Vehicle Conversion Market Size By Type (Product, Service), By Vehicle Type (Passenger Car, Commercial Vehicle), By Conversion Type (Mobility, Commercial, Recreational) & Forecast, 2023 - 2032

Vehicle Conversion Market Size

Vehicle Conversion Market size was valued at USD 4.6 billion in 2022 and is anticipated to grow at 8.5% CAGR from 2023 to 2032 owing to the growing emphasis on electric vehicle technology.
 

The vehicle conversion is a cost-effective method of converting internal combustion engine vehicles to electric vehicles. Furthermore, developed countries have witnessed a surge in charging infrastructure in recent years, leading to the conversion of ICE vehicles to EVs. However, in emerging markets, where the concept of EVs is still in its infancy, hybrid conversion is reducing emissions.
 

This process often require significant investments due to the customization and modification procedures involved. The cost of acquiring & retrofitting vehicles, purchasing specialized equipment, and obtaining necessary certifications can be substantial. The high upfront costs can deter potential customers, especially individuals or small businesses with limited budgets. The availability of trained technicians or conversion companies may be limited vehicle conversion market growth in certain regions, leading to delays or reduced accessibility to conversion services.
 

COVID-19 Impact

The global lockdowns and restrictions imposed during the pandemic caused disruptions in the supply chains of vehicle conversion companies. This led to delays in sourcing parts, components, and equipment, impacting production timelines and the ability to fulfill customer orders. The supply chain disruptions resulted in challenges for vehicle conversion industry to meet customer demands.
 

Vehicle Conversion Market Trends

Vendor development primarily drives the global vehicle conversion market development. Converting a conventional vehicle into an EV necessitates changes to the vehicle's powertrain, which require skilled professionals to install conversion kits. Moreover, installation of these kits increases the vehicle’s weight. As a result, conversion kit manufacturers are working on simplifying their conversion kits by reducing kit weight. For example, Stealth EV offers lightweight & compact conversion kits for vehicle conversion. However, market vendors are also developing battery technology that will enable vehicle conversion.
 

Vehicle Conversion Market Analysis

The services segment held a significant share of 35% in 2022. Customers can seek guidance from vehicle conversion service providers when selecting a conversion option to meet their specific needs. These providers assess customer requirements, advise on appropriate conversions, and assist in the designing of customized solutions. Service providers enable customers to make informed decisions by providing expert advice, thereby fueling demand for vehicle conversions.
 

The commercial vehicle conversion market crossed a valuation of USD 1.5 billion in 2022. Commercial vehicle conversions optimize the functionality and efficiency of vehicles in commercial operations. By adding custom features and modifications, such as cargo management systems, partitions, or workstations, conversions enable businesses to maximize their operational capabilities. These improvements in efficiency and productivity are highly valued by businesses, leading to an increased segment growth.
 

The commercial conversion segment is projected to witness 8% growth during 2023-2032. Commercial conversions offer industry-specific customization, allowing businesses to design vehicles as per requirements. Commercial conversions provide businesses with the flexibility to optimize vehicles as per their specific operations including adding storage compartments, workbenches & specialized equipment or configuring the interior layout for efficient workflow. This customization option drives the demand for commercial conversions as businesses seek vehicles that can enhance their productivity and meet industry-specific needs.
 

North America vehicle conversion market captured global share of 40% in 2022. Numerous industries in the region require specialized vehicles for various purposes. Vehicle conversions are used to meet the needs of various industries such as transportation, logistics, construction, healthcare, food service, and emergency services. Conversion services are in high demand due to the diverse industrial landscape and businesses seeking customized solutions to optimize their operations.
 

Vehicle Conversion Market Share

Some of the major players operating in the vehicle conversion industry are

• Adventure Van Conversions
• BraunAbility
• Creative Mobile Interiors
• DIYEV Inc.
• El Kapitan Conversion Vans
• Electric Classic Cars
• EV Source
• EV4U Custom Conversions

These players are focused on strategic partnerships and new product launches & commercialization for market expansion. They are heavily investing in research to introduce innovative products and garner maximum market revenue.
 

Vehicle Conversion Industry News:

• In November 2022, Zero EV and Jaunt Motors collaborated to establish Fellten in Australia, the UK & North America. The new company was formally introduced at the Specialty Equipment Market Association (SEMA) show in Las Vegas, Nevada. It aims to meet the exponential global demands, establish a facility, and maintain its leading position in terms of quality, safety, reliability, volume, and programs for the automotive industry's electric conversion.
   
• In July 2022, Everrati Automotive Limited established a new division, Everrati Advanced Technologies, which will advise & consult other companies on EV conversions of their specialist & luxury vehicles using Everrati platforms and other technologies. The company expanded in the U.S. to meet the growing demand for its vehicles in North America. Everrati has developed and delivered EV versions of the Porsche 911 Coupe & Targa models, the 911 Gulf Signature Edition, the Mercedes-Benz SL Pagoda, and the GT40.
   

This vehicle conversion market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Type

• Product
• Service

Market, By Vehicle Type

• Passenger car
• Commercial vehicle

Market, By Conversion Type

• Mobility conversion
• Commercial conversion
• Recreational conversion
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa