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Introduction
The bike rack market is proliferating as bicycles have always been one of the most common convenient means of transportation or used for leisure purposes. The major players in the industry hold up to 75% of the total share in the market. They include ACPS Automotive GmbH, Allen Sports USA, Atera GmbH, CRUZBER SA, Danik industries Ltd. DBA, Thule Group AB, and Rhino-Rack USA LLC. Through their segment, the companies offer a variety of racks ranging from Compact Tacks to Spare Tire Racks to capture as much of the market as possible and offer customers an abundant selection of products from which they can choose. Among the products, roof boxes perform the best, while roof racks have the slowest growth within the category.
Main body
There are several elements necessary to understand the segments of the category as well as the target market overall. Specifically, there is a growing demand for passenger vehicles due to the increasing tour and leisure activities globally as countries are opening, and it becomes possible to increase travel activities. Besides, in light of the COVID-19 pandemic, it makes sense that customers invest in personal modes of transportation to avoid crowds (Shamshiripour et al., 2020). The sales of smaller cars are rapidly growing because they are easier to operate and less costly; however, such vehicles have limited boot and leg space, which means that carrying a bike in them is impossible. Therefore, bike racks have become essential for car owners who also want to transport their bikes with them (Evarts, Paul, & Smith, 2021). Besides, it is worth noting that the threat of substitutes is low in the industry because there is really no alternative to car bike racks that are as convenient and efficient to use.
When it comes to trends and behaviors that influence how consumers choose brands and use products in the category, several points should be mentioned. Younger consumers who tend to lead a healthy lifestyle are highly likely to have a bike and thus need to acquire car parts to transport it. Also, individuals who use a bike for recreational activities and travel often need a rack to take their bicycles with them. As to choosing a certain brand, consumers will look at all products in general and choose those that are easy to use, have a reasonable price, and have a reliable construction. Brands that meet these criteria are more likely to be selected.
There are several positive and negative influences on market demand within the segment. First, the marketing of bike rack products should align with the categorization of the product in the global auto parts and equipment market. Second, the trend toward an increase in electronic components in cars should be considered because it will lead to increasing demand for new functionalities. Third, increasing safety regulations within automotive systems are expected to drive sales of auto components. On the downside, the fluctuating prices of raw materials can be a significant challenge for manufacturers and their subsequent marketing efforts.
In general, consumers who own a car and are passionate about recreational activities such as tourism are the most likely to purchase car bike racks. Among consumers whose families are growing and their income is increasing, the likelihood of buying car parts to attach their bicycles increases. The benefits that customers realize include convenience, lightweight, and the ease of setting up the rack that can hold bikes and be used for other storage purposes. Depending on the functional needs of customers, the usage rate for the product will vary. For instance, cyclists will use the bike racks frequently, while families and campers that only use their bikes for trips will use the racks less regularly. While there is no brand loyalty established in the market just yet, there is an overall positive attitude toward the offering because it is a convenient product that has a practical purpose, and there is no replacement for it.
Summary
To summarize, the industry of bike racks for cars is expected to grow steadily over the years due to its accelerating growth momentum. North America is the largest market in the industry, contributing 26-28% of the total market percentage, followed by Germany with 10-12% and the UK with 8-10% ( Global automotive bicycle rack market 2020-2024, 2021). Bike car racks represent the largest segment share, and it is expected that the trend will stay the same in the following three to four years. Key competitors, based on the latest data, include Atera GmbH and ACPS Automotive GmbH, which are categorized as dominant in terms of market positioning and pure-play in vendor classification. Thule Group is a fierce competitor because it is classified as a dominant and category-focused company ( Global automotive bicycle rack market 2020-2024, 2021). CRUZBER SA is also worth mentioning as a competitor because it is both industry-focused and dominant in the market. However, it should be considered that none of the competitors are diversified, and none of them are weak in terms of market positioning.
References
Evarts, E., Paul, R., & Smith, J. (2021). The best bike racks and carriers for cars and trucks. New York Times Wirecutter. Web.
Global automotive bicycle rack market 2020-2024. (2021). Web.
Shamshiripour, A., Rahimi, E., Shabanpour, R., & Mohammadian, A. (2020). How is COVID-19 reshaping activity-travel behavior? Evidence from a comprehensive survey in Chicago. Transportation Research Interdisciplinary Perspectives, 7, 100216. Web.
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