Market Trends of Automotive Garage Equipment Industry
Passenger Cars Hold Highest Market Share
Passenger cars have gained immense popularity among drivers over the past few years due to features such as stylish design, compact size, and economic value. Passenger cars are the most common mode of transportation in numerous advanced countries. The improving lifestyles, increasing power purchase parity and disposable income, raising brand awareness, and growing economy are leading to customer preference changes globally, resulting in high sales of passenger cars.
- According to the Society of Indian Automobile Manufacturers, sales of passenger cars increased from 14,67,039 to 17,47,376 units in 2022-23.
With the increase in global demand, electric car sales have been growing exponentially due to falling costs, improving technology, and government support. For instance, over 2.3 million electric cars were sold in the first quarter of 2023, about 25% more than in 2022, according to the International Energy Agency.
The rise in the demand for sport utility vehicles (SUVs) creates profitable opportunities for market players and acts as a major driving factor for the passenger cars segment globally.
The rise in passenger car sales leads to growth in demand for garage equipment as it is needed for various factors such as brake inspection and repair, oil change, tire maintenance, engine diagnostic, and others for better mileage, reliability, and enhanced safety.
The introduction of newer, more efficient garage equipment with advanced technologies and the collaborations of companies to offer various services for automotive repair are also driving the market. Such trends and developments in the market indicate an optimistic outlook for the market in the near future.
- For instance, in January 2024, ETAS and Bosch diagnostic software and information services started joint business activities. In the future, ETAS will offer authoring and diagnostic solutions across the entire vehicle life cycle 鈥� from vehicle manufacturing to health monitoring, maintenance, and troubleshooting of vehicles on the road.
Asia-Pacific Holds the Highest Market Share
The Asia-Pacific automotive garage equipment market 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 countries. Various automakers are investing in the development of electric and digital technologies for autonomous, hybrid, and electric vehicles, which is expected to have a positive impact on the market.
- For instance, in January 2024, BYD launched its AI-powered smart car system to better compete with rivals on advanced technologies such as automated parking. The company plans to invest CNY 5 billion (USD 701.8 million) to build the world鈥檚 first all-terrain professional test drive sites in cities across China.
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, positively influencing the market.
Considering the growth of the automotive sector in various countries and vehicles produced with advanced safety and convenient features, automotive workshops are focusing on upgrading their equipment to comply with new-aged vehicles. Many existing players and new startups are launching new equipment to cater to the demand.
- In January 2023, Autel, a leading global provider of automotive intelligent diagnostics, inspection, and TPMS products, launched three major product lines for India, namely automotive diagnostic products, immobilizer series of devices, and TPMS series for automotive tire pressure monitoring systems.
Due to these factors and developments, it is expected that Asia-Pacific will provide numerous opportunities for market players and encourage them to expand their activities in the region, leading to significant growth in the future.
