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September 2025
The plug-in hybrid electric vehicles (PHEVS) market is projected to reach USD 367.44 billion by 2034, expanding from USD 164.5 billion in 2025, at an annual growth rate of 9.34% during the forecast period from 2025 to 2034. The growing focus of automotive companies on developing long-ranged vehicles coupled with technological advancements in hybrid powertrains is playing a crucial role in shaping the industrial landscape.
Also, numerous government initiatives aimed at developing the EV charging infrastructure along with rapid investment by engine manufacturers to strengthen research and development associated with PHEVs has driven the market expansion. The rising emphasis of battery manufacturers to develop high-quality batteries for PHEVs is expected to create ample growth opportunities for the market players in the upcoming years.
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The plug-in hybrid electric vehicles (PHEVS) market is a prominent branch of the automotive industry. This industry deals in the manufacturing and distribution of plug-in hybrid vehicles in different parts of the world. There are several types of vehicles developed in this sector comprising of compact PHEVs, midsized PHEVs, full-sized PHEVs and luxury PHEVs. It is integrated with different types of powertrains including series hybrid powertrain, parallel hybrid powertrain, series-parallel hybrid powertrain and some others. These vehicles are powered by numerous types of batteries including below 10 kWh, 10-20 kWh, 20-30 kWh, above 30 kWh and some others. This market is expected to rise significantly with the growth of the electric vehicles industry around the globe.
The major trends in this market consists of partnerships, business expansions and government initiatives.
| Scheme | Initiatives |
| PM E-Drive scheme | In May 2025, the government of India launched the PM E-Drive scheme. Under this scheme, the Indian government will install around 72000 public EV charging stations by the end of 2026. |
| Plan for Charge | In July 2025, the government of UK launched an initiative ’Plan for Change’. This initiative is aimed at investing 63 million euros for developing the EV charging network in this nation. |
| Responsibility for Germany | In June 2025, the government of Germany launched an initiative named ‘Responsibility for Germany’. Under this scheme, the government will invest heavily for enhancing the EV sector. |
| California Electric Vehicle Infrastructure Project (CALeVIP) | In August 2025, the government of California launched CALeVIP. CALeVIP is a government initiative aimed at investing around US$ 55 million for developing the EV charging network across the U.S. |
| Abu Dhabi Mobility | In May 2025, the government of UAE launched the Abu Dhabi Mobility Initiative. Under this scheme, the government of UAE will install 1,000 new charging points at 400 locations across this nation. |
The passenger cars segment led the plug-in hybrid electric vehicles (PHEVs) market. The growing demand for long-range passenger EVs in developing nations due to rising prices of gasoline has driven the market growth. Additionally, lack of well-established charging network in remote areas increases the demand for PHEVs, thereby fostering the industry in a positive direction. Moreover, rapid investment by automotive manufacturers to develop luxury PHEVs is expected to propel the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The heavy commercial vehicles segment is expected to grow with the highest CAGR during the forecast period. The growing demand for PHEV trucks from several industries such as construction, mining, logistics and some others has boosted the market expansion. Also, rapid investment by engine manufacturers for developing hybrid powertrains to deliver superior range in heavy commercial vehicles is playing a vital role in shaping the role in shaping the industrial landscape. Moreover, rising focus of automotive manufacturers to develop PHEV buses is expected to boost the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The parallel PHEVs segment led the plug-in hybrid electric vehicles (PHEVs) market. Parallel PHEVs provides improved fuel efficiency, lower emissions, and convenience of longer electric range for daily driving, thereby driving the market expansion. Also, increasing focus of Japanese car manufacturers on developing parallel PHEVs for delivering superior driving range is playing a crucial role in shaping the industrial landscape. Moreover, the lack of well-established charging network increases the demand for these vehicles, thus boosting the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The series-parallel / blended PHEVs segment is expected to rise with the fastest CAGR during the forecast period. The growing demand for series-parallel PHEVs from individual consumers due to its versatility and efficiency has driven the market expansion. Additionally, rapid investment by automakers to develop series-parallel powertrain for providing superior driving range is contributing to the industry in a positive manner. Moreover, rising emphasis of EV companies to manufacture luxury cars based on series-parallel framework is expected to propel the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The lithium-ion batteries segment dominated the plug-in hybrid electric vehicles (PHEVs) market. The increasing use of li-ion batteries in PHEVs for providing superior driving range has driven the market growth. Also, rising focus of battery manufacturers for developing high-quality PHEV batteries coupled with rapid investment by government for developing the lithium mining infrastructure is playing a prominent role in shaping the industrial landscape. Moreover, numerous advantages of li-ion batteries including high energy density for long life, fast charging capabilities, long lifespan with minimal degradation, low self-discharge and some others is expected to drive the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The solid-state batteries segment is expected to grow with the fastest CAGR during the forecast period. The growing demand for high-quality PHEV batteries from the automotive manufacturers to deliver superior driving range has boosted the market expansion. Also, rising investment by battery manufacturers to enhance research and development related to development of solid-state batteries is contributing to the industry in a positive manner. Moreover, several advantages of solid-state batteries including superior stability, enhanced safety, long lifespan, fast charging, high energy density and some others is expected to boost the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The 40-60 km segment dominated the plug-in hybrid electric vehicles (PHEVs) industry. The growing emphasis of automotive companies for developing mid-range PHEVs has driven the market expansion. Also, rising focus of EV brands for integrating advanced electric motors in PHEVs coupled with technological advancements in hybrid powertrains is playing a vital role in shaping the industrial landscape. Moreover, the increasing sales of mid-range PHEVs in different nations such as India, China, the U.S., Canada and some others is expected to drive the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The above 60 km segment is expected to rise with the highest CAGR during the forecast period. The rising demand for long-range PHEV trucks from numerous industries to operate heavy-duty applications has driven the market growth. Also, constant research and development activities related to luxury PHEVs for catering the needs of HNIs is playing a crucial role in shaping the industrial landscape. Moreover, partnerships among automotive companies and battery manufacturers for developing advanced PHEV batteries is expected to accelerate the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The private/home charging segment dominated the plug-in hybrid electric vehicles (PHEVs) market. The rapid adoption of PHEVs by individual consumers in developing nations due to rising prices of fuel has boosted the market growth. Additionally, the increasing focus of EV charging system manufacturers for developing high-quality EV chargers for residential uses is positively impacting the industry. Moreover, partnerships among automotive companies and charger manufacturing brands for integrating advanced technologies in residential chargers is expected to accelerate the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The public charging stations segment is expected to grow with the highest CAGR during the forecast period. The growing investment by automotive brands such as Volvo, Tesla, Mercedes Benz and some others for developing the public charging network has driven the market growth. Also, numerous government initiatives aimed at enhancing the EV charging infrastructure is playing a prominent role in shaping the industrial landscape. Moreover, partnerships among municipal corporations and automotive companies for opening new EV charging stations is expected to propel the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The OEM sales segment led the plug-in hybrid electric vehicles (PHEVs) industry. The growing emphasis of consumers to purchase PHEV components from automotive OEMs due to enhanced trust and high-quality has boosted the market expansion. Also, rapid investment by automakers for opening up new service centers in remote areas to cater the needs of emergency users is playing a crucial role in shaping the industrial landscape. Moreover, numerous offers and free-services provided by OEMs to attract maximum consumers is expected to drive the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The aftermarket & third-party dealers segment is expected to rise with the fastest CAGR during the forecast period. The rising demand for cost-effective PHEV components from middle class population of developing nations has boosted the market expansion. Also, rapid investment by automotive component startups for manufacturing a wide variety of PHEV parts is contributing to the industry in a positive manner. Moreover, the availability of different PHEV components in third-party e-commerce platforms is expected to propel the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The private consumers segment held the largest share of the plug-in hybrid electric vehicles (PHEVs) market. The growing adoption of PHEVs by eco-friendly consumers for lowering CO2 emission has boosted the market expansion. Additionally, rapid investment by automotive brands for developing passenger PHEVs along with rising disposable income of the people in developing nations is playing a prominent role in shaping the industrial landscape. Moreover, the increasing prices of fuels such as gasoline and diesel coupled with surging demand for PHEVs among youths is expected to propel the growth of the plug-in hybrid electric vehicles (PHEVs) market.
The fleet operators segment is expected to grow with the highest CAGR during the forecast period. The rising demand for fuel-efficient vehicles from fleet operators to increase their profit margins has driven the market expansion. Also, rapid investment by automotive manufacturers for developing PHEV trucks for operating medium-duty applications is contributing to the industry in a positive manner. Moreover, the growing adoption of PHEVs by ride-hailing companies to deliver sustainable transportation solutions is expected to foster the growth of the plug-in hybrid electric vehicles (PHEVs) market.
North led the plug-in hybrid electric vehicles (PHEVs) market. The growing demand for eco-friendly vehicles in the U.S. and Canada for lowering vehicular emission has boosted the market expansion. Additionally, numerous government initiatives aimed at developing the EV industry coupled with rising consumer awareness about the benefits of PHEVs is playing a prominent role in shaping the industrial landscape. Moreover, the presence of various market players such as General Motors, Ford, Dodge and some others is expected to foster the growth of the plug-in hybrid electric vehicles (PHEVs) market in this region.
U.S. is the major contributor in this region. In the U.S., the market is generally driven by the technological advancements in the automotive industry coupled with rapid focus of automakers for developing hybrid powertrains. Moreover, rapid investment by government for establishing fast charging networks along with rise in number of EV startups has played a crucial role in shaping the industrial landscape.
Europe is expected to grow with the highest CAGR during the forecast period. The increasing adoption of PHEVs in various nations such as Germany, UK, France, Italy, Denmark and some others has driven the market growth. Also, rapid investment by government for enhancing the EV charging infrastructure along with rising investment by automotive brands for opening new manufacturing units is contributing to the industry in a positive manner. Moreover, the presence of several market players such as Mercedes Benz, Volkswagen, Volvo and some others is expected to drive the growth of the plug-in hybrid electric vehicles (PHEVs) market in this region.
Germany and UK are the significant contributors in this region. In Germany, the market is generally driven by the rising consumer awareness about PHEVs along with rapid investment by market players for opening up new manufacturing centers. In the UK, numerous government initiatives aimed at developing the EV charging network is positively impacting the industry.
The foundation of plug-in hybrid vehicles production lies in the extraction and supply of essential minerals such as lithium, nickel, cobalt and graphite.
PHEV (Plug-in Hybrid Electric Vehicle) component fabrication involves designing, simulating, and manufacturing specialized components such as the battery pack, electric motor, generator, and dual powertrain system.
The battery cell manufacturing involves developing lithium-ion cells that are sorted and tested for quality assembling into larger modules and a complete battery pack.
Completed batteries and electronic components are delivered to PHEVs companies for integrating into their vehicles.
| September 2025 | Announcement |
| Tom Lee, Managing Director of MG Motor Middle East | The all-new MG 8 PHEV demonstrates our commitment to driving innovation and setting new benchmarks in the Middle East. Following its Guinness World Record achievement for the longest distance covered by a PHEV, this model delivers record-breaking range, advanced hybrid technology, and refined design. With hot-weather testing, GSO and SASO certifications, and powerful performance tailored for this region, the MG 8 PHEV reinforces our position as one of the fastest-growing automotive brands in the Middle East. |
| August 2025 | Announcement |
| Wang Haoyong, General Manager of GAC INTERNATIONAL Thailand Sales Company | GAC’s MPV family has cumulatively sold over 700,000 units globally, with quality recognized worldwide. Going forward, GAC will deepen its efforts in the Thai market with “Five Core Initiatives,” including introducing high-end models, establishing a high-quality service system, ensuring strict quality control, and developing energy ecosystem, all to fulfill the local demand for luxury new energy vehicles. |
| April 2025 | Announcement |
| Håkan Samuelsson, president and CEO of Volvo Cars | The XC70 marks our strategic entry into the extended-range plug-in hybrid segment a perfect bridge to full electrification. It lets us offer a balanced product portfolio for those who are not yet ready to make the leap to fully electric cars, while staying committed to our electrification roadmap. |
| March 2025 | Announcement |
| Emily Lek, the vice president at Jaecoo Malaysia | The Super Hybrid System (SHS) with its best-in-class technology and performance is what we believe enhances Malaysia’s vibrant hybrid vehicle landscape and creates room for competitive growth. Essentially, we’re happy to provide greater options to drivers looking to make the transition to hybrid mobility, in support of Malaysia’s energy transition ambitions. |
| March 2025 | Announcement |
| Geoffrey Bouquot, the Member of the Board of Management for Technical Development at AUDI AG | The increased electric range of our new plug-in hybrids enables our customers to cover the majority of their daily journeys using only electric power, our hybrid technology combines the best of both worlds and provides a high degree of flexibility for everyday life. And with the new technology designation 'e-hybrid,' this is now also recognisable at first glance. |
The plug-in hybrid electric vehicles (PHEVs) market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of General Motors, Nissan, BMW, Mercedes Benz, Toyota, Honda, Volvo, Ford, Audi, Chrysler, Kia, Porsche, Mitsubishi, Volkswagen, Hyundai and some others. These companies are constantly engaged in developing PHEVs and adopting numerous strategies such as business expansions, joint ventures, collaborations, launches, acquisitions, partnerships, and some others to maintain their dominance in this industry.
By Vehicle Type
By Powertrain Configuration
By Battery Type
By Electric Range
By Charging Infrastructure
By End-User
By Distribution Channel
By Region
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