Automotive Service Market Forecast 2024-2028: Key Insights & Future Trends Shaping the Industry

Market Overview: What Is the Automotive Service Market?

The automotive service market refers to a vast, rapidly evolving sector dedicated to the repair, maintenance, and enhancement of vehicles post-sale. These services span from mechanical repairs and diagnostics to software updates, powertrain testing, battery replacement, and customization. As the number of vehicles on the road—especially in urban areas—continues to rise, the need for robust, reliable automotive services is surging.According to Technavio’s latest research, the global automotive service market is expected to grow by USD 401.4 billion from 2024 to 2028, accelerating at a CAGR of 8.09%. The expansion is propelled by rising vehicle ownership, increased longevity of used vehicles, consumer demand for customization, and the penetration of electric and connected vehicles.For more details about the industry, get the PDF sample report for free

What You’ll Learn in This Report:

• The dominant forces driving market expansion

• Key players shaping innovation and service quality

• Growth opportunities in vehicle types and service categories

• Emerging regional hotspots

• Market impact of EVs, hybrid technology, and fleet sharing

Key Players Driving the Global Automotive Service Market

The automotive service industry is highly fragmented, encompassing local repair shops, franchise chains, OEMs, and digital-first service providers. Key market players include:

• Bridgestone Corp.

• Goodyear Tire and Rubber Co.

• Monro Inc.

• Jiffy Lube International Inc.

• Arnold Clark Automobiles Ltd.

• Halfords Group Plc.

• Driven Brands Holdings Inc.

• CarMax Autocare Center

• Mobivia

• MEKO Auto Components Inc.

• LKQ Corp.

• Inter Cars S.A.

These companies are actively engaging in mergers and acquisitions, service innovation, and regional expansion. Bridgestone, for example, is strengthening its digital inspection capabilities, while Goodyear continues to scale its mobile tire services and fleet management offerings.

Strategic Focus Areas:

• Expansion into online service booking platforms

• Electric vehicle servicing and battery diagnostics

• Integration of predictive maintenance systems

• Regional partnerships with OEMs for servicing EVs and hybrids

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Segmentation: Understanding What’s Fueling Each Submarket

By Service Type

The market is divided into:

• Mechanical services (e.g., oil change, battery replacement, tire installation)

• Exterior & structural services (e.g., collision repair, paint jobs)

• Maintenance services (e.g., routine checkups, fluid replacements)

Among these, mechanical services are projected to lead the market through 2028, driven by the increasing complexity of modern vehicle systems and wear-prone parts. Mechanical services were valued at USD 288.20 billion in 2018 and continue to rise in response to increased vehicle performance expectations.

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Heavy Commercial Vehicles (HCVs)

• Two-Wheelers

Passenger cars and LCVs dominate the service demand due to their sheer volume and usage intensity. Light-duty vehicles, particularly minivans used in business operations, are a major growth engine for mechanical and maintenance service segments.

Fact: Aging vehicles—especially those exceeding 8 years—are fueling increased demand for frequent and intensive maintenance services, which boosts aftermarket revenue streams.

Trends and Drivers Shaping the Future

Surge in Vehicle Population and Usage

One of the most significant drivers is the growing vehicle population worldwide, especially in APAC and Latin America. For instance, the Indian EV market alone is projected to grow at a CAGR of 36% from 2021–2026. As more vehicles enter the market, so too does the demand for frequent, reliable service.

Electrification and Mobility-as-a-Service (MaaS)

The shift from internal combustion engines (ICE) to electric vehicles (EVs) is pushing service providers to invest in high-voltage battery diagnostics, software tools, and training for EV-specific components.

Additionally, the rise of MaaS platforms like ride-hailing apps and car-sharing services is transforming maintenance cycles. Fleet operators demand rapid turnaround and predictive maintenance to minimize downtime.

Digital Transformation in Automotive Services

Digital tools like Electronic Access Control Systems (EACS), predictive analytics, and connected diagnostic software are redefining how services are delivered. OEMs are integrating sensors and software expertise directly into service packages, enabling proactive repairs.

Digital platforms are also empowering customers to schedule services online, track real-time vehicle diagnostics, and access mobile repair solutions.

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Market Research Overview

The Automotive Service Market continues to expand steadily due to rising vehicle maintenance demand and advancements in diagnostics. Essential services such as auto repair, oil change, tire service, and brake repair remain core offerings across service centers. Modern car diagnostics and wheel alignment solutions are driving precision maintenance, along with battery replacement and transmission repair services gaining traction due to aging vehicles. Engine repair and suspension repair are frequently sought for high-mileage cars, while exhaust repair and clutch replacement remain essential for performance. Radiator repair, alternator repair, and starter motor replacements are commonly integrated into routine service packages. Additionally, growing interest in aesthetics has spurred demand for car detailing and paint protection. Services like windshield replacement, auto body refinishing, and collision repair are increasingly sought after, especially in urban accident-prone zones. Light restoration, AC repair, and heater repair round out comfort and visibility services, ensuring complete customer satisfaction.

Regional Insights: Where Growth Is Accelerating

North America (Estimated to contribute 31% of global growth)

The US and Canada remain global powerhouses for automotive services due to:

• A large fleet of aging vehicles

• Technological leadership in powertrain diagnostics

• Shifting OEM production hubs to Mexico for cost efficiency

OEMs such as BMW, Daimler, and Renault-Nissan are investing in new plants in Mexico, which boosts regional vehicle output and associated services.

Asia-Pacific (Fastest-Growing Region)

China, India, and Southeast Asia are spearheading growth with surging automobile ownership, a young vehicle fleet, and supportive government EV policies.

India alone is planning a 5x increase in vehicle exports by 2026. Urbanization, expanding disposable incomes, and rising fuel costs are all contributing to increased reliance on vehicle repair and customization services.

Europe

Germany and the UK remain key players in premium vehicle servicing. As EV adoption grows in these regions, service centers are adapting by adding battery and software capabilities, offering integrated solutions that include both mechanical and digital maintenance

South America

Middle East and Africa

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Market Dynamics: Challenges and Opportunities

Key Opportunities

• Growth in online service aggregators

• Customization trends (e.g., LED lights, spoilers, chrome trims)

• EV and hybrid vehicle aftermarket services

• Software-based maintenance and diagnostics

Vehicle personalization is booming. Consumers are investing in alloy wheels, body kits, digital dashboards, and other enhancements that necessitate specialized services. This is creating niche opportunities for parts retailers and customization-focused garages.

Market Challenges

• Semiconductor chip shortages delaying new vehicle production

• High price sensitivity affecting consumer repair behavior

• Volatile raw material costs (steel, aluminum, rubber)

• Regulatory pressure on emissions and vehicle safety compliance

These headwinds complicate forecasting for service providers, pushing them to pivot towards fleet customers, subscription-based service plans, and more robust parts inventory systems to avoid delays.

Visual Snapshot: Automotive Service Ecosystem

• Passenger Cars: Most serviced segment globally

• Top Services: Oil change, brake repair, battery replacement

• EV Surge: Requires new diagnostic and repair skillsets

• Leading Region: North America (31% of market share)

• 2028 Market Size: +$401.4 billion | CAGR: 8.09% 

• Most Demanded Parts: Tires, filters, sensors, batteries

• Trends: Mobility-as-a-service, fleet management, digital diagnostics

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Research Analysis Overview

Market analysis reveals significant investment in fuel system diagnostics and the servicing of components like timing belts, spark plugs, air filters, and cabin filters. Wear-and-tear items such as brake pads and rotor replacement remain high-frequency services. Meanwhile, complex suspension elements—shock absorber, strut replacement, ball joint, tie rod, control arm, wheel bearing, and CV joint—underscore the need for specialized technicians. Demand is also rising for axle repair and differential repair, particularly in high-torque vehicles. Regulatory compliance is pushing up volumes in car inspection, emissions testing, and OBD diagnostics. Electrification trends are reshaping the landscape, with EV battery servicing and hybrid repair rapidly gaining prominence. The market is embracing this evolution with skilled labor and advanced tools, ensuring service providers remain relevant in an era of drivetrain innovation and sustainability.