Car Modification Global Market Report 2024

The car modification market size has grown steadily in recent years. It will grow from $56.09 billion in 2023 to $58.84 billion in 2024 at a compound annual growth rate (CAGR) of 4.9%. The growth observed in the historical period can be attributed to cultural trends and tastes, developments in the automotive industry, economic conditions, the regulatory environment, and the influence of social media.

The car modification market size is expected to see steady growth in the next few years. It will grow to $68.06 billion in 2028 at a compound annual growth rate (CAGR) of 3.7%. The anticipated growth in the forecast period can be attributed to the DIY (do-it-yourself) culture, advancements in electric vehicles (EVs), the emphasis on sustainability and eco-friendly modifications, changing consumer lifestyles, and government incentives. Major trends expected in the forecast period include the integration of advanced infotainment systems, customization for autonomous driving features, the adoption of performance tuning for electric vehicles, a focus on aerodynamic enhancements, the introduction of advanced lighting systems, and the development of off-road and adventure modifications.

The car modification market is anticipated to experience growth due to the increasing demand for autonomous vehicles. Autonomous vehicles, or self-driving cars, operate on the road without direct human input. Car modifications play a crucial role in enhancing the functionality, safety, and user experience of autonomous vehicles. According to the National Highway Traffic Safety Administration (NHTSA), it is expected that the United States will have around 3.5 million autonomous vehicles on the roads by 2025, reaching 4.5 million by 2030. This rising demand for autonomous vehicles is a key driver of the car modification market.

The growth of the car modification market is expected to be fueled by the increasing demand for personalized cars. Personalized cars are vehicles that have been customized according to the specific preferences, tastes, and needs of their owners. Car modifications contribute significantly to creating personalized cars by customizing interior layouts, entertainment options, and driving dynamics. A survey by McKinsey & Company revealed that around 84% of Chinese luxury vehicle buyers consider the ability to personalize their vehicles important, with 60% preferring customized services throughout the buying process. The growing demand for personalized cars is a significant factor driving the car modification market.

The challenges may arise as the high cost of modifications could potentially restrain the car modification market. Car modifications, particularly those focused on improving performance, custom work, and labor costs, can be expensive. CNBC reported a 20% increase in the costs of car modifications in 2022, highlighting the financial challenge associated with such modifications. The high cost of modifications is a potential restraint on the growth of the car modification market.

Major companies in the car modification market are adapting to market trends by developing new products, such as automotive paints, to cater to larger customer bases and drive revenues. Automotive paint serves both protective and aesthetic functions when applied to cars. For example, RMA Automotive, based in Thailand, launched RMA Paint in March 2022. This product allows clients access to an infinite variety of colors without the typical operational constraints of an original equipment manufacturer's (OEM) production plant. It enables OEMs to offer unusual and limited edition colors without adding complexity to their manufacturing facilities.

In March 2022, BMW Group, a German luxury vehicle company, acquired Alpina GmbH + Co. KG. This acquisition aims to expand BMW's development services business, with Alpina specializing in extensive modifications to engines, transmissions, chassis, aerodynamics, and interior components of base BMW automobiles. Alpina GmbH + Co. KG, a German manufacturer, produces automotive modification products, including balance shafts, crankshafts, connecting rods, and camshafts, to enhance engine and handling performance.

Major companies operating in the car modification market report are BBS Kraftfahrzeugtechnik AG, Toyota Racing Development, Brabus GmbH, Roush Performance, 3M Company, Vorsteiner Inc., KW Automotive GmbH, Hennessey Performance Engineering, Bilstein, ALPINA Burkard Bovensiepen GmbH + Co. KG, Twisted Automotive Limited, Carroll Shelby International, Mansory Design & Holding GmbH, Renntech Inc., Gemballa GmbH, Monster Customs Atlanta, Dreamworks Motorsports Inc., ABT America, Krazy House Customs, APEX Integration LLC, Akrapovic D.D., Novitec GmbH Co. KG, Liberty Walk Co. Ltd., Kar Zone, AC Schnitzer, Skg Modifiers.

North America was the largest region in the car modification market in 2023. The regions covered in the car modification market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the car modification market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Car modification involves making alterations to a vehicle that deviate from its original factory specifications, with the aim of improving and customizing the vehicle's functionality and appearance.

The primary types of car modification include overall modification and local modification. Overall modification entails altering or enhancing the vehicle as a whole, rather than making modifications to specific features or components. The diverse categories of modifications cover both performance enhancements and cosmetic changes. These modifications can be applied to various types of vehicles, including sports cars, sedans, sports utility vehicles (SUVs), trucks, and motorcycles. Car modifications are typically sold through various sales channels, such as retailers, original equipment manufacturers (OEMs), repair shops, wholesalers, and distributors.

The car modification market research report is one of a series of new reports that provides car modification market statistics, including the car modification industry's global market size, regional shares, competitors with a car modification market share, detailed car modification market segments, market trends and opportunities, and any further data you may need to thrive in the car modification industry. This car modification market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The car modification market includes revenues earned by entities through security upgrades, lighting upgrades, engine modifications, appearance upgrades, and related services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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