Garage Equipment Market

Market Overview

The global garage equipment market size was valued at USD 7.4 billion in 2023 and is expected to reach a value of USD 11.9 billion by 2032 end, with a CAGR of 5.3% during the forecast period, 2019–2026. Garage equipment encompasses many tools, machines, and systems utilized in vehicle repair shops, service centers, and garages. These tools are essential for automobile maintenance, repairs, and servicing. The garage equipment market includes a variety of goods intended to improve the efficiency and functionality of vehicle repair and maintenance operations.

The increased production and sales of vehicles are significantly driving the Garage Equipment market share. Furthermore, rising safety concerns among car buyers are boosting the garage equipment market. Again, increased used vehicle sales are driving the garage equipment industry. Different rules for annual car inspections are expanding the garage equipment industry. However, enhancing the quality and cutting the cost of original equipment parts reduces repair operations, affecting the garage equipment industry. Furthermore, modern technologies in the automotive aftermarket are driving the Garage Equipment market growth.

Market Dynamics

Global Garage Equipment Market Drivers:

Automotive Industry Growth

The rise of the global automotive sector directly impacts the need for garage equipment. As the number of vehicles on the road grows, so does the demand for maintenance, repairs, and servicing, which fuels the market for modern tools and equipment used in automotive workshops and service facilities. The rise of electric cars (EVs) in the automobile business affects demand for specific garage equipment. In 2023, global electric vehicle (EV) sales climbed by 31% to 13.6 million units. Fully electric vehicles (BEVs) accounted for 9.5 million of total sales, with PHEVs making up the remainder. According to data from the International Organization of Motor Vehicle Manufacturers (OICA), worldwide motor vehicle manufacturing has steadily increased. According to OICA, global motor vehicle production in 2022 was over 85 million units, up 6% from the previous year. An increase in car manufacturing corresponds directly to increased demand for garage equipment.

Moreover, The automotive sector is expanding most rapidly in emerging markets. Asian countries such as China and India have seen tremendous development in automobile manufacturing and sales, driving up demand for garage equipment. China is the world's largest automaker, selling 30.09 million cars in 2023. This includes overseas shipments, which increased by 58% to 4.91 million units. Automotive manufacturers' capital investments in expanding manufacturing facilities or releasing new car models reflect the industry's growth trajectory. Such expenditures highlight the need for improved garage capacities to service the growing fleet of automobiles. Thus, the rise of the automotive industry remains a fundamental driver for the garage equipment market trend.

Global Garage Equipment Market Restraints:

High Initial Cost

One of the significant barriers to entry in the garage equipment sector is the high initial cost of purchasing specialized tools and machines. Garage owners, particularly those running smaller enterprises or on a tight budget, may need help to invest in new equipment due to the high initial costs. Garage equipment typically costs between USD 15,000 and USD 25,000. Lifts cost around USD 4,000 each for purchase and installation, while tire changers might range from USD 688 to USD 888 for two parts. Advanced diagnostic equipment for vehicle repair can cost anywhere from a few thousand to tens of thousands of dollars, depending on the tool's sophistication. For example, a complete diagnostic scanner that scans numerous car systems and provides real-time data could cost USD 10,000 or more.

Surveys of garage owners and operators frequently emphasize worries about the high upfront expenses of obtaining new equipment. According to a critical automobile industry association survey, many respondents said cost was the most vital factor affecting their decisions about equipment purchases and upgrades. Small and medium-sized car repair businesses, which account for a considerable share of the industry, may suffer stricter financial limits than more giant enterprises. Limited access to capital and financing choices might compound the problems associated with high initial equipment prices.

Global Garage Equipment Market Opportunity:

E-Commerce Platform for Equipment Sale

The growth of e-commerce platforms presents an excellent opportunity for garage equipment manufacturers and suppliers to reach a larger audience while simplifying the purchasing process for garage owners. Manufacturers may increase visibility, make transactions more accessible, and exhibit their products by building a solid online presence. According to a McKinsey & Company analysis, the automobile aftermarket is shifting significantly toward digital channels, with e-commerce playing a pivotal role. According to the survey, aftermarket businesses can increase their market share by using digital techniques such as e-commerce. E-commerce sales are predicted to increase by 10.4% in 2023, with worldwide online retail revenue totaling USD 6.3 trillion by the end of the year. Analysts project that in 2024, it will reach USD 8.1 trillion, highlighting the enormous opportunity for enterprises to sell garage equipment through Internet channels.

E-commerce allows garage equipment producers to expand their market reach globally. Businesses can cater to customers in diverse regions using Internet platforms, reaching markets that would otherwise be difficult to get via traditional distribution channels. As the trend towards digitalization continues, adopting e-commerce options enables garage equipment providers to remain competitive, reach a larger audience, and react to changing consumer tastes in the digital era.

Regional Analysis

The global garage equipment market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the largest global garage equipment market shareholder and is estimated to grow at a CAGR of 5.5% over the forecast period. North America dominates the garage equipment market due to its robust automotive industry. The players constantly focus on technology, innovation, and the creation of fuel-efficient, high-performance vehicles. Increased pre-owned vehicle sales and rising demand for vintage cars and bikes in the United States drive regional market growth. Furthermore, the high disposable income has significantly increased demand for luxury vehicles that require frequent maintenance, propelling the regional market forward. Automakers in the country are increasingly focused on technological advancements and the development of fuel-efficient cars. Introducing IoT-based sensors encourages OEMs to incorporate advanced features into garage equipment, driving market sales.

Additionally, in the United States, residential spaces such as bungalows, villas, and independent houses have built-in garages, increasing demand for garage equipment such as portable lifts and hoists. Driven by the factors above, the US market is expected to grow steadily during the assessment period. Furthermore, while some electric vehicles have an onboard diagnostic system, there is no standard for how they operate, as there is with ICE vehicles. A standardized diagnostic system is part of California's Advanced Clean Cars II Act, which goes into effect in 2026. The new regulations apply to plug-in hybrid vehicles such as the Toyota Prius Prime and hydrogen-electric vehicles such as the prototype BMW iX5 currently operating in California. These new regulations will also apply to all states that have adopted the California standard.

Asia-Pacific is anticipated to exhibit a CAGR of 6.0% over the forecast period. This is due to several tailwind factors, including rising disposable income in the region, changing lifestyles, and a shift toward urbanization. Countries like India, China, Japan, and South Korea contribute to regional market growth. For example, India's passenger vehicle sales hit a record high of 41.08 lakh units in 2023, up 8.3% from 2022. This was fueled by increased demand for sports utility vehicles (SUVs). The rising consumption of passenger cars is expected to drive the garage equipment market forward. Furthermore, China is the world's largest automobile market in production and sales. The market for driverless cars in China was estimated to be worth USD 8.01 billion in 2023. In the first quarter of 2023, 826,000 electric passenger vehicles with Level 2 (L2) assisted driving systems were sold in mainland China, accounting for 62.2% of the market share. The growing demand for passenger cars is expected to drive the garage equipment market.

Furthermore, as the importance of timely preventive maintenance has grown in recent years, most consumers are attempting to keep their vehicles in good condition. These trends are expected to drive growth in the garage equipment market. With rising safety equipment and increasing vehicle design changes, the region's demand for advanced equipment will grow in the coming years. For example, a survey conducted in June 2022 shows that the average monthly maintenance costs of private passenger cars in Japan were approximately 12.7 thousand Japanese yen, up from around 11.7 thousand yen the year before.

Europe holds a significant market. Countries in Europe, particularly the EU-5, are experiencing economic growth during the forecast period, which is expected to fuel demand for garage equipment. Furthermore, the country's stringent carbon emission regulations drive emissions equipment sales in independent and franchised garages. The United Kingdom government has set a target of a 78% reduction in emissions by 2035, compared to 1990 levels, which is driving up sales of automotive garage equipment.

Besides, Increasing sales of luxury vehicles are driving demand for technologically advanced and sensor-based equipment in independent garages and home garages, and this trend is expected to continue throughout the forecast period, bolstering growth in the United Kingdom market.

Segmental Analysis

The global garage equipment market is segmented based on type, application, installation, function, vehicle, and region.

The type is further segmented into OEM Authorized, Independent, and Franchise Garage.

Independent Garage generates the most revenue in the market. Body Shop Equipment is used to repair and restore the exterior of a vehicle, addressing issues including dents, scratches, and crashes. This equipment contains the tools and gear required for dent removal, painting, and panel alignment. Paint booths, frame straighteners, welding equipment, and paint mixing systems are all common instruments used in body shops. Body shop equipment is essential for restoring a vehicle's visual appeal and structural integrity following an accident or external damage. Diagnostic and testing equipment is intended to identify and troubleshoot problems inside a vehicle's systems. This category contains advanced diagnostic scanners, code readers, oscilloscopes, and emission analyzers. These instruments allow personnel to do complete diagnostics on the engine, transmission, electrical systems, and other essential components. Diagnostic and testing equipment is essential in modern vehicle maintenance since it allows for the accurate and efficient detection of faults and quick repair.

The segment can be bifurcated by application into Body Shop Equipment, Diagnostic and Testing Equipment, Emission Equipment, Lifting Equipment, Washing Equipment, and Wheel and Tire Equipment.

Body Shop Equipment holds the major market share. Body Shop Equipment is used to repair and restore the exterior of a vehicle, addressing issues including dents, scratches, and crashes. This equipment contains the tools and gear required for dent removal, painting, and panel alignment. Paint booths, frame straighteners, welding equipment, and paint mixing systems are all common instruments used in body shops. Body shop equipment is essential for restoring a vehicle's visual appeal and structural integrity following an accident or external damage. Diagnostic and testing equipment is intended to identify and troubleshoot problems inside a vehicle's systems. This category contains advanced diagnostic scanners, code readers, oscilloscopes, and emission analyzers. These instruments allow personnel to do complete diagnostics on the engine, transmission, electrical systems, and other essential components. Diagnostic and testing equipment is essential in modern vehicle maintenance since it allows for the accurate and efficient detection of faults and quick repair. 

Based on installation type, the market is fragmented into Mobile and fixed.

Mobile type accounts for the highest revenue share in the market. Mobile installations are garage equipment intended to be portable and readily relocated or transferred. This installation provides flexibility by allowing automobile service providers to perform repairs, maintenance, and diagnostic operations at many sites. Mobile garage equipment consists of tools and machinery mounted on wheels or intended for simple portability, allowing on-site services.  On the other hand, fixed installations are permanently located in a certain area, such as a classic car repair shop or service center. Fixed garage equipment is often larger, more specialized, and connected with the facility's infrastructure. This comprises permanent car lifts, diagnostic stations, and specialized machinery for operations such as painting and welding.

By function type, the market is classified into Electronic and mechanical.

The electronic function is a significant contributor to the market. Electronic garage equipment includes tools and machinery that use electronic components, sensors, and computerized systems to perform various automotive diagnostic, repair, and maintenance tasks. This category includes advanced diagnostic scanners, electronic control unit (ECU) programmers, electronic wheel alignment systems, and other cutting-edge equipment. Mechanical garage equipment includes tools and machinery that work on mechanical principles and physical mechanisms. This category includes traditional and manual equipment for lifting vehicles, changing tires, and performing general mechanical repairs. 

Based on vehicle type, the market is sub-segmented into Motor Cycle, Passenger Vehicles, and Commercial Vehicles.

Passenger Vehicles influenced the market growth. Passenger vehicles account for the vast majority of market share. This is due to their global scale. Equipment for passenger vehicles is a broad category that includes tools and machinery designed for automobiles, SUVs, and other personal use vehicles. This includes various garage equipment, such as vehicle lifts, diagnostic tools for various car models, tire changers, wheel balancers, and general-purpose repair tools. 

Passenger cars are the most common type of motor vehicle produced; they account for most vehicles worldwide. Global passenger vehicle sales are expected to reach 86.8 million in 2023, up from a previous estimate of 86.4 million. Commercial vehicle garage equipment is designed for larger, heavier commercial vehicles like trucks, buses, and vans. This sub-segment includes heavy-duty vehicle lifts, specialized diagnostic tools for commercial vehicle systems, alignment machines for longer wheelbases, and equipment specifically designed for commercial vehicle maintenance.

Recent Developments

• February 2024- Continental expanded its specialty tire manufacturing footprint in Sri Lanka.
• December 2023- ISTOBAL strengthened its global presence by establishing a new European subsidiary.