Truck Racks Market Size & Share Analysis Report By Product (Steel, Aluminum), By Application (OEM, Aftermarket), By Region (North America, Europe, Asia Pacific, Central & South America, MEA), And Segment Forecasts, 2018 - 2025

Industry Outlook

The global truck racks market size was estimated at USD 724.2 million in 2016. Growing demand for the product as an accessory to transport various industrial and sports-related equipment is expected to stoke market growth. In addition, an increase in sales of pickup trucks, primarily in North America, is anticipated to be one of the key trends bolstering the growth of the market. 

The market is likely to benefit from the presence of a large consumer base in North America, coupled with burgeoning sales of pickup trucks in Asia Pacific. Key manufacturers source raw materials from low-cost suppliers located in Asia in order to decrease their manufacturing cost and increase profit margins.

The market in the U.S. is one of the key revenue contributors in the global arena. The economy is characterized by the presence of a large number of consumers with notable spending abilities. Demand for racks in the economy is poised to grow as consumers are increasingly using the product to transport items such as canoes, rafts, and bicycles for recreational purposes. In addition, consumers in the region exhibit a higher affinity toward the use of pickup trucks as compared to consumers in other regions, thereby accounting for a notable consumption volume.

Most of the value addition by raw material manufacturers is in the form of raw material costs and expenses incurred in processing steel and aluminum to form rods. As a result, the value added for the segment ranges from 15% to 25% with additional logistic expenses. Processed raw materials are supplied to rack manufacturers using distribution channels owned by raw material suppliers. Processes undertaken by rack manufacturers include designing, assembling, and finishing of the product, thereby registering high-value addition.

Product Insights

The market recognizes a high demand for both steel and aluminum-based truck racks. Steel-based products are preferred on account of higher stress resistance and prolonged usage lifetimes. Moreover, the use of steel racks for applications requiring high load carrying capacities is projected to propel the market over the forecast period. Demand for steel-based products is likely to rise to a value of USD 300.4 million by 2025 due to their extensive use in low-cost pickup trucks.

Demand for aluminum truck racks is estimated to experience a sharp rise over the coming years. Their light weight ensures increased efficiency in carrying out residential and recreational applications. They are used more frequently as they provide superior resistance to rust. Increasing rates of aluminum recycling and declining product prices are expected to contribute to the growth of the segment. Demand for aluminum racks is anticipated to register a sharp increase due to high product installation rates, primarily for medium- and high-end pickups.

Application Insights

OEMs are not involved in the production and procurement of products through direct relations with major manufacturers, thereby driving the price higher. However, the supply of such products in low consuming regions is expected to be carried out by OEMs due to the absence of notable supply chain by rack manufacturers.

OEMs account for a lesser share in the market as product manufacturers distribute directly through a network established by them. OEMs in the truck racks market generally supply standardized products, which are scales to suit their vehicles. As a result, it reduces the level of customization possible for the products.

The aftermarket segment represented 69.3% of the overall market revenue in 2016. Participants in the segment operate through dedicated distribution channels. Products supplied in the aftermarket are sold at lower prices as manufacturers provide extensive discounts and price reductions to consumers to increase their market share.

Consumers in the market also exhibit a high affinity toward consumption of U.S.-made products, primarily in case of accessories included for pickups. Products supplied to the aftermarket are subject to extensive customization to align the product in accordance with client requirements.

Regional Insights

The market in North America is characterized by high demand for truck racks. The presence of a number of pickup truck manufacturers such as General Motors, Toyota, Ford, and Nissan in the region has led to high sales of these vehicles. In addition, these manufacturers are anticipated to ramp up production capacities by up to 5% annually in order to meet rising demand, which in turn will spur the sales of truck racks. There is strong consumer demand for standard and headache racks in order to reinforce operational capabilities.

Asia Pacific is the most promising regional market. Australia is likely to present high growth opportunities in the region, owing to the growing sales of pickup trucks. The economy is estimated to register a CAGR of 6.2% by revenue during the forecast period. Europe is expected to experience healthy growth through 2025 owing to surging demand for the product from application industries. A booming midsized pickup truck sector, which is driven by the increasing launch of new models by prominent manufacturers such as Mercedes, Ford, Fiat, and Nissan, is likely to contribute to the region.

Truck Racks Market Share Insights

The market does not witness notable forward integration between raw material suppliers and product manufacturers because in most cases, the former is unable to draw lucrative opportunities from the business. Backward integration does not exist in the market, as rack manufacturers would incur high costs in setting up a steel or aluminum manufacturing plant, making the venture unprofitable.

Product manufacturers are involved in the supply and distribution of finished racks, giving rise to a small degree of forward integration. In addition, companies in the industry are involved in the introduction of advanced products in line with the launch of new pickup trucks to cater to product demand.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global truck racks market report on the basis of product, application, and region:

• Product Outlook (Volume, ‘000 Units; Revenue, USD Million, 2014 - 2025)

  • Steel

  • Aluminum

• Application Outlook (Volume, ‘000 Units; Revenue, USD Million, 2014 - 2025)

  • OEM

  • Aftermarket

• Regional Outlook (Volume, ‘000 Units; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

  • Asia Pacific

    • Australia

  • Central & South America

  • Middle East & Africa