Hybrid Electric Vehicle Conversion Kit Market size was valued at USD 394.9 million in 2024 and is projected to reach USD 2.34 billion by the end of 2037, rising at a CAGR of 14.7% during the forecast period, i.e., 2025-2037. In 2025, the industry size of hybrid electric vehicle conversion is assessed at USD 452.9 million.
The primary factors driving growth in the hybrid electric vehicle conversion kit market include expanding environmental awareness and strict emission regulations. More and more governments are implementing policies to reduce carbon emissions as consumers look for greener alternatives to conventional combustion-engine vehicles. Conversion kits also have significant added value in retrofitting existing vehicles into hybrids in an affordable and sustainable way, prolonging the lifecycle of older models while encouraging greener mobility. In particular, this is quite attractive to the regions with ambitious carbon-neutral goals, hence contributing to their wide adoption.
In May 2023, Electrogenic introduced a plug-and-play conversion kit for classic Mini cars for around USD 18,800 plus VAT. It also joins the list of emerging systems, presenting conversion kits to mainstream consumers and expanding the potential base of the market. The probable subsidizing of such kits by various governments, especially in Europe and North America, boosts their popularity. With more manufacturers innovating with flexible, affordable options, the hybrid electric vehicle conversion kit market is anticipated to witness expansion prospects.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
14.7% |
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Base Year Market Size (2024) |
USD 394.9 million |
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Forecast Year Market Size (2037) |
USD 2.34 billion |
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Regional Scope |
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Vehicle (Passenger Cars, Commercial Vehicle)
The passenger cars segment is likely to hold hybrid electric vehicle conversion kit market share of over 72.5% by the end of 2037. This growth is based on a considerable number of consumers beginning to adopt less expensive ways of shrinking their carbon footprint without purchasing new vehicles. For example, the REVR kit launched in Australia in October 2023 targeted internal combustion engine cars to present an affordable conversion solution to prevailing needs, demonstrating high demand in the passenger car segment. Moreover, this segment keeps evolving as hybrid solutions continue to be adopted by more consumers in order to comply with environmental standards.
Conversion Kit (Plug-in Hybrid Electric Vehicle (PHEV), Parallel Hybrid, Series Hybrid)
In hybrid electric vehicle conversion kit market, plug-in hybrid electric vehicle segment is set to dominate revenue share of around 45% by the end of 2037. The pressing need for plug-in hybrids, which provide an extended electric range while offering the flexibility of a conventional engine, is driving this segment growth. The increasing demand for PHEV conversion reflects a consumer desire for versatile, eco-friendly driving options, balancing efficiency with convenience in daily living. Additionally, government incentives and policies promoting reduced emissions are fueling the demand for PHEVs, making them a preferred choice for consumers looking to transition to greener transportation without compromising on performance.
Our in-depth analysis of the hybrid electric vehicle conversion kit market includes the following segments:
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Vehicle |
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Component |
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Conversion Kit |
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Sales Channel |
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North America Market Analysis
North America in hybrid electric vehicle conversion kit market is set to account for around 42.5% revenue share by 2037. Factors such as favorable government policies coupled with tax incentives and rebates for hybrid vehicle conversions offer great opportunities for growth in this region. This demand for conversion kits, being affordable to vehicle owners, is further increased by the U.S. government's target to have 50% of vehicle sales as either electric or plug-in hybrids by 2030. Besides, the increasing focus on reducing carbon emissions is likely to drive growth in this region.
The U.S. remains a leader in the North America hybrid electric vehicle conversion kit market, with strong government backing supported by strategic infrastructure investments that show how serious the country is about driving sustainable transport. By supporting the hybrid conversion industry, the U.S. seeks to be at the center of low-emission and other eco-friendly mobility solutions. This emphasis on sustainability is also in line with the country's wider goal of clean energy development in its effort to make transportation systems greener.
The hybrid electric vehicle conversion kit market in Canada is a growing industry due to continuous government efforts, activities, and investments over the years to reduce carbon footprint, thereby promoting clean energy. As demand increases, local companies are expanding their investments in conversion technologies. For example, Honda Canada made an announcement in April 2024 regarding its plan to expand its EV and hybrid vehicle capability with CAD 15 billion, partly to be used for infrastructure development in regard to conversions of hybrid vehicles. The move comes after Honda's EV Hub project in Ohio and forms part of the automaker's bigger strategy to reinforce its electric vehicle supply chain in North America.
Asia Pacific Market Analysis
Asia Pacific hybrid electric vehicle conversion kit market is expected to exhibit CAGR of more than 16% from 2024 to 2037, driven by significant growth in countries belonging to the Asia Pacific region. Such significant growth is expected due to the efforts and policies of various countries across the region to reduce their carbon footprint by considering greener modes of transportation. This increased demand has also been aided by the growing population of the region, its rapid urbanization, and rising vehicle ownership rates, as individuals and companies alike increasingly seek cost-effective ways to retrofit existing vehicles with hybrid technology.
India has emerged as one of the key players in the hybrid electric vehicle conversion kit market. The government has been encouraging the transition through several initiatives, such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles scheme. In February 2022, Altigreen raised INR 300 crore in funding, which is around USD 40 million, to increase capacity, launch new products, and create a pan-India network for hybrid and electric conversions. This development underlines the growing emphasis on hybrid technologies in India, impelled by the requirement to lessen air pollution and import dependency on fossil fuels.
Strong governmental initiatives, along with aggressive environmental policies, continue to support China as a dominant player in the hybrid electric vehicle conversion kit market in Asia Pacific. This is due to the fact that China is considered one of the largest automobile markets. Its transition to hybrid and electric vehicles will be crucial to meet targets for global reductions in emissions. The announcement by the government of a plan to phase out fuel vehicles in 2023 further boosts demand for hybrid conversion kits among consumers desiring to retrofit their current vehicles. Currently, companies such as BYD and Geely are introducing sophisticated conversion solutions into the market to meet the surging domestic demand for green vehicle technologies.
The hybrid electric vehicle conversion kit market is very competitive, with a number of key players heavily focused on innovation and driving growth in the market. Some of the leading companies in the sector include Moditech, Odyne Systems LLC, EV West LLC, and Protean Electric Limited. These firms are focusing on developing more efficient and affordable conversion kits to cater to a growing consumer base seeking sustainable vehicle alternatives.
New entrants are also penetrating the market with innovative plug-and-play solutions that enhance competition. A significant recent development in the competitive landscape includes the acquisition of Stealth EV by Hypercraft Inc. in July 2022, which enabled the company to expand its product offerings and strengthen its position in the burgeoning hybrid vehicle conversions market. As more strategic acquisitions and partnerships among companies take place, the competition is likely to increase in the hybrid electric vehicle conversion kit market, leading to increased innovation and product diversification.
Here are some leading players in the hybrid electric vehicle conversion kit market:
Author Credits: Saima Khursheed
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