers fulfilling the demands of more people preferring fully hybrid or mild-hybrid vehicles. Thus, rising inclination toward electric vehicles and hydrogen vehicles is set to provide lucrative opportunities for key market players in the country.
- Short Term (2024 Q2 to 2027): Demand is set to increase at a fast pace on the back of the several benefits of electric vehicles as compared to conventional vehicles, such as lower fuel cost and reduced carbon emissions.
- Medium Term (2027 to 2030): The country’s commitment to reach net-zero emissions will drive demand for hybrid electric automobiles.
- Long Term (2030 to 2034): Long-term investments in electric vehicles and research & development efforts on fuel efficiency are expected to propel the market forward.
| Report Attribute | Details |
|---|---|
| Hybrid Electric Vehicle Sales in United States (2024E) | US$ 22.2 Billion |
| Forecasted Sales (2034F) | US$ 80.87 Billion |
| Demand Growth (2024 to 2034) | 13.8% CAGR |
| Commercial Hybrid Electric Vehicle Demand Growth (2024 to 2034) | 16.6% CAGR |
| Stored Electricity HEV Demand Growth (2024 to 2034) | 12.6% CAGR |
| Key Companies Profiled | Tesla Motors Inc.; Magna International Plc.; General Motors; Ford Motor Company. |
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Why are Hybrid Electric Vehicle Sales Surging across the United States?
“Electric Vehicle Benefits Promoting Adoption Rates”
- According to the United States Department of Energy, in 2022 the transportation sector in the United States accounted for nearly 30% of the total country’s energy needs and approximately 70% of the country’s petroleum consumption.
Electric vehicles aid in improving fuel economy and reducing carbon emissions. The use of energy-efficient vehicles, such as electric automobiles, can aid in supporting the economy and lead to the diversification of the transportation fleet. Several fuel sources to generate electricity are resulting in a more secure energy source for the electrified portion of the transportation sector.
In addition, hybrid electric vehicles (HEVs) use less fuel than conventional vehicles as they come with electric-drive technologies, thereby boosting vehicle efficiency via regenerative braking. These electric vehicles are capable of being powered solely by electricity.
“Integration of Digital Technologies Leading to Development of Smart and Fuel-Efficient Hybrid Electric Vehicles”
The fuel efficiency of hybrid electric vehicles is being revolutionized with the help of newer and smarter algorithms such as artificial intelligence (AI) and machine learning (ML). Electric vehicles run on an energy management system, helping them maintain an equilibrium between the internal combustion engine and the electric motor. Technical teams of market players are focused on developing highly advanced algorithms to calculate the optimum energy consumption of vehicles. Overall, this increase in fuel efficiency is anticipated to bolster demand for hybrid electric vehicles in the United States.
Why is Western United States Leading the Race in This Market?
“Supportive Local Government Policies in Western United States”
| Attribute | Western Region |
|---|---|
| Market Value (2024E) | US$ 5.73 Billion |
| Growth Rate (2024 to 2034) | 13.5% CAGR |
| Projected Value (2034F) | US$ 20.3 Billion |
The western region of the country is expected to hold a leading market share throughout the forecast period. This part of the U.S. is expected to see a significant uptake in automobile infrastructure development and product innovation due to the recent announcement by the United States government that by the end of 2030, approximately 50% of new vehicles sold will be all-electric, plug-in hybrid, or hydrogen-powered vehicles.
It was also declared by the government that the National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA) will be tasked with developing aggressive long-term rules to support 2030 targets, including medium- and heavy-duty vehicles.
- According to the article 'Where Electric Vehicles Are (and Aren’t) Taking Off Across the U.S.', published by The New York Times on 6 March 2024, the West Coast, especially California, leads electric vehicle sales.
This data helps us understand that the registration of electric motors is higher in the western part of the United States, consequently driving overall market growth.
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Category-wise Analysis
Which Type of HEV Power Source is Most Popular?
“On-board Electric Generators Highly Effective in Electrification of Vehicles”
| Attribute | On-board Electric Generators |
|---|---|
| Segment Value (2024E) | US$ 15.68 Billion |
| Growth Rate (2024 to 2034) | 14.3% CAGR |
| Projected Value (2034F) | US$ 59.49 Billion |
Increasing shift toward electric vehicles is driving high demand for on-board electric generators. On-board electric generators provide electricity for auxiliary systems such as cooling, heating, and infotainment in traditional internal combustion engines. In HEVs on-board electric generators charge the battery or directly power the electric motor when the battery charge is depleted
Why is Demand for Hybrid Electric Passenger Cars So High?
“Cost-effectiveness and Fuel-efficiency of Hybrid Electric Passenger Cars”
| Attribute | Hybrid Electric Passenger Cars |
|---|---|
| Segment Value (2024E) | US$ 4.37 Billion |
| Growth Rate (2024 to 2034) | 14.3% CAGR |
| Projected Value (2034F) | US$ 16.67 Billion |
Rising popularity of electric motors coupled with a growing number of vehicle ownerships are contributing to the sales growth of hybrid electric passenger cars. Hybrid electric passenger cars are best for stop-and-go driving and are more popular than gasoline vehicles. Thus, cost-effective hybrid passenger cars are gaining traction in the United States.
Competitive Landscape
The United States market is in its nascent stage and is expected to surge ahead on the back of healthy investments, both from market players and the government. Along with this, rising automotive infrastructure development activities are also set to support market growth in a big way over the coming years.
Rising interest in electric vehicles driven by emission control needs is presenting lucrative opportunities for new hybrid electric vehicle manufacturers. Additionally, prominent market players are investing in research and development activities to innovate their product offerings and offer fuel-efficient hybrid vehicles.
- In April 2024, Ford Motor Co. announced the expansion of its fully hybrid vehicle offerings by 2030 and also pushed back the launch of its new three-row electric vehicles from 2025 to 2027. This strategy is estimated to help Ford remain competitive in the market.
Fact.MR provides detailed information about the price points of key manufacturers of hybrid electric vehicles positioned across the United States, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.
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Segmentation of Hybrid Electric Vehicles Study in United States
-
By Power Source :
- Stored Electricity
- On-Board Electric Generators
-
By Powertrain :
- Series Hybrid Electric Vehicles
- Parallel Hybrid Electric Vehicles
- Combined Hybrid Electric Vehicles
-
By Vehicle Category :
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
- Others
-
By Region :
- Northeast
- Southeast
- West
- Southwest
- Midwest
- FAQs -
How big is the United States market for hybrid electric vehicles?
Demand for hybrid electric vehicles in the United States is approximated at a market value of US$ 22.2 billion in 2024.
What is the forecasted valuation of the U.S. market for 2034?
Sales of hybrid electric vehicles in the U.S. are projected to reach US$ 80.87 billion by 2034.
What is the future of hybrid electric vehicles in the country?
The market in the United States is calculated to rise at a CAGR of 13.8% from 2024 to 2034.
What is the estimated market share of the Northeast region?
The Northeast U.S. is expected to capture 24.1% of the market share in 2024.
Which type of hybrid electric vehicle is in high demand?
Sales of hybrid electric passenger vehicles are projected to reach US$ 16.67 billion by 2034.
Who are the leading producers of hybrid electric vehicles in the U.S.?
Leading HEV manufacturers are Tesla Motors Inc., General Motors, and Ford Motor Company.
Hybrid Electric Vehicle Sales in United States and Opportunity Analysis