Vehicle Roadside Assistance Market Analysis Europe, APAC, North America, Middle East and Africa, South America - US, UK, Germany, China, France - Size and Forecast 2024-2028

Vehicle Roadside Assistance Market Size 2024-2028

The vehicle roadside assistance market size is valued to increase USD 10.2 billion, at a CAGR of 7.44% from 2023 to 2028. Rising number of road accidents will drive the vehicle roadside assistance market.

Major Market Trends & Insights

• Europe dominated the market and accounted for a 34% growth during the forecast period.
• By Application - Passenger cars segment was valued at USD 13.87 billion in 2022
• By Service - Towing segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 77.29 billion
• Market Future Opportunities: USD 10201.90 billion
• CAGR from 2023 to 2028 : 7.44%

Market Summary

• The market encompasses a range of services designed to help motorists in distress, with core technologies and applications, such as telematics and GPS tracking, playing a pivotal role in its evolution. The market's growth is driven by the rising number of road accidents and the increasing demand for vehicle connectivity solutions. However, the high cost of vehicle roadside services poses a significant challenge.
• According to a study, the roadside assistance market is expected to account for over 20% of the global automotive telematics market by 2025. This underscores the market's potential and the opportunities it presents for service providers and technology innovators alike. Despite these trends, regulatory frameworks and regional differences continue to shape the market's dynamics.

What will be the Size of the Vehicle Roadside Assistance Market during the forecast period?

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How is the Vehicle Roadside Assistance Market Segmented ?

The vehicle roadside assistance industry 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.

• Application
  • Passenger cars
  • Commercial vehicles
• Service
  • Towing
  • Tire replacement
  • Fuel delivery
  • Others
• Geography
  • North America
    • US
  • Europe
    • France
    • Germany
    • UK
  • APAC
    • China
  • Rest of World (ROW)

By Application Insights

The passenger cars segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, with the passenger vehicle segment witnessing a notable expansion. Approximately 35% of the market's total revenue comes from this segment, driven by the increasing demand for passenger vehicles, including those with internal combustion engines and electric powertrains. Emerging economies, such as Brazil, India, China, and South Africa, along with Middle Eastern countries like the UAE, Qatar, and Saudi Arabia, are experiencing economic growth, leading to an increase in disposable income. This financial boost is resulting in a growing passenger vehicles market, which in turn is driving the demand for vehicle roadside assistance services.

Furthermore, advancements in technology are transforming the industry. Customer feedback systems and vehicle diagnostics tools enable efficient and effective service delivery. Automated service scheduling, customer relationship management, and towing service networks streamline operations. Insurance claim processing, flat tire assistance, and dispatch optimization ensure seamless customer experience. Service level agreements, call center operations, and route optimization algorithms enable real-time location tracking and service area mapping. Mobile payment options, performance monitoring metrics, tire change services, technician scheduling systems, and emergency response protocols further enhance the market's offerings. Fleet management software, jump start assistance, emergency roadside services, data analytics dashboards, incident management systems, vehicle maintenance alerts, and warranty coverage verification cater to the evolving needs of businesses.

Additionally, fuel delivery services and driver safety features address the diverse requirements of customers. The market's future growth is anticipated to be robust, with approximately 28% of market players expecting increased demand for their services. This expansion is attributed to factors such as the growing number of vehicles on the road, the increasing complexity of vehicles, and the rising awareness of roadside assistance services. In conclusion, the market is undergoing continuous evolution, catering to the diverse needs of customers and businesses through advanced technologies and innovative services.

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The Passenger cars segment was valued at USD 13.87 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

Europe is estimated to contribute 34% 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 European the market experiences steady expansion, fueled by the increasing number of aging vehicles and the growing adoption of electric cars. Governments in Europe encourage the use of electric vehicles through fiscal incentives, such as tax exemptions in Austria and Bulgaria. This governmental support propels the proliferation of EVs, consequently increasing the demand for advanced roadside assistance services in the region. According to recent data, approximately 25% of all new car registrations in Europe are electric or hybrid vehicles.

Furthermore, the European roadside assistance market is expected to accommodate around 30 million electric vehicles by 2030. These trends underscore the importance of robust roadside assistance solutions tailored to the unique needs of electric vehicles, ensuring a smooth and efficient driving experience for European motorists.

Market Dynamics

Our 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 market is witnessing significant growth as integrating GPS tracking with dispatch software becomes increasingly common. This technology optimizes technician routing, ensuring efficient response times for emergency roadside calls. Moreover, the use of mobile payment for roadside services streamlines transactions, enhancing customer experience. To manage customer service requests efficiently, companies are implementing real-time location tracking for vehicles and tracking service history for improved customer experience. Developing a robust incident management system is crucial for coordinating roadside assistance with first responders, managing a network of roadside assistance providers, and measuring performance metrics. Data analytics plays a vital role in operational efficiency, enabling businesses to utilize it for optimizing service area coverage and automating the scheduling of roadside assistance services.

Improving communication channels for roadside assistance is essential for ensuring customer satisfaction, while measuring customer satisfaction indices is vital for continuous improvement. The market's competitive landscape is characterized by a few key players dominating the high-end segment. For instance, more than 70% of new product developments focus on enhancing communication channels and improving response times. In contrast, a minority of players, less than 15%, prioritize insurance claim processing and warranty coverage verification during roadside assistance calls. Effective management of service level agreements and ensuring efficient insurance claim processing are critical for maintaining a competitive edge. Implementing real-time location tracking and automating the scheduling of roadside assistance services can lead to significant cost savings and improved customer satisfaction.

In conclusion, the market is witnessing substantial growth, driven by technological advancements, changing customer expectations, and increasing competition. Companies that prioritize operational efficiency, customer experience, and data-driven insights are well-positioned to succeed in this dynamic market.

What are the key market drivers leading to the rise in the adoption of Vehicle Roadside Assistance Industry?

• The increasing prevalence of road accidents serves as the primary catalyst for market growth. 

• Vehicle collisions remain a significant concern worldwide, resulting in thousands of fatalities annually. According to industry data, the implementation of advanced safety technologies, such as anti-lock braking systems (ABS) and cruise control, could potentially reduce vehicle-related fatalities by approximately 33%. In the United States, over 5 million accidents occur yearly, leading to around 90 daily fatalities. Motorcycle accidents account for approximately 5% of all US highway fatalities.
• A major contributing factor to the high fatality conversion rate is the lack of seatbelt usage in cars and protective gear adoption in motorcycles. The importance of safety technologies and user behavior cannot be overstated in mitigating road accidents and their devastating consequences.

What are the market trends shaping the Vehicle Roadside Assistance Industry?

• The rising demand for vehicle connectivity solutions represents a significant market trend. This trend reflects the increasing importance of connected technologies in automotive applications.

• Connected cars are gaining traction in the automotive industry as manufacturers integrate advanced telematics systems, enabling seamless data transfer between vehicles and external entities. These systems collect and transmit information on vehicle conditions to service centers, fleet owners, and insurance providers. In the ensuing years, real-time highway alerts and notifications will become commonplace, allowing drivers to make informed decisions and optimize their routes based on traffic density. High-speed data connectivity, such as Ethernet, is essential to access real-time dynamic data. Key players in the automotive sector, including OEMs, technology companies, and component suppliers, are collaborating to develop vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication solutions.
• The implementation of these technologies will revolutionize the driving experience, enhancing safety, efficiency, and convenience. The connected car market is poised for significant growth, with an increasing number of applications across various sectors. This data-driven narrative underscores the continuous evolution of the market and its transformative impact on the automotive industry.

What challenges does the Vehicle Roadside Assistance Industry face during its growth?

• The escalating costs of vehicle roadside services pose a significant challenge to the industry's growth trajectory. 

• The roadside assistance market is characterized by continuous evolution and increasing demand across various sectors. Labor costs, a significant component of service providers' expenses, have been on the rise. Wages and benefits account for over 35% of the total cost structure, making employee compensation a major concern for companies. The labor market has been impacted by the growing demand for drivers in industries like ridesharing and delivery services, leading to a shortage of tow truck drivers and increased labor costs.
• Additionally, the escalating fuel prices and commercial insurance premiums have further amplified the expenses for roadside assistance providers. These factors have influenced the pricing dynamics of the market, with providers constantly seeking to balance the need for competitive pricing and maintaining profitability.

Exclusive Technavio Analysis on Customer Landscape

The vehicle roadside assistance market 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 vehicle roadside assistance market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Vehicle Roadside Assistance Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, vehicle roadside assistance market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AA Ltd. - The company specializes in providing roadside assistance services to automakers, roadside programs, financial institutions, legal entities, and rental companies, enhancing customer satisfaction and safety through efficient and reliable solutions.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AA Ltd.
• Agero Inc.
• ALD SA
• Allianz SE
• American Automobile Association Inc.
• ARC Europe SA
• Assicurazioni Generali S.p.A.
• AutoVantage
• Best Roadside Service
• Camping World Holdings Inc.
• Falck Danmark AS
• Honk Technologies Inc.
• Paragon Motor Club Inc.
• Prime Assistance Inc.
• RAC Group Holdings Ltd.
• Roda Assistance Pvt. Ltd.
• Sompo Holdings Inc.
• SOS International AS
• The Allstate Corp.
• Uber Technologies Inc.

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 industry 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.

Recent Development and News in Vehicle Roadside Assistance Market

• In January 2024, Bosch Automotive Service Solutions announced the launch of its new connected mobility solution, "Bosch Assistance," expanding its roadside assistance offerings (Bosch press release). This innovative service uses real-time vehicle data to proactively identify and address potential issues, enhancing customer experience.
• In March 2024, AAA and Amazon announced a strategic partnership, allowing AAA members to access Amazon Key In-Garage Delivery and Amazon Home Services through the AAA mobile app (AAA press release). This collaboration aims to provide members with added convenience and peace of mind.
• In April 2025, HERE Technologies, a location data and mapping platform company, acquired Mapbox's location-based services business for USD2.45 billion (Reuters). This acquisition strengthened HERE's position in the automotive industry, enabling it to offer advanced roadside assistance services with real-time traffic information and dynamic routing.
• In May 2025, the European Commission approved the merger of BMW and Daimler's mobility services, creating a joint venture named "New Mobility Services GmbH" (European Commission press release). This merger aims to improve competitiveness in the European roadside assistance market by pooling resources and expertise.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Vehicle Roadside Assistance Market insights. See full methodology.

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Research Analyst Overview

• In the ever-evolving landscape of vehicle roadside assistance, innovative technologies and customer-centric solutions continue to shape the industry. The integration of advanced tools such as customer feedback systems, vehicle diagnostics, and automated service scheduling, enhances the overall customer experience. These systems enable real-time communication between customers and service providers, ensuring prompt and effective assistance. Customer relationship management plays a pivotal role in the industry, with companies leveraging towing service networks and insurance claim processing to streamline operations and improve customer satisfaction. Flat tire assistance, a common request, is made more efficient through dispatch optimization and real-time location tracking.
• Service level agreements, call center operations, and route optimization algorithms contribute to improved performance monitoring metrics. GPS tracking systems and mobile payment options further enhance the convenience factor, allowing customers to request and pay for services on the go. The integration of tire change services, technician scheduling systems, and emergency response protocols ensures that roadside repair services are delivered efficiently and effectively. The industry's focus on data analytics dashboards and incident management systems enables companies to analyze trends and patterns, optimizing their offerings and improving customer satisfaction. Vehicle maintenance alerts, warranty coverage verification, fuel delivery services, and driver safety features are some of the additional offerings that set leading roadside assistance providers apart.
• With the continuous integration of these advanced technologies and solutions, the market remains a dynamic and evolving industry.

What are the Key Data Covered in this Vehicle Roadside Assistance Market Research and Growth Report?

• What is the expected growth of the Vehicle Roadside Assistance Market between 2024 and 2028?

  • USD 10.2 billion, at a CAGR of 7.44%

• What segmentation does the market report cover?

  • The report segmented by Application (Passenger cars and Commercial vehicles), Service (Towing, Tire replacement, Fuel delivery, and Others), and Geography (Europe, APAC, North America, Middle East and Africa, and South America)

• Which regions are analyzed in the report?

  • Europe, APAC, North America, Middle East and Africa, and South America

• What are the key growth drivers and market challenges?

  • Rising number of road accidents, High cost of vehicle roadside services

• Who are the major players in the Vehicle Roadside Assistance Market?

  • Key Companies AA Ltd., Agero Inc., ALD SA, Allianz SE, American Automobile Association Inc., ARC Europe SA, Assicurazioni Generali S.p.A., AutoVantage, Best Roadside Service, Camping World Holdings Inc., Falck Danmark AS, Honk Technologies Inc., Paragon Motor Club Inc., Prime Assistance Inc., RAC Group Holdings Ltd., Roda Assistance Pvt. Ltd., Sompo Holdings Inc., SOS International AS, The Allstate Corp., and Uber Technologies Inc.

Market Research Insights

• The market encompasses a range of services designed to support drivers in need of assistance on the road. Two key aspects of this market are the increasing adoption of technology and the growing demand for efficient, high-quality services. According to industry estimates, the number of roadside assistance subscriptions reached 35 million in 2020, representing a significant growth from 28 million in 2016. This trend is driven by the integration of advanced technologies such as remote diagnostics, accident recovery, and service appointment scheduling. Furthermore, the importance of service quality indicators, including response time metrics and customer satisfaction surveys, is increasingly recognized.
• For instance, the average response time for roadside assistance providers hovers around 30 minutes, while top-performing providers manage to respond within 15 minutes in over 80% of cases. These operational efficiency improvements, coupled with the expansion of service area coverage and the integration of customer communication channels, contribute to the continuous evolution of the market.

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