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Japan's Nomura Research Institute (NRI), a research and consulting firm, predicts that the global market for hybrids will reach 2.19 million units a year by 2012. This projection is triple the estimated amount of 619,000 units in 2007. NRI also projects that the worldwide value of the hybrid parts business (inverters, electric motors, batteries, other components) to increase to $7 billion in 2012 compared to $2.83 billion in 2007.

By 2012, conventional vehicles will have to make way for the increasing number of hybrid vehicles on the roads, including U.S. highways. Credit: NREL, Warren Gretz

According to its research, the United States will lead other countries with an estimated 1.68 million hybrids. Japan comes in second with 460,000 units. NRI credits the increase to pressure on automobile manufacturers, declining costs, and more hybrid offerings.