CAR RACK MARKET ANALYSIS

The global car rack market size was valued at USD 1,213.5 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 4.9% from 2022 to 2030. Increasing demand for car racks and luggage carrying capacity for small and compact SUVs is expected to propel car rack market. Moreover, increasing demand for recreational travel and amusement activities will further boost the car rack market. Furthermore, increasing investment in research and development (R&D) will also drive the car rack market. North America is expected to dominate the car rack market. This is due to the large number of young people in this region and increased demand for vehicles based on tourism.

Global Car Rack Market: Regional Insights

North America among regions is expected to account for major share in the global car rack market during the forecast period, owing to continuous growth of tourism industry in the United States. Moreover, rise in popularity of converting camper vans into motor homes with the addition of roof racks or motorhomes is supporting the market growth in the region. For instance, according to the Coherent Market Insights, in 2020, total 40,800 units of motorhomes were shipped in the U.S. In 2020, the country witnessed 86.13% share of leisure trips in overall tourism, which indicates a strong potential for quality roof tacks. This in turn is driving the market growth in the region.

Moreover, Asia Pacific is also anticipated to witness substantial growth in the global car rack market over the forecast period. This is due to rise in active participation in winter sport activities in China, and expansion of tourism industry in India and other countries across the region. For instance, as per Coherent Market Insights, in 2019, there were total 770 ski sites in China and the number of participants in this activity has increased throughout 2022. Thus, the region is likely to support growth of the global car rack market in the forecast time.

Figure 1. Global Car Rack Market Share (%), By Region, 2021

Global Car Rack Market Drivers:

Rise in popularity of recreational activities and tourism is expected to propel growth of the global car rack market over the forecast period. There is a rapid growth in tourism industry around the world, specifically adventure tourism is increasingly gaining popularity due to growing inclination of young populations towards exploration of new and exotic locations. Moreover, the activities involved in adventure tourism, such as, land, water and air activities like trekking, river rafting and scuba diving and others, require gears that people carry with them on their vehicles. Thus, rise in these activities is likely to boost the demand for car racks, which in turn will drive growth of the market.

Furthermore, low cost of operation and maintenance is also projected to fuel growth of the global car rack market over the forecast period. Automotive roof racks require lesser operational cost and this is due to the material such as composite plastic and aluminum alloy used to make these racks. These materials offer high durability without embedding high operational and maintenance cost. Furthermore, the demand for these products is increasing, owing to these factors, which in turn is anticipated to augment growth of the global car rack market in the future.

Global Car Rack Market Opportunities:

Changing lifestyle among people around the world is creating growth opportunities for players in the global car rack market. Consumers are burdened with work-life balance as the modern world moves towards more challenging lifestyle. Some of the companies now offer regular adventure trips such as trekking, camping cycling etc. to their employees. Plus, the inclinations of people towards weekend trips and family trips requiring luggage and accessories is also increasing all over the world. Thus, this is likely to support the demand for car racks in the future, which will drive growth of the market over the forecast period.

Moreover, increasing number of taxi owners and taxis providing extra space for baggage is expected to provide the global car rack market with various growth opportunities during the forecast period. Most of the travelers that are travelling long-distance carry larger luggage, and to attract these customers, growing number of taxis and taxi owners are offering additional space for luggage. Current car racks are offered as general fitment for SUVs; however, these racks have limited proliferation for other private vehicle segments. This is due to the design limitation and weight profile. Thus, market players are also focusing on offer new solutions, which will support additional space for baggage. This is hence, likely to support the market growth in the near future.

Global Car Rack Market Trends:

Rise in launch of MUV models bridging the gap between SUVs and general cars is a growing trend in the global car rack market. The adoption of car racks in these MUV models continues to grow around the world. Moreover, the rise in launch of novel car racks developed from materials with high strength to weight ratio, materials such as carbon fiber is also expected to support growth of the global car rack market over the forecast period.

Furthermore, rise in technological development in batteries is another trend in the global car rack market, which is likely to support the market growth over the forecast period. The advancing battery technologies will boost the development of high-power motorbikes and e-scooters capable of covering long distancing, which will provide a promising substitute for tow wheelers that are ICE-powered. This in turn will affect the demand for racks for vehicles positively, which in turn will drive the market growth in the near future. In April 2021, Komaki launched a new battery that provides a range of 170-220 km in one charge depending on the mode of usage of a scooter it is being used in. This battery can be charged completely in four-five hours and supports a long range travel of a scooter.

Global Car Rack Market Restraints:

The global car rack market is expected to witness challenges and limitations over the forecast period. The market is likely to be hindered with factors such as issues related to quality and pricing. In automotive industry, manufacturers are dependent on limited supplies for supply of specific component. This is due to rationalized supplier base in the industry, which manages and reduces the cost of services and goods effectively. This further exposes the industry to shortages in component supply, which in turn hampers growth of the market.

Moreover, increasing overall weight of vehicle and reduced fuel efficiency is also projected to restrain growth of the global car rack market over the forecast period. Due to the use of heavy roof carriers, the overall weight of vehicles increases, and use of heavy roof carrier leads to air resistance of the vehicles during driving. These factors cause rise in load on the vehicle engine, which also increases fuel consumption by the engine. Thus, these factors limit the adoption of car racks, which in turn hinders growth of the market. 

Figure 2. Global Car Rack Market Share (%), By Application Type, 2021

Global Car Rack Market Segmentation:

The global car rack market report is segmented into Application Type, and Region.

Based on Application Type, the market is segmented into Roof Rack, Roof Box, Bike Car Rack, Ski Rack, and Watersport Carrier. Out of which, Roof Rack is expected to dominate the global market over the forecast period and this is attributed to the rise in adoption of campers and off-road vehicle users, leading to growing demand for roof racks. For instance, according to Coherent Market Insights, the number of SUVs sold all over the world in 2020 was 29.6 million unit, which shows the potential high-road applications of roof racks in long distance travelling.

Roof Box segment is also expected to witness significant growth in the near future and this is owing to the various benefits offered by roof boxes. These serve as a vital and viable substitute for roof racks that are mounted on various vehicles. These storage solutions are often considered protective and strong utilized for storing important belongings and luggage safely.

Global Car Rack Market: Key Developments

In November 2021, Thule Group opened a second North American brand store in Canada that will provide local customers in the country a first-of-its-kind shopping experience as the company will showcase all the product categories in single space.

In November 2021, Cruzber SA announced the launch of novel magnetic ski rack CRUZ Ski Roof, a universal magnetic ski rack capable of carrying up to tow snowboards or three pairs of skis.

Global Car Rack Market: Key Companies Insights

The global car rack market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global car rack market are Saris, Thule Group, Car Mate Mfg. Co. Ltd., Yakima Products Inc., Kuat Car Racks, Allen Sports, Malone Auto Racks, Rhino Rack USA LLC, ACPS Automotive, and Cruzber SA.

*Definition:

A car rack is made of bars secured on the roof of a vehicle and is used for carrying bulk items such as bicycles, luggage, kayaks, canoes, skis, or different containers and carriers. With these car racks users can carry objects on their vehicle’s roof without altering interior space for occupants.