This report examines the economic drivers, technology constraints, and market potential for plug-in hybrid electric vehicles (PHEVs) in the U.S. A PHEV is a hybrid vehicle with batteries that can be recharged by connecting to the grid and an internal combustion engine that can be activated when batteries need recharging. The report presents and examines a series of PHEV market penetration scenarios. Based on input received from technical experts and industry representative contacted for this report and data obtained through a literature review, annual market penetration rates for PHEVs are presented from 2013 through 2045 for three scenarios. Each scenario is examined and implications for PHEV development are explored.