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The US automotive service market size is forecast to increase by USD 79.4 billion at a CAGR of 9.45% between 2023 and 2028. The automotive service market in the US is experiencing significant growth, driven by the increasing vehicle population and the resulting demand for routine maintenance and repairs. Furthermore, the trend towards vehicle digitization and electrification is creating new opportunities for service providers, as advanced technologies require specialized expertise and tools. However, the uncertainty in the automotive industry, including economic fluctuations and regulatory changes, poses challenges for market participants. As the market evolves, service providers must adapt to new technologies and business models to remain competitive and meet the evolving needs of consumers.
The aftermarket automotive services market in the US is experiencing significant growth due to various factors. The increasing popularity of electric vehicles and hybrid cars is driving the demand for replacement parts, particularly batteries, as these vehicles require more specialized maintenance. Government rules and regulations, such as emissions standards, are also influencing the market, as older domestic passenger vehicles and special utility vehicles are being retired and replaced. Connected vehicles and mobility fleet sharing are also impacting the market, as annual maintenance costs for shared vehicles are typically lower than for privately owned vehicles. This trend is particularly prevalent in the taxi industry, which is increasingly adopting shared mobility models.
Online sales platforms and software expertise are becoming essential for aftermarket service providers, as customers increasingly seek convenience and efficiency. Software vehicle systems, such as telematics and diagnostics, are also becoming more common, allowing for more precise and effective maintenance and repair. Aftermarket maintenance services for components such as air filters, cabin filters, oil filters, wiper blades, collision body, starters and alternators, and myTVs accessories remain in high demand. As the number of aging cars on the road continues to increase, the need for replacement parts and maintenance services is expected to grow.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Mechanical services segment is estimated to witness significant growth during the forecast period. The automotive service market in the US is witnessing significant growth due to the increasing adoption of advanced technologies such as self-driving capabilities, hybrid vehicles, and electric vehicle technology. Aftermarket solutions and specialist repair services are in high demand as price-sensitive customers prioritize affordability and efficiency. Repair time and profitability are crucial factors for automotive service providers, driving the adoption of data analytics, sensors, and predictive maintenance technologies. Subscription-based maintenance programs are gaining popularity, offering mechanical services including gear oil, engine oil, brake oil changes, and repairs for filters, starters, and alternators. The market is segmented by service type, vehicle type, and geography.
Commercial vehicles, particularly light-duty commercial vehicles like minivans, are experiencing increased demand due to urbanization and population boom, fueling the growth of the automotive service market. Mergers & acquisitions, facility expansion, and market presence are key strategies adopted by major players to stay competitive. New technologies, such as MyTVS Accessories and Life360 digital platform, are transforming the automotive service industry with subscription-based models.
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The Mechanical services segment was valued at USD 48.90 billion in 2018 and showed a gradual increase during the forecast period.
Our automotive service market in US researchers analyzed the data with 2023 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.
The increasing vehicle population is the key driver of the market. The US automotive market is experiencing strong growth, driven by various factors. With the increasing population and the number of licensed drivers, the demand for automobiles has increased. The US remains a significant market for luxury vehicles, particularly luxury SUVs. Factors such as easily accessible credit, decreased fuel prices, and the need for personal mobility have fueled the growth of this segment. In addition to new automotive sales, the market for collision services, diagnostics, roadside assistance, accessories, and vehicle customization is also expanding. The focus on automotive safety norms and technologically advanced features, such as connected cars, is also driving growth.
Elitek Vehicle Services and other service providers are investing in advanced tools and technologies to cater to the evolving needs of CXOs and consumers. The market for raw materials and propulsion types, including electric and hybrid, is also witnessing significant activity. Road safety awareness and the growing popularity of used cars are additional trends shaping the US automotive industry.
The increasing vehicle digitization and electrification is the upcoming trend in the market. The automotive industry in the US is witnessing significant advancements, driven by the integration of technology into vehicles. Electronic systems are increasingly replacing mechanical components, leading to an enhanced driving experience with features such as diagnostics, roadside assistance, and technologically advanced safety norms. OEMs are focusing on the development of collision services, accessories, and propulsion type differentiation to cater to evolving consumer preferences. Vehicle customization and connected cars are gaining popularity, with elite CXOs prioritizing road safety awareness. Raw materials and automotive sales are also influenced by these trends, as OEMs invest in research and development to meet the demands of the market.
Mid- and low-end cars are now equipped with advanced features, including driver assistance systems and technologically advanced safety norms, to cater to the increasing need for convenience and safety.
The automotive industry in the US is experiencing significant challenges due to the global semiconductor chip shortage and the geopolitical tensions between Russia and Ukraine. The chip shortage has resulted in a production halt for several automotive original equipment manufacturers (OEMs), leading to a decline in new automotive sales. This situation is expected to persist in 2023, negatively impacting the automotive service market. Additionally, the invasion of Ukraine by Russia in February 2022 has caused an increase in raw material prices, further affecting the production costs of automobiles. These factors have led to an increase in the demand for collision services, diagnostics, roadside assistance, and vehicle customization as consumers turn to used cars.
The focus on automotive safety norms and technologically advanced features, such as connected cars, remains a priority for service providers. Elitek Vehicle Services and other CXOs in the industry are working towards ensuring road safety awareness and addressing the challenges posed by the current market conditions.
The automotive service market in US forecasting 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 market growth analysis strategies.
Customer Landscape
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 market.
Alloy Wheel Repair Specialists LLC - The company provides a comprehensive range of automotive services in the United States, catering to the needs of vehicle owners. These services include Warranty Repair, ensuring that vehicles are covered under manufacturer's warranties are maintained and addressed effectively.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The aftermarket automotive services market in the US is experiencing significant growth due to various factors. Government rules mandating regular vehicle inspections and maintenance are driving demand for mechanical services, including brakes, tires, engine diagnostics, and maintenance services. The shift towards electric vehicles and connected cars is also creating new opportunities for the market, with a focus on software expertise and automobile electronics. The aging domestic passenger vehicles and special utility vehicles require frequent replacement parts, contributing to the industry's growth. Additionally, the rise of mobility fleet sharing, shared vehicles, and online sales platforms for replacement parts is increasing competition among local garages, tire stores, repair chains, and franchise general repairs.
Light commercial vehicles, heavy commercial vehicles, and two wheelers also contribute to the market's expansion. The annual maintenance costs for internal combustion engines and electric vehicles continue to rise, making it essential for service centers to stay updated with the latest automotive technology and connected car technologies to meet customer demands.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.45% |
Market growth 2024-2028 |
USD 79.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.41 |
Key companies profiled |
Alloy Wheel Repair Specialists LLC, Automotive Service Center, AutoNation Inc., Belle Tire Distributors Inc., Bridgestone Corp., Caliber Holdings LLC, D Ieteren Group SA NV, Driven Brands Holdings Inc, Drivers Tire and Service Center, Hyundai Motor Co., Icahn Automotive Group LLC, Mavis Tires and Brakes, Michelin Group, Monro Inc, Nissan Motor Co. Ltd., Shell plc, The Goodyear Tire and Rubber Co., Toyota Motor Corp., USA Automotive, and Walmart Inc. |
Market dynamics |
Parent market analysis, Market forecasting , market forecast , market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 Market Segmentation by Propulsion
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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