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Vehicle Conversion Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Component (Wheel and Tire Modifications, Exterior and Body Mods, Interior Enhancements, Lighting Upgrades, and Others (Suspension & Brake and Racks), By Conversion Type (Mobility Conversion and Recreational Conversion), and Regional Forecast, 2023 – 2030

Last Updated: July 08, 2024 | Format: PDF | Report ID: FBI108648

 

KEY MARKET INSIGHTS

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The global vehicle conversion market size was valued at USD 45.11 billion in 2022. The market is projected to grow from USD 47.01 billion in 2023 to USD 63.49 billion by 2030, exhibiting a CAGR of 4.4% during the forecast period.


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, 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. The increasing demand for better and more comfortable driving experiences and fuel efficiency drive the market growth during the forecast period.


Vehicle conversion encompasses the industry involved in customizing vehicles to meet specific preferences, performance requirements, or aesthetic choices of the vehicle owner. The process involved the alternation of body, interior, exterior, and others.


COVID-19 IMPACT


Shifting Priorities, Disruptions in Supply Chain, and Economic Downturn Hampered Market Growth


 The COVID-19 pandemic negatively impacted the market. The market experienced disruptions in the supply chain due to factory closures, restrictions on movement, and global shipping challenges. The disruption in the supply chain led to delays in sourcing parts, components, and equipment, impacting the overall production timelines. The economic apprehensions caused by the pandemic led to reduced consumer spending. As a result, some individuals delayed or canceled vehicle modification plans, impacting the market. The COVID-19 pandemic promoted changes in lifestyle and priorities for many consumers. With more focus on health and safety, spending was shifted away from discretionary purchases, such as vehicle conversion. These shifting priorities, disruptions in the supply chain, and economic downturns hampered the market growth.


LATEST TRENDS


Advancement in Safety, Design, and Vehicle Efficiency is an Ongoing Trend in the Market


The rising adoption of technological advancement is an ongoing trend in the market. The trend is driven by the need to enhance design, safety systems, and overall vehicle efficiency. Technological innovation, especially in areas, such as automotive engineering, electronics, and materials, drives advancement in vehicle conversions. This includes integrating innovative technologies, energy-efficient components, and other cutting-edge features.


For Instance, in September 2021, Mercedes-Benz introduced its latest van as a base for 'micro camper vans.' The company has unveiled its new Citan van that can be used for "micro" camper van conversions. The van is currently on display at the Caravan Salon Düsseldorf with a camper van module. Mercedes-Benz's Sprinter van is already a cult classic among camper van enthusiasts. The company is building on this RV-friendly reputation by unveiling the latest generation of the Citan, a van targeted at the "micro camper van conversion" industry.


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DRIVING FACTORS


Increasing E-commerce and Delivery Services to Propel Market Growth


The growth of e-commerce and delivery services has increased demand for specialized vehicle conversions, such as modifying vans or trucks for efficient and secure delivery of goods and products. The expansion of the e-commerce industry often requires efficient last-mile delivery services. This has led to increased demand for specialized vehicles that accommodate the unique needs of delivery companies, including modification for increasing cargo capacity and better organization. This increasing demand for last-mile delivery vehicles drives the market growth during the forecast period.


For Instance, in December 2022, DHL signed an agreement with Ford for 2,000 Electric Vans for Global Last-Mile Delivery. The agreement covers a full suite of explanations to operate the electric fleet, including entrance to Ford Pro’s connected E-Telematics software and charging solutions.


RESTRAINING FACTORS


Stringent Government Regulations Regarding Vehicle Alternation May Hamper the Market Growth


Government regulations regarding vehicle alternation may vary by region, often focusing on ensuring vehicle safety, emission compliance, and adherence to roadworthiness standards. Regulations may specify limits on modification to critical safety components, such as brakes, lights, and structural elements. Additionally, emission standards are another crucial aspect that pushes the market players to modify the vehicles to meet sustainable environmental requirements. Regulations and standards can significantly impact the development and adoption of vehicle conversions, especially in the context of emerging technologies, such as electric vehicles (EV conversion kits & battery technology) and autonomous vehicles. Meeting safety and compliance standards set by regulatory authorities can be challenging and expensive, requiring substantial research, development, and testing investments, which may hamper the market growth during the forecast period.


SEGMENTATION


By Vehicle Type Analysis


Rising Aftermarket Passenger Car Modification is Driving Segment Growth


 Based on the vehicle type, the market is segmented into passenger car and commercial vehicle. The passenger car segment holds the highest vehicle conversion market share globally and is expected to grow from 2023 to 2030. The segmental growth is attributed to a large consumer base for passenger cars compared to other types of vehicles. The passenger car includes both propulsion types, such as internal combustion engines and electric vehicles. Many individuals are interested in personalizing or customizing their cars for aesthetic, performance, or accessibility reasons. Additionally, the aftermarket for passenger car modification is well established, offering a wide range of products and services. This development is expected to drive market growth during the forecast period.


The commercial vehicle segment holds the second-largest market share. The commercial vehicle segment growth is attributed to various requirements certain businesses require per their operational needs. Thus, the demand for tailored solutions for business needs drives segmental growth.


By Component Analysis


Increasing Demand for Aesthetic and Overall Performance of the Vehicle is Driving the Wheel and Tire Modifications Segment Growth


 Based on the component, the market is segmented into wheel and tire modifications, exterior and body mods, interior enhancements, lighting upgrades, and others (suspension & brake and racks).


The wheel and tire modifications segment holds the maximum market share globally. The growth is attributed to the rising development and adoption of wheel and tire modifications to enhance both the aesthetic and overall performance of the vehicles.


The interior enhancements segment holds the second largest market share as many vehicle owners are prioritizing vehicle interior upgradation to improve their driving experience and comfort. This generates the demand for luxurious, technologically advanced, or customization inside the vehicles, which drives the market growth.


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By Conversion Type Analysis


Increasing Demand for Accessible Transportation Options is Driving the Mobility Conversion Segment Growth


 Based on the conversion type, the market is segmented into mobility conversion and recreational conversion.


The mobility conversion segment holds the maximum market share globally. The growth is attributed to increasing demand for accessible transportation options. The segment involves modifying vehicles to accommodate individuals with mobility challenges, such as wheelchair ramps, lifts, and other accessibility features.


The recreational conversion segment holds the second largest share due to increasing modification for leisure purposes, such as camping or off-roading, which may boost the market growth during the forecast period. Additionally, Lifestyle trends and a growing desire for unique customized vehicles contribute to the popularity of recreational conversion in vehicle modification.


REGIONAL INSIGHTS


The market provides detailed analysis across North America, Europe, Asia Pacific, and the Rest of the world.


North America Vehicle Conversion Market Size, 2022 (USD Billion)

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North America stood at USD 15.92 billion in 2022 and will likely dominate the market. North America dominated the market in 2022, and the region is anticipated to continue its dominance throughout the forecast period with the fastest CAGR. The North American regional growth is attributed to the rising demand for specialized vehicles in various industries for different purposes. The conversion of vehicles is in high demand in the U.S., Canada, and Mexico due to the diverse industrial landscapes and customized solutions, further propelling the market growth.


Europe holds the second-largest market share. The organizations/companies are focusing on vehicle conversion with respect to regulation and European standards. European companies have actively invested in equipment and research to handle vehicle customization to European standards. Such developments fuel the market growth. The rising consumer demand for vehicle conversion and modification due to safety, better driving experience, and advanced technology to boost the adoption of modifications will drive the market growth.


KEY INDUSTRY PLAYERS


Companies Focus on a Wide Range of Product Offerings to Gain Competitive Edge


Key market players include Braun Ability, Vantage Mobility International (VMI), and VAN Adventure Van Custom Conversions. These organizations focus on providing vehicle conversion to meet customer requirements for various vehicles globally.


Braun Ability is one of the major players in the global market. The company focuses on research and development activities to develop mobility transportation solutions with improved capabilities. The company provides wheelchair-accessible vans & vehicles, accessible vehicle transfers seats, wheelchair lifts for SUVs, vans, and cars, ADA commercial & wheelchair securement products, vehicle wheelchair storagxe solutions, and nationwide accessible wheelchair van rentals.


List of Key Companies Profiled



KEY INDUSTRY DEVELOPMENTS



  • In May 2023, BRABUS signed a contract with Hankook to assemble high-performance tires from Hankook on its alloy wheels with diameters of up to 23 inches. The first step will primarily be the premium summer UHP tire Ventus S1 Evo 3 and the UUHP tire Ventus S1 Evo Z. Both are distinguished from other modern tires by their high-strength, aramid-reinforced hybrid belts.

  • In May 2021, Vantage Mobility International (VMI) introduced the wheelchair-accessible minivan featuring the performance and reliability of all-wheel drive. The VMI Toyota introduces new possibilities to the wheelchair-user community to drive with more excellent traction and control in various environments, even in inclement weather conditions.

  • In June 2021, Braun Ability announced that the company acquired a controlling interest in Q’STRAINT, a mobility company with operations in the U.K., U.S., and Europe. Braun Ability and Q’STRAINT signed a new contract to accelerate development and innovation for their customers and keep focusing on technologies rapidly transforming the automotive landscape. The contract will be a greater integration of the design process and set the stage for systems solutions.

  • In November 2020, Vantage Mobility International introduced ParkSmart, a patented revolutionary parking solution for wheelchair users. ParkSmart is the integrated vehicle sensor designed to alert other drivers and individuals when they obstruct a wheelchair user’s vehicle, preventing access to or deploying the user’s wheelchair ramp.

  • In September 2019, VMI signed an agreement with Mobility Networks. Under the agreement, the company will offer Mobility Networks’ leading products for installation on many of the most popular vehicles on the road today for both passenger and commercial applications, including the Dodge Promaster and Ford Transit full-size vans.


REPORT COVERAGE


The market research report provides a detailed market analysis and focusing on key aspects such as leading market players, competitive landscape, and vehicle type. Besides, the report includes insights into the vehicle conversion market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.


An Infographic Representation of Vehicle Conversion Market

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REPORT SCOPE & SEGMENTATION



















































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year 



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 4.4% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation


 



By Vehicle Type



  • Passenger Car

  • Commercial Vehicle



By Component



  • Wheel and Tire Modifications

  • Exterior and Body Mods

  • Interior Enhancements

  • Lighting Upgrades

  • Others (Suspension & Brake and Racks)



By Conversion Type



  • Mobility Conversion

  • Recreational Conversion



By Region



  • North America (By Vehicle Type, By Component, and By Conversion Type)


    • U.S.  (By Vehicle Type)

    • Canada (By Vehicle Type)

    • Mexico (By Vehicle Type)


  • Europe (By Vehicle Type, By Component, and By Conversion Type)


    • U.K. (By Vehicle Type)

    • Germany (By Vehicle Type)

    • France (By Vehicle Type)

    • Rest of Europe (By Vehicle Type)


  • Asia Pacific (By Vehicle Type, By Component, and By Conversion Type)


    • China (By Vehicle Type)

    • India (By Vehicle Type)

    • Japan (By Vehicle Type)

    • Rest of Asia Pacific (By Vehicle Type)


  • Rest of the World (By Vehicle Type, By Component, and By Conversion Type)






Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 45.11 billion in 2022.

The market is growing at a CAGR of 4.4% over the forecast period (2023-2030)

The passenger cars segment is leading the market due to the adoption of passenger cars globally.

The market size in North America stood at USD 15.92 billion in 2022.

Braun Ability, Vantage Mobility International (VMI), and VAN Adventure Van Custom Conversions are some of the top key players in the market.

North America held the largest share of the market in 2022.

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