Micro-hybrids could represent a major portion of global passenger vehicle sales based on a recent report by Lux Research. A report entitled “Every Last Drop: Micro and Mild Hybrids Drive a Huge Market for Fuel-Efficient Vehicles” concludes that micro-hybrids could represent 42% of light-duty vehicle sales by 2017. The total number of micro-hybrids globally might expand to 39 million units by 2017 according to Lux calculations. Analysts with Lux Research noted that this class of hybrids uses a low-capacity battery to boost engine performance or provide limited amounts of all-electric driving.
The factors used by Lux Research in assessing increased micro-hybrid adoption include consumer budgets, fuel costs and manufacturing processes. The relatively low upfront costs of micro-hybrids compared to full hybrids and electric vehicles should attract budget-conscious drivers. Lux assessed ongoing fluctuations in gasoline prices while estimating micro-hybrid adoption. A final factor in the report’s conclusions on this niche market is increasing efficiency and simplicity in the mass production of micro-hybrids.
Europe, China and the United States will contribute significantly to Lux’s vision of a micro-hybrid future. Consumers throughout Europe are estimated to increase micro-hybrid sales by 300% in the next five years with 12.6 million vehicles sold. Lux Research notes that the Chinese micro-hybrid market should increase by 81% per year with a total of 8.9 million units operating by 2017. The largest growth market according to “Every Last Drop” should be the United States. This nascent market for micro-hybrids should expand to 8 million units during the next five years. Micro-hybrids could make inroads into South Asia and Africa over the next decade with the expansion of dealer networks.
An important consequence of micro-hybrid adoption is the subsequent boost to battery manufacturers. The largest areas of growth will emerge from the absorbed glass mat (AGM) and lead-acid batteries predominant in micro-hybrids. Lux Research estimates that the battery market could achieve revenues of $6.9 billion in 2017 including $4 billion from AGM and lead-acid products. “Every Last Drop” also notes a boom for lithium-ion batteries in mild hybrids, jumping from less than $1 million to $570 million in revenues over the next five years. The adoption of micro-hybrids globally should not only encourage sustainable transportation but generate jobs and profits for subsidiary industries.
