Truck Racks Market (2023 - 2030)

Truck Racks Market Size & Trends

The global truck racks market size was valued at USD 928.1 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.3% from 2023 to 2030. 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 costs 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. The aluminum segment dominated the market with a share of over 70.0% in 2022 and is expected to grow at the fastest CAGR of 5.0% over the forecast period. Their lightweight ensures increased efficiency in carrying out residential and recreational applications. They are used more frequently as they provide superior resistance to rust.

In January 2023, Rhino Products launched KammRack, a new fastest-fitting aluminium roof rack, for vans and pickup trucks. The KammRack features an aerodynamic teardrop bar design, lightweight, and yet high strength. In March 2023, Masterack launched an innovative portfolio of high-quality folding aluminum shelf racks for delivery trucks to optimize cargo space. The models include standard, Fold Flat HD, and Easy Close HD based on features, capacity, weight, and cost.

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 growth over the forecast period.

End-use Insights

The aftermarket segment represented 70.5% of the overall market revenue in 2022 and is expected to grow at a significant CAGR of 4.6% over the forecast period. 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 the consumption of U.S.-made products, primarily in the 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.

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 a notable supply chain by rack manufacturers.

OEMs account for a share of 29.5% in 2022 as product manufacturers distribute directly through a network established by them. OEMs in the truck racks market generally supply standardized products, which are scaled to suit their vehicles. As a result, it reduces the level of customization possible for the products.

Regional Insights

North America is characterized by high demand for truck racks and held the largest share of 83.3% in 2022. 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. There is strong consumer demand for standard and headache racks in order to reinforce operational capabilities.

Asia Pacific is the most promising regional market and is expected to grow at a CAGR of 4.8% over the forecast period. Australia is likely to present high growth opportunities in the region, owing to the growing sales of pickup trucks. Europe is expected to experience healthy growth in the coming years 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.

Key Companies & Market Share Insights

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.

Recent Development

• In March 2022, DECKED, a truck rack storage kits manufacturer, acquired CargoGlide, a manufacturer of sliding bed platforms. With the help of this new partnership, a broad range of cutting-edge truck bed accessory solutions will be developed, each perfectly suited to a different set of customer requirements in the expanding market.

• In March 2020, Merritt Aluminum Products Company launched a new range of light-duty aluminum products including a variety of crossbody toolboxes, ladder racks, and headache racks which will be available in three different finishes each. The new products are designed to work well with each other.

• In April 2019, Truck Hero, Inc. acquired leading heavy-duty truck racks manufacturer Backrack, LLC aiming to expand their portfolio with high-quality and durable truck bed racks.

Truck Racks Market