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The Automotive Service Market market size is projected to reach a value of USD 351.69 billion, with a CAGR of 7.65% between 2022 and 2027.
This automotive service market research report extensively covers market segmentation by type (mechanical services, exterior and structural services, and maintenance services), vehicle type (passenger cars, light commercial vehicles, two-wheelers, and heavy commercial vehicles), 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.
The growth of the market depends on several factors, including the increasing vehicle population, growth of automotive post-sale service, and upgradation of vehicle components.
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During the projected period, there will be a substantial expansion in market share for mechanical services, 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. The contemporary automotive landscape demands heightened performance and reliability, necessitating well-established solutions, thus driving an upsurge in the need for automotive services.
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The mechanical services segment was valued at USD 274.64 billion in 2017 and has maintained growth through 2021. The integration of car services into vehicles is closely tied to sales, with burgeoning 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 for automotive services 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 market forward.
The demand for automotive services is on the rise due to stricter emission regulations and increasing demand for personal mobility. The development of electric vehicles (EVs) has also contributed to this trend by leading to an increase in testing for EV passenger cars. The US government, for example, has set a target for half of all new vehicles sold in the country to be zero-emissions vehicles by 2030, which includes battery electric, plug-in hybrid electric, or fuel cell electric vehicles. To support the testing of EVs, vendors operating in the market have been expanding their operations. Therefore, due to the increasing production and demand for electric passenger cars, the market in focus is expected to experience positive growth during the forecast period.
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 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 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. These factors will have a positive impact on the growth of the automotive services market in the region.
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The market faced challenges as the 2020 COVID-19 pandemic reduced the demand for automotive services in the region due to decreased vehicle sales. The United States was the world's hardest-hit economy. Temporary closures of automotive manufacturing and R&D facilities have impacted demand for automotive services as well as automotive production. However, the regional market recovered in 2021 as the region returned to normal following a massive vaccination campaign. This has increased the demand for commercial vehicles across the region. Additionally, the reopening of global markets will provide an environment in which North American automakers can expand the production of vehicles that can compete with their competitors in the regional and global automotive markets. Such factors will continue to drive the demand for automotive services in the region during the forecast period.
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 Asia Pacific (APAC) region is a driving force in the automotive industry, leading in both vehicle production and consumption. The market stands to gain from APAC's ongoing expansion of production facilities and establishment of new ones. Notably, India aims to quintuple its car exports by 2026.
APAC, especially India and China, presents lucrative prospects due to robust domestic vehicle demand. China's commitment to electric and hybrid vehicles enhances the automotive service market's potential. China's significance as an auto producer and plans for new energy vehicles further underscore this potential. Emerging nations like Mexico and Brazil also demonstrate rapid automotive sales growth, with Brazil's technological progress and regional demand fulfillment setting it apart in Central and South America.
The prominent driver for global automotive service 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.
The 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 automotive chips, impeding the manufacturing of new vehicles. This chip crisis is anticipated to persist throughout 2023, casting a negative shadow on the automotive 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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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 Automotive Service Market. One of the major vendors 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 forecast 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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Service Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.65% |
Market growth 2023-2027 |
USD 351.69 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.0 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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 growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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 Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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