Automotive Service Market Analysis and Forecast 2024-2028

The Automotive Service Market size is forecast to increase by USD 401.4 billion, growing at a compound annual growth rate (CAGR) of 8.09% from 2023 to 2028.The market is driven by several key factors, including the rising vehicle population, which continues to boost demand for automotive repair and maintenance services. The automotive industry is also undergoing a digital transformation with the integration of advanced technologies like Electronic Access Control Systems (EACS) and automotive powertrain testing. Moreover, the rise of electric vehicles and mobility-as-a-service models presents both opportunities and challenges for the industry. The automotive parts sector plays a critical role, as the demand for replacement parts remains strong, even with the shift toward electric vehicles

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Market Segmentation

• By Type

  • Mechanical Services: This segment is expected to experience significant growth due to the demand for vehicle maintenance, including oil filter changes, tire installations, and battery replacements.
  • Exterior and Structural Services: These services, which involve repairs and modifications to a vehicle's external and internal structure, are essential to maintaining vehicle integrity.
  • Maintenance Services: Routine maintenance services such as tire changes, oil changes, and other vehicle care services continue to drive the market.

• By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Two Wheelers
  • Heavy Commercial Vehicles

Regional Market Trends

• North America

  • US
  • Canada

• APAC

  • China
  • Japan

• Europe

  • Germany
  • UK
• South America
• Middle East and Africa

Market Dynamics

• Drivers
  
  The primary driver for the automotive service market is the increasing vehicle population globally, especially in the Asia Pacific (APAC) region. The demand for automotive services is also growing due to technological advancements, such as the integration of sensors, connected car technologies, and self-driving capabilities. Consumer habits are evolving towards shared mobility solutions like ride-hailing, taxis, and car-sharing platforms. Additionally, sustainability concerns are driving the market toward electric and hybrid vehicles, contributing to the rising need for specialized maintenance and repair services for these types of vehicles.

• Trends
  
  Increasing vehicle digitization and electrification is a major trend in the automotive service market. Advanced technologies, such as sensors and connected car technologies, are transforming the industry. Furthermore, vehicle customization, including chrome accessories, LED lights, and alloy wheels, is becoming a significant trend in the market.

• Challenges
  
  One of the key challenges faced by the automotive service industry is the uncertainty in the automotive sector, including issues like the global semiconductor chip shortage and geopolitical tensions. These factors are disrupting the production of new vehicles, which in turn affects the aftermarket services market. Additionally, price sensitivity among customers and the need for efficient repair times continue to pose challenges for automotive service providers.

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Key Players

• 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
• Wrench Inc.