According to a report by Grand View Research, Inc., global truck racks market is anticipated to value USD 1.09 billion by 2025. Growing requirement for trucks to transport industrial and sports related equipment from one place to another is anticipated to propel demand for truck racks.
Rising sales of pickup trucks globally is anticipate to influence demand for truck racks in the forthcoming years. In addition, growing adoption of truck rack as accessory to transport various products from one place to another can also fuel growth of market during the forecast period (2014 to 2025).
The truck racks market can be segregated on the basis of product, application, and region. Based on product, the market can be bifurcated into aluminum and steel. Steel based truck racks are likely to gain traction among consumers owing to high stress resistance and prolonged usage lifetimes. In addition, increasing use of steel racks to carry heavy loads can augment growth of market during the forecast period. The segment is likely to account for market share equivalent to USD 300.4 million by 2025 attributed to increasing use of steel based racks in low cost pickup trucks.
Similarly, demand for aluminum based truck racks is likely to increase during the forecast period. Properties such as superior resistance and light weight are expected to increase efficiency in carrying out recreational and residential applications. In addition, growing adoption of recycling of aluminum and reducing prices of aluminum based truck racks are likely to fuel product demand in the forthcoming years. Moreover, rising product demand attributed to rapidly increasing product installation rate in medium and high-end pickup trucks can augment market growth during the forecast period.
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Based on application, the market can be divided into aftermarket and OEM. In 2016, aftermarket dominated the market and accounted for 69.3% market share. Products supplied in aftermarket are likely to be sold at lower prices attributed to discounts offered by manufacturers to consumers. This, in turn, is likely to increase market share for this segment.
On the contrary, OEM segment is expected to account for less market share as product manufacturers distribute directly through channels created by them. In addition, OEMs are predicted to supply standardized products that are not likely to suit their vehicles. This, in turn, can reduce level of customization in products.
Regional segmentation includes North America, Asia Pacific, Europe, Central & South America, and Middle East & Africa. North American region is expected to witness high demand for truck racks during the forecast period. High prevalence of pickup truck manufacturers such as Toyota, General Motors, Ford, and Nissan is likely to boost sales of these vehicles in the region. To cater to rising demand for truck racks, these manufacturers are expected to increase their production capacities by 5% annually. This, in turn, can surge sales of truck racks in this region. In addition, rising demand for headache and standard racks among consumers to reinforce operational capabilities can further influence growth of market.
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In Asia Pacific, the market is estimated to grow well during the forecast period. Mainly, Australia is expected to create lucrative opportunities for market owing to rising sales of pickup trucks. The economy is likely to grow at remarkable CAGR of 6.2% in terms of revenue during the forecast period.
In Europe, the market can witness significant growth by 2025 attributed to high demand for truck racks. Growing adoption of midsized pickup trucks owing to frequent launch of new models by major manufacturers such as Fiat, Ford, Mercedes, and Nissan can also spur growth of market in this region.
Some of the leading companies offering truck racks are Vanguard Manufacturing, Inc.; Cross Tread Industries, Inc.; Thule Group; Hauler Racks, Inc.; and Kargo Master Inc. The market is not likely to witness forward integration between raw material suppliers and product manufacturers as former is not likely to draw any lucrative opportunities from the business. Even back integration cannot exist in this market as rack manufacturers are expected to manage huge expenditure to set up aluminum or steel manufacturing plant. This, in turn, can make venture unprofitable.
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