New growth opportunities emerge due to ageing vehicles, rising annual mileage and safety regulations, finds Frost & Sullivan's Mobility team
SANTA CLARA, California, Dec. 21, 2016 /PRNewswire/ -- Technology convergence is helping scale down large wheel and tire diagnostic garage equipment tools to fit within automobiles. Optimization will create smaller, sophisticated products that utilize sensor-based applications to diagnose real-time service escalation needs. Manufacturers must focus on achieving the right balance of product mix and placement to meet demand expectation and maintain a competitor advantage.
Frost & Sullivan's Market Engineering Analysis of the Tire and Wheel Equipment Market finds that the overall wheel and tire equipment industry will grow at a compound annual growth rate of 2.5 percent between 2015 and 2022, due to the rising demand for wheel aligners and tire changers.
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"Ageing vehicles, retaining patterns in consumers and rising annual mileage, will create recurring demand for wheel and tire service and maintenance," said Frost & Sullivan Intelligent Mobility Research Analyst Benson Augustine.
The tire and wheel equipment market is being hindered by improved lifespan and replacement cycles, better-quality equipment, efficient servicing, and lack of awareness around the use of certain equipment. Nonetheless, global revenues are expected to reach $541.4 million in 2022.
"Snap-on, Hunter Engineering Company and Hennessy are the current market leaders. Their key assets are penetration and brand image with state-of-the-art products and a strong mix of high-end and value-line equipment," noted Augustine. "However, Chinese manufacturers are likely to infuse relatively low-priced products to attract price-sensitive smaller garages."
Market Engineering Analysis of Tire and Wheel Equipment Market is part of Frost & Sullivan's Mobility: Automotive & Transportation Growth Partnership Service program.
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Market Engineering Analysis of Tire and Wheel Equipment Market
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SOURCE Frost & Sullivan