Research from Frost & Sullivan finds that the global PHEV market is estimated to reach about 3.7 million units by 2025 with 4.8 million light vehicles in an optimistic scenario and 2.9 million light vehicles in a conservative scenario.
The reasons behind such growth include the imminent launch of 100 new models, favourable incentives, emission target compliance, and long battery ranges.
However, factors that may impede PHEV adoption include the phasing out of electric vehicle incentives, long-range battery electric vehicles, emergence of 48V mild hybrids, and the complexity of having two powertrains in a single vehicle.
“The stringent emission norms of 95 g CO2/km can only be met by PHEV technology, while EV battery technology evolves to overcome limitations. PHEVs have a better market than BEVs due to uncertainty in charging infrastructure,”
said Frost & Sullivan Intelligent Mobility Research Analyst Pooja Bethi.
“Owing to their ability to provide internal combustion engines and EV advantages, the PHEV market is set for high demand and growth.”
Dedicated EV platforms like the Volkswagen (VW) MQB, Mercedes-Benz EVA, and BMW FSAR are major drivers, pushing PHEV growth.
Read more: Green Fleet