The Hybrid Electric Vehicles Market Outlook 2025 represents the scenario of the domain, led by emerging trends like plug-in hybrid, adaptive cruise control, and solid-state batteries. Further, developments like regenerative braking, flexible power sources, and intelligent energy management systems are accelerating the innovations of the sector.
Advanced powertrain technologies like fifth-generation hybrid systems and multiple driving modes make it more attractive among motor enthusiasts. The report also provides a glimpse into the innovations in the hybrid electric vehicles sector along with the current market situation, investment pattern, employment statistics, and startup dynamics.
Executive Summary: Hybrid Electric Vehicles Market Report 2025
- Industry Growth Overview: The sector grew by -4.24% in the last year. There are 2600+ companies and 140+ startups working in the hybrid electric vehicles domain. According to Technavio, the market value of hybrid electric vehicles is predicted to rise by USD 456.4 billion between 2024 and 2028.
- Manpower and Employment Pattern: The sector currently employs 496 200+ people and grew by 22 000+ people last year.
- Global Footprint: Countries with the maximum number of companies from this sector are the United States, the United Kingdom, India, Canada, and Australia. The top cities with the highest number of companies are London, Bangalore, Sydney, Melbourne, and New York City.
- Patents and Grants: More than 3000 applicants from hybrid electric vehicle companies filed 162 200+ patents. Additionally, 490+ grants were awarded to the companies in this field.
- Investment Landscape: The companies in the field held 1100+ funding rounds, which benefitted 300+ companies. The average fund raised every round is USD 131.8m.
- Top Investors: Key investors like the European Investment Bank, Stonepeak, Dealtertrack, and others invested over USD 9 billion in the hybrid electric vehicles sector.
- Startup Environment: Emerging startups like Edison Motors (hybrid electric heavy trucks), Okulo Aerospace (solar-electric hybrid drones), Azure Yacht Group (hybrid electric performance yachts), PLANA (hybrid e-powertrain), Moba (electric car battery diagnosis and optimization) represent the developing landscape of the hybrid electric vehicles.
What Data is Used to Create This Hybrid Electric Vehicles Market Report?
Based on the data provided by our Discovery Platform, we observe that hybrid electric vehicles rank among the top 5% in the following categories relative to all 20K topics in our database.
These categories provide a comprehensive overview of the market’s key metrics and inform the short-term future direction of the market.
- News Coverage & Publications: In the last year, more than 3800 articles about hybrid electric vehicles were published by news organizations, tech journals, and magazines.
- Funding Rounds: The companies in the hybrid electric sector held over 1100 fundraising rounds.
- Manpower: Currently, over 496 200 people are employed in this area worldwide, and 22 000+ new positions were added in the last year.
- Patents: The companies in the domain submitted over 162 200 patents, which ensures significant technological breakthroughs in the future.
- Grants: 490+ grants were awarded to the companies in this sector.
- Yearly Global Search Growth: Over the previous year, hybrid electric vehicle search interest increased by 7.75% worldwide.
Methodology: How We Created This Hybrid Electric Vehicles Report
This report is based on proprietary data from our AI-powered Startus Insights Discovery Platform, which tracks 25 million companies and 20 000 technologies and trends globally, including detailed insights on approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on emerging technologies and market trends.
For this report, we focused on the evolution of hybrid electric vehicles over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working on the trend
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within the hybrid electric vehicles sector
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the hybrid electric vehicle market.
Explore the Data-driven Hybrid Electric Vehicles Market Report for 2025
With more than 140 startups and 2600 companies, the hybrid electric vehicle market has a diverse range of companies working in the domain. The market grew by an annual rate of -4.24%.
The companies in the sector further submitted 162 200+ patents. Currently, 496 200+ people are working in this sector and 22 000 more people joined in the last year. Additionally, the companies in this sector received 490+ grants.
As per Precedence Research, the compound annual growth rate (CAGR) of the hybrid electric vehicles sector is 20.70%. The valuation of the sector is set to grow from USD 98.66 billion in 2024 to USD 647.46 in 2034.
Credit: Precedence Research
In the Asia-Pacific Region alone, the growth is estimated around 5.9% between 2024 and 2029. The countries with the maximum contribution to the field are the United States, United Kingdom, India, Canada, and Australia. Cities with more hybrid electric vehicle companies are London, Bangalore, Sydney, Melbourne, and New York City.
A Snapshot of the Global Hybrid Electric Vehicles Market
The hybrid electric vehicle market has seen a -4.24% yearly growth and is still growing in terms of employment, companies, development, and more. There are 140+ fully functional startups in the domain. More than 100 startups are in the early stages and over 240 startups have been acquired or merged.
More than 3000 applicants from the companies submitted over 162 200 patents. Additionally, the patent activity has gone up by 6.45%. With 37 830+ patents, the USA tops the list of patent issuers, followed by China with 26 300+ patents.
Explore the Funding Landscape of the Hybrid Electric Vehicles Market
The average fund raised in each funding round is USD 131.8 million. The companies in the hybrid electric sector held over 1100 investment rounds where 880+ investors took part. More than 3000 companies benefited from the investment raised from these rounds.
Who is Investing in the Hybrid Electric Vehicle Market?
The top investors in the hybrid electric vehicles sector made an investment of more than USD 9 billion for the research and development of the sector.
- European Investment Bank invested USD 2 billion in four companies. It is also supporting FCA for plug-in hybrid electric vehicles and battery electric vehicles research and development.
- Stonepeak contributed USD 1.6 billion to at least one company.
- Dealertrack contributed USD 1 billion to at least one company.
- Geely contributed USD 900 million to at least one company. Additionally, Renault has joined Geely to develop a hybrid and combustion venture.
- Berkshire Hathaway spent USD 888 million on at least one company.
- Itochu Corporation spent USD 764.7 million on two companies. Ener1 received a USD 20 million strategic equity investment from Itochu back in 2009. Itochu also partnered with THINK City to increase the marketing and distribution of electric vehicles in Asia.
- Korea Trade Insurance Corporation invested USD 674.9 million in at least one company. Hyundai Motor received an investment of USD 1.35 billion for constructing an electric vehicle manufacturing unit in the USA.
- Export Import Bank of Korea invested USD 674.9 million in at least one company.
- Allianz Trade (formerly Euler Hermes) invested USD 674.9 million in at least one company.
- Li Auto (formerly CHJ Automotive) invested USD 620 million in at least one company.
Top Hybrid Electric Vehicles Innovations & Trends with the Discovery Platform
Discover the emerging trends in the hybrid electric vehicles market along with their firmographic details:
- Plug-in Hybrids sector has 2000+ companies that employ 221 400+ people. Further, 9400+ people joined the workforce last year. The sector grew by 22.91% last year. Latest innovations in this sector include extended electric-only ranges, fast-charging capabilities, and intelligent energy management systems.
- Adaptive Cruise Control is a key trend in the hybrid electric vehicle sector. A major component of hybrid cars, adaptive cruise control employs more than 5900 people across 80+ companies. There were over 360 new hires last year. The sector grew by 4.14% annually. The cruise control assists in advanced driver assistance systems (ADAS), stop-and-go function, and improves the safety features of the car.
- Solid-State Batteries speed charging, improve energy density, leave a lower carbon footprint, and ensure a compact size for hybrid electric vehicles. The domain grew at an annual rate of 31.45%. There are 270+ companies in this domain and 40 700+ people working in them. Additionally, 2500+ people joined the workforce last year.
5 Top Examples from 140+ Innovative Hybrid Electric Vehicles Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
Edison Motors manufactures Hybrid Electric Heavy Trucks
Canadian startup Edison Motors builds hybrid electric heavy trucks. The L-series is a vocationally designed electric semi-truck, which includes L-500 and L-750.
The trucks are easy to maintain and built to last. The EV control dashboard and built-in operator safety make them suitable for performing heavy-duty tasks in extreme conditions. The BDE 770 contains a big diesel engine and comes with hybrid drivetrain benefits and a twin-seat conventional truck configuration.
Further, the startup builds Carl, a prototype for a diesel-electric hybrid truck, and Topsy, which is the first production prototype of L-500.
Edison Motors addresses the challenge of electrifying heavy-duty vocational vehicles that work in remote areas. The electric-hybrid vocational trucks further encourage clean energy transition for heavy-duty commercial vehicles.
Okulo Aerospace designs Solar-Electric Hybrid Drones
Indian startup Okulo Aerospace builds solar-electric hybrid unmanned aerial vehicles (UAVs) for continuous monitoring of infrastructures in different industries.
The UAVs are autonomous, feature energy management algorithms, and improve situational awareness. It is suitable for sight monitoring and surveillance in remote areas as it provides coverage beyond the visual line of sight.
The UAVs address the issue of outdated monitoring methods, limited endurance of existing drones, high costs, and import dependency. Port operators, oil and gas companies, and renewable energy industries use UAVs to gather geospatial data and monitor their assets.
Azure Yacht Group produces Hybrid Electric Performance Yachts
US-based startup Azure Yacht Group builds hybrid electric yachts. The Azure 48 Hard Top is a hard-top yacht suitable for hot climates. It features smooth curves and solar panel support and includes two bedrooms and two heads. The Azure 48 Open, an open yacht, features a smooth curve and an open area for charters and is suitable for yacht tenders and chase boats.
The yachts provide more fuel savings compared to regular twin diesel propulsion. The all-day house battery and solar regeneration further ensure fewer fuel-ups, silent operation, and zero fume production. Azure Yacht Group uses sustainable and lead-free materials and ensures no pollution in sensitive water.
PLANA designs Hybrid e-Powertrain
South Korean startup PLANA builds CP-01, which uses a hybrid e-powertrain for vertical take-off and landing (VTOL). The startup adds a turbine generator to the energy source of the eVTOL to make the battery more efficient.
It also ensures a safe statement of compliance (SOC) and optimized flight range, which increases the profitability of the aircraft. The powertrains make the aircraft quiet and eco-friendly.
CP-01 has two-sided doors for accessing the cabin space and wide windows that offer maximum view to pilots and passengers. It is suitable for transporting passengers, logistics, special missions, and emergency medical services (EMS).
Moba offers Electric Car Battery Diagnosis and Optimization
French startup Moba provides Moba Certify Pro to diagnose batteries in used electric vehicles. The certificate is prepared using the data generated by Connect Pro, an onboard diagnostic 2 (OBDII) box suitable for on-site battery inspection.
The certificate records the heterogeneous degradation of batteries and their current state by analyzing the battery and battery management system (BMS). It is compatible with the majority of the installed bases.
The certificate integrates with a SaaS dashboard and a mobile app for convenient access to certificate history, sorting, and filtering. It also gives access to detailed analytics of battery health.
The startup additionally provides an API that lets users connect their certificates to the product datasheet. Car leases, car dealerships, and remarketing experts use the certificate to ensure optimum battery health and provide proof of quality to customers.
Gain Comprehensive Insights into Hybrid Electric Vehicles Trends, Startups, or Technologies
The hybrid electric vehicle is an emerging sector with the potential to develop even more in the future. Environmental benefits like lower emissions, reduced fossil fuel dependency and economic advantages like fuel efficiency and lower operating costs are accelerating the developments.
Additionally, emerging trends like plug-in hybrid, adaptive cruise control, and solid-state batteries are improving the usability of hybrid electric vehicles.
The 2025 hybrid electric vehicles market report underscores the sector’s important role in supporting organizations to navigate complex regulatory frameworks while driving innovation and efficiency.
As global markets evolve, the adoption of advanced technologies and data-driven approaches has become essential in addressing hybrid electric vehicles challenges and adding resilience.
Get in touch to explore all 140+ startups and scaleups, as well as all market trends impacting 2600+ companies.
