Authored By: Sarah
11 Jul 2024

 Automotive Service Market Size to grow by USD 401.4 billion between 2024-2028

According to a research report “ Automotive Service Market” by Type (Mechanical services, Exterior and structural services, Maintenance services) Vehicle Type (Passenger cars, Light commercial vehicles, Two wheelers, Heavy commercial vehicles) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 401.4 billion, at a CAGR of  8.09% during the forecast period. The automotive industry is experiencing robust growth in various regions, with Asia Pacific (APAC) leading the charge. APAC is the fastest-growing market for vehicle production and consumption. This trend is driving the expansion of existing facilities and the addition of new production sites in the region. For instance, the Indian EV market is projected to expand at a Compound Annual Growth Rate (CAGR) of 36% from 2021 to 2026, according to the India Energy Storage Alliance. Moreover, the Indian automotive sector aims to boost vehicle exports five-fold between 2016 and 2026. The burgeoning growth in APAC presents a significant opportunity for automotive players.

Browse market data tables, figures, and in-depth TOC on “Automotive Service Market” by Type (Mechanical services, Exterior and structural services, Maintenance services) Vehicle Type (Passenger cars, Light commercial vehicles, Two wheelers, Heavy commercial vehicles) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Type, the Mechanical services segment is projected to dominate the market size in 2024

The automotive service market is experiencing significant growth due to the increasing demand for personal mobility and the growing regulatory focus on emission standards. The surge in electric vehicle (EV) production and sales, driven by government initiatives such as the US goal of having 50% of new vehicle sales be zero-emission vehicles by 2030, is leading to an increase in EV passenger car testing. Consequently, vendors in the market are expanding their operations to support this trend, resulting in a positive market growth trajectory during the forecast period. This expanding market is characterized by the increasing production and demand for electric passenger cars, driven by both consumer preference and regulatory requirements.

By Vehicle Type, Passenger cars  segment is expected to hold the largest market size for the year 2024

In the automotive industry, the demand for mechanical services continues to rise due to the increasing need for improved performance and reliability in modern vehicles. Services such as oil filter changes, wiper blade replacement, new tires, and battery replacement are essential for maintaining the optimal functioning of automobiles. The sales of vehicles, particularly light-duty commercial vehicles, play a significant role in the adoption of automotive services. The growing economic activities, particularly in emerging markets, have led to a surge in demand for commercial vehicles, especially light-duty ones, for business purposes like intercity transportation. This trend is expected to fuel the growth of the light-duty commercial vehicles market and subsequently increase the demand for automotive services during the forecast period.

North America is forecasted to hold the largest market size by region in 2024

The automotive service market encompasses the repair, maintenance, and modification of various vehicle makes and models. Key players in this sector include independent garages, franchised dealerships, and aftermarket service providers. Growth in this industry is driven by factors such as increasing vehicle sales, rising disposable income, and technological advancements in automotive systems. Strategic partnerships, mergers and acquisitions, and product innovation are essential strategies for market expansion and competitiveness.

The Automotive Service Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 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.
.

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Research Analysis Overview

The Automotive Service Market is experiencing significant growth due to the increasing integration of advanced technologies such as sensors, self-driving capabilities, and connected car technologies. These innovations are driving profitability for automotive service providers by offering new services and repair opportunities. However, price-sensitive customers continue to seek aftermarket solutions for replacement parts, particularly for aging cars and two wheelers. The shift towards shared mobility, including taxis and shared vehicles, is also impacting the market. Consumers' lifestyles and mobility fleet sharing are changing consumer habits, leading to a focus on sustainability and vehicle components that can be easily serviced. Automotive technology companies with software expertise are capitalizing on this trend by developing online sales platforms for replacement parts and aftermarket automotive services. Heavy commercial vehicles and internal combustion engines continue to dominate the market, but the demand for electric and hybrid vehicles is growing. As automotive technology advances, the focus on profitability and repair time will remain crucial for service providers. The ability to offer efficient and cost-effective solutions while staying up-to-date with the latest technologies will be key to success in the automotive service market.

Market Research Overview

The Automotive Service Market is a dynamic and diverse industry that caters to the needs of various vehicle types, from passenger cars and luxury vehicles to commercial vehicles, hybrid and electric vehicles, two wheelers, and Special Utility Vehicles. The market encompasses a wide range of products and services, including alloy wheels, LED lights, spoilers, and chrome accessories, which reflect the growing trend towards vehicle customization. The market also includes the production and sale of crude derivatives such as rubber, polyester, and nylon, which are used in the manufacturing of tires, cabin filters, and other automotive components. The market's profitability is driven by the demand for maintenance and repair services for malfunctioning vehicles, with auto repair technicians providing solutions for starters and alternators, collision body repairs, wiper blades, oil filters, cabin filters, air filters, batteries, and tires. The market is also witnessing the emergence of connected cars, which offer self-driving capabilities and connected car technologies, requiring software expertise and online sales platforms. The shift towards shared mobility, including taxis and shared vehicles, is also driving demand for replacement parts and maintenance services for aging cars. The market includes various vehicle types, such as passenger cars, light commercial vehicles, heavy commercial vehicles, and two wheelers, and caters to diverse consumer habits and lifestyles. The market's sustainability is a key focus area, with a growing emphasis on the use of alternative fuels and the development of automotive technology for reducing emissions and improving fuel efficiency.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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