New research study on North America garage furniture market was released by Astute Analytica. The revenue generated by the market in 2020 was more than US$ 700.9 Mn. The market is estimated to register growth with CAGR of 2.2% during the forecast period 2020 to 2025
This industry comprises establishments primarily engaged in retailing new garage furniture. The retail segment of the value chain includes garage furniture. stores for different market segments (low, medium, and high) and e-commerce retail sales. Major trends in retail sales are the increase in e-commerce, the rise of discount retailers, and the separation of retail from production as a competitiveness strategy.
Increasing number of garages:
As per the 2018 Census Bureau Survey of Construction data, in the United States, 64% of homes offered a two-car garage, 7% of newly built homes had a one-car garage and another 21% of homes possessed a garage large for hold three or more cars. 74% of new construction units (< 2 years old) had a garage. For rental housing units, 39% had a garage, as compared to 81% for housing units that are owned by the residents. With majority of homes equipped with garages increases the scope of garage furniture which can range from tool and tool storage to office chairs in case of space availability and usage.
The Midwest and West regions of the country had a greater percentage of housing with garages, each with more than 75%. In the West North Central division, 2-car garages acquired second largest share at the rate of 45%, while 3 or more car garages were related with 48% and 1-car with 3% share of all completed homes. The South Atlantic division had the highest share of 2-car garages with 71%, 1-car with 9%, 3 cars or more with 11% and another category with 9%. The West South-Central division accounted for 72% for 2-car garages, 3-car and more garages occupy 16% share, while 1-car garage holds 4% share in the parking option of the region. Regions with high number of garages contribute for higher share of garage furniture market. Additionally, majority of the garage share is dominated by 2-car garages on an average, which means a larger scope for garage furniture.
Interestingly, house garages are not only used for parking or servicing the vehicles. Usage has changed over the time, with about 70% of garage space in single-family homes are available for parking because the floor space is occupied by something other than a parked car., like for workspace and for other noisy/messy activities that are not suited inside the house. Hence, garage furniture shows a major demand in house garages due to high demand of managed and clean space with requirement of free-space for efficient working considering garage-related specific work and other household activities.
However, The Trump government-imposed tariffs on aluminium and steel imported to the US. This will contribute to uncertainty for different garage furniture in context of possible changes in price volatility and supply chains for these key materials, at least in the near term. Although, change in government in 2021 might relax the tariff rates.
Competitive Landscape:
Companies such as Homak Mfg Co Inc., Intro-Tech (Pitstop furniture), ATD Tools, Inc., Connected Automotive Systems (OEMTools.com), Apex Tool Group (Gear Wrench), Black and Decker, Dura Ltd., Cipher Auto Inc., OMP Group, Harwal Group of Companies (Duramax), among others are some of the major competitors of the market. Above mentioned companies are constantly striving to gain a competitive advantage by providing innovative and compatible products for their customers. For instance, OMP srl Company's strategy is to improve the technological level and the productivity and to focus on evolution and innovation of the products and services to hold a firm and prestigious position on an international scale of competitive market.
Segmentation:
