What Fueled The Previous Growth In The Vehicle Conversion Market?
The vehicle conversion market has seen considerable growth due to a variety of factors.
•Over the last few years, we have seen substantial growth in the size of the vehicle conversion market. Forecasts suggest an expansion from $4.88 billion in 2024 to $5.3 billion in 2025, translating to a compound annual growth rate (CAGR) of 8.5%.
Factors contributing to this growth during the historical period include improved accessibility, legislative modifications, an increase in the requirement for customization, a heightened awareness about accessibility, and the needs of an aging population.
What Is The Expected Growth In The Vehicle Conversion Market Size?
The vehicle conversion market is expected to maintain its strong growth trajectory in upcoming years.
• It is forecasted that the size of the vehicle conversion market will experience a significant increase in the upcoming years, with a projected rise to $7.47 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 9.0%.
The growth in this period can be linked to increase in financial and insurance support, a cultural focus on inclusivity, inventive adaptations for ride-sharing, augmented demand in the commercial sector, and tailored solutions. The forecast period will also witness major trends such as modular conversion kits, smart integration solutions, subscription-based conversion services, improved autonomous accessibility, and shared accessibility platforms.
What Are the Critical Driver Fuelling the Vehicle Conversion Market's Growth?
The vehicle conversion market is anticipated to experience an upward trajectory due to the mounting demand for electric vehicles (EVs). An EV, powered by an electric motor drawing energy from a battery that has to be charged externally, offers the capability to be retrofitted to a standard car. The transition to an EV promises several advantages such as extended vehicle lifespan, cost-effectiveness, utilization of existing infrastructure, and a decreased ecological footprint. The International Energy Agency (IEA), an autonomous intergovernmental organization based in France, reported that the sale of electric cars saw a significant increase in 2023 with 3.5 million more units sold compared to 2022 - a leap of 35% in just one year. Consequently, the burgeoning interest in electric vehicles (EVs) is propelling the expansion of the vehicle conversion market.
How Is the Vehicle Conversion Market segmented?
The vehicle conversion market covered in this report is segmented –
1) By Type: Product, Services
2) By Vehicle Type: Passenger Car, Commercial Vehicle, Other Vehicle Types
3) By Conversion Type: Mobility Conversion, Commercial Conversion, Recreational Conversion, Other Conversion Types
Subsegments:
1) By Product: Conversion Kits, Powertrain Components, Body Conversion Products
2) By Services: Custom Vehicle Conversions, Fleet Vehicle Conversions, Repair And Maintenance Services For Converted Vehicles
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What New Trends Are Influencing the Vehicle Conversion Market?
Emphasizing product innovation is becoming a predominant trend in the vehicle conversion market. Major players in this market are creating new products to maintain their market stronghold. For example, in November 2022, Electrogenic Ltd., a UK company that specializes in electric vehicle conversions, introduced their line of drop-in EV conversion kits. The exceptional aspect of this product is its ability to preserve the original design and structure of the vehicle during installation, allowing for all alterations to be reversed. The range of electrogenic drop-in kits is anticipated to offer outstanding drivability, performance, and efficiency, future-proofing vehicles and readying them for the quickly approaching era of sustainable, low-carbon transport.
Who Are the Key Players in the Vehicle Conversion Market?
Major companies operating in the vehicle conversion market include:
• BraunAbility
• Outside Van
• Vanworks Inc.
• El Kapitan Van Conversion
• Electro Automotive
• Zelectric Motors
• Colorado Camper Van LLC
• Creative Mobile Interiors Inc.
• DIYEV Inc.
• Electric Vehicles of America (EVA)
• EV Source
• EV4U Custom Conversions
• EVDrive
• Glampervan
• Green Motors Inc.
• Green Shed Conversions
• Hi Performance Electric Vehicle Systems
• Nomad Vanz
• RB Components Inc.
• Sportsmobile
• Van Specialties
• Vanlife Customs UK Ltd.
• Zero Labs
• Electric GT Holdings
• Advanture Company
• American Van
• Electric Classic Cars
• Flash Drive Motors
What Is The Most Dominant Region In The Vehicle Conversion Market?
North America was the largest region in the vehicle conversion market in 2024. The regions covered in the vehicle conversion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
