An increase in the demand for eco-friendly transportation is giving the plug-in hybrid electric vehicle (PHEV) market a boost, according to U.S.-based Future Market Insights.
Its recent study explores the factors that are driving this growth, such as consumers, government incentives, environmental concerns, and market trends. They anticipate the PHEV market to be valued at US$ 35.93 billion by sometime in 2024.
“The surge in demand for eco-friendly transportation solutions among consumers who seek to reduce their carbon footprint and mitigate the impact of climate change is one significant driver for the PHEV market,” said Nikhil Kaitwade, Associate Vice President at Future Market Insights, in a statement.
One of the main drivers is consumers with an increased sense of environmentalism or environmental consciousness; they want eco-friendly transportation options to reduce their carbon footprint and combat climate change. PHEVs are an option for them and one that Future Market Insights describes as a “promising solution,” as it allows drivers to switch between electric and gasoline power.
OEMs are also expanding PHEV options, technological advancement continues, and government incentives and regulations are playing a crucial role in driving the adoption too.
“Many countries offer tax credits, rebates, and other incentives to encourage consumers to purchase PHEVs, while emissions regulations incentivize automakers to produce more fuel-efficient and low-emission vehicles,” Future Market Insights said in a news release. “These policies create a favourable environment for PHEV adoption and contribute to market growth.”
The company predicts a market evaluation of US$ 186.4 billion by 2034 — projected at a CAGR of 17.9%.
