The global hybrid commercial vehicle market to grow at a CAGR of 19.57% during the period 2017-2021.
Global Hybrid Commercial Vehicle Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the Unit shipments.
he 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