Roof Rack & Hitch Rack System Market Size, Forecast [2031]

Report Description

Roof Rack & Hitch Rack System Market Outlook

The Global Roof Rack & Hitch Rack System Market was valued at USD 1745.1 million in 2022 and is projected to reach USD 3076.2 million by 2031, expanding at a CAGR of 6.4% during the forecast period.

A roof rack system is a frame that is attached to the roof of a vehicle for holding luggage, bicycles, skis, and other products. A roof rack is a base needed to mount equipment and other carriers on the roof of the car. These systems are available in ready-to-install vehicles and are easy to mount on all types of vehicles. The roof rack system consists of a base and crossbars to safely store different types of gear.

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Many vehicles are factory-fitted with raised side rails on the roof that can be adjusted as per the user’s needs. Roof rack crossbars mount vertically to side rails or feet and add accessory mounts for a variety of gear.

Hitch rack system is an alternative system to roof racks, which is used to transport bicycles or other bulky items on the back of a vehicle. It consists of a metal frame that attaches to the hitch receiver of a vehicle. The rack extends outward from the vehicle to provide a platform or cradles to hold bicycles securely during transportation.

Roof Rack & Hitch Rack System Market Dynamics

Market Driver- Growing Tourism Industry

Rise in outdoor sports activities and increasing tourism industry are fueling the market. The number of people that take long road trips in cars has increased significantly in recent years, globally.

The considerable amount of space required by a huge amount of luggage is limited by the small amount of boot space that is available in conventional automobiles. Hence, many people install roof racks or hitch racks on vehicles for expanding the luggage carrying capacity.

Roof racks or hitch racks help people to carry additional cargo. Hence, the rise in tourism activity is driving the demand for roof rack and hitch rack systems.  Developments and investments in the tourism industry are expected to drive the demand for automobiles.

This is resulting in high demand for roof rack and hitch rack systems. According to the Travel and Tourism Development Index (TTDI) in 2021, the US, Spain, and Japan have the highest index. Apart from the US, the top 10 ranking countries are developing economies in Europe and Asia Pacific.

Market Driver- Rise in Disposable Income

Growing disposable income among consumers is resulting in an increase in the standard of living of people as well as spending power for social needs other than fundamental needs. According to the Organization for Economic Co-operation and Development (OECD), GDP per capita increased by 5.1% annually in the OECD region in 2021 as compared to the previous year, exceeding real household income per capita by 1.7%.

Household income per capita increased in Italy, France, the UK, China, and the US in 2021. Disposable income in the US increased from USD 14,410.4 billion in 2018 to USD 16,115.7 billion in 2021. Moreover, in 2021, the change in per capita disposable income in China is registered at 7.1% as compared to the previous year. According to The World Bank, the expenditure on tourism increased from USD 1,004.99 billion in 2010 to USD 1,449.15 billion in 2017.

The growth of the travel industry and other related industries is aided by rising tourism expenditures across the globe and increased government focus on the industry in different countries. Consumers are expected to spend more on leisure activities as their disposable income rises, which boosts the demand for the usage of roof racks and hitch racks in an automobile for carrying items such as skis, canoes, luggage, kayaks, bicycles, and others.

Market Restraint- High Cost

Growth of the global roof rack and hitch rack system market is hampered, owing to the high price of the products. Roof racks and hitch racks are commonly used for carrying a variety of objects on the roofs of vehicles, including kayaks, bicycles, skis, and cargo containers.

High price of buying and installing roof rack and hitch rack systems is a substantial barrier for many potential buyers, although they provide high utility and convenience. Prices of roof rack and hitch rack systems range from around USD 100 to over USD 1,000, based on features, brands, and quality. This price excludes the additional attachments or accessories that are needed for particular items, such as bikes or skis.

Consumers on a limited budget are discouraged from purchasing roof racks and hitch racks, due to their high prices. Many customers, majorly those with restricted disposable income or those who do not usually participate in outdoor activities that require hitch racks or roof racks, find it difficult to invest huge amounts of money on an attachment that is used rarely. Furthermore, the cost of installation increases the total expense.

Some roof racks need to be professionally installed, which adds labor charges to expenses, which increases the cost for consumers. High prices enable potential consumers to compromise on the quality of the product or choose different options such as roof-mounted cargo bags and strap-on roof racks. Hence, high cost of the roof rack and hitch rack system is hampering the market growth.

Market Opportunity- Rise in Adoption of E-bikes

Growing adoption of e-bikes is expected to drive the demand for roof rack and hitch rack systems across the globe. The electric bicycle, sometimes known as an e-bike, is a low-emission mode of transportation that offers advantages in terms of time, money, safety, congestion, air and noise pollution, and energy security. E-bikes are more effective over short distances as compared to other modes of transportation, which is expected to drive the market.

E-bike users save money and generate a small environmental impact. Conversely, a large number of pollutants is produced during the manufacture of e-bike parts, such as rechargeable cells and drives. E-bikes are used instead of cars for accomplishing various tasks in daily life, for instance, shopping on a cargo cycle.

According to the Federal Environment Agency, a car produces around 240 g of carbon dioxide (CO2) per passenger mile (pkm), while public transport generates between 80 and 176 g of CO2 per passenger mile. Bicycles and electric bicycles emit uch fewer greenhouse gases as compared to other modes of transportation. Therefore, governments throughout the world are creating various incentives and rebate programs to help reach carbon emission objectives and encourage people to choose cycling.

E-bike sales are being boosted by initiatives from countries such as the Netherlands, Germany, Belgium, Brussels, the UK, France, Paris, Denmark, and others. For instance, according to the Trade Remedies Authority (TRA) sales of e-bikes in the UK increased from USD 164.47 million in 2017 to USD 339.90 million in 2022. Sales of e-bikes in Germany increased from 0.98 million units in 2018 to 2.2 million units in 2022.

Scope of Roof Rack & Hitch Rack System Market Report

The report on the global roof rack & hitch rack system market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Roof Rack & Hitch Rack System Market Segmental Outlook

The Global Roof Rack & Hitch Rack System Market is segmented on the basis of type, material, application, end-use, distribution channel, and region.

In terms of type, the roof rack and hitch rack market is divided into roof rack system and hitch rack system. The roof rack system has the largest share in 2022 owing to its high weight-carrying capacity and it does not affect the vehicle efficiency as much.

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Based on material, the roof rack and hitch rack system market is segmented into aluminum, steel, hard plastic, composite, and others. The aluminum segment holds a major market share during the forecast period. Aluminum is a widely used material in automotive manufacturing, owing to the high strength-to-weight ratio that makes it robust and lightweight.

Based on application, the roof rack and hitch rack system market is segmented into bikes/bicycles, water sports, cargo transportation, and others. The cargo transportation segment held a substantial share of the market in 2022 during the forecast period. The roof rack and hitch rack systems are used for cargo transportation, as they provide streamlined and secured options for hauling various camping gear and other cargo on top of the automobile.

Based on end-use, the roof rack and hitch rack system market is segmented into passenger cars and commercial vehicles. The passenger cars segment held a major share of the market in 2022 during the forecast period owing to the increasing trend among consumers for tourism activities and adventure sports.

Based on the distribution channel, the roof rack and hitch rack system market is segmented into OEM, aftermarket, online stores, and retail stores. The aftermarket segment held a substantial share of the market in 2022 during the forecast period due to the rising sale of automotive accessories through this channel. Aftermarket offers a wide range of options and accessories to enhance the functionality and customization of roof racks.

Regional Outlook

Based on regions, the roof rack and hitch rack system market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in North America market is growing in the region, owing to the increase in leisure travel. According to the Tourism Economics and U.S.

Travel Association, domestic travel increased from USD 0.72 Trillion to USD 1.05 Trillion from 2020 to 2022 in the U.S. It is expected to increase to USD 1.26 Trillion in 2026. Roof rack systems are widely used in travel vehicles for keeping luggage and bags. Hence, the increasing spending and growing trend for traveling is expected to fuel the demand for roof rack and hitch rack systems market during the forecast period.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Roof Rack & Hitch Rack System Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on the Global Roof Rack & Hitch Rack System Market