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The Hybrid Electric Vehicle (EV) Conversion Kit Market size is forecast to increase by USD 536.27 million, at a CAGR of 15.85% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the enforcement of regulations to propel the adoption of efficient conversion kits, rising conversion kit adoption with development in emerging markets, and the development of grid-independent low-cost hybrid kits for light vehicles. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising conversion kit adoption with development in emerging markets is notably driving market growth. In developed regions, conversion kits have high importance as these are used in the conversion of conventional vehicles to environment-friendly vehicles. Until the past few years, hybrid technology was the basis of this shift as the charging infrastructure was underdeveloped, and hybrid vehicles give benefits to both ICE-based cars and all-electric cars. However, in emerging markets, where the concept of EVs is still at the nascent stage, hybrid conversion is leading to emission reduction. The Indian government is favoring hybrid technology tremendously and already started giving certifications to conversion kit manufacturers in 2021.
Additionally, government interest has spurred the emergence of many regional players that developed efficient conversion kits for conventional vehicles and are working to reduce the cost for maximum adoption through economies of scale. One key new player in the hybrid EV conversion kit market is ZELECTRIC MOTORS LLC, which developed a low-cost solution to convert diesel cars into hybrid cars. The emerging markets are likely to witness high adoption of conversion kits and drive the growth of the market during the forecast period.
The growing development of solar hybrid electric cars is an emerging trend shaping market growth. The plug-in hybrid models depend on charging stations for recharging the batteries, which makes charging infrastructure critical for the adoption of EVs. In addition, a major part of India has an insufficient household electricity supply, which makes the adoption of EVs inevitable. This led to the development of an innovative solar hybrid car by the premier space organization in the country. The solar hybrid car is powered by Li-ion batteries that can be recharged using sunlight.
Moreover, the car has a solar panel on the roof, an integral gearbox, control electronics for the battery, and a conversion kit for fitting the electric motor into a vehicle with ICE. Countries such as India that have an abundant supply of solar power can benefit from this development by reducing vehicular emission levels. Such innovative solutions will play a crucial role in the adoption of HEV conversion kits in emerging economies, which is positive for the growth of the hybrid EV conversion kit market. Such factors are expected to drive the market growth during the forecast period.
Issues pertaining to mile range and battery performance of converted hybrid vehicles are a significant challenge hindering market growth. Even though battery packs in converted hybrid vehicles come with a 6-10 years/1,00,000-mile warranty, battery performance is based on several factors, such as the number of charge cycles, depletion rate, charging and discharging durations, and humidity. Therefore, most hybrid vehicle owners face issues pertaining to battery failure. The replacement of the battery can cost more than USD1,000. The warranty factor does not imply that the battery will shut down after 10,000 miles. It is challenging to predict the performance versus years for different batteries from the given history.
However, the range anxiety caused while driving PHEVs restrains prospective buyers from investing in conversion kits. In addition, the decision of an end-user to purchase a conversion kit for plug-in hybrid conversion is directly proportional to the availability of public and private recharging infrastructure. Certain countries, such as China and the US, have a better-charging infrastructure, while other countries are sluggish in infrastructural developments. Such factors are expected to hinder the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ARADEX AG - The company offers a hybrid electric vehicle conversion kit such as a retrofit electric drive kit, that transforms delivery vans with diesel engines into a hybrid vehicle that runs solely on electric power.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. The regulatory push to reduce emissions is increasing the adoption of EVs across major automotive markets in the world. Hybrid cars are an efficient solution for adhering to emission control standards and customer demands. ICE-based vehicles do not operate much below 700 revolutions per minute (RPM) and do not develop any significant torque until at least 1,000 RPM, whereas electric motors can operate at any speed from 0 RPM up to their absolute maximum RPM.
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The passenger cars segment was the largest and was valued at USD 151.11 million in 2018. Hybrid cars offer the high efficiency and low emission features of pure electric cars and the long-range and refueling capabilities of traditional ICE-based passenger cars. As a result, customers across the world who are doubtful about electric drivetrain performance for long-distance traveling choose hybrid models. Consumer preference is also favoring hybrid models as most of the regulators are offering incentives for EVs. Conversion kits are playing a crucial part in the growing adoption of hybrid technology, particularly in emerging regions. These factors under the passenger cars segment markets will be a crucial driver for the growth of the market during the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the hybrid electric vehicle conversion kit market during the forecast period. APAC is the prominent region for the market owing to the presence of dominant automotive markets such as China and Japan. In addition, emerging markets such as India are also contributing to the high adoption of automobiles in this region. The presence of the fastest-growing economies in the world, including China, India, Thailand, Indonesia, and South Korea, is a positive factor for the hybrid electric vehicle conversion kit market in APAC. With the rapid economic growth in this region, the per capita income has drastically increased over the past couple of years. This has increased the purchasing power of individuals, thereby leading to the increased sales of automobiles.
In addition, governments of Asian countries have played a crucial role in encouraging the automotive industry in the form of tax and fiscal incentives. For instance, the government of Thailand offers an exemption on import duties and an eight-year tax exemption for 11 categories of vehicle components, including tires, liquefied natural gas cylinders, engine components, and powertrain components, to encourage the automotive components industry. Such factors are expected to drive the regional market growth during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Hybrid Electric Vehicle Conversion Kit Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.85% |
Market growth 2024-2028 |
USD 536.27 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.43 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Altigreen, ARADEX AG, BRUSA HyPower AG, Canadian Electric Vehicles Ltd., Electric GT Inc., Enginer, EV West, EVDrive, Flux Hybrids, FOLKS MOTOR, General Motors Co., Green Shed Conversions, Hybrid Design Services, IX Energy Pvt Ltd., Odyne Systems LLC, Oz DIY, Starya Mobility Pvt Ltd., Stealth EV, ThunderStruck Motors LLC, Wanxiang Group, ZELECTRIC MOTORS LLC, and Metric Mind Engineering |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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