The automotive roof racks market share is projected to grow at a 5.9% CAGR to reach 2215.4 million by 2030.
The Global Automotive Roof Racks Market size is projected to be worth USD 2215.4 million by 2030, registering a CAGR of 5.9% during the forecast period (2022–2030).
Automotive Roof Racks Market Overview
Automotive roof racks are attached to the roof of the vehicles to carry heavy luggage. They allow users to transport luggage without compromising on the boot space in the vehicle. The configuration of the roof rack can be changed depending on the needs for carrying the luggage. There are various types of roof racks available in the market, depending on the needs of the consumers.
COVID-19 Impact on the Global Automotive Roof Racks Market:
With the continuous spread of the novel coronavirus across the world, automakers are taking extreme measures in the form of plant closures to halt the spread of COVID-19. The impact of COVID-19 on the global economy is changing every day. It is proving to be a big challenge for various industries resulting in job losses. The pandemic has caused recreational activities and sporting events to either be postponed or widely canceled due to a worldwide lockdown.
The restrictions on movement and promoting social distancing to slow the spread of the disease mean that transport, travel, and labor supply are today directly affected in ways they were not during the financial crisis in 2008-09. Whole sectors of national economies have been shut down, including restaurants, hotels, tourism, non-essential retail trade, and significant shares of manufacturing. The COVID-19 coronavirus situation is evolving rapidly, creating considerable challenges to the health system, and causing disruptions to supply chain operations.
Automotive Roof Racks Market Dynamics
The number of enthusiasts or individuals for traveling longer journeys through their vehicles has increased significantly in the past years across the globe. The high amount of luggage carried by such people requires high space, which is restricted by the limited availability of boot capacity in conventional vehicles. The availability of roof rails over the vehicles supports to carry additional cargos. This factor will significantly drive the automotive roof racks market demand over the study timeframe.
Some individuals tend to install or replace old accessories, including roof racks of the vehicles, to increase their luggage carrying capacity. Aftermarket players supplying auto components such as roof racks provide customers with high-quality parts ensuring high reliability and durability that will stimulate the product demand in the automotive market. The demand for roof racks in the world is currently limited, which is restraining the growth of the market. However, consumer awareness is continuously increasing towards the available space for luggage and other stuff in the vehicle. Therefore, the impact of the limited availability of boot space in the vehicles on the demand for automotive roof racks market is expected to shift from moderate to high during the forecast period.
The raw materials of automotive roof rack products are aluminum alloys, iron, carbon fiber, and other materials. The prices of such raw materials are fluctuating with shifting demand-supply gap along with the depleting resources and the high requirement from the end-use industries. Moreover, the continuously changing trade policies create market uncertainties and disrupt the supply chain, further driving price fluctuations. For instance, in March 2020, according to the World Bank, the prices of metals, including iron and aluminum, increased over 5% owing to strengthening demands, trade frictions, and tightening supplies across the globe. However, metal prices sharply declined in 2019. Such fluctuation in the raw material prices will restrain the growth of the automotive roof racks market. Key automotive roof rack manufacturing companies strategize to low down the raw material prices and invest in improving tire aftermarket services. Hence, the impact of the fluctuating raw material prices on the global automotive roof racks market is expected to shift from moderate to low during the forecast period.
There has been a significant demand for crude oil over the past decade owing to the increasing requirement of fossil fuels from conventional engines in vehicles and industrial purposes. However, the price rise of crude oil is a major factor that has increased the demand for electric vehicles across the globe. Electric vehicles provide long-term savings in terms of vehicle operation and fuel costs. The rising awareness concerning the impact of gasoline vehicles on the ecosystem has positively influenced the use of electric cars globally. The rock racks installed on the electric vehicles will, in turn, accentuate the automotive roof racks market size over the projected timeframe.
Moreover, government initiatives, including subsidies, grants, and support for improving charging infrastructure, also helps to promote the adoption of electric vehicles. For instance, in the US, the government authorities provide from USD 2,500 to USD 7,500 of a tax credit on electric vehicles depending upon the gross vehicle weight rating and battery capacity. Moreover, several states in the US also assure additional state tax credits providing direct financial incentives to the individuals purchasing electric vehicles. These factors influencing electric vehicles will, in turn, escalate the automotive roof rack demand as the product also finds high application in electric vehicles.
Automotive Roof Racks Market Supply Chain Analysis
It is the initial stage where suppliers provide raw materials such as aluminum, composite plastic, iron, and fiber required for the production process to the manufacturers. Some companies have their supply chain and directly manage all or most of the facilities that provide the raw materials. This process of the supply chain is managed by multiple departments and divisions of the companies. Industry players initiate the manufacturing process with specified or required designs and further assemble the automotive roof racks using raw materials and components. The manufacturers follow different steps to produce roof racks that include extrusion, forming, drilling, painting, and assembling. Some of the industry players often manufacture the components and parts for direct use in the installation of automotive roof racks in the vehicles.
The products are manufactured as per the automotive industry standard and distributed through multiple dealership network to the customers across the globe. Dealers enter into a long-term contract for the supply of roof racks to the OEMs. The products manufactured out of the company’s standard product line are marketed and sent across the distribution channels for final sale. The roof racks are made available to the consumers through an extensive supply chain network in several regions across the globe. The final products are delivered through a defined channel for various vehicle types, such as passenger cars and commercial vehicles. End users are mainly from the automotive industry, including OEMs that require roof racks for the assembly of different vehicles.
Automotive Roof Racks Market Segmentation
Based on type:
Roof mount, raise grill, gutter and others are the segments based on the application of the Global Automotive Roof Racks Market. The roof mount segment is expected to have the highest CAGR and dominate the market share during the forecast period. Roof mount roof rack is installed by the automotive manufacturers or aftermarket players on the roof of the vehicles with the support of clamps that are attached to the vehicle doors. It does not require any kind of bars or gutter for fixing the rack. They are generally used in tourist vehicles for carrying heavy luggage as well as bulky equipment including sporting goods, camping gear, among others for long-distance transport.
Based on material:
Aluminum alloy, composite plastic and others are the segments based on the material of the Global Automotive Roof Racks Market. The aluminum alloy segment is expected to have the highest CAGR and dominate the market share during the forecast period. An aluminum alloy consists of metals such as iron, silicon, copper, magnesium, and zinc. These elements are added to pure aluminum in a molten state to form an alloy with the required strength and physical properties. Aluminum alloy finds its application in roof rack owing to its lightweight and ability to withstand high loading bearing capacity.
Based on vehicle type:
Commercial vehicles and passenger cars are the segments based on the vehicle type of the Global Automotive Roof Racks Market. Passenger cars segment is expected to have the highest CAGR and dominate the market share during the forecast period. Passenger cars accounted for the steady share for the global automotive roof racks market. The market for the automotive roof rack is primarily driven by the rising demand for passenger cars among large pools of population along with increasing per capita income in emerging countries.
Automotive Roof Racks Market Regional Analysis
The regions are classified as North America, Europe, Asia-Pacific, Rest of the World. North America holds a significant share of the market. North America is anticipated to be the largest market for automotive roof racks during the study period due to increased demand for larger boot space and the rise in tourism and off-road trails. However, the US is one of the largest automotive markets in the world. Many European, Japanese, and Korean auto-manufacturers have invested heavily into the region to build manufacturing sites and R&D facilities and expand their market reach. North America’s automotive industry is one of the top producers of light-duty vehicles with the presence of leading auto-manufacturers such as FCA, Ford, GM, Honda, and Toyota. The automotive roof rack manufacturers such as Thule, Yakima, Whispbar, Sportrack, Inno, Hollywood, Swagman, Kuat, Arvika, Rockymounts, Trac Rac, Pro Rac, Skinz Protective Gear, Saris, among others are present in this region. This rising adoption of light trucks from the region is expected to increase the demand for automotive roof racks market during the forecast period.
Asia-Pacific is home to more than 60% of the global human population. Additionally, countries such as China and India are highly populated and contribute to the regional economy. The rapid economic developments in the continent are increasing the demand for effective mobility solutions that, in turn, boost the growth of the automotive industry sector producing automotive vehicles and aftermarket parts. Additionally, the countries such as China and India are ranked top in the production of steel globally, driving the automobile manufacturing practices. The Chinese automotive industry is one of the major markets for regional and global players. These players offer a wide range of passenger as well as commercial vehicles. Factors contributing to the market growth comprise of postponement of implementing the China Six Emission Standard, support through fiscal & taxation benefits, elimination of outdated diesel-engine truck, suspension of retaliatory tariffs to support US automobiles at the end of 2019, low labor cost, business-friendly policies, and availability of steel are boosting the automotive market growth.
Automotive Roof Racks Market Competitive Landscape
The global automotive roof racks market is characterized by the presence of many local, regional, and global vendors. The market is highly competitive, with all the players continually competing to gain a larger market share. High competition, rapid advances in technology, frequent changes in government policies, and stringent environmental regulations are some of the critical factors that could restrain the market growth. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. Vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
List of Key Companies covered in the report:
Automotive Roof Racks Market Report Overview:
The Global Automotive Roof Racks Market is segmented based on type, material and vehicle type in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porter’s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views, and predict the emerging and fast-growing segments, regions, and countries with potential for development in the Global Automotive Roof Racks Market.
By Vehicle Type:
Objectives of the Study
|Market Size||2030: USD 2215.4 Million|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Material and Vehicle Type|
|Geographies Covered||North America, Europe, Asia-Pacific, Rest of the World|
|Key Vendors||Thule Group (US), Atera GmbH (Germany), Rhino Rack (Australia), Magna International Inc. (Canada), Cruzber SA (Spain), Yakima, Inc. (US), JAC Products (US), NEUMANN, SPOL. S R.O. (Czech Republic), Perrycraft (US), ROLA (Australia), Mont Blanc Group AB (Sweden)|
|Key Market Opportunities||Proliferating electric vehicle demand|
|Key Market Drivers||Increasing tourism and off-road trails Limited availability of boot space in the vehicles|
The Global Automotive Roof Racks Market would register a growth of ~5.9% during the forecast period.
Fluctuating raw material prices is a key restraining factor for the Global Automotive Roof Racks Market
North America would enjoy the upper hand in the Global Automotive Roof Racks Market