The number of plug-in hybrid vehicles (PHEVs) is set for “transformational growth” ahead of the launch of 100 new models, new favourable incentives and boosted battery capacity, according to consultants Frost & Sullivan.
However, the report suggests that phasing out electric vehicle (EV) incentives, the development of long-range battery electric vehicles (BEVs) and the launch of 48V mild hybrids could have a negative impact on the adoption of PHEVs.
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According to Pooja Bethi, intelligent mobility research analyst at Frost & Sullivan, the PHEV technology is the only type able to meet stringent standards of 95g/km of CO2 while scientists continue their attempts to overcome limitations with EV battery technology.
“PHEVs have a better market than BEVs due to uncertainty in charging infrastructure,” Bethi continued. “Owing to their ability to provide internal combustion engines and EV advantages, the PHEV market is set for high demand and growth.”
According to the Global Plug-in Hybrid Electric Vehicle Market, Forecast to 2025, the global PHEV market is estimated to reach around 3.7 million units by 2025, with dedicated EV platforms including the Volkswagen MQB, Mercedes-Benz EVA, and BMW FSAR becoming major drivers in the growth of PHEV.
Other key developments in the industry include the boost of the Chinese and European markets, accounting for 39.8 per cent and 30.6 per cent of the total of PHEV market.
New battery innovations are also expected to see wider application, while a strongly developed supply chain is expected to play an important role in minimising the financial impact on EVs.
Making suggestions for the future of the industry, Bethi continued: “Improvements in battery chemistries and energy density will boost the electric-only range of PHEVs, while fast-charging stations will help reduce charging times drastically.”