A new report from Mordor Intelligence estimates the hybrid vehicle market will grow from $263B in 2025 to $553B by 2031. Automakers like Honda, VW, and Stellantis are keeping hybrids in their lineups to hedge against slow EV charging infrastructure rollouts. Plug-in hybrids are seeing fast growth due to incentives, but conventional hybrids still hold the largest market share since they do not require charging stations. Competition is also heating up. Japanese automakers are facing pressure from Chinese manufacturers who are using cheaper lithium-iron-phosphate batteries to bring costs down. Demand is highest in the Asia-Pacific region, but North America is seeing renewed interest as buyers remain cautious about fully electric vehicles.