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Global Automotive Service Market Size was valued at USD 695.4 Billion in 2022. The Automotive Service market industry is projected to grow from USD 733.7 Billion in 2023 to USD 1126.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.61% during the forecast period (2023 - 2032). Rising auto sales, an increase in aftermarket automotive services, and stringent government regulations governing the upgrading or replacement of vehicle components, are the key market drivers enhancing the market growth.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
The car industry is swiftly transitioning into a new era characterized by improved lifestyles, rising sustainability, changing consumer preferences, the inclusion of linked and electric vehicles, mobility fleet sharing, and connected and electrified vehicles. Among the developing nations with the greatest potential for the automobile sector are Brazil, China, and India. In February 2022, Tata Motors reported a 47% rise in domestic passenger vehicle sales. Additionally, there was a 10% increase in passenger automobile registrations in the European Union in June 2021 when compared to the same month the year before. Due to the expanding travel and leisure sectors worldwide, there is a significant rise in the demand for Special Utility Vehicles (SUVs). Furthermore, governments are putting pressure on automakers to develop efficient and low-emission vehicles, which is putting a lot of pressure on those businesses to focus on R&D. As a result of rising demand for automobile manufacturing and sales, it is predicted that the industry for automotive repair and maintenance would expand during the course of the projection period.
Automotive repair and service can be used to replace a damaged section of a vehicle or add new components to an existing vehicle. Different auto parts must be replaced by customers at specific periods. For instance, passenger cars require new tires every 3–4 years, depending on driving conditions. As a result, the aftermarket for automotive components is substantial. As a result of consumer preferences for adding cutting-edge automotive components to improve vehicle look and guarantee driver safety, the market for repairs and services is also growing. Due to this growing customer preference and the development of the aftermarket service, it is projected that the market for vehicle repair and service would increase in the near future. The market's growth is further boosted by the participation of companies that make automobile components. For instance, Jiffy Lube International, Inc. plans to construct a new service center in the Greater Detroit Metropolitan Area in 2020. It offered a range of auto services, including diagnostics for engines, tires, and brakes, among others. Due to all of these factors, it is estimated that the market for automobile repair and service would grow considerably over the course of the projected decade. Thus, driving the Automotive Service market revenue.
The global Automotive Service market segmentation, based on Type, includes maintenance services, mechanical, and exterior & structural. The mechanical industry held the largest market share in 2022, and it is estimated that it will hold this position throughout the anticipated time frame. On the other hand, the projected period is expected to have the fastest CAGR in the maintenance services category.
The global Automotive Service market segmentation, based on Service Provider, includes franchise general repairs, OEM authorized service centers, local garage, tire stores & repair chains, and others. The local garage market sector accounted for the largest market share in 2022. In order to provide repair and maintenance services for a variety of vehicles, including hatchbacks, SUVs, sedans, and MPVs as well as two-wheelers, these firms often have a variety of service bays.
The global Automotive Service market segmentation, based on Vehicle Type, includes passenger cars, light commercial vehicles, heavy commercial vehicles, and two wheelers. In 2022, the passenger car segment dominated the market for automotive services. According to the Japan Automobile Manufacturers Association (JAMA), passenger automobiles make up over 72% of all automotive vehicles globally. Young populations, a growing middle class, and rising family incomes are predicted to increase passenger automobile use dramatically in developing countries like China, India, and Mexico.
The global Automotive Service market segmentation, based on Propulsion Type, includes internal combustion engine (ICE) and electric. The internal combustion engine sector held the largest proportion in 2022. This is explained by the increase in demand for ICE vehicles as a result of the COVID-19 problem and the overall global increase in demand for passenger cars.
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Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. The Asia Pacific Automotive Service market area will dominate this market. The presence of significant automakers has caused the market for automotive services in the area to expand quickly. Authorized service shops that handle auto repair and maintenance are growing as the number of vehicles on Asian roads rises. Moreover, In the Asia-Pacific region, the Indian Automotive Service market had the quickest rate of growth while China's Automotive Service market had the greatest market share.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
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Due to increasing investments in R&D for automotive parts for OEMs and the aftermarket, Europe's automotive service market has the second-largest market share. There are many auto suppliers and manufacturers in Germany, which has created an environment that is conducive to growth. Further, In the European region, the German Automotive Service market had the biggest market share, and the U.K. Automotive Service market had the quickest rate of growth.
The North America Automotive Service Market is expected to register significant growth from 2023 to 2032. The increase in the number of repair and maintenance facilities nearby explains this. The rising average age of vehicles and the greater use of used cars in the United States are also driving up demand for auto repair and maintenance services. Further, In the North American area, the U.S. Automotive Service market had the biggest market share, while the Canada Automotive Service market had the quickest rate of expansion.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Automotive Service market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Automotive Service sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Automotive Service industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Automotive Service sector. Major players in the Automotive Service market, including Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., Europart, Firestone, Hance’s European, Inter Cars S.A., Jiffy Lube International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc., are attempting to increase market demand by investing in research and development operations.
Walmart Inc. (Walmart) runs grocery stores, supermarkets, hypermarkets, department and discount stores, and local markets. Prices for products in the categories of consumables, health & wellness, technology, office supplies, entertainment, hardlines, fashion, and home are constantly cheap at the company's retail locations. Sam's Clubs and other warehouse clubs are also managed by it. Equate, Mainstays, George, Onn, Parent's Choice, Time and Tru, Wonder Nation, and No Boundaries are just a few of Walmart's private labels and licensed brands. The company provides financial services, fuel, gift cards, money orders, prepaid cards, money transfers, check cashing, and bill payment services in addition to other connected products. It offers products for sale on numerous e-commerce platforms throughout the Americas, Africa, and Asia. In the United States, Bentonville, Arkansas, is home to Walmart's corporate headquarters. In order to support the retailer's expanding e-commerce delivery operations, Walmart Inc. secured a reservation for 5,000 electric vans from the BrightDrop division of General Motors in January 2022.
Tesla Inc. is a company that makes electric cars as well as energy generation and storage technology. It also develops, produces, sells, and rents these technologies. Ones that the company produces and sells are the Model Y, Model 3, Model X, Model S, Cybertruck, Tesla Semi, and Tesla Roadster. Tesla additionally offers end-to-end clean energy goods, including generation, storage, and consumption, in addition to selling solar electricity, installing, and maintaining energy systems. It promotes and offers for sale vehicles to customers through a network of commercially operated shops and galleries. In April 2022, Tesla, Inc. plans to erect a 100,000 square foot facility in St. Pete, Florida. The new Tesla center will handle deliveries, service, and sales in the area.
· Asbury Automotive Group, Inc.
· Carmax Autocare Center
· CarParts.com, Inc.
· Europart
· Firestone
· Hance’s European
· Inter Cars S.A.
· Jiffy Lube International, Inc.
· LKQ Corporation
· M&M Automotive
· MEKO
· Mobivia Groupe
· MyTVS Accessories
· Safelite Group
· Sun Auto Service
· USA automotive
· Wrench, Inc.
In July 2022: FullSpeed Automotive® is accelerating growth with an acquisition strategy meant to help it achieve its 1,000-unit expansion goal by the end of 2023.
In Mar 2021: Monro, Inc. signed a definitive agreement to acquire Mountain View tire & Service, Inc., increasing its presence in the sought-after western United States to 116 locations with the addition of 30 California-based stores and an extra USD 45 million in expected annualized sales.
In January 2021: With the addition of 30 California-based stores and an additional USD 45 million in estimated annualized sales, Monro, Inc. inked a definitive agreement to purchase Mountain View tire & Service, Inc., boosting its presence in the desirable western United States to 116 locations.
· Maintenance Services
· Mechanical
· Exterior & Structural
· Franchise General Repairs
· OEM Authorized Service Centers
· Local Garage
· Tire Stores & Repair Chains
· Others
· Passenger Cars
· Light Commercial Vehicles
· Heavy Commercial Vehicles
· Two Wheelers
· Internal Combustion Engine (ICE)
· Electric
· North America
- US
- Canada
· Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 695.4 Billion |
|
Market Size 2023 |
USD 733.7 Billion |
|
Market Size 2032 |
USD 1126.8 Billion |
|
Compound Annual Growth Rate (CAGR) |
5.61% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Type, Service Provider, Vehicle Type, Propulsion Type, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., Europart, Firestone, Hance’s European, Inter Cars S.A., Jiffy Lube International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc. |
|
Key Market Opportunities |
Rising trend of vehicle customization |
|
Key Market Dynamics |
Increasing automotive sales, growth of automotive post sale services, and stringent government regulations to replace or upgrade vehicle components |
The global Automotive Service market size was valued at USD 695.4 Billion in 2022.
The global market is projected to grow at a CAGR of 5.61% during the forecast period, 2023-2032.
Asia Pacific had the largest share in the global market
The key players in the market are Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., Europart, Firestone, Hance’s European, Inter Cars S.A., Jiffy Lube International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc.
The Mechanical Type dominated the market in 2022.
The Local Garage Service Provider had the largest share in the global market.
Research on the market is done by industry professionals who provide personalized insights on the industry structure, market segmentation, Type assessment, competitive landscape (CL), along with penetration, and emerging trends. In addition to years of professional experience in their various fields and sectors, their analysis is largely based on primary interview (60%) and secondary research (40%) as well as years of professional experience. In addition, our researchers forecast the market's direction over the following seven years by examining past trends and the market's current position. Additionally, various trends of segments and categories that are geographically portrayed are studied and estimated using primary and secondary research.
The key level executives (VP, CEO, Marketing Directors, and Business Development Managers) of the major industry participants who are active and prominent as well as mid-scale businesses operating in this market were interviewed in-depth for this supply-side report by overall Global Market Research.
Extensive primary research was conducted to gain a deeper grasp of the market and industry. Both primary and secondary research, as well as years of pertinent professional experience, are used to support the analysis. By analyzing past and present market patterns, our experts were able to forecast the market's course over the following seven years. For the geographically offered categories in the list of market tables, it differs per category. In connection with the Global Market research report, we also conducted a number of primary interviews with senior level executives (VP, CEO's, Directors, Marketing Directors, Business Development Managers, CFOs, Technical Consultants, Key Opinion Leaders, Industry Experts, Decision Matrix Authorities, and other crucial individuals) of the key industry players who dominated the Global market.
The primary purpose of secondary research was to gather, identify, and validate the information necessary for the thorough, technical, market-focused, and commercial analysis of the global market. With the use of this study, it was also possible to classify and segment the market in accordance with market trends, geographic markets, and regional considerations linked to market type. Analysts have gathered data in the Distribution Channel for the study of the market from reliable sources including annual reports, journals, white papers, corporate presentations, company websites, international organizations of Energy and Power manufacturers, credible paid databases, and many others to gather reliable intel.
Both top-down and bottom-up methodologies were employed to assess the accuracy of the global market size. The market for as a whole was estimated using these methods for a number of different dependent submarkets. Secondary research was used to address the major industry players, and primary and secondary research was used to calculate their market shares in the various regions. This complete intellectual process includes reading the annual and financial reports of the top market participants and conducting in-depth interviews with top industry executives (VP, CEO, Marketing Directors, and Business Development Managers) to gain important industry insights.
Through reliable secondary sources and validated primary sources, the classification of the global markets and their geographic percentage splits were established. To obtain the final qualitative and quantitative data, all relevant variables that might have an impact on the market under investigation have been taken into consideration, inspected in great depth, verified through primary research, and assessed. This information was collected, added to, and thoroughly examined by professional analysts before being provided in this report. The process used to estimate the overall market size for this study is depicted in the following image as an example.
Report Code :
RL65291
Published on :
Sep 2023
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