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Vehicle Conversion Market Trends

Report ID: GMI6039
Published Date: Nov 2024
Report Format: PDF

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Vehicle Conversion Market Trends

Companies globally are focusing on ICE-to-EV vehicle conversions due to the growing push for sustainability and reducing carbon emissions. As governments introduce stricter environmental regulations and offer incentives, converting existing vehicles to electric helps meet these mandates without the need for new vehicle production. This trend also addresses the rising demand for affordable EV solutions, as conversion kits are often cheaper than buying new EVs.

Additionally, it offers a solution for the large number of older vehicles still in circulation, extending their lifespan while reducing their environmental impact. The conversion market also aligns with the shift towards clean energy and greener transportation.

For instance, in April 2024, Sirius Cleantech Pvt. Ltd. launched the Electra-Revive EV conversion kit, designed to retrofit old internal combustion engine (ICE) vehicles into electric ones. Built with indigenous components, the kit offers motor options ranging from 30kW to 75kW and supports both commercial and passenger vehicles. It delivers a range of up to 180 km for passenger vehicles and 160 km for commercial ones, with a top speed of 75 km/h.

The kit also features AI-powered range prediction, active power management, and a mobile app for live vehicle diagnostics. The company aims to make electric mobility more accessible and environmentally friendly across India.

One major challenge in the vehicle conversion market is the high upfront cost of conversion kits and retrofitting. While converting an existing internal combustion engine (ICE) vehicle to an electric one can be more affordable than purchasing a new EV, the initial cost of the conversion kit, including the motor, battery, and other components, can still be significant. This cost may deter many vehicle owners, especially in emerging markets where affordability is a major concern.

Additionally, the lack of financial incentives or subsidies for conversions in some regions limits widespread adoption. As a result, reducing conversion costs and offering financing options are crucial for market growth.

Authors: Preeti Wadhwani, Satyam Jaiswal

Frequently Asked Questions (FAQ) :

The market size of vehicle conversion reached USD 5.9 billion in 2024 and is set to grow at a 9% CAGR from 2025 to 2034, driven by the increasing demand for electric vehicles (EVs).

The passenger car segment held around 62% of the market share in 2024, due to the high volume of passenger vehicles globally and consumer interest in reducing fuel costs and emissions.

The U.S. market accounted for 75% of the revenue share in 2024 and is expected to exceed USD 3 billion by 2034, led by strong consumer demand for eco-friendly transportation and government policies.

The key players in the industry include Adventure Van Conversions, BraunAbility, Creative Mobile Interiors, DIYev Inc., El Kapitan Conversion Vans, EV Source, EV4U Custom Conversions, Glampervan, Kisae Technology Inc., and Midwest Automotive Designs.