July 19, 2024
Car Rack Market

The growing interest in outdoor leisure activities is anticipated to open up the new avenue for Car Rack Market

The Car Rack Market is estimated to be valued at US$ 1335.34 Mn or Mn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Car racks are storage and carrying devices that are attached to the roof or rear of vehicles. They are used for carrying luggage, bicycles, kayaks, and other equipment associated with outdoor and leisure activities. The main types of car racks available in the market are roof racks, hitch racks, trunk racks, and others. Roof racks are mounted on the roof of the vehicle and are suitable for transporting bulky items.

Market Dynamics:
The increasing popularity of outdoor recreational activities such as cycling, camping, skiing, and other adventure sports is a major driver for the car rack market. Car racks provide a convenient way to transport equipment needed for these activities such as bicycles, kayaks, skis, luggage boxes etc. According to the Outdoor Industry Association, outdoor recreation contributed $887 billion to the U.S. economy in 2021. Another driver for the market is the growth in tourism industry. Car racks help tourists easily carry their luggage and travel essentials during road trips. However, availability of alternative transport options such as bike trailers, roof box carriers etc. can hamper the demand for car racks to some extent over the forecast period.

The rising popularity of outdoor activities and growth in tourism industry will continue to drive the car rack market. Product innovations such as foldable, detachable and lightweight car racks also provide growth opportunities. However, factors such as high costs and substitutes may restrain market growth.
Segment Analysis
The car rack market is dominated by the roof racks segment. Roof racks held the largest market share of over 40% in 2022, as they provide versatility and cargo-carrying capacity. Being universal carriers that can be mounted on rooftops of nearly all vehicles, roof racks are highly popular among consumers for transporting bulk and bulky luggage and equipment over long distances.

PEST Analysis
Political: Regulations regarding vehicle emission standards and fuel efficiency are likely to influence research and development for lighter car racks made of sustainable materials.
Economic: Rising income levels and discretionary spending are fueling demand for recreational vehicles and outdoor equipment, benefiting sales of roof racks and bike racks.
Technological: Adoption of innovative lightweight materials such as composites and aluminum alloys is helping manufacturers develop racks with better load-bearing capacities yet low weight.

Key Takeaways
The global Car Rack Market Size Growth is expected to witness high growth, exhibiting CAGR of 4.9% over the forecast period, due to increasing consumer demand for luggage carriers and vehicle accessories. The market size for 2023 is estimated to reach US$ 1335.34 Mn.

Regional analysis shows that North America currently holds the largest share of over 30% in the global car rack market, led by high vehicle ownership and demand for recreational vehicles in the US and Canada. Asia Pacific, driven by China and India, is predicted to become the fastest growing regional market at a CAGR of around 6% during 2023-2030.

Key players operating in the 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. These companies are focusing on innovation and collaboration to strengthen their market presence. For instance, Thule Group acquired sport roof bag brand Decked in 2021 to expand its product portfolio.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it