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Autonomous Vehicles Fueling the Future of Car Modification Driver: A Major Catalyst in the Evolution of the Car Modification Market in 2025

03-10-2025 06:41 AM CET | Logistics & Transport

Press release from: The Business Research Company

Car Modification Market Size

Car Modification Market Size

What industry-specific factors are fueling the growth of the car modification market?
The increasing preference for autonomous vehicles is set to spur the expansion of the car modification market in the future. Autonomous vehicles, also named self-driving or driverless cars, function without the need for human intervention. In the realm of autonomous vehicles, auto modification is critical and delivers several benefits, including boosting their operation, safety measures, and user engagement. As an illustration, as per the December 2022 prediction from the National Highway Traffic Safety Administration (NHTSA), a government agency based in the US, an estimated 3.5 million autonomous vehicles will be on U.S. roads by 2025, projected to rise to 4.5 million by 2030. Hence, the mounting preference for autonomous vehicles fuels the car modification market. The increasing desire for personalized automobiles is anticipated to stimulate the expansion of the car modification market in the future. A personalized car is a vehicle that has been specifically customized to meet the preferences, likes, and needs of the owner. Car modifications are critical to making a custom-built car, with adjustments made in interior designs, entertainment features, and driving dynamics. As an example, in July 2022, a survey conducted by McKinsey & Company, a US-based consulting firm, revealed that approximately 84% of luxury vehicle buyers from China consider car personalization vital, and 60% opt for a personalized service during the purchasing process. Thus, the escalating demand for personalized cars triggers the growth of the car modification market.

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What Is the projected market size and growth rate for the car modification market?
The automobile customization industry has seen a consistent uptick in its market size over the past few years. The industry is projected to expand from $58.84 billion in 2024 to $61.54 billion in 2025, marking a compound annual growth rate (CAGR) of 4.6%. This historical growth can be linked to factors such as evolving cultural trends and tastes, advancements in the automotive sector, alterations in the economic scenario, legislative regulations, and the influence of social media.

In the coming years, the car modification market size is poised for consistent expansion. The market is projected to increase up to $70.33 billion by 2029, with a compound annual growth rate (CAGR) of 3.4%. Factors such as the DIY trend, technological improvements in electric vehicles (EVs), sustainable and earth-friendly alterations, shifts in consumer lifestyles, and government incentives are contributing to this growth during the forecast period. Key market trends to watch out for consist of incorporation of sophisticated infotainment systems, customizations to accommodate autonomous driving features, use of performance tuning for electric vehicles, emphasis on aerodynamic advancements, launch of state-of-the-art lighting systems, and the evolution of off-road and adventure customizations.

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What are the emerging trends shaping the future of the car modification market?
Leading firms in the car modification market, like RMA Automotive, are innovating new products such as automotive paints to cater to a broader demographic, augment sales, and boost market revenues. Automotive paint, a specialized type of paint used on vehicles, provides both protective and decorative features. In a recent development in March 2022, RMA Automotive, a car modification service provider based in Thailand, introduced RMA Paint. This product's distinctive attribute is its ability to offer customers an unlimited spectrum of colors, without the constraints of a standard OEM production facility. This helps OEMs to use unique and limited-edition colors without complicating their production processes. Moreover, companies can purchase individual paint colors that align with their brand's color palette.

What major market segments define the scope and growth of the car modification market?
The car modification market covered in this report is segmented -

1) By Type: Overall Modification, Local Modification
2) By Category: Performance, Cosmetic
3) By Vehicle: Sports Cars, Sedans, Sports Utility Vehicle(SUVs), Trucks, Motorcycles
4) By Sales Channel Type: Retailers, Original Equipment Manufacturer(OEMs), Repair Shops, Wholesalers And Distributors

Subsegments:
1) By Overall Modification: Engine Performance Upgrades, Suspension And Handling Modifications, Exterior Body Kits, Interior Upgrades
2) By Local Modification: Custom Paint Jobs, Wheel And Tire Upgrades, Lighting And Electrical Modifications, Audio And Entertainment System Enhancements

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Which region dominates the car modification market?
North America was the largest region in the car modification market in 2024. The regions covered in the car modification market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Which key market leaders are driving the car modification industry growth?
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

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What Is Covered In The Car Modification Global Market Report?

• Market Size Forecast: Examine the car modification market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the car modification market for a structured understanding.
• Key Players Overview: Analyze major players in the car modification market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the car modification market.
• Segment Contributions: Evaluate how different segments drive overall growth in the car modification market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the car modification market.
• Industry Challenges: Identify potential risks and obstacles affecting the car modification market.
• Competitive Landscape: Review strategic developments in the car modification market, including expansions, agreements, and new product launches.

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