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The automotive repair and maintenance services market is estimated to grow at a CAGR of 3.84% between 2022 and 2027. The size of the market is forecast to increase by USD 93.19 billion. The growth of the market depends on several factors, including the growing preference for road transportation, the availability of automotive repair financing and insurance, and the need to comply with government regulations to curb pollution.
This report extensively covers market segmentation by type (internal combustion engine and electric), service (tires, wear and tear parts, collision body, batteries, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The growing preference for road transportation is notably driving the market growth, although factors such as using counterfeit parts during repair and maintenance may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Repair And Maintenance Services Market Driver
The growing preference for road transportation is notably driving the market growth. The growing preference for road transportation for last-mile delivery and the subsequent increase in the use of heavy-, medium-, and light-duty vehicles in emerging countries will lead to an increase in vehicles, especially HCVs, on roads. One of the main reasons for enterprises to opt for road transport to transport cargo is the limited rail freight services within a country.
Furthermore, the lack of sufficient freight services is making companies choose roadways as a reliable mode of transportation for their products. Roadways are highly preferred for freight transport as these are more convenient than rail transport, cheaper than air transportation, and faster than waterways. Since in road transportation, vehicles travel long distances every day to deliver packages, it leads to an increase in the wear and tear of vehicles. This encourages vendors to offer maintenance and repair services dedicated to fleet operators. These services include oil and fluid top-ups, puncture repairs and number plate replacement, washing and vac after every workshop visit, and fitting of wiper blades, bulbs, and batteries for all the vehicles in a fleet. Therefore, these factors will boost the global market during the forecast period.
Significant Automotive Repair And Maintenance Services Market Trend
The use of 3D printing for repair is an emerging trend in the market. 3D printing is a process in which three-dimensional solid objects are made from a digital file. 3D printing recreates existing objects with the use of computers and other computerized components, and it can also create customized objects as per the user's design. Though 3D printing has been in the market for a long time, its potential is still untapped.
In the automotive industry, this technology can be used to repair cars whose parts are non-existent or hard to find. It will scan the broken part and give out a new one. Hence, due to the benefits of 3D printing in repairing a vehicle, vendors in this market are adopting this technology to save time. For instance, Service King, a prominent US-based auto repair company, has implemented 3D printing in order to improve its operations. By using the 3D printer, it innovated its bumper repair process with parts produced in-house. The purpose of Service King to use of this technology was to replace the crucial plastic tabs that attach a bumper to the front of the automobile, and with a 3D printer, it was able to increase the quality of the repair. Therefore, such advancements will fuel the market growth during the forecast period.
Major Automotive Repair And Maintenance Services Market Challenge
The rise in demand for electric vehicles is a major challenge impeding the market growth. EVs are vehicles that can be recharged from an external source of electricity, such as the electricity stored in rechargeable battery packs, drives, or wall sockets. Since these vehicles work on electricity, they help in reducing harmful air pollution, leading to a better quality of air and reducing health problems caused due to air pollution. Additionally, if renewable energy is used to recharge the EV, it will lead to a reduction of greenhouse gases. Thus, EVs help in reducing the harmful impact on the environment. Hence, they are finding increased adoption among customers.
However, as EVs work on electric engines, they do not require oil changes. They also have fewer moving parts, which rarely break down, thus, removing the need for repair and maintenance services providers. In addition, EVs can be serviced by customers by using parts that can be purchased online or fixed remotely through over-the-air updates. Repair and maintenance services providers will be restricted to vehicles that meet with an accident and sustain damage. Thus, the rise in demand for EVs can negatively affect the growth rate of the global market during the forecast period.
The market share growth by the internal combustion engine segment will be significant during the forecast period. The internal combustion engine segment has grown tremendously and is expected to grow during the forecast period due to increasing demand for passenger and commercial vehicles in developed and developing countries.
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The internal combustion engine segment was valued at USD 369.86 billion in 2017 and continued to grow until 2021. The increasing popularity of petrol vehicles and the increasing production of oil and shale gas are the major factors contributing to the growth of the segment. Vehicle ageing also has a positive impact on industry growth as ageing vehicles need to be repaired and replaced more frequently. Moreover, the growing demand for shared mobility is one of the main factors driving up the annual maintenance costs of taxis or shared vehicles due to the increase in annual mileage. Therefore, all these factors are expected to boost the growth of the global market in focus during the forecast period.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is expected to grow due to the steady growth of the automobile market in this region. The US and Canada are technologically advanced and mature automotive markets with a high concentration of passenger and commercial vehicle manufacturers. Additionally, the presence of leading vehicle manufacturers in this region will also help the market to grow during the forecast period. Hence, such factors will boost the demand for these services in the region during the forecast period.
Furthermore, with the rising demand for passenger vehicles in North America, the vehicle production rate is increasing. Increased preference for fuel-efficient vehicles is driving the market for mid and compact-sized crossovers. SUVs and crossover segments are witnessing growing popularity and a shift in consumers' buying preferences from sedans to these vehicles. Due to the growing demand for SUVs and crossovers in this region, vendors are offering solutions focused on SUVs. For instance, Specialized Truck and SUV, a locally owned and operated automotive shop in the US, is an expert in truck and SUV customization and accessories. It offers preventative maintenance and regular check-up services that will help customers in keeping their vehicles on the road and avoid costly future repairs. Therefore, all these factors will fuel the regional market growth during the forecast period.
In 2020, the market was negatively impacted in North America owing to the spread of COVID-19. However, in 2021, the initiation of vaccination drives in the region and the increase in investment inflows into the auto sector led the automotive vehicles and auto parts production plants to reopen and helped in the resumption of import of high-end automotive vehicles across this region. The recovery of operations in the regional automotive industry propelled the growth of the regional market. Therefore, factors like these will boost the market in North America during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Repair and Maintenance Services Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arnold Clark Automobiles Ltd. - The company focuses on offering cars, trucks, garage equipment, automotive parts, and accessories. The key offerings of the company include automotive and repair services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, robust, tentative, and weak.
Technavio categorizes the global automotive repair and maintenance services market as a part of the global automotive components and accessories market within the global auto components market. The global auto parts and equipment market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, and off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
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Automotive Repair And Maintenance Services Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.84% |
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Market growth 2023-2027 |
USD 93.19 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.6 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 33% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arnold Clark Automobiles Ltd., ALL-TECH Transmission Inc., Apex Tool Group LLC, Asbury Automotive Group Inc., Ashland Auto Repair, Belron International Ltd., Bridgestone Corp., CarMax Inc., Driven Brands Holdings Inc., Firestone Complete Auto Care, Halfords Group Plc, Jiffy Lube International Inc., Monro Inc., myTVS Accessories, Pendragon Vehicle Management Ltd., Rust Oleum Corp., Sumitomo Corp., The Goodyear Tire and Rubber Co., LeasePlan Corp. NV, and Robert Bosch GmbH |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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