Global Car Rack Market - Growth, Trends, and Forecast (2018 - 2023)
This report presents a detailed analysis of the market by product (roof rack, ski rack, roof box, water sport carrier, and bike car rack) and geography (APAC, Europe, North America, and RoW). The global market for car racks is expected to record a CAGR of around 7% during 2018 -2023. A spike in local tourism and commercial vehicles are the key drivers for the market.
Roof racks are combination of bars that are attached to the roof of the car for carrying luggage. They are generally used to carry luggage, bicycles, etc. They allow the user of the automobile to increase the interior space by transporting the objects on the roof. The car racks are used to increase the luggage-carrying capacity of the given vehicle.
The Car Rack Market
Automotive roof racks are expected to witness growth due the increase in production of vehicles and growth in the travel and tourism sector. There has been a rise in investment in the travel and tourism sector due to which the use of roof racks to carry the luggage has widely increased. The increase in vehicle production will also lead to increase in the use of roof racks in cars. Owing largely to the growth in the local travel & tourism market in the developing nations, the market for rear racks is slowly gaining traction.
The Asia-Pacific region is expected to dominate the automotive roof rack market due to the increase in the production and sales of vehicles. The growing demand for vehicles by the tourism sector has also led to an increase in the usage of roof racks. This rise in the tourism sector will accelerate the growth of the automotive roof racks market. North America is expected to be the second largest region in the automotive roof rack market due to the large number of automotive present in the region.
More than 80% of the car racks are fitted in the aftermarket. In the United States, the average car rack cost an estimated USD 75, as of 2018. The growth is mainly attributed to the decline in car rack prices when purchased along with the car (rather than fitting the car rack separately).
Roof racks are the oldest type of racks in the market, produced commercially in the 1970s, after the discontinuation of rain gutters. Bike racks are relatively new and can be detached with relative ease; they are mainly used to carry two-wheelers (bicycles). Ski racks are the latest addition to the car rack market. In terms of volume, more than 70% of the market share is occupied by the Americas and Europe. The market is highly fragmented, with the top player barely accounting for 10% of the market share (in terms of market revenue). Local manufacturers account for over 65% of the share in the aftermarket.
One of the major drivers for this market is increasing the demand for smaller cars. Several car manufacturers have introduced compact cars that come with a limited boot capacity. The hike in fuel prices has led to the downsizing of vehicles, and therefore, people prefer smaller cars over premium big cars as they are light, compact, and run at lower costs.
Price Variations in Factory-fitted Racks and Aftermarket Racks
A survey conducted by Mordor Intelligence found that the price of a car rack in the aftermarket recorded constant growth, at over 5% annually for the past five years, while the cost of factory-fitted racks stood more or less at constant prices. In addition, the owners of 2 in 10 cars (which do not have car racks) are observed to be willing to use car roofs/bike racks (the data sample predominantly includes Europeans and North Americans). A variety of roof racks are available in the market, thereby increasing the product differentiation, which can be attributed to the customers’ customized requirements. Instances have been recorded, where customers have requested for roof racks to carry construction materials (like bricks).
The demand for SUVs and hatchbacks was on the rise in 2017. Therefore, the demand for car racks in these car types was also on the rise, as customers wanted to take their SUVs into tourist spots and increase the storage size of their small cars for keeping the goods in the rack.
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