PUBLISHER: The Business Research Company | PRODUCT CODE: 1671008
PUBLISHER: The Business Research Company | PRODUCT CODE: 1671008
Vehicle conversion involves the alteration or transformation of a standard vehicle into a specialized one, tailored to fulfill a specific purpose or adhere to particular standards. This process presents various advantages, including cost-effectiveness, enhanced fuel efficiency, and improved overall performance.
Vehicle conversions primarily fall into two categories products and services. A product refers to a tangible or intangible item created through a production or manufacturing process, made accessible to customers or businesses for sale or utilization. The diverse range of vehicle types encompasses passenger cars, commercial vehicles, and others, while conversion types include mobility conversion, commercial conversion, recreational conversion, among others.
The vehicle conversion market research report is one of a series of new reports from The Business Research Company that provides vehicle conversion market statistics, including vehicle conversion industry global market size, regional shares, competitors with a vehicle conversion market share, detailed vehicle conversion market segments, market trends, and opportunities, and any further data you may need to thrive in the vehicle conversion industry. This vehicle conversion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The vehicle conversion market size has grown strongly in recent years. It will grow from $4.88 billion in 2024 to $5.3 billion in 2025 at a compound annual growth rate (CAGR) of 8.5%. The growth in the historic period can be attributed to accessibility improvement, regulatory changes, demand for customization, rise in accessibility awareness, aging population demands
The vehicle conversion market size is expected to see strong growth in the next few years. It will grow to $7.47 billion in 2029 at a compound annual growth rate (CAGR) of 9.0%. The growth in the forecast period can be attributed to financial and insurance support expansion, cultural emphasis on inclusivity, innovative ride-sharing adaptation, expansion in commercial sector demand, personalized solutions. Major trends in the forecast period include modular conversion kits, smart integration solutions, subscription-based conversion services, enhanced autonomous accessibility, shared accessibility platforms.
The increasing demand for electric vehicles (EVs) is anticipated to drive the growth of the vehicle conversion market. An electric vehicle is powered by an electric motor that draws energy from a battery, which can be recharged externally. Converting a traditional vehicle to an EV offers several advantages, including enhanced vehicle longevity, cost savings, the ability to utilize existing infrastructure, and reduced environmental impact. For example, in 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that sales of electric cars in 2023 rose by 3.5 million compared to 2022, marking a 35% increase year-on-year. Thus, the growing interest in electric vehicles is fueling the expansion of the vehicle conversion market.
The ongoing expansion of the e-commerce industry is expected to drive the growth of the vehicle conversion market. E-commerce, which stands for electronic commerce, involves the buying and selling of goods and services online. Vehicle conversions, including modifications to vans and trucks for optimized cargo space, refrigeration units, and efficient delivery systems, are essential for addressing the logistical challenges and enhancing delivery capabilities of e-commerce businesses. For example, in November 2023, the International Trade Administration, a US-based government agency, projected that e-commerce revenues in the UK would grow at an annual average rate of 12.6% by 2025. The UK is currently the third largest e-commerce market globally, following China and the U.S. At present, consumer e-commerce accounts for 36.3% of the total retail market in the UK, with revenues expected to reach approximately $285.60 billion by 2025. Thus, the growth of the e-commerce industry is driving the expansion of the vehicle conversion market.
Product innovation stands out as a prominent trend gaining traction in the vehicle conversion market. Key players within this market are strategically focusing on the development of novel products to maintain their competitive edge. Notably, in November 2022, UK-based electric vehicle conversion company, Electrogenic Ltd., introduced a range of drop-in EV conversion kits. This product distinguishes itself by facilitating installation while preserving the original vehicle design and structure, ensuring that all conversions are reversible. The electrogenic drop-in kits are anticipated to deliver exceptional drivability, performance, and efficiency, positioning vehicles for a sustainable, low-carbon motoring future.
Major companies engaged in vehicle conversion are forging partnerships to collaborate on new product development. Such collaborations and partnerships in the vehicle conversion market serve as catalysts for innovation, leveraging combined expertise and resources to create tailored solutions, broaden service offerings, and efficiently meet diverse customer needs. An illustrative example is the collaboration between France-based automobile manufacturing company, Renault Group, and electromobility company, Phoenix Mobility. This strategic partnership aims to co-develop and commercially exploit a retrofit kit, a pioneering solution in the French light commercial vehicle (LCV) market. The retrofit kit enables the conversion of combustion engine commercial vehicles over 5 years old into electric vehicles, with an initial focus on the Renault Master model. The goal is to market and install around 1,000 retrofit kits by the end of 2023 at the Re-Factory in Flins, Renault Group's Circular Economy-dedicated site.
In April 2023, UK-based retail and automotive engineering company, Trek-Group, completed the acquisition of Safeguard SVP Ltd. This strategic move enhances Trek-Group's commitment to delivering high-quality engineered solutions for emergency service, defense, and other specialist fleet operators. The acquisition brings together a combined 100,000 sq ft of manufacturing facilities in Colchester and Doncaster, representing a significant step toward achieving strategic objectives and expanding the company's manufacturing and after-sales capabilities in the southern region of the country. Safeguard SVP Ltd. specializes in vehicle conversion for government fleet operators, including ambulance, fire, defense, and police.
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
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
The countries covered in the vehicle conversion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The vehicle conversion market consists of revenues earned by entities by providing side-entry conversion, rear-entry conversion, and rear- or side-entry wheelchair van conversion. The market value includes the value of related goods sold by the service provider or included within the service offering. The vehicle conversion market also includes sales of van conversion kits, hybrid electric vehicle conversion kits, and automotive conversion kits that are used in providing vehicle conversion services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vehicle Conversion Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vehicle conversion market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vehicle conversion ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vehicle conversion market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.