The Report Covers the United Kingdom Hybrid Electric Vehicle Battery Market Size & Share and It is Segmented by Battery Type (Lithium-Ion Battery, Lead-Acid Battery, Sodium-Ion Battery, Others), Vehicle Type (Passenger Cars, Commercial Vehicles. The Report Offers the Market Size and Forecasts for the United Kingdom Hybrid Electric Vehicle Battery Market in Revenue (USD) for all the Above Segments

New plug-in hybrid electric car registrations soared in March 2024 with a peak of ****** sales, an **** percent increase on March 2023. There tend to be higher sales in September and March due to the release of new registration plates. In September 2024, registrations increased to just over ****** units.

The United Kingdom hybrid vehicle market reached approximately 380.25 Thousand Units in 2024. The market is projected to grow at a CAGR of 17.60% between 2025 and 2034, reaching a volume of 1923.72 Thousand Units by 2034.

The United Kingdom Lithium-Ion Battery for Electric Vehicles Market Report is Segmented by Vehicle Type (Passenger Vehicles, Commercial Vehicles, and Other Vehicle Types (Bikes, Scooters, Etc. )) and Propulsion Type (Battery Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-In Hybrid Electric Vehicle (PHEVs)). The Report Offers Market Sizes and Forecasts in Terms of Value (USD) for all the Above Segments.

The Alternatively Fuelled Vehicle (AFV) Manufacturing industry has expanded in recent years, driven by technological advancements, government incentives and rising concern over environmental issues. These trends have encouraged traditional manufacturers to increasingly focus on the production of pure electric and hybrid electric vehicles. The UK’s plug-in car grant, which provides subsidies towards consumer purchases of AFVs, has spurred demand for electric and hybrid electric vehicles in recent years. Rising fuel prices and a sharp drop in demand for diesel and petrol vehicles have provided further growth opportunities for AFV manufacturers. Revenue is forecast to climb at a compound annual rate of 5.1% to £12.6 billion over the five years through 2024-25, including a projected revenue jump of 4.1% in the current year. UK AFV manufacturers have pumped money into developing new models in recent years to take advantage of a rapidly growing market. According to the Society of Motor Manufacturers and Traders, AFVs accounted for 25% of new car registrations in 2022. UK registrations of BEVs, PHEVs and HEVs accounted for 37.3% of new car registrations in the first five months of 2024, compared to 2023 – as the appetite for electric cars grows. The pandemic dampened the industry's success as production was suspended for prolonged periods because of repeated lockdowns. Revenue has since expanded, with customers becoming more environmentally conscious and government policies driving them towards AFVs. Revenue is forecast to expand at a compound annual rate of 7.9% to £18.4 billion over the five years through 2029-30, despite operating on slim margins. AFVs still account for a small share of car registrations, indicating future growth opportunities. However, reduced funding or an end to the plug-in car grant could restrict industry expansion in the coming years. The significant level of trade between the UK and EU will provide openings for car makers to sell more cars to Europe. Government efforts to boost the uptake of electric vehicles, such as investment in charging infrastructure, will drive industry growth.

The hybrid vehicles market is projected to grow from USD 277,886.5 million in 2025 to USD 1,948,184.9 million by 2035, expanding at a remarkable CAGR of 21.5% over the forecast period.

Metric	Value
Industry Size (2025E)	USD 277,886.5 million
Industry Value (2035F)	USD 1,948,184.9 million
CAGR (2025 to 2035)	21.5%

Country-wise Outlook

Country	CAGR (2025 to 2035)
United States	20.3%

Country	CAGR (2025 to 2035)
United Kingdom	21.2%

Country	CAGR (2025 to 2035)
European Union	19.8%

Country	CAGR (2025 to 2035)
Japan	13.6%

Country	CAGR (2025 to 2035)
South Korea	20.5%

Competitive Outlook: Hybrid Vehicles Market

Company Name	Estimated Market Share (%)
Toyota Motor Corporation	20-24%
Honda Motor Co., Ltd.	13-16%
Hyundai Motor Group	10-13%
Ford Motor Company	7-10%
General Motors	5-8%
Other Companies (combined)	35-45%

The hybrid vehicle market is experiencing robust growth, projected to reach a market size of $231.77 million in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 12.83% from 2025 to 2033. This expansion is driven by several key factors. Stringent government regulations aimed at reducing carbon emissions are compelling automakers to prioritize fuel-efficient and low-emission vehicles, thereby boosting hybrid vehicle adoption. Furthermore, rising fuel prices and increasing consumer awareness of environmental sustainability are significantly influencing purchase decisions in favor of hybrid models. Technological advancements, leading to improved battery performance, reduced costs, and enhanced driving experience, further fuel market growth. The market segmentation reveals strong demand across various vehicle types, including passenger cars and commercial vehicles, with full-hybrid and plug-in hybrid vehicles leading the charge due to their superior fuel efficiency and reduced environmental impact. Competition amongst major automotive manufacturers like Toyota, Honda, Volkswagen, and BYD is intense, fostering innovation and driving down prices, making hybrid vehicles more accessible to a broader consumer base. Geographical analysis reveals a diversified market landscape. North America, particularly the United States and Canada, represents a significant market segment, driven by strong consumer demand and supportive government policies. Europe, especially countries with established electric vehicle infrastructure like Germany, the United Kingdom, and Norway, also demonstrates high adoption rates. The Asia-Pacific region, led by China, Japan, and South Korea, presents substantial growth potential due to its rapidly expanding automotive sector and increasing environmental concerns. Continued investments in infrastructure and supportive governmental policies within these key regions are expected to propel market growth throughout the forecast period. While challenges such as initial high purchase costs and limited charging infrastructure in some regions still exist, the overall market trajectory indicates a continuously expanding and promising future for hybrid vehicles. This insightful report provides a detailed analysis of the global hybrid vehicle market, covering the historical period (2019-2024), base year (2025), and forecast period (2025-2033). We project market size in million units, offering valuable insights for stakeholders across the automotive industry. This report is essential for understanding the current market dynamics and future growth trajectory of hybrid vehicles, including plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicles (HEVs). Recent developments include: November 2022: Toyota South Africa Motors (TSAM) announced the importation of several RAV4 Plug-In Hybrid Vehicles (PHEV) to test customer response, vehicle behavior, infrastructure requirements, and other technical aspects, as well as educate customers on plug-in technology. It is also the second phase of TSAM's New Energy Vehicle (NEV) roll-out strategy, following the hybrid vehicle expansion strategy across Toyota's mainstream product lines., November 2022, The Almaz Hybrid, previously displayed at the Indonesia Electric Motor Show (IEMS) 2022 event, was officially launched by Wuling Motors in Indonesia., October 2022,: BYD announced that it had opened its first store in Brasilia, Brazil's capital, in collaboration with Saga Group, the country's largest dealer. In Brazil, BYD has introduced the Tang EV luxury battery-electric SUV, the Han EV battery-electric sedan, the D1, and the Song PLUS DM-i hybrid SUV, which will go on sale soon., In October 2022, Korea Fuel-Tech Corporation invested USD 10 million in the construction of a new plant in Auburn, Alabama, the United States. The new plant will produce carbon canisters and hybrid vehicle fuel systems.. Key drivers for this market are: Fuel Economy Norms and Government Incentives. Potential restraints include: Growing Demand For Battery Electric Vehicles. Notable trends are: Passenger Car is Anticipated to Register Highest Growth.

When asked about "Propulsion systems in consideration by type", most UK respondents pick "Gasoline" as an answer. 47 percent did so in our online survey in 2025.

The UK Electric Vehicle Battery Manufacturing Market report segments the industry into Battery (Lithium-Ion, Lead-Acid, Nickel Metal Hydride Battery, Others), Battery Form (Prismatic, Pouch, Cylindrical), Vehicle (Passenger Cars, Commercial Vehicles, Others), and Propulsion (Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle). Five years of historical data is included along with five-year forecasts.

The UK Electric Vehicle Charging Equipment Market report segments the industry into Vehicle Type (Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV)), Application (Home Charging, Workplace Charging, Public Charging), and Charging Type (AC Charging (Level 1 and Level 2), DC Charging). Get five years of historical data alongside five-year market forecasts.

In March 2020 more than ****** mild hybrid electric vehicles (MHEV) were sold in the United Kingdom. The Driver & Vehicle Licensing Agency (DVLA) tends to issue new registration plates in March and September and hence, registration figures frequently soar in these months.

The number of cars with alternative fuels grows

Unlike plug-in electric vehicles and hybrid electric vehicles, mild hybrid electric vehicles are included in the segment of petrol and diesel-fueled cars in the SMMT's latest publications. This fact notwithstanding, vehicles with hybrid-electric propulsion held a market share of just under ***** percent in 2020. At the same time, the number of petrol and diesel-fueled cars registered is expected to fall to as low as *********** units in 2020. There is a shift away from internal combustion engines Environmental regulations and the Volkswagen diesel scandal are probable causes for the decline of diesel and petrol car registrations in the United Kingdom. Other reasons include incentives to go electric and improvements in the charging infrastructure. The variety of models available in the market is also on the rise.

The United Kingdom Lithium-ion Battery for Electric Vehicle Market is projected to reach a market size of 3.71 Million by 2033, expanding at a CAGR of 17.69% during the forecast period 2025-2033. The increasing adoption of electric vehicles, government initiatives promoting the adoption of electric vehicles, and the growing demand for energy-efficient solutions are the major factors driving the market growth. The rising environmental concerns and the need to reduce carbon emissions are expected to positively impact the market. Additionally, the government's favorable policies such as subsidies and tax incentives for electric vehicles, and the growing awareness about the benefits of electric vehicles are further contributing to the market growth. The market is segmented into vehicle type, propulsion type, and company. Passenger vehicles are expected to hold the largest share of the market, followed by commercial vehicles and other vehicle types. Battery electric vehicles are expected to dominate the propulsion type segment, followed by plug-in hybrid electric vehicles and hybrid electric vehicles. LG Energy Solution Ltd, BYD Company Limited, Toshiba Corporation, Panasonic Holdings Corporation, and Contemporary Amperex Technology Co Limited are the major players in the market. Recent developments include: May 2024: Faraday Battery Challenge (FBC) announced an investment of GBP 1.5 million (USD 1.9 million) for small and medium-sized (SME) battery developers across the United Kingdom. The company's developed projects are likely to involve cylindrical and pouch cell technologies across the country in the coming years.March 2024: Altilium partnered with Nissan to recycle battery waste and deploy advanced recycling technologies to lower the carbon footprint of new batteries made in the United Kingdom and reduce reliance on imported raw materials, including lithium-ion batteries.. Key drivers for this market are: 4., Increasing Adoption of Electric Vehicles (EV)4.; Declining Lithium-ion Battery Prices4.; Supportive Government Policies and Initiatives. Potential restraints include: 4., Increasing Adoption of Electric Vehicles (EV)4.; Declining Lithium-ion Battery Prices4.; Supportive Government Policies and Initiatives. Notable trends are: Declining Lithium-ion Battery Prices Driving the Market.

Europe’s Mild Hybrid Vehicles Market Report is Segmented by Battery Type (Less Than 48 Volt Battery, 48 Volt Battery, and Above 48 Volt Battery), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (Germany, United Kingdom, Italy, France, Spain, and Rest of Europe). The Report Offers the Market Size in Value (USD) and Forecasts for all the Above Segments.

The European mild hybrid vehicle (MHEV) market is experiencing robust growth, driven by stringent emission regulations, increasing fuel efficiency demands, and the rising adoption of electrified powertrains. The market, valued at approximately €16.42 billion in 2025, is projected to expand at a Compound Annual Growth Rate (CAGR) of 9.25% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the increasing prevalence of stricter emission standards across Europe is pushing automakers to adopt more fuel-efficient technologies, with MHEVs representing a cost-effective stepping stone towards full electrification. Secondly, consumers are becoming increasingly environmentally conscious, leading to a higher demand for vehicles with reduced carbon footprints. The segment breakdown reveals significant demand for both passenger cars and commercial vehicles, with the above 48-volt battery segment expected to show faster growth due to its enhanced power capabilities and improved fuel efficiency compared to lower-voltage systems. Major players like Volkswagen, BMW, and Daimler are heavily investing in R&D and production to capitalize on this market expansion, introducing a wide variety of MHEV models catering to diverse consumer needs and preferences. The regional analysis within Europe indicates strong performance across major markets like Germany, the United Kingdom, and France, reflecting the high penetration of vehicles and robust regulatory frameworks in these countries. However, growth opportunities remain in other regions such as the Nordics and Benelux, driven by government incentives and supportive policies promoting green mobility. While challenges such as high initial investment costs and consumer awareness regarding the technology's benefits remain, the long-term outlook for the European MHEV market remains exceptionally promising, indicating substantial growth throughout the forecast period. Continuous technological advancements, improvements in battery technology, and falling prices are expected to further propel market expansion in the coming years. Recent developments include: November 2023: Toyota introduced its lifestyle pickup truck, the Hilux, with a mild-hybrid diesel engine for the European markets. Hilux features a 48-volt mild-hybrid system paired with a 204 PS 2.8-liter four-cylinder diesel engine. Hilux is offered with the same diesel engine paired with 6-speed MT and 6-speed AT in India., June 2023: Volkswagen unveiled the new generation Tiguan with multiple powertrain options, including a turbo diesel engine (TDI), turbo petrol engines (TSI), mild hybrid turbo petrol engines (eTSI), and plug-in hybrid systems (eHybrid), at its world premiere in Wolfsburg, Germany. The model was planned to be first launched in various European markets starting early 2024, followed by the US market in the preceding months., April 2024: Mercedes announced the latest facelift of the G-Wagon with mild-hybrid technology. The entry-level variant, renamed G450d, retains the same 3.0-liter straight-six diesel engine paired with a 48-volt integrated starter generator (ISG). The engine pushes out 357 bhp and 750 Nm of peak torque with an additional 20 bhp and 200 Nm dished out by the electric motor.. Key drivers for this market are: Favorable Government Initiatives to Promote the Adoption of Low-emission Mild-hybrid Vehicles. Potential restraints include: Favorable Government Initiatives to Promote the Adoption of Low-emission Mild-hybrid Vehicles. Notable trends are: The Passenger Cars Segment is Anticipated to Dominate the Market.

The United Kingdom Nickel Metal Hydride Battery Market Report for Electric Vehicle Application is Segmented by Propulsion Type (Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-In Hybrid Electric Vehicles, and Fuel Cell Electric Vehicles), Vehicle Type (Passenger Cars and Commercial Vehicles). The Report Offers Market Size and Forecast in Terms of Revenue (USD) for all the Above Segments.

In the updated edition of the report by Future Market Insights, trends indicate to acquire a worth of US$ 35,927.40 million for plug-in hybrid electric vehicle market in 2024.

Attributes	Details
Market Value for 2024	US$ 35,927.40 million
Market Value for 2034	US$ 1,86,450.62 million
Market CAGR from 2024 to 2034	17.9%

Thriving the Transition towards Plug-in Hybrid Electric Vehicle (PHEV) Demand

Attributes	Details
Market Value for 2019	US$ 14,672.40 million
Market Value for 2023	US$ 30,004.30 million
Market CAGR from 2019 to 2023	15.38%

Category-wise Outlook

Segment	Passenger Cars
Share (2024)	78.4%

Segment	Parallel Hybrid
Share (2024)	82.1%

Country-wise Analysis

Countries	CAGR (2024 to 2034)
France	15.5%
United Kingdom	15.2%
Germany	14.7%
Spain	10.7%
Italy	10.2%

Countries	CAGR (2024 to 2034)
Canada	15.3%
United States	11%

Countries	CAGR (2024 to 2034)
China	14.1%
South Korea	12.7%
Japan	10.9%
India	6.9%
Australia	6.9%

The Europe Hybrid Electric Vehicle Battery Market report segments the industry into Battery Type (Lithium-ion Battery, Lead-Acid Battery, Sodium-ion Battery, Others), Vehicle Type (Passenger Cars, Commercial Vehicles), and Geography (Germany, France, United Kingdom, Italy, Spain, NORDIC, Russia, Turkey, Rest of Europe). Get five years of historical data and five-year market forecasts.

A lack of investment has pushed the UK Motor Vehicle Manufacturing industry into decline. Engine production is inching downwards as the industry struggles to attract investment because of higher EU production and multinationals wanting to be part of an integrated EU supply chain to reduce costs. The pandemic deepened the industry's troubles – output dropped by 29.3% in 2020, according to the Society of Motor Manufacturers and Traders (SMMT) – and recovery has been challenging. Motor vehicle producers have also been plagued by semiconductor shortages and supply chain issues, which have elevated production costs, squeezing their returns. Petrol and diesel vehicle output is falling, further sinking revenue. Car makers have abandoned diesel vehicles to produce electric vehicles. Car makers’ revenue is forecast to fall at a compound annual rate of 3.6% over the five years through 2024-25 to £53.4 billion. There’s a glimmer of hope – hybrid and pure electric vehicle sales are rising, both at home and abroad. Output climbed in 2023, driven by a resurgence in exports of electric and hybrid cars to the EU. Manufacturers produced 905,117 car units in 2023. However, output dropped to 779,584 units in 2024 because of the transition to electric vehicles. Revenue is expected to drop by 4.2% in 2024-25, with the average profit margin forecast to reach 5.9%. Manufacturers are passing on higher production costs, and luxury vehicle sales are driving profit. To plot a path to recovery, car manufacturers will focus on making alternatively fuelled vehicles (AFVs) in response to the UK’s ban on selling new petrol and diesel vehicles in 2035. However, demand for AFVs is currently weak, threatening the industry’s growth potential – some car makers are questioning their future in the UK unless the government does more to drive up demand for electric vehicles. The government has poured more money into building electric charge points to boost uptake but has withdrawn subsidies for buying electric cars. Still, electric vehicles will dominate the market in the long term as public and private efforts are pointed towards net zero policies. Revenue is expected to expand at a compound annual rate of 5.2% over the five years through 2029-30 to reach £68.9 billion.

This graph represents the usage of the four types of alternative fuel used in the UK in new cars registered in 2013, 2014, and 2015. Significant growth can be seen between 2013 and 2015 in the pure electric and plug-in hybrid market segments, while the petrol/electric and diesel/electric sectors were shown to decline.With a share of 3.3 percent on the vehicle market, plug-in hybrids were fairly uncommon in 2013. In 2015, plug-in hybrid vehicle make for almost a quarter of the overall vehicle market in the UK. Plug-in-hybrids reached a share of 24.4 percent in 2015.