Garage Equipment Market is Slated to Grow Substantially at 5.3% CAGR During Forecast Period
Garage equipmentis the collection of products and devices that are designed to provide high performance and service quality, which includes emission testing, vehicle lifting, wheel and tire maintenance, and vehicle diagnosis and testing. The extensively used garage equipment includes hydraulic jacks, tire changer machine, wheel balancer, wheel alignment, and service station equipment. The demand for garage equipment is increasing on account of surging sales of used and pre-owned vehicles, growing automobile industry, burgeoning technology and innovation in the automotive sector, and rising number of road accidents.
The demand for pre-owned vehiclesis increasing at a significant rate in developing countries, such as India, China, and South Korea, due to relatively lower spending power. Apart from this, the demand for pre-owned vehicles is considerably high in developed countries, such as the U.S. As per the data provided by Statista, in 2019, the sale of pre-owned light vehicles in U.S. was around 40.8 million units. In contrast, the sale of the new light vehicle was around 17 million in the same year.
Rising car and petrol prices have compelled the consumers to incline towards the purchase of pre-owned vehicles. The pre-owned vehicles are susceptible to heavy wear and tear and require frequent maintenance, which is further providing an impetus to the market growth. Apart from this, debouching trends of the bike and car modification and rising consumer spending power fosters market growth.Today, various platforms, such as Torque Stats Modified, are built for car enthusiasts to focus on car modifications. However, high cost associated with maintenance and car modifications hampers the market growth to some extent.
The garage equipment market is segmented into OEM authorized garage, independent garage, and franchise garage. The independent garage segment dominates the market growth as they offer premium services at competitive prices. The high maintenance cost in the OEM authorized garages have dragooned the consumers to shift towards independent garages. In addition, these garages offer original and genuine aftermarket products to attract luxury car owners. The availability of genuine and authorized products and lower labor costs have made independent garages a preferred option for the car owners for preventive maintenance, such as oil-checkups, routine, and repairs.
The garage equipment market is segmented into motor cycle, passenger vehicle, and commercial vehicle. Among the vehicle type passenger vehicle holds majority of the market share. This is due to their global volume. Passenger cars are the largest category of motor vehicle production, most of the vehicle running on the road globally are passenger vehicle. According to the data provided by Statista, the global sales of passenger cars in 2017 was 79.6 million units.
North America dominates the garage equipment market as the region is backed by the presence of robust automotive industry. The players are consistently focusing on technology, innovation, and the development of fuel-efficient and high-performance vehicles. The increasing sales of pre-owned vehicles and surging demand for vintage cars and bikes in the U.S. accelerate the regional market growth.Also,the high disposable income has significantly surged the demand for luxury cars that require frequent maintenance, further driving the regional market growth.
Asia Pacific is expected to be the fast growing market for garage equipments. This is due to the several tailwind factors such as increasing disposable income in the region, changing lifestyle, shift towards urbanization, among others. The countries such as India, China, Japan, and South Korea are the major contributor for the regional market growth. For instance, In India around 3.4 million units of passenger cars sold in the year 2019 up from 3.29 million units in 2018. In India around 3.4 million units of passenger cars sold in the year 2019, the sales of passenger cars in 2018 was 3.29 million units. The increasing consumption of passenger cars is expected to propel the garage equipment market growth.
Moreover, China is the largest automobile market in the world both in terms of production and sales, according to Statista, China is expected to have a sales of 14.5 million units autonomous vehicle sales by 2040. The increasing consumption of passenger cars is expected to propel the garage equipment market growth.
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