In the ever-evolving world of automobiles, one essential sector quietly propelling the industry forward is the Automotive Repair & Maintenance Services market. As vehicles become more sophisticated and complex, the demand for expert repair and maintenance services has surged. The global market for these services is on a remarkable trajectory, with an anticipated valuation of US$ 915.88 billion in 2023. Looking ahead, the projections are even more promising, as the market is set to reach a staggering US$ 1,850 billion by 2033, boasting a robust Compound Annual Growth Rate (CAGR) of 7.2%. In this blog, we delve into the current state of the automotive repair & maintenance services market, explore the driving factors behind its expansion, and uncover the trends that are shaping its future.
Rising Vehicle Ownership and Ageing Fleets
With the global population growing and economies flourishing, vehicle ownership has experienced a significant upswing. As the number of vehicles on the road increases, the need for repair and maintenance services follows suit. Moreover, many vehicles are remaining in service for longer durations, resulting in a surge in demand for maintenance, replacement parts, and upgrades.
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Embracing Digitalization and Diagnostic Technologies The integration of digital tools and diagnostic technologies is revolutionizing the repair and maintenance landscape. From onboard diagnostic systems to predictive maintenance algorithms, these innovations are enhancing the accuracy of diagnostics, reducing downtime, and minimizing the overall cost of repairs. Repair shops are evolving into tech-savvy hubs, equipped to diagnose and fix issues with precision.
To expand their customer base, automotive service companies are increasingly embracing artificial intelligence-based automated vehicle inspection technology for efficient vehicle inspections. A notable example is the collaboration between Scope Technology, a United States-based tech firm, and Microsoft’s Azure cloud computation in February 2022. This partnership aims to develop AI-automated vehicle inspection technology that enables visual inspections in under 5 minutes, resulting in a significant cost reduction of 50%.
Rising penetration of electric vehicles is further projected to drive market growth. This accelerated adoption of electric vehicles can be attributed to government initiatives and support aimed at improving environmental quality and reducing reliance on crude oil. Moreover, it is projected that battery electric vehicle repair and maintenance costs will be approximately 40% lower than those of internal combustion engine vehicles, further driving the market’s expansion.
Key Takeaways
- United States automotive repair & maintenance services market is expected to grow with a CAGR of 6.8% during the forecast period.
- The market in China is expected to grow with a CAGR of 7.1% during the forecast period.
- By vehicle type, the passenger car segment is projected to grow with a significant CAGR of 7.4% during the forecast period.
- The market in India is expected to grow with a CAGR of 7% throughout the forecast period.
“Increasing adoption of vehicle diagnostic tools and increasing automobile sales are expected to fuel market growth during the forecast period,” comments an FMI analyst.
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Competitive Landscape
The automotive repair & maintenance services market is extremely competitive, with various key industry players investing heavily in providing these services.
The key industry players are Arnold Clark Automobile Ltd., Asbury Automotive Group Inc., Ashland Automotive Group Inc., Belron International Ltd, Driven Brands Inc., Goodyear Tire & Rubber Company, Carmax Autocare Center, Firestone Complete Autocare, Halfords Group PLC, Monro Inc.
Key industry players are utilizing organic growth strategies like acquisitions, mergers, tie-ups, and collaboration to bolster their product portfolio. This is expected to propel the global automotive repair & maintenance services market.
- On November 4, 2022, Belron International Ltd. confirmed its submission of a Commitment Letter to the Science Based Targets initiative (SBTi). This letter signifies their determination to establish science-based emissions reduction targets, aligning with the objectives of the Paris Agreement
- In March 2021, Monro, Inc. entered into an agreement to acquire Mountain View Tire & Service, Inc. The acquisition not only strengthens Monro, Inc.’s foothold in the western region but also expands its overall presence to a total of 116 stores, further positioning the company in an attractive market.
- In July 2022, FullSpeed Automotive® announced its accelerated growth plans through acquisitions to expand to 1,000 units by the end of 2023. As a leading franchisor and operator of automotive aftermarket repair facilities, FullSpeed Automotive® is known for its flagship brands Grease Monkey® and SpeeDee Oil Change & Auto Service®.
More Valuable Insights Available
Future Market Insights offers an unbiased analysis of the global automotive repair & maintenance services market, providing historical data for 2017 to 2022 and forecast statistics from 2023 to 2033.
To understand opportunities in the automotive repair & maintenance services market, the report is segmented by services & parts (engine oil, gear oil, brake oil, grease, tires, batteries, wear & tear parts, air filter, cabin filter, oil filter, wiper blades, and others), vehicle type (passenger car, LCV, and HCV), and service providers (automotive dealerships, franchise general repairs, specialty shops, locally owned repair shops, tire shops and others) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa).
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Key Segments Profiled in the Automotive Repair & Maintenance Services Industry Survey
By Services & Parts
- Engine Oil
- Gear Oil
- Brake Oil
- Grease
- Tires
- Batteries
- Wear & Tear Parts
- Air Filter
- Cabin Filter
- Oil Filter
- Wiper Blades
- Others
By Service Providers
- Automobile Dealerships
- Franchise General Repairs
- Specialty Shops
- Locally Owned Repair Shops
- Tire Shops
- Others
By Vehicle Type
- Passenger Cars
- LCV
- HCV
By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- Middle East & Africa
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, Stevie Award – recipient market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.
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