Vehicle Conversion Market

Vehicle Conversion Market Highlights

The global vehicle conversion market is expected to cross a market size of USD 76.4 Billion by the end of 2033. The market size was valued at USD 46.3 Billion in 2023 and is expected to expand at a CAGR of 4.8% between 2024-2033.

• Over the mid-term, the growing demand for electric vehicles is the primary factor anticipated to drive the global vehicle conversion market.
• Higher conversion cost is a major factor to challenge the market growth.
• The North America vehicle conversion market is projected to dominate the global market.

Vehicle Conversion Market Outlook

Vehicle conversion refers to the process of alternating a vehicle’s original design or structure to serve a different purpose or function. This includes modification for accessibility, and changing the purpose of the vehicle, such as turning the van into a camper or adapting it for specialized use, such as converting a regular car into a taxi. Vehicle conversions are carried out by aftermarket companies or specialty shops that offer custom modifications to cater to the needs and preferences of individual customers or businesses.

The growing demand for electric vehicles is anticipated to boost the growth of the vehicle conversion market in the coming years. An electric vehicle (EV) is a vehicle that can move forward using an electric motor that draws power from a battery and can be externally charged. Converting a vehicle to an electric vehicle (EV) has multiple benefits, including increased vehicle longevity, cost savings, the use of existing infrastructure, and a lower environmental impact. For instance, in March 2022, according to a report published by the US Department of Energy, a US-based intergovernmental organization, the number of new light-duty plug-in electric vehicle sales, which includes both electric vehicles and plug-in hybrid electric vehicle sales, nearly doubled from 308,000 in 2020 to 608,000 in 2021. Furthermore, in September 2022, according to the reports shared by the International Energy Agency, a France-based autonomous intergovernmental organization, sales of electric vehicles nearly doubled to 6.6 million in 2021 compared to 2020, which is almost 9% of sales share, and increased by 4% in 2021. Therefore, the rising demand for electric vehicles (EVs) is driving the growth of the vehicle conversion market. Adventure Van Custom Conversions, BRABUS, and RENNtech, Inc. are some of the significant parties in the global market for vehicle conversion.

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Vehicle Conversion Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global vehicle conversion market are:

• Growing E-Commerce industry: The increasing expansion of e-commerce industry is expected to propel the growth of vehicle conversion market going forward. E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the internet. Vehicle conversions, such as modifications to vans and trucks for optimized cargo space, refrigeration units, and efficient delivery systems, play a crucial role in meeting the logistical challenges and expanding delivery capabilities of e-commerce businesses. For instance, in May 2021, according to United States Department of Commerce, a US-based government agency, in the first quarter of 2021, US e-commerce sales saw a substantial increase of 39.0 percent compared to the same period in 2020. Therefore, the increasing expansion of e-commerce industry is driving the growth of the vehicle conversion market.
• Cost savings and economic benefits: EV conversions can result in significant long-term savings on fuel and maintenance costs. Electric vehicles typically have fewer moving parts and require less maintenance than their ICE counterparts. Furthermore, converting an older vehicle to electric can increase its resale value, as there is growing demand for used EVs.

Which Probable Factors Could Hamper the Growing Vehicle Conversion Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of vehicle conversion are:

• Higher conversion cost: The cost of converting a traditional internal combustion engine vehicle to an electric or alternative fuel vehicle can be prohibitively high. This includes the price of the conversion kit, labor costs, and potential modifications to the vehicle's structure. For many consumers, these costs may outweigh the benefits of conversion, especially when compared to purchasing a new electric vehicle (EV).
• Concern for Void of Warranty and Insurance: Issues Converting a vehicle can void the manufacturer’s warranty, leaving owners without coverage for potential repairs or issues. Furthermore, insurance companies may be hesitant to provide coverage for converted vehicles due to perceived risks and lack of standardized assessment criteria, leading to higher insurance premiums.

How is the Global Vehicle Conversion Market Segmented?

Our experts at KD Market Insights have segmented the global vehicle conversion market research report as:

What are the Probable Factors Influencing the North America Vehicle Conversion Market Forecast?

The North America vehicle conversion market is majorly driven by improvements in conversion technology among the market players in the region. Technological advancements have made vehicle conversions more efficient and reliable. Improvements in battery technology, electric motors, and alternative fuel systems are reducing the costs and increasing the performance of converted vehicles. These advancements make conversions more appealing and feasible for a broader audience in the region.

As per our analysts at KD Market Insights, the following five players lead the North America vehicle conversion market growth:

• Advanced RV
• Midwest Automotive Designs
• Creative Mobile Interiors
• Explorer Van Company
• Quigley Motor Company

Which Key Players Top the Global Vehicle Conversion Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global vehicle conversion market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with vehicle conversion market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global vehicle conversion market share:

• Adventure Van Custom Conversions
• BRABUS
• RENNtech, Inc.
• Braun Ability
• Vantage Mobility International (VMI)
• MobilityWorks
• Freedom Motors
• Revability
• AMS Vans
• Rollx Van
• Shelby

What are the Recent Developments Observed in the Vehicle Conversion Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global vehicle conversion market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Stellantis NV stated that it has signed a strategic partnership with Qinomic for developing a retrofit solution for the conversion of ICE-powered light commercial vehicles to an electric drivetrain.

Further, TREMEC stated that it has acquired Electric GT, Inc., the provider of plug-and-play EV conversion systems.

1. Executive Summary
   1. Market Overview
   2. Key Findings
   3. Market Trends
   4. Market Outlook
2. Introduction
   1. Scope of the Report
   2. Research Methodology
   3. Definitions and Assumptions
   4. Acronyms and Abbreviations
3. Market Dynamics
   1. Drivers
   2. Restraints
   3. Opportunities
   4. Challenges
4. Global Vehicle Conversion Market
   1. Market Overview
   2. Market Size and Forecast
   3. Market Segmentation
      1. By Vehicle Type
      2. By Component
      3. By Conversion Type
      4. By Region
5. Market Segmentation by Vehicle Type
   1. Passenger Car
   2. Commercial Vehicle
6. Market Segmentation by Component
   1. Wheel & Tire Modifications
   2. Exterior & Body Mods
   3. Interior Enhancements
   4. Lighting Upgrades
   5. Others
7. Market Segmentation by Conversion Type
   1. Mobility Conversion
   2. Recreational Conversion
8. Regional Analysis
   1. North America
      1. United States
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      2. Canada
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      3. Mexico
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
   2. Europe
      1. United Kingdom
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      2. Germany
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      3. France
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      4. Italy
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      5. Spain
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      6. Rest of Europe
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
   3. Asia Pacific
      1. China
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      2. Japan
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      3. India
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      4. Australia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      5. South Korea
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      6. Rest of Asia Pacific
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
   4. Latin America
      1. Brazil
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      2. Argentina
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      3. Colombia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      4. Rest of Latin America
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
   5. Middle East & Africa
      1. South Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      2. Saudi Arabia
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      3. UAE
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
      4. Rest of Middle East & Africa
         1. Market Size and Forecast
         2. Key Trends and Developments
         3. Market Analysis by Vehicle Type, Component, and Conversion Type
9. Competitive Landscape
   1. Market Share Analysis
   2. Company Profiles
      1. Adventure Van Custom Conversions
      2. BRABUS
      3. RENNtech, Inc.
      4. Braun Ability
      5. Vantage Mobility International (VMI)
      6. MobilityWorks
      7. Freedom Motors
      8. Revability
      9. AMS Vans
      10. Rollx Van
      11. Shelby
10. Strategic Recommendations
11. Appendix
    1. List of Tables
    2. List of Figures
12. References