Hybrids Gaining Popularity and New Models on the Horizon from WardsAuto Podcast
In a recent survey conducted by WardsAuto, Steve Patton, the Americas Automotive Sector Leader at EY, and Dan Becker, Director of the Safe Climate Transport Campaign at the Center for Biological Diversity, discussed the growing trend of electrification in the automotive industry and its impact on consumer preferences.
Patton emphasized the importance of the automotive industry adapting to meet the growing demand for electric and hybrid vehicles. He highlighted the need for continued investment in infrastructure and technology to support the growth of the electric and hybrid vehicle market. The shift in consumer preferences is toward more sustainable vehicle options, with over half (52%) of consumers planning to buy a car within the next 24 months considering an electric or hybrid vehicle.
Becker, on the other hand, stated that the increasing popularity of electric and hybrid vehicles is a positive step towards reducing greenhouse gas emissions and combating climate change. He expressed concern about the potential impact of the Trump administration's rollback of fuel efficiency standards on the trend towards electrification in the automotive industry.
The global electric and hybrid vehicle market is projected to experience rapid and substantial growth by 2030. EY estimates that by 2030, battery-electric vehicles (BEVs) and plug-in hybrid-electric vehicles (PHEVs) will constitute 55% of total global vehicle sales. The hybrid drivetrain market alone is expected to grow from approximately USD 268.7 billion in 2025 to about USD 894.7 billion in 2030, reflecting a compound annual growth rate (CAGR) of around 27.2% during this period.
Key trends include significant annual value increases in the market, diverse powertrain strategies by leading automakers, and growth in electric vehicle sales in emerging markets. The Gulf Cooperation Council (GCC) region, for example, is experiencing a CAGR of around 22% in electric vehicle market size, helped by rising fuel prices and the establishment of local manufacturing.
Steve Patton and Dan Becker agreed on the need for collaboration between government, industry, and environmental groups to ensure a successful transition to electric and hybrid vehicles. They also emphasized the importance of addressing challenges such as supply chain disruptions and policy shifts to maintain market growth.
In summary, by 2030, the global automotive market will likely see hybrid and electric vehicles becoming a significant and rapidly growing segment. This growth is supported by technological improvements, broad OEM commitments, diversified vehicle offerings, and expanding regional markets, with hybrid drivetrains capturing a large share of the growth before potentially giving way to higher penetration of full electric vehicles beyond 2030.
- The rapid growth of the electric and hybrid vehicle market, projected to reach 55% of total global vehicle sales by 2030, necessitates continuous investment in infrastructure and technology within the automotive industry, as highlighted by Steve Patton.
- Financing opportunities in the automotive industry are anticipated to expand parallel to the increase in electric and hybrid vehicle sales, particularly in emerging markets such as the Gulf Cooperation Council (GCC) region, as the trend toward sustainable vehicle options continues to gain momentum.
