Truck Racks market size is forecast to reach $1.05 billion by 2025, after growing at a CAGR of 4.6% during the forecast period 2020-2025. The increase in demand for a package of “lighter weight and elongated lifetime product”, which replicates as a versatile accessory to transport different industrial and sports-related equipment constantly on the go. This factor is projected to propel the adoption of truck racks especially, aluminum-based truck racks, worldwide. Modern racks coupled with innovative designs act as an optimal solution that help to carry out all the stuff and bicycle for a holiday destination, contributes to the expansion of global truck racks market size.
- North America holds a major share in the truck racks market owing to the increasing demand for heavy-duty truck racks for pick-up trucks, thereby increased sales of pickup trucks.
- The growing popularity of aluminum truck racks because of its lightweight and improved efficiency in recreational and residential applications and also its superior resistance to rusting is likely to aid in the market growth of truck racks.
- Increasing the adoption of lighter and longevity raw materials will increase the market demand for the truck racks market in the near future.
Raw Material – Segment Analysis
Presently, steel raw material held the largest share in the truck racks market size in 2018. This is because of its high-stress resistance during prolonged lifetimes. Growing usage of steel racks specifically in high load carrying capacity applications is burgeoning the growth of truck racks market.
Application – Segment Analysis
Aftermarket application has been elevating as the primary market for truck racks, as most of the vehicles are not fitted with trucks at factories. Primarily, these truck racks are purchased from local vendors according to their requirements. Since this segment deals with the participants who operate via dedicated distribution channels. In addition to this, manufacturers provide the products supply at lower prices through a range of discounts and price reductions to consumers in order to increase their market share in the aftermarket. Products supplied to the aftermarket are subject to extensive customization to align the product as per the client requirements.
Geography – Segment Analysis
North America truck racks market share dominated the global truck racks market, accounts for more than 41%, followed by APAC and Europe. It is majorly due to the presence of a huge consumer base and their spending abilities. These consumers are increasingly using truck racks to transport canoes, rafts, and bicycles mainly for recreational purposes. Thus, the higher affinity of consumers toward the consumption of U.S.-made products such as accessories which included for pickup trucks is acting as an added benefit to the North American truck racks market. Furthermore, the presence of key pickup truck manufacturers namely Toyota, Ford, General Motors, and Nissan in this region and increment in their production capacities to meet the rising demand of these vehicles has raised the sales of truck racks. The strong consumer demand for standard truck racks to reinforce operational capabilities.
Drivers – Truck Racks Industry Outlook
- The growing number of commercial vehicles in this contemporary world
Now-a-days, several commercial vehicles are equipped with truck racks which are produced using high strength and load-bearing materials such as steel and aluminum. The rapid expansion of SME’s and industrialization in developing countries are encouraging the production of light commercial vehicles with truck racks. The rise in the fixation of truck racks in light trucks, as it enables hauling of the higher volume of luggage on the vehicle. Additionally, increasing the production of light trucks is impacting the growth of the truck racks market. Growing prominence and preference for light truck vehicles to passenger vehicles in case of touring is boosting the truck rack market revenue.
- Accessibility to a wide variety of truck racks is fuelling the truck racks market
Numerous options availability in case of different styles which include rooftop, over-cab, utility, side-mount racks, over-truck bed racks, rain gutter racks, and back racks to carry bulky items such as ladders, pipes, and lumber safely and securely. These affordable truck racks are manufactured with fully adjustable crossbars fit and thus easy to install. Mostly, high-strength aluminum has become the choice of manufacturers as it reduces the weight of the truck rack and also provides improved gas mileage. Therefore, all these factors together driving the adoption of varied durable aluminum truck racks in accordance with the customer’s requirement.
Challenges – Truck Racks Industry
- The higher cost and cheaper quality of raw material are the primary challenges of truck racks market
The limitation intended for many truck racks to park in allotted areas where truck owners could drive and park. Regular usage of low-cost metal in the truck racks production was prone to rust. Moreover, multiple truck racks are restricted to be used at the same time likewise toolboxes. Errors during the truck rack installation while drilling of holes in the vehicle in order to secure it, could be costly. Finally, the costly aluminum raw material affordability by a limited number of manufacturers resulting in hampering the growth of the truck racks market. Minimization of cost to ship varied heavy-duty racks that are engineered for contractors, cities, fleet truck markets, and municipalities stands as a big challenge to meet the consumer demand.
Acquisitions, R&D activities, and new product designs are key strategies adopted by players in the truck racks market. In 2018, the market of truck racks has been consolidated by the top five players accounting for 35% of the share. U.S. Rack Inc., Magnum Manufacturing, Inc., Kargo Master Inc., Texas Truck Racks, Hauler Racks Inc., Vanguard Manufacturing Inc., Cross Tread Industries Inc., The Thule Group, ProTech Industry, and Yakima Product Inc. are the Truck Racks top 10 companies.
- In September 2019, DBA T-Rex Grilles, T-Rex Truck Products, has signed an agreement to acquire U.S. Rack, which is located in California. This acquisition major goal is to manufacture and distribute U.S. Rack products in such a manner that it does not require any sort of cutting or drilling during racks installation.
- In October 2019, Rack-It Truck Racks has expanded its operations at Albany KY location. This location acts as a prime central location and offers more advantages during the distribution of products.