Report : Automotive Tow Bars Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Product (Detachable Tow bar, Retractable Tow bar, Fixed Tow bar, and Others); Vehicle type (Passenger Vehicle and Commercial Vehicle)
Increasing demand for detachable tow bar to lead automotive tow bars market growth at 4.0% CAGR during 2020–2027
According to our latest market study on “Automotive Tow Bars Market to 2027 – COVID-19 Impact and Global Analysis and Forecast – by Product (Detachable Tow bar, Retractable Tow bar, Fixed Tow bar, and Others); Vehicle type (Passenger Vehicle and Commercial Vehicle); and Geography,” the market was valued at US$ 4.82 billion in 2019 and is projected to reach US$ 5.23 billion by 2027; it is expected to grow at a CAGR of 3.6% from 2020 to 2027.
The report highlights the key factors driving the market growth, and prominent players and their developments in the market.
The tow bar is used for towing a broken-down vehicle while ensuring balance to avoid a skid. The global market for automotive tow bars has been segmented into five major regions— North America, Europe, APAC, MEA, and SAM. With the growing popularity of adventure sports and RVs, the demand for automotive tow bars is expected to grow significantly. The increasing sales of passenger vehicles are also supporting the growth of the automotive tow bar. Europe and North America account for about 47.5% of the total share of the global automotive tow bars market. The demand for automotive tow bars is expected to grow at the highest CAGR in Europe, followed by North America and Asia Pacific.
Since the demand for automotive tow bar is directly related to the sales of passenger vehicles, the growing sales of passenger cars in the developed regions such as Europe and North America has supported the growth of automotive tow bars.
Additionally, caravan users are choosing tow bars for towing caravans; there are various types of tow bars available in the market to carry a wide variety of accessories, and it is highly popular in the UK. The electric tow bar is gaining popularity, and this factor is creating opportunities for the companies operating in the market to gain a strong customer base.
Some of the major players operating in the market are focusing on expanding their offerings and diversifying their customer base. However, some of the market players are focusing on inorganic growth strategies, such as acquisitions and strategic investments. For instance, in 2019, Lippert Components, Inc. completed the previously announced acquisition of CURT Group for about US$ 340 million. Also, in the year 2017, CURT Group completed the acquisition of UWS, which created new opportunities for both the companies.
Anker and York Tow bars, Bosal Group, Brink Group, BTA Towing Equipment, CURT Manufacturing LLC, Oris, PCT Automotive Limited, Alois Kober GmbH, North Shore Tow bars, and GDW NV are some of the key players present in the global automotive tow bars. In addition to these players, several other players are also functioning in the market worldwide, contributing significant revenue shares year on year.
COVID-19 Impact on Automotive Tow Bars Market
The continuous increase in the COVID-19 cases is threatening several industries across the globe. As of March 2020, China, Italy, the UK, the US, Iran, Spain, India, and France, are some of the worst affected countries in terms of confirmed cases and reported deaths. According to the latest worldometer figures, the confirmed COVID-19 positive patient count accounted for 7,107,988 and 406,454 total deaths globally. The COVID-19 outbreak has been affecting economies and industries in various countries due to lockdowns, travel bans, and business shutdowns.
The COVID-19 outbreak has created multiple challenges for the automotive industry. The outbreak came at a time when the automotive industry was already under a prolonged slowdown, causing disruption in the production of automobiles. More than 50% of the automotive tow bar sales come from North America and Europe. The US, being the worst affected country by COVID-19, has resulted in the shutdown of automotive plants and situation in the EU still remains critical and has faced a production loss of more than 1.5 million vehicles, which has directly impeded the sales of automotive tow bar.
Since the majority of the countries have exercised lockdown, the demand for automotive tow bars is decreasing at a prominent rate. The temporary shutdown of manufacturing facilities is showcasing a negative trend in the automotive tow bars market. The continuity in the COVID-19 spread would severely affect the automotive tow bars market players.
The report segments the global automotive tow bars market as follows:
By Vehicle Type