Automotive Garage Equipment Market Report 2024 (Global Edition)

Current Scenario: Automatic Garage Equipment of the Market

Driving Factors of Automatic Garage Equipment Market

• The Garage Equipment market is primarily driven by an increase in car production and sales

The need for garage equipment is directly impacted by the expansion of the worldwide automotive industry. The market for contemporary tools and equipment used in automotive workshops and service facilities is driven by the growing number of vehicles on the road and the resulting demand for maintenance, repairs, and servicing.

According to OICA (International Organization of Motor Vehicle Manufacturers) , global motor vehicle production in 2022 was over 85 million units, up 6% from the previous year. An increase in car manufacturing corresponds directly to increased demand for garage equipment. (Source:https://www.acea.auto/figure/world-motor-vehicle-production/)

Some of the top automotive industry-related statistics include; US car manufacturing market was worth $104.1 billion in the US.  Also, The Indian automotive sector contributed 7.1% to the overall GDP and 49% to the manufacturing GDP in 2021. Additionally, 105 billion items related to motor vehicles and parts were exported in 2021 from the US These were the second largest in exports.

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 

• Rise in use of electric cars and vehicles (EVs)

The rise of electric cars (EVs) in the automobile business affects demand for specific garage equipment. The growth of EVs has led to the development of specialized equipment for battery servicing, charging infrastructure, and EV-specific diagnostics. In 2023, global electric vehicle (EV) sales climbed by 31% to 13.6 million units. Fully electric vehicles (BEVs) accounted for 9.5 million of total sales, with PHEVs making up the remainder ( predicted by Rho Motion)

Electric vehicles amounted to some 14 percent of global passenger car sales in 2022, which was a rise of around 5.3 percentage points year-over-year. Electric vehicle sales have rapidly increased since 2017, when they rose above one percent of the market, and have particularly accelerated since 2020.

(Source;https://www.statista.com/statistics/1371599/global-ev-market-share/)

The Asia-Pacific region was the leading market for battery-electric vehicles, propelled by the Chinese new energy vehicle market. Automakers worldwide will have to focus on clean fuel sources and sustainable supply chains. In 2020, Volkswagen started delivering its electric ID.4 model and consistently ranked among the best-selling EV brands. By 2022, the Volkswagen Group was the fourth leading EV automaker worldwide.

(Source:https://www.statista.com/topics/1010/electric-mobility/#topicOverview)

• Increasing sales of pre-owned vehicles and emergence of autonomous vehicles  are anticipated to drive the growth of the automotive garage equipment market

Pre-owned vehicles, commonly known as used cars, are those that have been previously owned and utilized by individuals or businesses before being made available for resale. Automotive garage equipment plays a crucial role in the pre-owned vehicle market by facilitating the inspection, diagnosis, and maintenance processes. These tools are utilized to identify and address any issues, ensuring that the vehicles meet safety and performance standards before being reintroduced to the market.

• For instance, data from Cox Automotive, a US-based system software company, indicates that total used car sales reached 40.9 million vehicles in January 2022. Moreover, daily sales increased by 1.44 million units in 2023, reflecting a 6% growth from the previous year. As a result, the upward trajectory in pre-owned vehicle sales is a significant driver behind the expansion of the automotive garage equipment market.

(Source:https://www.coxautoinc.com/market-insights/estimated-monthly-used-vehicle-saar-and-volume/)

Depending on their degree of automation, autonomous vehicles (self-driven) those that can operate without the need for human intervention represent a wide spectrum of self-driving cars. The growing uptake of self-driving cars corresponds with the predicted future developments in the automotive industry, where new mobility solutions are anticipated to be propelled by automation breakthroughs including systems, software, and services. Garage equipment is evolving to meet environmental standards and meet changing consumer desires for economy and safety as a result of the car industry's growth.

For instance, Gerber Injury Law, an Arizona-based law firm, predicts the production of self-driving cars to reach 800,000 units worldwide between 2023 and 2030.

(Source:https://www.gerberinjurylaw.com/autonomous-self-driving-vehicle-statistics-2021/)

Additionally, Carsurance, an online platform providing information on car insurance, forecasts a 16% annual growth in the autonomous vehicle industry. Consequently, the advent of autonomous vehicles stands as a key driver in the growth of the automotive garage equipment market

Key Factors Affecting the Market Growth

• High Initial Cost

The substantial initial outlay for specialized tools and machinery is one of the main obstacles for starting off in the garage equipment industry. Due to the high initial expenditures of new equipment, garage owners—especially those operating smaller businesses or on a tight budget—may require assistance in making this investment. The average cost of garage equipment is between $15,000 and $25,000. For purchase and installation, lifts typically cost approximately USD 4,000, whilst tire changers can cost anywhere from USD 688 to USD 888 for two pieces.

Depending on the complexity of the instrument, advanced diagnostic equipment for auto repair can range in price from a few thousand to tens of thousands of dollars. Complicating the issues brought on by high initial equipment costs could be restricted access to capital and financing options.

Opportunities in the market 

• Digitalization and EVs are Providing Lucrative Growth Opportunities for the Market Expansion

The rate at which automotive systems are becoming more digitalized is increasing, making the usage of digital diagnostic tools necessary for the diagnosis and maintenance of systems like ADAS. The need for diagnostic and calibration tools for features like instrument consoles, airbags, sensors, and digital locks is growing as automotive systems become more digitalized. Leading Original Equipment Manufacturers' expenditures in the development of digital and autonomous vehicle technologies are anticipated to significantly increase this need. As a result, there will be a higher need for basic auto manufacture and maintenance, as well as for automotive garages and equipment. Furthermore, there will be a greater requirement for car garages to have more space due to the increased need for vehicle maintenance and customization.

Apart from this, OEMs are being urged to integrate cutting-edge capabilities in garage equipment as a result of the introduction of IoT-based sensors which is increasing market sales. Furthermore, the increasing adoption of electric vehicles is also creating lucrative opportunities since these vehicles also require proper engineering in order to function properly.

For example, in November 2021, Istobal, a Spain-based car wash equipment manufacturer, unveiled M WASH4, a state-of-the-art rollover system featuring advanced technology, efficiency, and innovation. M WASH4 enhances car cleaning efficiency while minimizing the time required for the process. This system promotes high-quality car washing and drying in a sustainable manner, with reduced water, energy, and chemical consumption. Notable features include integrated wheel washing, wider vertical brushes for convenient vehicle positioning and exit, secure access for maintenance, and an overall safer user experience.

(Source:https://int.istobal.com/inter/istobal-m-wash4.html)

• Novel Product Developments are Providing Traction to the Market Development

Major market participants are focusing their efforts on R&D in order to offer innovative products that meet customer demand. They are also employing various market strategies, such as product launches, mergers, collaborations, and acquisitions, to strengthen their position in the sector.

For instance, in August 2022, John Bean launched a 15k Four-Post Open Front Alignment Lift which is built for huge projects, with open-front columns, 26-inch runways, and integrated 100-inch-long rear slip plates. The lift can accommodate both heavy-duty, dual-rear-wheel vehicles and standard, four-wheel alignments on passenger automobiles. Additionally, Dannmar introduced two symmetric heavy-duty two-post lifts in August 2022 to handle trucks and loaded medium-duty vehicles. Both the D2-12C and D2-15C lifts include a clear-floor design, 53-inch carriages, triple-telescoping arms to reach a broad variety of manufacturer-recommended lifting locations, and extended-height top beams to offer the clearance work vehicles require.

(Source:https://www.johnbean.com/us/auto-lifts/15k-4-post/)

How did COVID–19 Impact the Automotive garage equipment Market?

Due to garage closures and a decrease in car manufacturing during the initial lockdowns, the COVID-19 pandemic had a detrimental effect on the market. But as regulations loosened in the first half of 2021, the market picked up steam again. Since the majority of consumers began using personal vehicles to suit their daily commuting demands, used car sales and consumer propensity toward vehicle maintenance have been the primary drivers of consumer demand in the automotive sector. For instance, Global auto sales fell to 63.8 million in 2020; a small recovery is anticipated in 2021, when sales are expected to reach 66 million. The United States, China, and Europe are predicted to have the fastest rise in light vehicle sales between 2021 and 2022, although this will not make up for the region's 21% decline in sales between 2019 and 2020. The decrease in the auto production thus decreased the demand for automotive garage equipment. This had a major impact on the growth of the market during pandemic.

While the COVID-19 pandemic has led to an increase in consumer interest in the EV market, recent studies in the United States found that around four-fifths of the country’s states were not considered accessible markets for consumers interested in purchasing an EV. To curb these accessibility issues, some governments have put financial subsidies at purchase in place, though the effectiveness of these programs also depends on customers’ access to them.

(Source: https://www.statista.com/topics/1010/electric-mobility/#topicOverview)

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Automotive Garage Equipment Market is witnessing significant growth in the near future.

In 2023, the Lifting Equipment segment accounted for noticeable share of global Automotive Garage Equipment Market and is projected to experience significant growth in the near future.

The Motor Cycle segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Arex Test Systems , Bosch and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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