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The vehicle conversion market size is estimated to increase by USD 2,167.54 million between 2022 and 2027. The market size is forecast to grow at a CAGR of 7.75%. The growth of the market depends on several factors, including the stringent government regulations on fuel emission, the growing focus on electric technology for vehicles, and the government support for this technology and EVs.
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The growing focus on electric technology for vehicles is notably driving the market growth, although factors such as performance issues related to the market in focus may impede the market growth. Our researchers analyzed the data with 2022 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.
The growing focus on electric technology for vehicles is the key factor driving the growth of the global market. Electric vehicles are becoming increasingly popular; however, it is expensive compared with ICE engine vehicles. Thus, the transforms ICE engine vehicles into electric vehicles (EV), which is an economical process. Additionally, in recent years, developed nations witnessed a boom in the charging infrastructure that led to the conversion of ICE vehicles to EVs. However, in emerging markets, where the concept of EVs is still at the nascent stage, hybrid conversion is leading to emission reduction.
The government's interest in EV technology has spurred the emergence of many regional players that develop efficient conversion kits for conventional vehicles and are working to reduce the cost for maximum adoption through economies of scale. DIYEV offers various electric motor drivetrain kits that need to bolt to the existing (ICE) engine mounts. It also offers battery modules for small, medium, and large trucks and buses. Similarly, Green Shed Conversions offers electric conversion kits for the conversion of vehicles. Thus, a growing focus on electric technology for vehicles will drive the growth of the market in focus during the forecast period.
Growing development by companies is the primary trend shaping global market growth. The conversion of a conventional vehicle into an EV requires modifications to the vehicle powertrain, which requires skilled professionals to install conversion kits. In addition, conversion kit fitment increases the weight of a vehicle. Therefore, conversion kit manufacturers are working to simplify the conversion kits by reducing the weight of the kits. For instance, Stealth EV offers lightweight and compact conversion kits. In addition, companies operating in the market have also been developing battery technology that will leverage this technology.
For instance, in March 2023, John Deere introduced concept battery systems that include 20 kWh and 40 kWh power options. The variety of dimensions will make the new battery systems an ideal fit for smaller vehicles or applications with limited space. The new battery systems offer the highest volumetric energy density coupled with advanced safety parameters. Thus, such market developments by the companies operating in the market will drive the growth of the market in focus during the forecast period.
Performance issues are a major challenge impeding the growth of the global market. Even though battery packs in converted vehicles come with a warranty of a few years, battery performance is based on several factors, such as the number of charge cycles, depletion rate, charging and discharging durations, and humidity. Therefore, most converted vehicle owners face issues pertaining to battery failure and, in turn, need battery replacement every few years. This, in turn, increases the maintenance cost associated with converted vehicles. It is challenging to predict the performance versus years for different batteries from the given history.
In addition, converted EVs cannot usually go more than about 200 miles without a charge, which makes it unsuitable for long trips. Also, converted electric cars can be more difficult to repair compared with conventional cars. Thus, additional maintenance costs of converted vehicles and performance issues hamper the demand. This, in turn, will hamper the growth of the market in focus during the forecast period.
The market 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 growth strategies.
Global Market 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.
Dave In Action LLC: The company offers vehicle conversion services such as custom electric conversions for adventure vans, transforming them into mobile homes for outdoor enthusiasts.
The research 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 market share growth by the product segment will be significant during the forecast period. The product segment includes kits, which are installed on vehicles to convert conventional vehicles to EVs or alternative fuel vehicles such as natural gas.
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The product segment was valued at USD 3,073.19 million in 2017 and continued to grow until 2021. In recent years, the kits have experienced significant adoption in developed regions because of the reduction in their price due to the decline in the price of lithium-ion batteries. This reduced price is the result of the economies of scale benefit attained by manufacturers. Maximum customers prefer conversion kits as an effective medium to increase the fuel efficiency of their vehicles. In addition, the growing charging infrastructure in developed regions such as North America and Europe is fueling the adoption of conversion kits by both conventional and hybrid vehicle customers. Thus, such factors will drive the growth of the segment and, in turn, the market in focus during the forecast period.
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North America is estimated to contribute 43% 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 market during the forecast period. The growth of the market in North America is fueled by the rise in the use of EVs across the region. The US and Canada are the key revenue contributors to the growth of this market in the region. Surging concerns over the pollution caused by vehicles have been supporting the demand for EVs in the US.
Growing awareness about vehicle emissions, lower operating and maintenance costs, and increasing government initiatives to encourage the use of EVs are some factors driving the use of EVs and, in turn, the growth of the regional market significantly. The adoption of EVs in North America has been considerable though it is one of the high-cost markets globally. Countries such as the US and Canada are employing stringent regulations regarding emissions of passenger vehicles to reduce the dependence on petroleum products.
The slowdown of the US economy due to the COVID-19 pandemic in 2020 and the subsequent decline in consumer spending have led to a decline in the regional automotive industry. However, in 2021, due to the advent of mass vaccination drives and the lifting of lockdown restrictions in a phased manner, the operations at various automobile-related services, such as the fitment of the kits, returned to normal. Also, due to the increased focus of governments on reducing the high emissions caused by ICE vehicles, many countries in North America are encouraging the use of HEVs, BEVs, and alternative fuel-operated vehicles. This will bolster the demand for the kits and thus drive the growth of the regional market 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 2017 to 2027.
The Market is witnessing significant growth fueled by accessibility modifications and the conversion of vans into campers or regular cars into taxis, enhancing driving experiences. Vehicle customization caters to diverse needs, but supply chain disruptions and economic downturns pose challenges. Technological advancements, particularly by Mercedes-Benz, are driving innovation, while the rise of e-commerce and delivery services boosts demand for last-mile delivery vehicles.
Safety and emission compliance remain key concerns, addressed by industry leaders like Braun Ability and Vantage Mobility International. Companies such as BRABUS and MobilityWorks lead in providing custom conversions, and ensuring roadworthiness standards. With players like Hankook and Q’STRAINT focusing on mobility solutions, the market continues to evolve to meet the growing demand for accessible and customized transportation options.
Vehicle Conversion Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.75% |
Market growth 2023-2027 |
USD 2,167.54 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.06 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adventure Van Custom Conversions, Canadian Electric Vehicles Ltd., Dave In Action LLC, Deere and Co., DIYEV Inc., Electric Classic Cars, Electric GT Inc., EV Source, EV4U Custom Conversions, EVDrive, Glampervan, Green Shed Conversions, HI PERFORMANCE ELECTRIC VEHICLE SYSTEMS, Kisae Technology Inc., OPTO innovation, retroEv, Road Warrior Conversions, Stealth EV, ZENVANZ, and EV West |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
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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