Extended-range Electric Vehicles Market Size, Share, Growth, Report 2025 to 2034

Extended-range Electric Vehicles Market Size and Growth 2025 to 2034

The global extended-range electric vehicles market size was valued at USD 7.13 billion in 2024 and is anticipated to reach around USD 29.32 billion by 2034, growing at a compound annual growth rate (CAGR) of 15.2% over the forecast period from 2025 to 2034. The extended-range electric vehicles (EREV) market is growing rapidly as demand rises for vehicles that offer both longer driving ranges and greater energy efficiency. Acting as a bridge between traditional hybrids and fully electric vehicles, EREVs are benefiting from advancements in battery technology particularly in cathodes, anodes, and electrolytes which enhance performance, charging speed, and safety. This innovation not only boosts the appeal of EREVs but also strengthens their role in driving the global shift toward cleaner, electrified transportation.

Extended-range electric vehicles or EREVs is a type of hybridized vehicles that mainly has the qualities of being an electric vehicle with a backup generator, an internal combustion engine (or ICE). The wheels are powered by the electric motor (operating on energy stored in a battery) that allows zero-emission driving with a degree of limited range (usually 40-80 miles). The ICE turns off when the battery runs out, but then will still turn back on when it cannot power the wheels directly but instead to make electricity and provide longer distances. It also removes range anxiety but retains the advantages of electric propulsion in commuters. The increased fuel efficiency and reduced emissions compared to standard cars and higher flexibility to travel long distances makes EREVs a successor to fully electric cars and traditional cars with internal combustion engine.

Extended-range Electric Vehicles Market Report Highlights

• By Region, the Asia-Pacific has accounted highest revenue share of around 39.6% in 2024, owing to rapid electrification, strong government incentives, and a dominant EV manufacturing base, Asia-Pacific leads the EREV market, with China, Japan, and South Korea driving regional volume and innovation.
• By Vehicle Type, the passenger cars segment has recorded revenue share of around 39.2% in 2024 owing to increasing urbanization, rising disposable incomes, and consumer preference for personal mobility, passenger cars dominate the market, especially in cities where compact and efficient EREVs are in high demand.
• By Range, the 151–300 miles segment has recorded revenue share of around 36.4% in 2024 owing to its optimal balance between range and affordability, the 151–300 miles category suits both city and intercity users, addressing range anxiety without significantly increasing battery or vehicle cost.
• By Battery Type, the lithium-ion segment has recorded a revenue share of around 52.5% in 2024 owing to superior energy density, recharge efficiency, and established global supply chains, lithium-ion batteries remain the preferred choice across EREV models, enabling high performance and longer vehicle ranges.
• By Propulsion Type, the series-parallel hybrid segment has recorded a revenue share of around 40.6% in 2024 owing to its operational flexibility and energy efficiency, the series-parallel hybrid system supports both electric and engine drive modes, making it ideal for mid-range EREVs across varying terrains and traffic conditions.
• By End-User, the private/individual segment has recorded a revenue share of around 38.7% in 2024 owing to increased environmental awareness, urban mobility needs, and subsidies for private EV buyers, individual ownership of EREVs continues to surge, particularly in metro areas and emerging economies.

Extended-range Electric Vehicles Market Trends

• EV sales across the world: A significant surge in the global sales of EVs, including EREVs is an added bonus, with the global sales of EREVs weighing in at 17.1 million units in the year 2024. The flexibility and increased range offered by EREVs make it favoured by customers in the semi-urban regions, particularly in China, and in the American market. EREVs got a growth rate of 40 percent over the last year compared to BEVs, which led in some places. The trend reveals that the consumer interest rates are sustained, not only on environmental inclinations. The automakers are taking advantage to maximize on EREVs. By the year 2024, the overall EREV market reached an estimate of more than USD 92 billion.
• Portfolio expansion through battery chemistry: EREV manufacturers are putting their bets on expanded chemistries, such as solid-state, LFP, and sodium-ion batteries to increase safety and thermal stability. This is the main transition to lessen the reliance on costly uncommon earth components. The worldwide investment in R&D of alternative chemistries amounted to more than USD 1.4 billion between 2022 and 2024. The innovations are meant to have a life extension and better charge cycles. The following March 2025, several startups were funded to provide the scale of alternative chemistries.

Report Scope

Extended Range Electric Vehicle Market Dynamics

Market Drivers

• Bridge technology to range-anxious customers: EREVs are a transitional technology to consumers who may prefer the benefits of EVs without having range restrictions, it is a bridge technology, has both electric drive and fuel backup. This will make them appealing in markets that do not have network charging. In June 2024, there was a report that EREVs may constitute 45% of the Chinese EV market by 2026. The combination of electricity source and fuel economy strikes the conservative consumers
• OEM pressure to comply with emission levels: OEMs are implementing EREVs to comply with the increasingly high world-wide emission requirements without having to invest fully into BEV infrastructure (and hence costs). The vehicles are used to reduce fleet emissions without undertaking significant changes in manufacturing lines. In October 2024, VW and Stellantis reaffirmed the launching of new EREV platforms by the year 2027. OEMs view EREVs as a short-term fix in achieving the short -term climate goals. This is especially the case in U.S. and Europe.

Market Restraints

• Infrastructure limitations: Not all regions have places to charge their EREVs, so this limits the efficiency of their electric range capabilities. Users are forced to use more of the fuel engine as reliable charging access is not available and this takes the benefit off the environment. This is the most pronounced in the rural and emerging markets. In 2025, there is a scarcity of ultra-fast chargers despite major investment in EV. This was not announced by the end of early 2025 as a significant infrastructure roll-out. This limits the attainment of EREV efficiency potential and hamper their adoption chain.
• Complexity and cost of powertrain: In EREVs, there must be two systems an internal combustion engine and an electric motor, creating complexity in both manufacturing and servicing. This has the ability to counterbalance cost advantages to simpler BEVs. A number of the OEMs complained of integration issues in early 2025 that increased the cost of development by 20%. This may equally overwhelm end-users who have to maintain and repair the dual systems. In the absence of modular platforms, it is difficult to have an economy of scale. This can constrain profitability within the lower-margin markets.

Market Opportunities

• Emergence in emerging economies: In emerging markets, EREVs present a good opportunity because infrastructures of EVs are currently not significant yet emission standards are getting stricter. Such cars have the capacity of running on electric mode in case there is an opportunity and go on fuel when necessary. In February 2024, VingFest declared it was investing USD 2 billion in India to make right-hand-drive EREVs. This action will allow EREVs to be a cost-effective clean transportation option within the developing countries. Capturing such markets has the potential to bring in an additional demand up to USD 15-20 billion by 2026. It fortifies international hybrid supply chains as well.
• Cross-industry battery utilizations: Utterances in battery technology in EREV can leak out into other industries such as energy storage in the renewable energy industries and heavy equipment. The ROI of financial outlays on EV component research and development increases as a result. By the year 2024, Tesla and LG were making a total of four billion dollars in grid storage technologies using EV batteries modified. This kind of diversification prevents the risk of dependence on automotive revenue only. Circular battery systems are facilitated by the dual-use approach.

Market Challenges

• Competition with BEVs and PHEVs: The price of BEVs is dropping and range is increasing, to reach the point that EREVs need to compete in complexity and costs with dual systems. The other PLUG-IN STRATEGY of competing directly comes in the form of offering plug-in electric range with less complicated designs by PHEVs. In the year 2023, about 70 percent of world EV market was claimed by BEVs, squeezing EREVs. This was still on the rise by 2025 and so in markets that have a good infrastructure. The manufacturers ought to innovate in order to make EREV differentiated effectively. Market cannibalization also continues to be a threat to OEMs.
• Regulation through shift and phase-outs: The regulation evolution and shift towards ICE prohibition may interfere with the planning and investing into EREV. There are now governments which prefer no-emission cars to hybrids. With the decrease in EV subsidies in Germany in 2023, there was a decline in hybrid sales by 5 per cent, which also includes the EREVs. Comparable trends took place in France and the Netherlands by the middle of 2024. The hybrid technologies can be hit by policy winds as countries gravitate toward all-electric mandates. Regulatory uncertainty creates greater risk to the long-term EREV investment.

Extended Range Electric Vehicle Market Segmental Analysis

Vehicle Type Analysis

Passenger Cars: The passenger cars segment has generated highest revenue share. Passenger cars are those vehicles that are light on duty and are mainly meant to be used by individuals and on their day-to-day commutation. Rides in this segment contain long-range electric powered with backup fuels options. In November 2024, Li Auto announced its latest extended SUV developed to accommodate small families called Li L9 with monthly sales hitting 47,000 units. The model is also a combination of smart technology with over 300-mile electric range, which is regarded as a microcosm of the increasing demands of family-friendly EREVs that are luxurious in China and even in other states.

Commercial vehicles: Commercial vehicles may also refer to the use of trucks or vans in carrying out logistics, transportation of goods, or to offer services. There are REVs that will minimise fuel consumption in urban distribution and provide range flexibility. In March 2023, Ford Pro introduced an extended-range version of E-Transit Custom to serve the fleet customers in Europe. This autonomous van will be useful on a longer city delivery runs, and helps ensure that by 2025, two-thirds of Ford commercial fleet sales will be electrified.

Two-Wheelers: These two systems include the electric scooters and motorcycles that are gaining popularity in terms of mobility in urban and semi-urban areas. EREVs of this segment have small combustion engines as backup. In August 2023, Ultraviolette, an Indian startup, introduced the battery-powered variant of its F77 Recon (high-performance long-range electric bike with 307 km (191 mi) of range per charge). It is not hybridized, but it still indicates the development of a higher-range electric bikes, and dual-battery set-ups are now under discussion of hybridization.

Buses: EREV buses are used in the public transportation systems and are a hybrid use of electric motors and combustion engines over the extended operational routes. The same year in January, Yutong Bus supplied Latin American cities with 500 extended-range electric buses; this stepped in to help reduce the reliance on fossil-fuel basis. These buses had been designed with a superior battery-swapping, hybrid technologies that could fit longer routes within the cities intercity.

Range Analysis

Up to 150 Miles: This category of range is aimed at the city commuters that have a short daily commute and frequent access to charging. In April 2023, the Note Aura E-Power of Nissan became popular in Japan, featuring less than 150 miles of mixed gas-electric range with the help of a hybrid system. By the end of 2023, the model had sold more than 100,000 units, demonstrating that even limited-range EREVs could gain urban consumers, unless they are also accompanied with fuel range backup and reliability.

151-300 Miles: The 151-300 miles segment has recorded highest revenue share. These category of vehicles are used in mixed roads, both the city and highway roads and give a balanced ability of traveling using electricity and some few times fuel. Toyota started the sale of another upgrade of its Prius Prime in July 2024, having 220-mile electric range and enhanced battery chemistry. The car is targeting the drivers, who want to be efficient but do not necessarily want to charge publically.

More than 300 Miles: EREVs with a range in excess of 300 miles will be attractive to intercity customers as well as commercial customers who require a high level of autonomy. In October 2024, CATL presented a new generation of EV batteries to be used in long-range hybrids with more than 400 miles. Li Auto and NIO test vehicles have the battery on trial. In the face of growing pressure to replace EVs at long distances, this segment is catching the attention of automakers.

Battery Type Analysis

Lithium-ion: The lithium-ion battery segment accounted for a largest revenue share. Lithium-ion is a very common energy density employed in the EREVs. It is also efficient in recharge. Following the Ultium lithium-ion cells joint venture with GM and LG, the joint venture entered commercial production of the cells optimized to hybrid applications in December 2024. The cells are used in several EREV platforms Cadillac and Chevrolet brands. The strategy of their modular construction serves to balance cost satisfaction and performance in mid- and high-end EREVs, allowing transition to the production of more lithium batteries.

Nickel-Metal Hydride (NiMH): NiMH batteries are thermally more stable and their lifespan is long, although their energy density is lower than lithium-ion. Toyota still incorporates NiMH into other derivative or EREV varieties because they are reliable. In the middle of 2023, Toyota also announced an improved NiMH packs treating more fleet-oriented hybrid vehicles models, increasing regenerative braking capability. NiMH technology is not as popular in range-intensive applications, but remains in use in lower cost EREV products where dollar and energy longevity are paramount over energy density.

Solid-State Batteries: Solid-state batteries are being developed with increased energy storage and safety offered by removing the liquid electrolyte in place of solid materials. Quantum Scape made more progress towards commercializing, recording successful solid-state pilot tests in the longer-range hybrid modules in February 2025. Such cells were denser by 30 percent and could charge quicker. Car companies such as VW and BMW intend to integrate in the high-end EREV after 2026, to jump the thermal boundaries and increase the range to greater than 350 miles with further stability.

Others: This consists of new battery chemistries such as sodium-ion, lithium-ferrous phosphate, and hybrid composite, which are applicable in niche EREV models. By June 2024, BYD had adopted LFP based hybrid packs for its Qin Plus DM-i extended-range sedan. The battery has low cost, fire resistance, and an electric range of 120+ miles, which is suitable in the Asian markets. Technology advances in alternative chemistries are increasing affordability and safety throughout the lower priced EREV market to world markets.

Propulsion Type Analysis

Hybrid Series: The series hybrid segment accounted for the highest portion of the market's revenue. Series hybrid EREVs use a combustion engine only to charge battery, not drive the wheel. In September 2023, BMW unveiled the XM SUV with a series hybrid set up that provides more than 50 miles of pure electric operation as well as a performance-focused fuel generator. The setting enhances efficiency of fuel in the city cycles. This is a very powerful powertrain that is finding new popularity among luxurious automakers aimed at meeting the emission standards and performance harmony.

Extended-range Electric Vehicles Market Revenue Share, By Propulsion Type, 2024 (%)

Parallel Hybrid: In parallel hybrids, engine and the motor can drive the wheels independently allowing the car to optimize the usage of fuel or electric power depending on the condition. In May 2023, Honda also introduced its i-MMD platform to CR-V EREVs in the U.S., this time a two-motor parallel hybrid. This enabled it to have more than 42 mpg combined fuel consumption and a wider change of gears. The configuration is ideal to people who require flexibility on different terrains and longer journeys.

Series-Parallel Hybrid: Series-parallel hybrid also combines the two modes but it presents flexibility in converting them from one method to the other depending on efficiency or demand. In July 2024, Toyota upgraded its Hybrid Synergy Drive to extended-range applications in Europe so that it can fully control power sources more wisely. The updates are meant to save energy in high population urban areas and motorways. In most mid-range EREVs, the series-parallel hybrids are default simply because of the balance between complexity and adaptive power control.

Extended-range Electric Vehicles Market Regional Analysis

The extended-range EV market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). Here’s an in-depth look at each region.

Why does Asia-Pacific dominate the extended-range EV market?

• The Asia-Pacific extended-range electric vehicles market size was valued at USD 2.82 billion in 2024 and is expected to reach around USD 11.61 billion by 2034.

Asia-Pacific dominates the EREV market with high production, and government support, and demand in the big cities. In 2024, Li Auto sold more than 400 thousand EREVs in China. In 2023 Hybrid production was increased in Japan by Toyota and a new EREV SUV was launched in Korea by Hyundai. In 2024, India will host VinFast USD 2 billion hybrid plant. In 2023, Australia and New Zealand introduced hybrid incentives and in 2025, Taiwan increased the EREV elements.

What factors are driving the significant growth of the extended-range EV market in North America?

• The North America extended-range electric vehicles market size was estimated at USD 2.01 billion in 2024 and is expected to hit around USD 8.27 billion by 2034.

North America is an enormously significant marketplace in the EREVs due to the increase in environmental awareness along with the government subsidies as well as presence of good R&D infrastructure. The territory spans the U.S., Canada, Mexico and more into commercial and personal vehicle electrification. In March 2023, General Motors reported the introduction of long-range variation of Chevrolet Blazer EV in the U.S. that features more than 320 miles of all-electric range. In the meantime, the Lion Electric of Canada also increased its manufacturing of hybrid school buses in April 2024. The development of EV assembly-lines (including hybrid platforms) in Mexico was strengthened in May 2023 when Ford expanded its operation in Hermosillo.

Extended-range Electric Vehicles Market Revenue Share, By Region, 2024 (%)

What are the driving factors of Europe extended-range EV market?

• The Europe extended-range electric vehicles market size was accounted for USD 1.81 billion in 2024 and is predicted to surpass around USD 7.45 billion by 2034.

Europe has a large market, which is boosted by low emission zones, strict emission requirements and increased use of hybrids. In July 2022, BMW introduced the BMW XM SUV to Germany with 50-mile pure electric range. In November 2023, France set aside 200 million Euros to be spent on hybrid buses. The Vauxhall brand of the United Kingdom announced an extended-range Astra in May 2024. In 2023, Italy and Spain opened up EREV incentives. With the help of hybrid imports and mobility programs, Russia and the Netherlands increased their imports in 2024.

LAMEA Extended-range EV Market Trends

• The LAMEA extended-range electric vehicles market was valued at USD 0.48 billion in 2024 and is anticipated to reach around USD 1.99 billion by 2034.

LAMEA has increased potential of EREV with the increase in fuel expenses and local regulations. CAOA of Brazil collaborated with Chery in 2022 in the assembly of local hybrids. In April 2023, the UAE started the Green Mobility Program to sustain EREV taxis and fleets. In February 2025, South Africa invested 1.5 billion dollars in the upgrade of hybrid manufacturing. Infrastructure deficiencies remain, but EREVs are useful in between steps in the mobility ecosystem of the region undergoing transformation.

Extended-range Electric Vehicles Market Top Companies

• Li Auto Inc.
• BMW AG
• Toyota Motor Corporation
• General Motors (GM)
• BYD Auto Co., Ltd.
• Ford Motor Company
• Stellantis N.V.
• Hyundai Motor Company
• Honda Motor Co., Ltd.
• Mercedes-Benz Group AG
• Nissan Motor Corporation
• Volvo Cars

Recent Developments

Extended-range EV—Li Auto Inc., BMW AG, Toyota, and GM are shaping the market through platform innovation, hybrid efficiency, and performance upgrades. In January 2024, Li Auto crossed 400,000 EREV sales with its L series. BMW AG launched the XM in July 2022, blending electric range with luxury. Toyota scaled TNGA-based EREV output in early 2023. In March 2023, GM debuted an extended-range Blazer EV using Ultium architecture for higher range.

• In June 2025, BMW is planning to reintroduce range extender technology in its lineup with the upcoming iX5 REx, possibly launching as early as 2026; this new model is expected to offer a combined driving range of up to 1,000 km (621 miles) by pairing a battery-electric drivetrain with an onboard generator. The move is inspired by the strong growth of range-extender vehicles in China and reflects BMW's strategy to provide broader powertrain options alongside fully electric, hybrid, and hydrogen models, catering to varying customer needs and concerns over EV range, particularly in key markets like China, Europe, and North America.
• In May 2025, the 2026 Toyota bZ EV marks a significant upgrade over its predecessor with a new 74.7-kWh battery delivering up to an estimated 314 miles of range, native North American Charging Standard (NACS) port access for quick use of Tesla's Supercharger network, and Plug & Charge convenience. Performance is ramped up to 338 hp for AWD models with a 0-60 MPH time of 4.9 seconds, while interior and exterior enhancements include a sleeker design, a 14-inch multimedia touchscreen, and advanced safety features, making it a comprehensive and competitive electric SUV offering.

Market Segmentation

By Vehicle Type

• Passenger Cars
• Commercial Vehicles
• Two-Wheelers 
• Buses 

By Range

• Up to 150 Miles
• 151–300 Miles
• Above 300 Miles

By Battery Type

• Lithium-ion
• Nickel-Metal Hydride (NiMH)
• Solid-State Batteries
• Others

By Propulsion Type

• Series Hybrid
• Parallel Hybrid
• Series-Parallel Hybrid

By End-User

• Private/Individual
• Fleet Operators
• Government Agencies
• Ride-Sharing Companies

By Region

• North America
• APAC
• Europe
• LAMEA