The global automotive conversion kit market size is anticipated to surpass USD 3,881.7 million in 2023, forecast to thrive at a CAGR of 5.5% from 2023 to 2033. The market size is predicted to reach USD 6,630.5 million by 2033. Growth is attributed to the increasing awareness of environmentally-friendly vehicles among consumers.
| Attributes | Details |
|---|---|
| Market Share (2022) | USD 3,746.8 million |
| Market Share (2023) | USD 3,881.7 million |
| Market Share (2033) | USD 6,630.5 million |
| Market Share (2023 to 2033) | 5.5% |
Manufacturers in the automotive industry are gradually shifting their focus towards vehicle modification, wherein they can customize the vehicle according to the customer's requirements and desires instead of purchasing new vehicles.
The automotive conversion kit enables the smooth replacement of the automotive parts with the new parts and helps in the modification and customization of the vehicle. Making use of automotive conversion kits proves to be more economical for customers, as they can fulfill their required needs by modification. This trend of customization is further expected to gain traction over the forecast period and drive the need for automotive conversion kits among end users.
The majority of the conversions are performed by hobbyists, who convert a used vehicle consisting of a non-functioning engine since such vehicles are relatively inexpensive to purchase as compared to unused or new vehicles. Hobbyists having larger budgets prefer converting a vehicle model of only a particular type. In countries such as the United States, Canada, United Kingdom, Germany, etc., the customer has a facility to buy an already converted vehicle, paying only the cost of the batteries and motor, with no installation costs. This is also known as pre-conversion.
North America is considered to be a highly lucrative market for the automotive conversion kit market, driven primarily by the presence of a large number of players in the region. Simultaneously, the lack of resources in developing countries is acting as a significant growth barrier.
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The global automotive conversion kit market is forecast to grow at a healthy rate over the forecast period, primarily due to the growing automobile production globally. The increasing environmental concern regarding the use of fossil fuels which is causing global warming is anticipated to increase the demand for electric vehicles. This, in turn, boosts the growth of the automotive conversion kit market.
The rise in government incentives for the purchase of electric vehicles across the globe is primarily driving the automotive conversion kit market. For instance, the Government of China has leveraged large investments and is offering subsidies to boost the adoption of electric vehicles against conventional fuel-driven vehicles.
The factor that might hinder the growth of this market is that sometimes OEMs never allow the customer to customize their vehicle while purchasing it. It has been observed that, besides these factors, customization is the trend that has been there for a long period, due to which aftermarket conversion is rising. The high cost of the conversion kit coupled with high installation charges is anticipated to be a key restrain for the global automotive conversion kit market during the forecast period.
North America was the fastest growing market for the automotive conversion kit market, and the trend is expected to continue into the forecast period owing to the highly developed automotive sector and growth in economies like the United States and Canada in the region. North America is projected to account for a total of 23.9% global automotive conversion kit market share.
Rising disposable income and government regulations and initiatives are likely to uplift the automotive conversion kit market in North America. Rising expenditure on digitalization by governments in these nations has driven various organizations to improve their technology.
For instance, Bosch has come up with Bosch eAxle, which is a compact and efficient conversion kit. The kit provides solutions for battery and hybrid vehicles. The compact unit has an electric motor, power electronics devices, and transmission directly fueling the vehicle’s axle. The design saves installation space with less complexity.
According to Future Market Insights, Europe is anticipated to account for a 27.6% share of the total global automotive conversion kit market. Europe is the hotspot for technological advancements in the automotive industry. Thus, the development of passenger and heavy vehicles is carried out on a large scale. The region is characterized by significant developments with regard to new product launches and key innovations.
Rising interest amongst consumers to purchase electric vehicles owing to escalating environmental awareness may fuel automotive conversion kit market growth in Europe. For instance- in October 2020, EV West announced a new Tesla crate motor kit designed to convert V8 muscle cars to EVs. The drop-in package consists of a complete Tesla drive unit, including an inverter and mounting brackets. Revolt Tesla crate motor mounts to your small block motor mounts and attaches directly to your driveshaft, allowing you to use your existing rear axle.
In terms of year-on-year growth, the said market share in the Asia Pacific region is the best-performing portion, as per the new market research report on the global automotive conversion kit market. Due to new technological advancements, and a rise in the automotive sector, the Asia Pacific automotive conversion kit market is experiencing the fastest growth. The expansion of the regional market can be attributed to the increasing disposable income among developing countries such as India, China, and Japan.
The presence of several manufacturers in the Asia Pacific region boosts the market's growth. For instance, in 2021- Meladh auto component launched a retrofit table electric hybrid kit for existing petrol scooters. The kit, once fitted in a petrol scooter, turns the vehicle into an electric Hybrid scooter. As the name says, 'Hybrid,' The kit, once fitted in a petrol scooter, turns the vehicle into an electric Hybrid scooter. As the title says, 'Hybrid,' the scooter can be driven in both- electric and petrol modes selectively along with the smart features and safety of IOT.
Roboticsdna, E-trio, Strickly Electric, pixy cars, and Starya are some start-up companies operating in the automotive conversion kit market.
Some of the key participants present in the global automotive conversion kit market are Stark Automotive, Hidlook, SkyCNG, Nash Fuel, Inc., Canadian Electric Vehicles Ltd., EuropeGAS, and Unitex Gas Equipment, among others.
Attributed to the presence of several leading participants, the market is highly competitive. While global players such as Stark Automotive, Hidlook, and SkyCNG account for considerable market size, several regional-level players are also operating across key growth regions, particularly in the Asia Pacific.
Recent Developments Observed by FMI:
Key Players in the Global Market:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Application, Vehicle, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
As of 2023, the automotive conversion kit market holds a valuation of about USD 3,881.7 million.
The automotive conversion kit market is projected to attain a value of USD 6,630.5 million by 2033, driven by a CAGR of 5.5% between 2023 and 2033.
The automotive conversion kit market is witnessing burgeoning opportunities in electric vehicle conversion and autonomous vehicle retrofit segments.
North America asserts predominant control over the automotive conversion kit market, driven by its strong network of automotive enthusiasts.
Integration of electrification and the surge in personalized vehicle enhancements are prevailing trends in the automotive conversion kit market.
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Automotive Conversion Kit Market
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