Automotive Service Market size is set to grow by USD 401.4 billion from 2024-2028, Increasing vehicle population to boost the market growth, Technavio

NEW YORK, July 4, 2024 /PRNewswire/ -- The global automotive service market  size is estimated to grow by USD 401.4 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.09%  during the forecast period. Increasing vehicle population is driving market growth, with a trend towards increasing vehicle digitization and electrification. However, uncertainty in automotive industry  poses a challenge. Key market players include 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, and Wrench Inc..

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Key Market Trends Fueling Growth

The automotive industry is undergoing significant transformation due to the integration of new technologies and the development of advanced vehicles. In recent years, electronic systems have increasingly replaced mechanical components in cars, driven by the demand for enhanced driver information, improved fuel efficiency, reduced emissions, increased safety, and superior driving experience. OEMs are responding to this trend by introducing innovative features in mid- and low-end vehicles, leading to a substantial increase in the number of sensors per car. The focus on Advanced Driver Assistance Systems (ADAS) such as lane assist, blind spot detection, adaptive cruise control, and electronic stability control is also driving the growth of electronic components in vehicles, necessitating architectural redesigns. The shift towards digitization and electrification is crucial for automotive OEMs to meet evolving consumer needs and remain competitive. Partnerships and collaborations with consumer electronics, energy, and telecommunication companies are becoming increasingly common to leverage their expertise in battery and advanced electronic systems. The pursuit of greater fuel economy through hybrid and plug-in hybrid vehicles is a key factor in this trend, with lightweight chassis made of aluminum and electrified powertrains reducing carbon emissions. Automotive service providers can capitalize on these developments by offering engineering solutions to optimize OEM and supplier processes and products, contributing to market growth. 

The Automotive Service Market is experiencing notable trends in various vehicle components. Batteries, air filters, cabin filters, oil filters, wiper blades, and starter-alternators are in high demand due to increased focus on vehicle maintenance. Collision body repairs continue to grow with the rise in road accidents. Vehicle customization is a significant trend, with consumers seeking chrome accessories, spoilers, LED lights, alloy wheels, and other upgrades. Connected cars and mobility fleet sharing are transforming consumer habits. The market for passenger car registrations remains strong, with steel, iron, aluminum, crude derivatives, nylon, polyester, and rubber being key materials in vehicle production. Sustainability is a priority, with automotive components undergoing innovation for improved efficiency. Aftermarket automotive services, including franchise general repairs and tire stores, are essential for maintaining the longevity of vehicles. Special Utility Vehicles and maintenance services for exterior and structural components are also in demand. 

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Market Challenges

• The automotive industry is currently facing significant challenges due to the global semiconductor chip shortage and the ongoing Russia-Ukraine conflict. The chip shortage has resulted in a production halt for various automotive original equipment manufacturers (OEMs), as they lack the necessary chips to build new vehicles. This issue is expected to persist into 2023, negatively impacting the automotive industry and the market in focus. Additionally, the Russia-Ukraine conflict has disrupted supply chains, making it difficult for automotive manufacturers to procure raw materials and components, including semiconductors. The rising costs and unavailability of these essential components have hampered vehicle production. Some major automotive companies, such as Volkswagen, Skoda, and BMW, have temporarily halted operations in Russia due to sanctions. These disruptions in production and global supply chains could worsen existing automotive supply issues, negatively impacting the automotive industry and the market in focus during the forecast period.
• The Automotive Service market encompasses aftermarket services for auto sales, passenger cars, light and heavy commercial vehicles, two wheelers, and Special Utility Vehicles. Sustainability is a growing concern, influencing consumer habits towards shared mobility, electric and hybrid vehicles. Franchise general repairs, tire stores, and maintenance services for exterior and structural issues remain in demand. Price sensitivity, repair time, and profitability are key challenges. Internal combustion engines face aging cars requiring replacement parts. Shared vehicles, taxis, and online sales platforms leverage software expertise and connected car technologies. Self-driving capabilities, sensors, and aftermarket solutions cater to price-sensitive customers. The market includes various vehicle types, from passenger cars to commercial vehicles and luxury models. Regular maintenance and repair using gear oil, engine oil, and brake oil are essential for optimal performance. Malfunctioning vehicles require skilled auto repair technicians. Electric and hybrid vehicles bring new opportunities, as do the ongoing advancements in automotive technology.

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Segment Overview 

This automotive service market report extensively covers market segmentation by

1. Type 
• 1.1 Mechanical services
• 1.2 Exterior and structural services
• 1.3 Maintenance services
2. Vehicle Type
• 2.1 Passenger cars
• 2.2 Light commercial vehicles
• 2.3 Two wheelers
• 2.4 Heavy commercial vehicles
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Mechanical services-  The automotive service market encompasses various mechanical offerings for automobiles, including oil filter changes, wiper blade replacement, new tires, and battery replacement. The need for enhanced performance and dependability in contemporary vehicles drives the demand for sophisticated solutions, thereby increasing the requirement for automotive services. The sales of vehicles significantly influence the adoption of automotive services. Economic activities, particularly in emerging nations, have led to a high demand for commercial vehicles, particularly light-duty commercial vehicles like minivans. These vehicles are extensively utilized for business purposes, such as intercity transportation, fueling the expansion of the light-duty commercial vehicles market and subsequently the demand for automotive services. Additionally, the burgeoning demand for passenger cars in countries like India, China, Brazil, and others will further propel the growth of the passenger car segment and the automotive services market as a whole during the forecast period.

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Research Analysis

The Automotive Service market encompasses a wide range of offerings beyond just auto sales, including aftermarket automotive services for vehicle components. Sustainability is increasingly influencing consumer habits, leading to a growing interest in mobility fleet sharing and two-wheeler markets. Lifestyle choices and the aging of cars drive demand for replacement parts and shared vehicles, such as taxis and ride-hailing services. Online sales platforms and software expertise are transforming the industry, enabling more efficient aftermarket solutions. Sensors and connected car technologies are revolutionizing maintenance, offering real-time data for repair time and profitability. The internal combustion engine remains a significant focus, but the shift towards electric and self-driving capabilities is gaining momentum. Price-sensitive customers and the need for quick repair times continue to challenge profitability in the market.

Market Research Overview

The Automotive Service market encompasses a wide range of industries and services related to the maintenance, repair, and enhancement of various types of vehicles. This market includes aftermarket automotive services, vehicle components manufacturing, and maintenance services for passenger cars, light commercial vehicles, heavy commercial vehicles, two wheelers, Special Utility Vehicles, and more. Consumer habits and lifestyles continue to evolve, with a growing trend towards sustainability and shared mobility solutions like fleet sharing and taxis. Automotive technology advances, including electric and hybrid vehicles, connected car technologies, and self-driving capabilities, are also driving demand for aftermarket solutions. Price-sensitive customers prioritize repair time and profitability, while repair technicians diagnose and address malfunctioning vehicles using sensors and replacement parts. The market includes a diverse range of materials, from crude derivatives and metals like steel, iron, and aluminum, to synthetic materials like nylon, polyester, and rubber. Vehicle customization trends continue to influence demand for chrome accessories, spoilers, LED lights, alloy wheels, and more.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• 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

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio