October 9, 2019—A FMI Report has forecasted that the global automotive garage equipment market will experience substantial growth between 2019 and 2029 due to increase in the demand for replacement and maintenance of automotive components.
The global automotive garage equipment market is estimated to be valued at $7 billion in 2019, increasing at a CAGR of about four percent during the projected period of 2019 and 2029. This growth is significantly driven by stringent emission and other regulations of vehicle diagnostics equipment in the automotive industry.
The global automotive garage equipment market has been segmented based on vehicle type, equipment type, garage type and regions, such as North America, Latin America, Western Europe, Eastern Europe, APEJ, Middle East & Africa, and Japan.
- Shifting consumer preference towards independent garages in comparison to franchise garage is one the major factors driving the growth of garage equipment in the market. Independent garages offer similar services and capabilities as franchise garages along with economical price bands as OEMs. According to primary surveys roughly 80 percent of the consumers in Asia prefer independent garages over OEM dealerships due to the maneuverability, ease, and flexibility offered by them at a reduced cost and time. As a result, the growing demand for independent repair shops is in turn expected to drive the need for garage equipment
- The majority of OEMs are planning strategic initiatives to expand dealerships and after-sales service capabilities in rural areas. The strategy lies in establishing repair & maintenance dealerships and for franchised garage operators to expand their service presence and portfolio. Vehicle manufacturers have now shifted their focus towards the rural market as it seems to be significantly more opportunistic. This in turn, will drive automotive garage equipment during the forecast period.
- Light vehicle garages are projected to emerge as the major contributor to the demand for garage equipment, the reason being demand for new and advanced garage equipment products. This will in turn create significant demand for advanced garage equipment, such as vehicle diagnostics & testing equipment, wheel & tire alignment equipment, etc.
