Vehicle Conversion Market Size to grow by USD 2436.3 million between 2024-2028
The Vehicle Conversion Market is segmented by Type (Product and Services), Vehicle Type (Passenger car, Commercial vehicle, and Others), and Geography (North America, APAC, Europe, South America, and Middle East and Africa). As per the Global Forecast research report 2024-2028 published by Technavio, the market size is estimated to grow by USD 2436.3 million, at a CAGR of 8.09% during the forecast period. There are several companies that are contributing to the market as per this report. Increasing development of low-cost vehicle conversion kits .
By Type, the Product segment is projected to dominate the market size in 2024
The vehicle conversion market encompasses the sale of conversion kits, enabling the transformation of traditional vehicles into electric or alternative fuel models, such as natural gas. This cost-effective alternative to purchasing a new electric vehicle is exemplified by the conversion of a standard bus into an electric one, priced between USD296,000 and USD373,211 – roughly half the cost of a new bus. The surge in adoption of these conversion kits in developed regions can be attributed to the substantial price reduction, which is a result of the economies of scale achieved by manufacturers due to the decreasing cost of lithium-ion batteries.
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By Vehicle Type, Passenger car segment is expected to hold the largest market size for the year 2024
In the global automotive industry, there is a significant regulatory trend towards reducing emissions, leading to an escalating adoption of Electric Vehicles (EVs) in major markets. Hybrid Electric Vehicles (HEVs), which offer the advantages of both traditional Internal Combustion Engine (ICE) vehicles and EVs, are becoming increasingly popular. Regulators worldwide are implementing regulations that favor EVs, making hybrid technology a key growth driver in the passenger cars segment. HEVs provide the high efficiency and low emission characteristics of pure electric vehicles, while retaining the long-range capabilities and refueling convenience of traditional ICE-based cars.
Why is North America forecasted to hold the largest regional market size in 2024?
The Vehicle Conversion Market represents a significant business opportunity, driven by increasing consumer demand for customized and eco-friendly vehicles. Key trends include the growing popularity of electric and hybrid conversions, as well as the integration of advanced technologies for enhanced safety and comfort. Market players focus on innovation and efficiency, collaborating with OEMs and component suppliers to deliver high-quality solutions. This dynamic industry is poised for robust growth in the coming years.
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Research Analysis Overview
The Vehicle Conversion Market encompasses the transformation of both commercial vehicles and passenger cars into specialized conversions for various industries and personal use. Commercial conversions include mobility and recreational conversions, which modify commercial vehicles into wheelchair-accessible or RVs, respectively. Interior enhancements, such as workstations and cargo management systems, are common commercial vehicle conversions. Passenger cars can also undergo conversion, with e-Telematics software and electric vehicle (EV) conversions being popular. Companies like DHL have adopted electric vans, such as the Sprinter van and Citan van, for their fleets. Conversion types include material conversions, which involve the installation of specialized equipment, and intangible things like battery technology and conversion kits. The market for vehicle conversion continues to grow, with a focus on EVs and conventional vehicles alike.
Market Research Overview
The global automotive components and equipment market encompasses businesses producing parts and accessories for various vehicle types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. According to Technavio, the market size is determined by the collective revenue generated by automotive components and equipment manufacturers. Key growth drivers in the automotive parts and equipment industry include the surge in electronic components demand, fueled by the increasing sales of ECUs and other electrical components for EVs, motorcycles, and PCs, in the past decade. - The Vehicle Conversion Market is experiencing significant growth, fueled by the . Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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Jesse Maida
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