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A47735 | Pages: 278 | Charts: 65 | Tables: 106 |
The global automotive garage equipment market size was valued at $17.3 billion in 2022.,and is projected to reach $35.5 billion by 2032, growing at a CAGR of 7.5% from 2023 to 2032.
Automotive garage equipment are tools and machinery utilized for the repair, maintenance and diagnostics work in a vehicle. This equipment are an essential part for performing routine inspection and maintenance work of vehicle, in order to make them perform efficiently. Automotive garage equipment may include handheld tools, power tools or specialized machinery to carry out dedicated work in a vehicle.
The global automotive garage equipment market growth is anticipated to witness strong growth rate during the review period, due to increasing inclination of customer towards vehicle modification and aesthetic enhancement such as engine tuning, suspension upgradation, exhaust system replacement, allow wheel replacement, custom paint & vinyl job and other enhancement. The growing inclination of automobile owners towards modification and aesthetic enhancement, due to rise in disposable income and increase penetration of custom modification and paints garages, is positively impacting the market for global automobile garage equipment market.
The sales of automotive garage equipment market is increasing globally owing to growing vehicle complexity in modern automobiles, and increase in demand for vehicle restoration, modification & upgradation, and increasing automotive sales globally. However, the volatility in the price of raw materials is anticipated to hinder the market growth during the review period. Furthermore, the development of the connected garage equipment and rise in demand for electric and hybrid vehicles is anticipated to create lucrative growth opportunities for the companies operating in the global market.
The global automotive garage equipment industry share has been segregated into component, garage type and region. Based on component the global market has been fragmented into lifting and hoisting equipment, diagnostic and testing equipment, wheel and tire equipment, hand tools and power tools, washing equipment, and others. By garage type the global automobile garage equipment market has been analyzed across OEM-authorized garages and independent garages. Based on region the global market is segmented into North America, Europe, Asia-Pacific, and LAMEA region.
In addition, the increase in sales of privately owned vehicles on a global level, especially in developing countries in the Latin-America and Asia-Pacific regions is escalated the demand for their regular maintenance and repair, thus creating more demand for automotive garage equipment. Likewise, the increase in government focus on promoting the use of electric and alternative fuel vehicles driving the demand for garage equipment. Furthermore, increase in privately owned garages or home garages in developed countries is anticipated to provide lucrative market growth opportunities during the forecast period.
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The leading companies are adopting strategies such as acquisition, agreement, expansion, partnership, contracts, and product launches to strengthen their market position.
Over the course of the past ten years, worldwide sales of automobiles have increased significantly. The surge can be associated to innovations in technology as well as a surge in disposable income among individuals, particularly in developing nations.
For example according to a recent survey by published by the European Automobile Manufacturer Association the global car sales have increased by around 9% in the first three quarter of 2023.The Europe market witnessed sales growth of 20.4% from January to September in 2023 . Similarly, the Russia and Ukraine markets also experienced recovery after a substantial decline in 2022. In North America, car sales increased by 15.5% despite high inflation and rise in interest rates. In the Asia-Pacific region, particularly in Japan, sales increased by 17.8% despite the semiconductor shortage in 2022. Moreover, the India automobile market grew by 8.8% due to introduction of new vehicle models, rise in disposable income among consumer , and increased inclination of people towards personal mobility. Likewise, the South America market witnessed a stable growth rate during the same time as compared to other regions. The global automobile sales are linked to increase in governments inclination to push consumers toward buying electric vehicles by providing tax benefits and subsidies. Also, many countries globally have introduced vehicle scrapping policies, which include replacing old vehicles to lower CO2 emissions emitted through them. The growth of automobile sales globally is positively creating the need for more maintenance and services; thus, driving the demand for automobile garage equipment.
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Todays automobiles are becoming more complex due to implementation of modern technology, development of functionality & design, and increasing complexity of vehicles. Similarly, modern automobiles also utilized high end sensors and computer operated hardware and electronics.
Regulatory bodies globally have enacted certain laws pertaining to lower emissions from vehicles, increasing safety and overall performance of automobiles. Similarly, modern vehicles are equipped with ADAS, emergency braking, hybrid powertrains, autonomous driving, enhanced infotainment system, and others technologies. These new technologies integration make automobile more complex further creating demand for sophisticated garage equipment for their regular maintenance work.
Moreover, rapid advancement in garage equipment technology enabled system developers to integrate cutting-edge artificial intelligence and data analytics technology to enhance garage equipment efficiency and functionality. Likewise, in recent decade there has been increase penetration of predictive maintenance in vehicles for real time diagnostics and remote monitoring. Likewise, there is increasing inclination of consumers and fleet operators towards regular maintenance to ensure longevity and performance of vehicles. Thus, increase in vehicle complexity is creating more demand for regular vehicle maintenance and servicing, thus driving the automotive garage equipment market trends.
Raw materials prices specifically for iron, steel, plastic, special alloys and other materials required for manufacturing of automotive garage equipment, are seeing constant fluctuation in their prices. Likewise, there are limitations on sourcing of these raw materials. Automobile garage equipment includes heavy machinery such as lifts, diagnostics tools, and others, that require steel, iron and other metals to manufacture. The constant fluctuation in price of these raw material resulted in increasing overall cost of the overall equipment. Fluctuation in price of these raw materials have strong impact on production cost and profit margins ultimately hampering the growth of the automotive garage equipment market demand. Additionally, the shortage in raw materials resulted in delay in production of overall equipment and affect manufacturers, distributors, and end-users, thus hampering the entire supply chain.
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Automotive garage equipment utilizes communication technology in order to interact and coordinate with each other, gather data, and collaborate with other garage equipment systems are termed as connected garage equipment. Connected garage equipment are equipped with sensors, connectivity modules, and integrated software, that enable real time information sharing, receiving software updates and in some instance operate autonomously. The connected garage also enables operators to remotely monitor and manage the garage operation by utilizing real time information, thus helping in efficiently handling workflow and improving time and resource management.
In 2019, The Driver and Vehicle Standards Agency (DVSA) and the Garage Equipment Association (GEA) announced they would be enforcing all new and replacement MOT testing equipment to be able to connect to new electronic recording services. The use of connected garage equipment for testing will reduce human error, eliminate slow processes, and eliminate fraud. With the help of MOT-connected equipment, some of this data can be sent to the DVSA MOT Testing Service (MTS) immediately from the test equipment. Thus, the development of connected garage equipment is anticipated to create lucrative growth opportunities for companies operating in the market.
The Russia-Ukraine war has minimal impact on the global automotive garage equipment market outlook. However, hardware manufacturers of the garage equipment faced a severe shortage of raw materials that were sourced from Russia and Ukraine. In particular, with Russia being a major steel exporter globally, the war led to increase price of raw steel. The war also resulted in lowered production, limited supply, and disruption in the supply chain; thus, increasing the overall price for garage equipments. However, the demand for garage equipment grew in Russia and Ukraine as more vehicles were transformed or modified for use in military purposes. Furthermore, increase in demand for repair work needed for damaged vehicles in the battlefield further escalated the demand for automobile garage equipment.
Key Market Segments
Key Market Players