Stay ahead of the curve and secure future growth for your business with Mintel’s US Electric and Hybrid Vehicles Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and consumer behaviours affecting your industry. Get a 360° view of the US Electric and Hybrid Vehicles market including market size and forecasted growth for the next five years.
Topics Analysed in this Report
- Consumers’ current ownership and consideration of electric and hybrid vehicles
- Influential sources impacting consumers’ interest in these vehicle types
- Important factors impacting consumers’ decisions to purchase an electric and/or hybrid vehicle
- Attitudes toward EVs and hybrids
Electric and Hybrid Cars – Current Market Landscape
Despite US consumers’ growing interest in sustainability, they remain cautious of hybrid and electric vehicles. Availability and affordability are the biggest barriers to adoption. However, a growing number of younger consumers display a growing interest in electric and hybrid cars, which indicates positive future growth.
- Electric and hybrid cars market size: Mintel estimates that units sold will increase by almost 40% by the end of 2023, and could reach 5 billion by 2028.
Electric and Hybrid Vehicles Market Trends
Despite limited current ownership, two-thirds of US consumers would consider purchasing a hybrid or electric vehicle, with Gen Z and Millennial consumers among the most likely adopters. Consumers gravitate toward hybrid vehicles over electric, due to issues around availability and affordability in the electric vehicle market.
Hybrid and Electric Vehicle Market Opportunities
In order to encourage more consumers to adopt electric vehicles, brands must aim to combat the negative perceptions related to reliability and value. This can be achieved by highlighting the average lifespans of these vehicles, as well as developing or communicating the warranties that are available for these vehicles.
Access and availability to charging stations remains a barrier for many consumers. However, almost three-quarters of US consumers who would consider purchasing a hybrid or electric vehicle would like charging stations to include different offerings, such as lounge areas or food options. Highlighting the need for brands to build upon the overall charging experience.
Purchase our full report to discover more about the latest industry and consumer trends in the US Electric and Hybrid Vehicle Market.
Readers of this report might also be interested in US Luxury Cars Market Report 2023, or US Car Purchasing Process Market Report 2023. Take a look at our extensive Automotive market research for more.
Expert Insights from an Automotive Industry Analyst
This report, written by Gabe Sanchez, a leading Automotive Analyst, delivers in-depth commentary and analysis to highlight current trends in the Electric and Hybrid Vehicle market and add expert context to the numbers.
Consumers’ growing interest in sustainability combined with automakers’ increasing commitment toward electric and hybrid vehicles presents a massive potential for growth in this category in the years ahead. However, obstacles such as perceptions, availability and affordability continue to pose challenges to consumers’ adoption. As such, it will be crucial for brands and retailers to work to overcome these barriers and effectively showcase the value of these offerings.
Gabe Sanchez
Automotive Analyst
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Overview
- What you need to know
- This Report looks at the following areas
- Definition
- Market context
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Executive Summary
- Top takeaways
- Consumer trends
- Consumers’ desire to make purchases in the short term remains strong
- Figure 1: Purchase intent, by generation and race and Hispanic origin, 2023
- Younger consumers present a significant opportunity for electric and hybrid vehicles
- Figure 2: Consideration of hybrid/electric vehicles, by generation, 2023
- Consumers’ usage of information sources is influenced by their experience
- Figure 3: Influential sources, by ownership and consideration status, 2023
- Consumers remain skeptical of hybrid and electric vehicles
- Figure 4: Important factors, by generation, 2023
- Segments display varying perceptions of electric vehicles
- Figure 5: Attitudes toward electric and hybrid vehicles – Impressions, by consideration and ownership status, 2023
- Competitive strategies
- Car manufacturers are introducing charging stations to drive adoption
- Figure 6: Tesla announces the availability of Superchargers to non-Tesla EVs
- Shell introduces gas-less station
- Figure 7: Shell converts traditional station to EV charging hub
- Sony, Honda partner to create Sony Honda Mobility
- Figure 8: Sony Honda Mobility Afeela prototype
- Hertz launches EV test drives
- Figure 9: Hertz highlights its EV test drive at LAX
- Market predictions
- Figure 10: Total US sales and fan chart forecast of market, at current prices, 2018-28
- Figure 11: Electric and hybrid vehicles outlook, 2023-28
- Opportunities
- Educate consumers on the life time value of electric and hybrid vehicles
- Highlight financial subsidies to increase affordability
- Leverage dealership locations for charging, establish touchpoints and new revenue streams
- Leverage artificial intelligence to accommodate consumers’ need for on demand information
- Highlight the availability of CPO and used hybrid and electric vehicles
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Market Size and Forecast
- Growth potential of electric and hybrid vehicles is considerable; subject to external factors
- Figure 12: Total US sales and fan chart forecast of market, at current prices, 2018-28
- Figure 13: Total US sales and forecast of market, at current prices, 2018-28
- Growth potential of electric and hybrid vehicles is considerable; subject to external factors
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Market Drivers
- Consumer confidence improves, drives consumers’ interest in short-term purchasing
- Figure 14: Consumer Sentiment Index, 2007-23
- Prices of new and used vehicles present barriers
- Figure 15: Consumer Price Index, new vehicles and used vehicles – Seasonally adjusted, 2018-23
- Emerging consumer segments present opportunities for auto brands and retailers
- Figure 16: Population, by generation, 2017-27
- Figure 17: Population by race and Hispanic origin, 2017-27
- Current gas prices could push consumers towards EV and hybrid options
- Figure 18: US gasoline and diesel retail prices, 2007-23
- Electric vehicle tax credits present opportunity
- Consumer confidence improves, drives consumers’ interest in short-term purchasing
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Competitive Strategies and Market Opportunities
- Ford responds to Tesla price cuts, others hold firm
- The opportunity: Focus on affordability to boost demand
- Figure 19: Ford reduces F-150 Lightning prices
- Automotive brands launch charging stations to improve touchpoints and overcome barriers
- The opportunity: Drive awareness, create touchpoints with owners of other brands
- Figure 20: Tesla announces the availability of Superchargers to non-Tesla EVs
- Figure 21: Mercedes-Benz plans to build EV charging network
- Shell introduces gas-less station
- The opportunity: Reimagine the traditional “gas” station
- Figure 22: Shell converts traditional station to EV charging hub
- Sony, Honda partner to develop an electric vehicle
- The opportunity: Borrow equity from technology companies
- Figure 23: Sony Honda Mobility Afeela prototype
- Alternate transportation companies aim to drive further interest in EVs
- The opportunity: Drive awareness and consideration among consumers
- Figure 24: Hertz highlights its EV test drive at LAX
- Figure 25: Ford announces a flexible leasing program for Uber drivers
- Coscto offers discounts on EVs
- The opportunity: Explore partnerships to better reach and appeal to consumers
- Figure 26: Costco offers discount on Audi EVs
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The Car Consumer – Fast Facts
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Purchase Time Frame and Ownership
- Consumers’ purchasing intent remains strong
- Figure 27: Purchase intent, by generation and race and Hispanic origin, 2023
- Barriers remain related to consumers’ adoption of electric and hybrid vehicles
- Figure 28: Electric vehicle ownership, by generation, 2023
- Consumers’ purchasing intent remains strong
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Consideration of Electric and Hybrid Vehicles
- Consumers gravitate to hybrid vehicles, interest in electric vehicles improves
- Figure 29: Consideration of hybrid/electric vehicles, by generation, 2023
- Figure 30: Consideration of hybrid/electric vehicles by type, by generation, 2023
- Living area influences consumers’ interest
- Figure 31: Consideration of hybrid/electric vehicles, by area, 2023
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- Figure 32: Consideration of hybrid/electric vehicles by type, by area, 2023
- Opportunities exist with multicultural and LGBTQ+ consumers
- Figure 33: Consideration of hybrid/electric vehicles, by LGBTQ+ status, 2023
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- Figure 34: Consideration of hybrid/electric vehicles, by race and Hispanic origin, 2023
- Figure 35: Consideration of hybrid/electric vehicles by type, by LGBTQ+ status and race and Hispanic origin, 2023
- Consumers gravitate to hybrid vehicles, interest in electric vehicles improves
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Influential Sources
- Experience and interest influence consumers’ use of information sources
- Figure 36: Influential sources, by ownership and consideration status, 2023
- Input from others is influential in shaping EV interest
- Figure 37: TURF Analysis – Information sources, 2023
- Experience and interest influence consumers’ use of information sources
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Factors of Importance
- Novelty of EVs and hybrids is met with skepticism – leading to need for information
- Figure 38: Important factors, by generation, 2023
- Multicultural consumers’ limited ownership experience drives them to seek guidance and the approval of friends
- Figure 39: CarGurus and Edmunds introduce ChatGPT Plug-in
- Figure 40: Important factors, by race and Hispanic origin, 2023
- As financial situation worsens, consumers prioritize necessities
- Figure 41: Important factors, by financial situation, 2023
- Owners look to keep up with the Joneses
- Figure 42: Important factors, by generation, 2023
- Novelty of EVs and hybrids is met with skepticism – leading to need for information
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Attitudes toward Electric and Hybrid Vehicles
- Battery life span and range are key concerns across segments, contributing to skepticism
- Figure 43: Honda highlights its history of innovation
- Figure 44: Attitudes toward electric and hybrid vehicles – Concerns, by consideration and ownership status, 2023
- Design and environmental benefits present opportunities; perceptions related to maintenance present barriers
- Figure 45: Attitudes toward electric and hybrid vehicles – Impressions, by consideration and ownership status, 2023
- Offerings at charging stations must continue to evolve
- Figure 46: Attitudes toward electric and hybrid vehicles – Charging, by consideration and ownership status, 2023
- Battery life span and range are key concerns across segments, contributing to skepticism
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Appendix – Data Sources and Abbreviations
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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Appendix – The Consumer
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- Figure 47: TURF Analysis – Information sources, 2023
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