Vehicle Conversion Market Report 2026

The vehicle conversion market size has grown strongly in recent years. It will grow from $5.23 billion in 2025 to $5.65 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to cost optimization needs, fleet life extension, mobility accessibility demand, commercial vehicle customization, fuel efficiency improvements.

The vehicle conversion market size is expected to see strong growth in the next few years. It will grow to $7.97 billion in 2030 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to decarbonization mandates, electric drivetrain availability, smart vehicle integration, growth in specialized logistics, sustainability-driven conversions. Major trends in the forecast period include rising demand for ev conversions, growth in mobility conversion services, expansion of commercial vehicle retrofitting, customization for specialized applications, regulatory compliance upgrades.

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.

Major companies in the vehicle conversion market are focusing on innovations in modular EV design, such as swappable bodies, allowing a single vehicle to quickly switch between roles like cargo transport, passenger mobility, or autonomous taxi services. Swappable bodies are detachable vehicle modules that enable a chassis to serve multiple purposes efficiently. For instance, in January 2024, Kia Corporation, a South Korea-based automotive manufacturer, introduced the PV5 modular electric van at CES. The PV5 features five interchangeable “life modules” - cargo van, high-roof mobile office, robotaxi, basic passenger model, and chassis cab - using a hybrid electromagnetic and mechanical coupling system. By combining modular architecture with fleet software and autonomous-ready capabilities, the PV5 offers a flexible, efficient, and future-ready solution for vehicle conversion.

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 report 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 2025. The regions covered in the vehicle conversion market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle conversion market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.

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