World HEV Demand To Reach 4.5 Million Units

According to a study by the Freedonia Group, worldwide demand for light hybrid-electric vehicles (HEVs) is expected to advance rapidly, reaching 4.5 million units in 2013. HEVs are expected to represent over 6% of world light vehicle demand that year due to two primary stimulants: rising energy cost and increased emissions regulations. Cost disparities between HEVs and conventional light vehicles are expected to decline significantly as production volumes increase.

The primary markets for HEVs are expected to be within Triad countries (i.e., the U.S., Western Europe and Japan). The U.S. market is expected to be 2.0 million units in 2013, demand in Europe is expected to be significantly lower, while Japan will see increased demand reaching 660,000 units in 2013. On the Asian mainland, China and South Korea are expected to lead the demand over the next decade.