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The Automotive Service market size is projected to increase by USD 401.4 billion, with a CAGR of 8.09% between 2023 and 2028. The global automotive industry is experiencing a transformation driven by the rise of new technologies and the evolution of vehicle design. In recent years, electronic systems such as Electronic Access Control Systems (EACS) have increasingly replaced mechanical parts in modern vehicles, driven by the demand for better information for drivers, improved fuel efficiency, lower emissions, enhanced safety, advanced driver assistance, and a smoother driving experience. Original Equipment Manufacturers (OEMs) are aligning their future product development strategies with this ongoing shift. Manufacturers are adding distinctive features to their vehicles to stand out in a competitive market, introducing advanced technologies even in mid-range and budget-friendly cars, including electric cars. Additionally, the number of sensors per vehicle is anticipated to double soon, signaling the industry's rapid technological progression.
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The automotive service market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
During the projected period, there will be a substantial expansion in market share for mechanical services segment, particularly in the automotive sector. These services encompass a range of tasks like oil filter replacement, wiper blade installation, tire and battery changes, all contributing to the maintenance of vehicles, thus driving the need for automotive repair and maintenance services. The contemporary automotive landscape demands heightened performance and reliability, necessitating well-established solutions, thus driving growth of the automotive service market.
The automotive service market is experiencing significant growth, with its market size expanding rapidly. As the automotive service market share increases, it highlights the importance of diverse service types, ranging from maintenance to repair. Various automotive service market applications cater to both individual vehicle owners and large fleet operators. Region-wise, the automotive service market shows strong growth in North America, Europe, and Asia-Pacific. Comprehensive automotive service market research reveals trends in consumer behavior and emerging automotive technologies, shaping the future of the industry. The automotive service industry continues to evolve, driven by innovation and demand for quality services.
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The mechanical services segment was valued at USD 288.20 billion in 2018. The integration of car services into vehicles is closely tied to sales, with growing economies, notably in emerging markets, boosting demand for light commercial vehicles and consequently, automotive services. Automakers have strategically devised light commercial vehicles, such as minivans, to access cost-sensitive markets in developing countries, a move that is predicted to bolster the growth of the light commercial vehicle market and the demand in the foreseeable future. Furthermore, the escalating desire for passenger cars in countries like India, China, and Brazil will also contribute to the segment's expansion, propelling the automotive service market forward.
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North America region includes technologically advanced countries and mature markets such as the United States and Canada, which have led to the development of advanced engines. Such developments will undoubtedly require various automotive services, such as automotive powertrain testing. This will drive the growth of the market to watch over the forecast period. The concentration of commercial vehicle manufacturers is also fueling the demand for automotive testing. In addition, many automakers are moving their manufacturing facilities to Mexico to take advantage of labor arbitrage and lower production costs, increasing vehicle production in Mexico. This trend will continue to show significant growth as OEMs such as BMW, KIA MOTORS, Daimler and Renault-Nissan announce new plants in Mexico. This growth will be further supported by the performance of the US automotive service market. These factors will have a positive impact on automotive service market growth in the region.
The automotive service market caters to a wide array of needs, from routine maintenance to complex repairs, reflecting the diverse demands of consumers. As lifestyles evolve and technology advances, so do consumer habits and preferences, influencing the types of services sought after. From internal combustion engine in aging cars to the emergence of shared vehicles and taxis in shared mobility schemes and mobility-as-a-service, the landscape continues to shift. With the rise of connected and electric vehicles, software expertise and automotive technology play increasingly crucial roles. Price sensitive customers seek high-quality replacement parts and efficient service, emphasizing the importance of repair time and profitability for service providers. In this dynamic market, aftermarket solutions and online sales platforms are becoming increasingly relevant, driven by the demand for convenience and accessibility.
The automotive service market is thriving, with the market size reflecting robust growth. Automotive service market share is diversifying as demand for different service types, including diagnostics and customization, rises. Key automotive service market applications span across personal vehicles, commercial fleets, and specialized vehicles. The automotive service market region-wise shows significant expansion in emerging markets, particularly in Asia-Pacific. In-depth automotive service market research identifies evolving customer preferences and technological advancements. The automotive service industry remains dynamic, with continuous improvements in service quality and efficiency driving further growth in this sector. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The global automotive industry is being driven by the emergence of new technologies and the development of new vehicles. In the last decade, electronic systems have replaced mechanical components in modern automobiles to a considerable extent. This is attributed to the growing need for increased information to the driver, reduced fuel consumption, lower emissions, increased safety, driver assistance, and an easy and pleasant driving experience. OEMs are planning their further product developments to meet this ongoing trend. Manufacturers have started incorporating special features in cars to highlight product differentiation and to sustain in the competitive automotive service market. OEMs are introducing several advanced features in mid-end and low-end cars. Furthermore, the number of sensors used per car is expected to double within a short span of time.
The prominent driver for global market expansion is the escalating consumer demand for vehicle digitization. Over the past decade, electronic systems have supplanted traditional mechanical components, as consumers desire enhanced driver information, lowered fuel consumption, decreased emissions, heightened safety, driver assistance, and seamless driving enjoyment.
Original Equipment Manufacturers (OEMs) are strategizing additional product advancements to align with this upward trend. To distinguish their offerings and thrive in the competitive landscape, manufacturers are incorporating special features into mid-range and entry-level models. Additionally, the quantity of sensors per vehicle has rapidly doubled, reflecting the swift evolution of this trend.
Automotive service market growth faces a significant obstacle due to the uncertainties plaguing the automobile industry. This sector is grappling with the repercussions of both the worldwide semiconductor chip shortage and the ongoing Russia-Ukraine conflict.
Automakers are presently grappling with a dearth of chips, impeding the manufacturing of new vehicles. This chip crisis is anticipated to persist throughout 2023, casting a negative shadow on the industry and consequently, the market's trajectory. Moreover, Russia's invasion of Ukraine in February 2022 has further stymied industry growth. The war has disrupted parts sourcing, elevated energy costs, and constrained vital components like semiconductors essential for vehicle production.
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Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Automotive Service Market. One of the major players in the market include:
Arnold Clark Automobiles Ltd: The company offers different automotive services such as manufacturer and value service. Along with this, it also sells cars, trucks, garage equipment, automotive parts, and accessories.
The automotive service market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The automotive service market encompasses a wide array of services and products catering to various needs of vehicle owners. From routine maintenance and repairs to aftermarket solutions, the sector addresses the evolving demands of consumers in a rapidly changing landscape. Factors such as sustainability, consumer habits, and the rising popularity of connected and electric vehicles are reshaping the industry. Additionally, trends like mobility fleet sharing, online sales platforms, and subscription-based maintenance programs are gaining traction. With a focus on quality, convenience, and technological advancements, the market caters to price-sensitive customers while offering High quality replacement parts and innovative service solutions.
In addition, as vehicle customization trends and connected car technologies continue to evolve, the automotive service market adapts to meet the diverse needs of modern consumers. In the industry, auto sales and aftermarket automotive services are essential components of a complex ecosystem. Domestic passenger vehicle sales drive the market, catering to various sectors like leisure, tourism, and shared mobility services like taxis. With aging cars and the emergence of Self driving capabilities, the demand for repair and maintenance, including franchise general repairs and services from OEM authorized centers, remains high. Customers, particularly those price-sensitive, prioritize high-quality replacement parts, quick repair times, and profitability. Subscription-based maintenance programs offer convenience, especially for luxury vehicle owners. From routine checks to replacement parts like air filters and wiper blades, the aftermarket maintenance and servicing sector ensures vehicles' longevity and performance. Additionally, customization trends, including chrome accessories and alloy wheels, reflect consumers' desire for personalized vehicles in a diverse market influenced by materials like steel, aluminum, and polymers.
Moreover, the market encompasses a broad spectrum of offerings catering to various aspects of vehicle ownership and maintenance. From routine services like oil changes and tire rotations to more specialized repairs and customization, the industry addresses the diverse needs of consumers. Factors such as evolving lifestyles, increasing demand for domestic passenger vehicles and special utility vehicles, and the rise of shared mobility and self-driving capabilities influence market dynamics. Price-sensitive customers seek high-quality replacement parts and efficient repair services, while luxury vehicle owners may prioritize subscription-based maintenance programs. Technological advancements in automotive technology and software expertise play a pivotal role in enhancing repair processes and service quality. Additionally, the market encompasses a wide range of automotive components, from batteries and tires to filters and collision body parts, reflecting the comprehensive nature of automotive services and parts.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.09% |
Market growth 2024-2028 |
USD 401.4 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
7.32 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arnold Clark Automobiles Ltd., Asbury Automotive Group Inc., Ashland Automotive Inc., Belron International Ltd., Bridgestone Corp., Carmax Autocare Center, Driven Brands Holdings Inc, EUROPART Group GmbH, Halfords Group Plc, Inter Cars S.A, Jiffy Lube International Inc., LKQ Corp., M and M Automotive, MEKO Auto Components Inc., Mobivia, Monro Inc, Sumitomo Corp., The Goodyear Tire and Rubber Co., USA Automotive, and Wrench Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our automotive service market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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