Automotive Garage Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Automotive Garage Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Currently, the automotive garage equipment market is valued at USD 8.12 billion, and it is expected to reach USD 11.27 billion by registering a CAGR of above 4% over the next five years.

The COVID-19 pandemic had a negative impact on the market, as initial lockdowns resulted in the shutdown of garages and a decline in vehicle production. However, by the first half of 2021, as restrictions were eased, the market regained its momentum. The consumer demand in the automotive sector is mainly supported by used car sales and consumer inclination toward maintenance of vehicles as most consumers started adopting personal vehicles to meet their daily commuting needs.

The demand in the automotive garage equipment market is driven by upgrading existing repair shops and independent garages and increasing vehicle sales in emerging economies such as India and Brazil. Further, the market is anticipated to expand as OEMs start prioritizing the accumulation of data on enhancing vehicle performance which elevated the need for suitable automotive garage equipment.

In addition, as automakers are gravitating toward technical breakthroughs and the creation of fuel-efficient automobiles, there is likely be an increase in the demand for automotive garage equipment. Moreover, rising sales of used vehicles and growing vehicle life are anticipated to create a positive outlook for the market during the forecast period.

Asia-Pacific region, followed by Europe and North America, is expected to witness notable growth over the forecast period. The surge in vehicle production and vehicle production across major countries in these regions and increasing safety concerns among car consumers are expected to drive the demand for automotive garage equipment in the coming years.

Despite challenges like the COVID-19 pandemic and semi-conductor shortage, the automotive industry has been on a recovery path, and since 2021 new and used vehicle sales have been witnessing notable growth across major countries in the world. The price competitiveness among the new players has been one glowing spot in the automotive industry, especially across the used cars industry. Investments made by the industry participants to establish their dealership network in the market are one of the reasons for the growing new and used vehicle sales volume across the world. For instance,

• According to a report released by credit reporting company Experian, close to 62% of vehicle loans taken in the Q2 of 2022 were for used cars. There has been a steady rise in used car loans compared to Q1 2022 when it stood at 60%. The growth was even higher when compared to the same quarter last year when used car loans accounted for 58% of total vehicle loans taken in United States in Q2 2021. As new car prices further go up in United States (USA), more and more consumers are now opting for used vehicles. This change in the buying pattern made a new record in the second quarter of 2022.

Further, increased expenditure on the maintenance and repair of vehicles also tends to support the growth of the market studied. To keep vehicles in condition and to assure enhanced performance of the vehicle, An effective preventative vehicle maintenance system consists of scheduled maintenance, component repairs, and vehicle inspections to prevent breakdowns carried by consumers. Such trends elevate the need for various automotive garage equipment and encourage players to expand services to cars and commercial vehicles operating in the segment, as they play a key role in carrying out these repair and maintenance activities efficiently. For instance,

• In August 2021, Forward Lift Company, a part of Dover Corporation and Vehicle Service Group, launched a new line of frame-engaging adapter kits for the company’s mobile column lifts. These attachments enable technicians to easily lift and service a wider range of forklifts to reach pallet trucks and heavy vehicles.

Therefore, as used cars are expected to accommodate several changes to improve the product's longevity and quality, demand for garage equipment is likely to rise over the coming years. Furthermore, the introduction of newer, more efficient garage equipment has opened up new opportunities for training institutions. Such trends and developments in the market indicate an optimistic outlook for the market in the near future.

The Asia-Pacific region is expected to grow significantly over the coming years. The demand for automotive garage equipment in the region is mainly supported by increasing sales of new and used cars and commercial vehicles across China, India, and other ASEAN countries. Further, as various automakers are investing in the development of electric and digital technologies for autonomous, hybrid, and electric vehicles, such is expected to have a positive impact on the market. For instance,

• According to CAAM, China’s Q2 2022 passenger electric vehicle (EV) sales almost doubled from 2021, with Pure battery electric vehicles (BEVs) accounting for almost 78% of total EV sales, while the remaining were plug-in hybrid electric vehicles (PHEVs). In 2021, about 17.59 million used cars had been sold in China, an increase of 22.7 percent compared to 2020. During the past twelve years, used vehicle transactions in China have increased approximately 3.5 times from 3.9 million units in 2010.

Further, as the need for timely preventive maintenance has gained significant importance in recent years, most consumers are trying to keep their vehicles in proper condition such trends are expected to lead rise in the garage equipment market. With rising safety equipment and increasing vehicular design changes, etc. the need for advanced equipment has also been anticipated to proliferate in the region in coming years. For instance,

• According to a survey conducted in June 2022, the average monthly maintenance costs of private passenger cars in Japan amounted to approximately 12.7 thousand Japanese yen, up from around 11.7 thousand yen in the previous year.

Based on above-mentioned factors and developments, it is expected that the Asia-pacific region to provide numerous opportunities for players and encourage them to expand their activities in the region. Such trends indicate that the Asia-Pacific region is expected to have significant growth over the next five years.

The automotive garage equipment market is considered to be a highly competitive and fragmented one. Multiple players are functioning in the global automotive garage equipment market, making the competition very intense. Competitors are engaging in joint ventures, merger and acquisition strategies, and other strategic collaborations to ensure a high position in the overall market. Conversely, significant investments and other growth strategies are likely to help players gain a competitive edge in the overall market competition. For instance,

• In September 2022, Continental AG announced that it is expanding its range of workshop equipment to get Europe’s garages and testing organizations ready for upcoming legal tightening regarding vehicles’ particulate emissions. The company presented the DX280 DC and the CCP800, two exhaust emissions testers for car workshops, at Automechanika 2022 in Frankfurt, Germany.
• In February 2022, the Stertil Group, part of Citadel Enterprises and located in Kootstertille, the Netherlands, announced the acquisition of Nussbaum Custom Lifts GmbH. This acquisition demonstrates the Stertil Group’s commitment to the continued investment in providing world-class vehicle lifting solutions to the vehicle maintenance, repair, and service industries for private and public workshops and OEM manufacturers worldwide.
• In September 2020, Redline Detection, the world’s leader in diagnostic leak detection technology, announced the launch of Speed Smoke, the first diagnostic leak detector of its kind, designed to address the proliferation of boosted vehicles in repair shops. Speed Smoke is now available exclusively through Matco Tools for a limited time. Most automakers have implemented boosted engines to increase performance while delivering improved emissions and increased fuel economy.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support