Company: WKSP
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000850
Chunk: 95

Company: Worksport Ltd
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 95
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 priced higher when compared to other types of tonneau covers. Soft and hard
folding/rolling tonneau covers, in contrast, tend to be priced more competitively and, as such, are a popular choice among tonneau cover
consumers. Given these factors and our belief that we can develop less cumbersome, high functioning, and low cost soft and hard folding
covers, we focus primarily on developing soft and hard folding covers.

While
the product lifetime of a tonneau cover is shorter than that of a pickup truck, higher pickup truck sales provide greater market opportunity
for the tonneau cover industry. As of Q3 2024, there were roughly 61 million pickup trucks in operation within the U.S.1 We
offer tonneau covers for each of the 5 most popular pickup truck makes/models sold in 2024,2 as well as the top 10 most accessorized
pickup truck makes/models projected in 2022-2029.3 Within the United States, the pickup truck market is expected to grow at
a compound annual growth rate of 4.6% between 2023 and 2028.4

Electric
pickup trucks are projected to gain a larger portion of the U.S. pickup truck market share each year through 2035;1 in fact,
the electric pickup truck market is expected to grow at a compound annual growth rate of 31.15% between 2024 and 2029 within North America.5
However, a large headwind acting against this trend is that pickup trucks tend to be more popular in areas with less-developed
charging infrastructure3 – a headwind that the SOLIS cover directly addresses and positions us favorably for possible
partnerships and deals with electric pickup truck manufacturers.

The
Specialty Equipment Aftermarket provides more specific insight into how often and for what reasons vehicle owners or renters are purchasing
accessories for their vehicles. Pickup trucks are the largest market by sales within the U.S. for specialty equipment – constituting
32% of the specialty equipment market6. Within this pickup truck accessory market, 34% of accessories are truck bed &
utility modifications,3 which is the submarket in which we operate. Truck bed covers were among the top product categories
for aftermarket accessory purchases in 2021,3 and the size of the tonneau cover market within the U.S., which was estimated
to be $2.56 billion in 2024, is expected to grow at a compound annual growth rate of 7.