Alternative Fuel and Hybrid Vehicle Market

The global alternative fuel and hybrid vehicle market size was approximately US$515.9 Bn in 2022. The market has been predicted to experience a stellar CAGR of more than 42% in revenue, during the years of forecast, 2023 - 2030.

The main types of alternative fuel and hybrid vehicles include Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), Hybrid Electric Vehicles (HEVs), Hydrogen Fuel Cell Vehicles (FCVs), Compressed Natural Gas (CNG) Vehicles, and Biofuel-powered Vehicles.

Governments worldwide are implementing policies to promote the adoption of alternative fuel and hybrid vehicles. These measures include tax incentives, rebates, emissions standards, and investments in charging and refuelling infrastructure. Some regions have even set ambitious targets to phase out internal combustion engine vehicles in favour of cleaner alternatives.

The plug-in hybrid vehicle category continues to lead, whereas by the type of vehicle, the passenger cars segment maintains a dominant position in the market. By region, Asia Pacific holds the largest share in the global alternative fuel and hybrid vehicle market.

The future growth outlook for this market is optimistic. It is expected that the market, between 2023 and 2030, will continue growing as technology advances, costs decrease, and consumer preferences shift towards more sustainable transportation options. Additionally, as governments continue to prioritise environmental goals, the market for alternative fuel and hybrid vehicles is likely to benefit from increased support and funding for research and development in this sector.