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The vehicle roadside assistance market size is estimated to grow at a CAGR of 6.95% between 2022 and 2027. The market size is forecast to increase by USD 8,909.29 million. The growth of the market depends on several factors including, the rising number of road accidents, the increasing availability of app-driven services, and the aging vehicle fleet with a massive number of vehicles in use.
This vehicle roadside assistance market report extensively covers market segmentation by application (passenger cars and commercial vehicles), service (towing, tire replacement, fuel delivery, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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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.
The rising number of road accidents is the key factor driving the growth of the global vehicle roadside assistance market. Every year, thousands of people worldwide die in car accidents. The number of deaths caused by vehicles would decrease by a third if all vehicles were equipped with cruise control systems and anti-lock braking systems (ABS). Passengers do not wear seatbelts in automobiles or protective gear on motorcycles is one of the major factors contributing to the high fatality conversion rate. Around 75% of reported motorcycle crashes result in injury or death. This showcases the high demand for vehicle roadside assistance services.
Moreover, with the rising number of vehicles on the road and roads being the primary mode of transportation, road accident injuries and fatalities have increased over the past decade. Road accidents also increased due to human error, such as speeding, drunken driving, and not following traffic and driving rules. All these factors have increased the number of road accidents around the globe. Though automotive manufacturers are focusing on increasing safety measures in vehicles, which will lead to the growth of the global vehicle roadside assistance market during the forecast period.
Rising demand for vehicle connectivity solutions is the primary trend in the growth of the global vehicle roadside assistance market. Automobile manufacturers are outfitting their vehicles with advanced connectivity solutions, which will guarantee the high entrance of connected cars in the future. Vehicle telematics systems accrue and transfer data regarding vehicle conditions to service centers, fleet owners, and insurance providers.
In addition, drivers will have easy access to real-time highway alerts and notifications over the next ten years, and based on traffic density, navigation systems will be able to direct the vehicle toward the route that uses less amount of fuel. Moreover, original equipment manufacturers, technology companies, and various component suppliers are working on the development of vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication solutions. Such developments are expected to influence the global vehicle roadside assistance market during the forecast period.
The high cost of vehicle roadside services is a significant challenge for the growth of the global vehicle roadside assistance market. Price is an important factor when choosing a road service. The increase in labor costs and fuel costs was the most important factor affecting the price increase of roadside assistance services. Any fluctuation in payment can drastically impact the profitability of the manufacturers and market players. The rising demand for vehicle drivers in growing industries such as ridesharing and delivery services has impacted the availability of tow truck drivers. This has drastically increased the cost of labor for vendors over the past few years.
Moreover, rising fuel prices and commercial insurance premiums also further impacted the cost of roadside assistance services. These costs account for more than 10% of the overall service costs. Therefore, an increase in the commercial issuance premium or the price of fuels significantly raises the vendors' overall operational expenses (OPEX), thereby impacting the profitability of the vendor, which will further impact the growth of the market.
The market research 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 Vehicle Roadside Assistance 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.
AA Ltd.: The company offers vehicle roadside assistance to manufacturers, roadside programs, banks, legal, and rental companies.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. Passenger cars include variants with an internal combustion engine and electric cars. Growing demand for these vehicles is expected to drive the passenger car segment of the global car assistance market during the forecast period. This indicates the increase in disposable income in emerging countries, is leading to the growth of the passenger vehicles market in countries such as Brazil, India, China, and South Africa, as well as Middle Eastern countries, including the UAE, Qatar, and Saudi Arabia.
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The passenger cars segment was the largest segment and was valued at USD 13,168.89 million in 2017. It is expected that the growth of the vehicle roadside assistance market will be aided by the rising demand for luxury cars in the premium segment from both developing and developed economies. Especially in developed economies such as the US, the UK, and Italy, extensive product development by EV vendors has supported the growth of these vehicles. Hence, this will drive the growth of the market during the forecast period.
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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. The increasing number of aging vehicles and the growing penetration of electric cars are the key factors that drive the growth of the vehicle roadside assistance market in the region. Various governments in Europe are endorsing the use of EVs by giving tax incentives. For example, in Austria, EVs are free from fuel consumption/pollution taxes and ownership taxes. Similarly, in Bulgaria, EVs are exempted from ownership taxes. Hence, governmental support in various European nations boosts the use of EVs, which is driving the need for advances in vehicle roadside assistance services in the region.
Furthermore, owing to the growing concerns regarding road safety and regulations, mandate the installation of safety features such as eCall and electronic stability control (ESC), the rising penetration of advanced driver-assistance systems (ADAS) and other safety systems across all vehicle segments in addition, the conducive connected car ecosystem provided by European countries in the form of debarring data roaming services across Europe will propel the adoption of autonomous, connected car technology. These advances in assistance systems will drive the growth of the market.
In 2020, due to the outbreak of COVID-19, the automobile industry in Europe faced widespread production losses as factories were shut down as per the lockdown protocols. However, In 2021, the initiation of large-scale vaccination drives?lifted the lockdown, and automobile industry players resumed investments and production in the region. This positively impacted the sales of various automobile players. Hence, the rise in automobile sales, new product launches, and the electrification of vehicles will positively impact the growth of the regional market during the forecast period.
The vehicle roadside assistance market 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.
Vehicle Roadside Assistance Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.95% |
Market growth 2023-2027 |
USD 8,909.29 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.87 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 34% |
Key countries |
US, China, UK, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AA Ltd., Agero Inc., ALD SA, Allianz SE, American Automobile Association Inc., ARC Europe SA, AutoVantage, Best Roadside Service, Camping World Holdings Inc., Falck Danmark AS, Assicurazioni Generali S.p.A., 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 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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