Car Rack Market

Market Overview

The global car rack market size was valued at USD 1,290.7 million in 2022. It is expected to reach USD 2,100.4 million by 2031, growing at a CAGR of 5.56% during the forecast period (2023–2031).

An automobile stand or carrier installed over the vehicle's roof to increase luggage capacity is referred to as a car rack. It is made up of a mount, numerous rails, and pillars that support the rack frame and distributes the weight of the luggage so that the roof is not harmed. Steel, aluminum alloy, composite plastic, and other lightweight materials are frequently used to make the racks. To give passengers as much room as possible and improve their comfort while traveling, luggage or other items are placed on the rack. The modern variations can be attached and detached using hooks and joints for increased flexibility, minimal maintenance, and convenience. Traditionally, they were permanently mounted on the vehicle's roofs.

Market Dynamics

Market Drivers

Growing Popularity of Travel and Recreational Activities

The popularity of the tourism industry, particularly adventure tourism, has been rapidly increasing as young people's desire to travel to far-flung locations has multiplied. Diverse air, water, and land activities, such as mountaineering, trekking, hiking, scuba diving, canyoneering, sandboarding, paragliding, river rafting, and others, are included in adventure tourism. Depending on the weight and type of equipment they intend to carry for a specific activity, these activities necessitate that people have additional gear with them for safety, necessitating the adoption and installation of luggage racks on their cars and other vehicles.

Another popular tourist attraction is camping, which gives people a much-needed break from the monotony of city life. More travelers are drawn to the area because camping areas have been developed in several locations. People prefer mounting them on car racks to save cabin space for maximum comfort because camping and other similar activities necessitate the transportation of necessary equipment, which is heavy and requires space to be carried. As a result, it is anticipated that increasing tourism will fuel demand for car racks during the forecast period.

Market Restraints

Quality and Price Controversies

In the automotive sector, the supplier base is rationalized to effectively manage and control the cost of goods and services. This has increased the dependence of car manufacturers on a limited number of component suppliers. This tendency puts the industry at risk for sporadic component shortages or delays. Defective components, commercial disputes, unfavorable government regulations, and industry and capacity constraints can all contribute to shortages. To gain an advantage in a market as competitive as car racks, you must focus on quality, reputation, and customer satisfaction. The study's aftermarket market segment is susceptible to counterfeiting because of the various types of car racks' rising popularity.

Numerous aftermarket retailers need to meet the quality and safety requirements set forth by the manufacturer, which causes the installed product to fail quickly. The failure of the fake product can be attributed to the use of low-quality parts, which in some cases may even pose a risk to the customers' safety. Furthermore, the sale and consumption of counterfeit products fuels customer dissatisfaction and fosters a negative outlook of the affected customers towards a brand because the user is not entitled to a refund and repair due to the absence of a manufacturer's warranty to cover the transaction. Due to the need for the price to be justified by the return on investment, the quality vs. price impasse currently in the market under study may limit its growth during the anticipated period.

Market Opportunities

Regular Adventure Trips and Need to Accommodate More Luggage

In the modern world, it is getting harder and harder to strike a balance between work and life. Regular adventure trips like camping, cycling, trekking, and other outdoor activities are some of the initiatives taken by new-age startups to make their employees feel at home. Over the years, families and individuals have carried more luggage on vacations and weekend getaways. This is also related to how many accessories people need for their luggage on an adventure trip. The owners would have to modify the vehicle by adding a roof rack to accommodate more luggage.

Nowadays, people travel more, pack more luggage, and play sports that require more complicated equipment than just a football or tennis racquet. The growing need for car racks can be attributed to even a few mountain bikes carried on a rack. All these occasions call for additional luggage space, which is greater than a typical boot space. The adoption of car racks is anticipated to rise, along with the introduction of new MUV models that fill the gap between regular cars and SUVs. Additionally, it is expected that the introduction of new car racks made from materials with a high strength-to-weight ratio (like carbon fiber) will have a significant positive impact on the market under study in the future.

Regional Analysis

The global car rack market is segmented by region: North America, Europe, Asia-Pacific, and the Rest of the World.

North America Dominates the Global Market

North America car rack market is expected to grow at a CAGR of 5.58% during the years 2023 to 2031. The percentage of leisure travel in the nation was estimated at 86.13% of all tourism in 2020, demonstrating the enormous potential for high-quality roof racks to be installed on vehicles. The market is also anticipated to be driven by the growing trend of either directly purchasing motorhomes or converting camper vans into motorhomes by adding extra luggage racks to the roof. For example, In 2020, there were 40,800 motorhome units shipped wholesale into the United States. The use of roof racks is anticipated to increase during the forecast period due to renowned roof rack manufacturers like Yakima, Allen Group, and Saris Group, among a few other businesses, in the nation. Given the information above, a healthy growth rate is anticipated for the car rack market in the United States during the forecast period.

Europe is expected to grow at a growth rate of 5.19% by 2031. The country's primary business needs for private passenger vehicles and commercial fleets are met by lockable aluminum roof bars, which several car rack manufacturers produce, including Signo AS and Atera crossbars. At the beginning of 2019, campervans became exponentially more popular nationwide. The enormous potential for the roof racks market in the country is demonstrated by the number of new motorhomes registered by the government increased exponentially from 4,947 units in February 2020 to 10,943 units in July 2020. The market for car racks in Germany is anticipated to grow at a healthy rate during the forecast period due to the factors above.

In China, winter sports activities have also seen active participation. In 2019, there were 770 ski resorts in China, and since 2022, there has been a steady rise in the number of people participating in skiing activities all over the country. With so many ski resorts across the nation, car rack systems must be installed over the vehicles. The National Bureau of Statistics of China estimates that the retail sales of sports goods and equipment in China will generate USD 3.79 billion in revenue in 2019 and USD 3.58 billion in 2020. This shows that consumers are willing to spend money, which creates opportunities for the car rack market. A high potential for the growth of the car rack market during the recreational tours taken by the country's population is indicated by the Chinese consumer spending on recreation and culture in 2020, which was estimated to be worth USD 243 billion. The market for car racks in China is anticipated to grow at a healthy rate during the forecast period due to the factors above.

The Brazilian tourism industry's package vacation and vacation rental markets were valued at USD 2 billion in 2020 and quickly increased to USD 2.6 billion in 2021, showing a rapid expansion of the nation's tourism-related businesses. The number of users in the tourism above industry segments was estimated to be 32.2 million in 2021, demonstrating the high demand for tourism vehicles throughout the nation. Additionally, Brazil reported that 92.9% of all trips taken in 2020 were for leisure, and it is anticipated that this percentage will continue to rise for the forecast period, highlighting the market for car racks in the nation. Additionally, the total number of businesses in the recreation sector was estimated to be 74,000 companies in 2019, indicating the high demand for the car rack market in the nation. This is due to the country's increased water sports and recreation popularity.

Segmental Analysis

The global car rack market is segmented by application type.

Based on application type, the global car rack market is bifurcated into roof rack, roof box, bike car rack, ski rack, and watersport carrier.

The roof rack segment is the highest contributor to the market and is expected to grow at a CAGR of 5.85% during the forecast period. The demand for roof racks has been rising recently and is anticipated to continue to rise with the use of campers and off-road vehicles. According to estimates, 29.6 million SUVs were sold globally in 2020, showing the high potential for off-road applications and the widespread use of roof racks for long-distance travel. Additionally, it is estimated that 200 million SUVs were in use globally in 2019, highlighting the high potential for these vehicles to be used for travel and, consequently, for installing roof racks. During the anticipated period, it is also anticipated that the growing number of electric SUV models being introduced will positively affect the segment's growth.

A significant factor in the potential market growth for bike-car racks has been the increased global propensity for mountain biking and hiking. Mountain biking ranked behind only biking and backpacking as the second-most popular biking-related activity in North America in 2020, demonstrating the demand for high-quality bike car rack systems to be used for this outdoor recreational activity across the continent. Considering the points above, a healthy growth rate is anticipated for the bike rack market's car rack during the forecast period.

Recent Developments

• October 2022- Yakima Products Inc. announced a tie-up with Meyer Distributing, a major distributor of specialty automotive products to retailers, to distribute Yakima's products through Meyer Distributing's network to automotive retailers.
• January 2022- CRUZ served as the new sponsor for the following running of the GARMIN Andalucia Bike Race.