Automotive Repair and Service Market

Global Automotive Repair and Service Market Overview:

The global automotive repair and service market size reached US$ 684.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,008.2 Billion by 2032, exhibiting a growth rate (CAGR) of 4.4% during 2024-2032. The rising sales of vehicles across the globe, the implementation of stringent government regulations, and the integration of artificial intelligence (AI) represent some of the key factors driving the market growth.

Automotive Repair and Service Market Analysis:

• Major Market Drivers: Increasing sales of vehicles across the globe and the implementation of stringent government regulations towards replacing and upgrading vehicle components to ensure better on-road safety and lower emissions levels are primarily driving the growth of the market.
• Key Market Trends: The adoption of artificial intelligence (AI) to generate detailed vehicle diagnosis reports, detect and identify damaged parts, conduct inspections, draw up pre-estimates for customers, and suggest appropriate repair operations is one of the significant trends, catalyzing the growth of the market.
• Geographical Landscape: According to the report, Asia Pacific was the largest market for automotive repair and service. Some of the factors driving the market in the region included rising automotive sales, the implementation of various government initiatives, and significant technological advancements.
• Competitive Landscape: Some of the leading automotive repair and service companies include Asbury Automotive Group Inc., Bridgestone Corporation, CarMax Autocare Center, Hance’s European, Inter Cars S.A., Jiffy Lube International Inc. (Shell plc), LKQ Corporation, MyTVS Accessories (TVS Group), Safelite Group Inc. (Belron Group S.A.), Sun Auto Service, and Wrench Inc., among many others.
• Challenges and Opportunities: The market faces challenges, such as rapid technological advancements requiring continuous technician training and the shift towards electric vehicles altering traditional maintenance needs. However, these challenges also present opportunities for service providers to specialize in niche areas, embrace digital tools for efficiency, and capitalize on the growing demand for eco-friendly vehicle servicing.
   

Automotive Repair and Service Market Trends:

Increasing Ownership of Vehicles

The increasing sales of vehicles across the globe is one of the primary factors driving the market growth. Automotive repair and service are integral to a vehicle's proper functioning as it involves engine tuning, brake inspection, lubrication, and changing of tires, air filters, wear and tear parts, engine oil, and coolants, which enhances driver safety, maintains vehicle value, and lowers operating costs. Moreover, the inflating disposable income of consumers and rising preference for convenient modes of transportation are further accelerating the sales of passenger cars. For instance, revenue in the passenger cars market is projected to reach US$ 2,069.0 Billion in 2024. Passenger cars market unit sales are expected to reach 72.54 million vehicles in 2028. Furthermore, in India, sales of passenger cars also increased from 14,67,039 to 17,47,376, utility vehicles from 14,89,219 to 20,03,718, and vans from 1,13,265 to 1,39,020 units, in the financial year 2022-23. Such a significant rise in the ownership of vehicles is anticipated to propel the automotive repair and service market demand in the coming years. 

Government Initiatives

The increasing concerns regarding carbon emissions are prompting the government authorities of various countries to take initiatives regarding vehicle emission reduction. For instance, the Bureau of Automotive Repair (BAR), a division of the Department of Consumer Affairs (DCA), protects Californians by effectively supervising the automotive repair industry and administering vehicle emissions reduction and safety programs. Similarly, the Car Care Council, a non-profit organization dedicated to educating motorists about the importance of regular vehicle care, strongly advises drivers of older vehicles to implement a preventative maintenance plan for their vehicle in order to reduce the likelihood of a roadside breakdown and to help their vehicle run more efficiently and economically. Apart from this, the concerned government authorities of various nations are implementing policies for the timely repair and services of vehicles, which is further creating a positive outlook for the overall market. For instance, in May 2023, the Department of Consumer Affairs, India, launched the 'Right to Repair' initiative and portal, which protects a vehicle's warranty even if an individual has repairs made at a third-party workshop. The portal is currently live, and two-wheeler manufacturers, including Hero MotoCorp and Hona Motorcycles and Scooters, have already come on board. 

Technological Advancements

Technological advancements in automotive repair and service have significantly evolved over the years, introducing innovative tools, diagnostic equipment, and processes to enhance efficiency, accuracy, and safety in vehicle maintenance. Moreover, various automotive service companies are increasingly using artificial intelligence-based automated vehicle inspection technology for vehicle inspection to widen their customer base. For instance, in February 2022, Scope Technology, a US-based tech firm, collaborated with Microsoft's Azure cloud computation to develop AI-automated vehicle inspection technology. This visual inspection takes less than 5 minutes and saves 50% on costs. Similarly, in December 2023, GoMechanic, a leading technology-driven automotive service company, launched 'Electric Vehicle Services' for key fleet operators in the EV space. The company will target to service/repair over 10,000+ smart vehicles across India in the year 2024-25. EV fleet services will include periodic vehicle service to major repairs – including paint, tires, windshield, side mirrors, brake pads, repair, and replacements. Such innovations are projected to catalyze the growth of the market in the coming years.

Global Automotive Repair and Service Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with automotive repair and service forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type, vehicle type, propulsion type, and service provider.

Breakup by Type:

• Mechanical
• Exterior and Structural
• Maintenance Services
   

Mechanical represented the largest segment

The report has provided a detailed breakup and analysis of the market based on the type. This includes mechanical, exterior and structural, and maintenance services. According to the report, mechanical represented the largest segment.

Mechanical type typically refers to a category of repairs and services that involve traditional mechanical components of a vehicle, as opposed to electronic or electrical systems. Various key market players are increasingly investing in upgrading their equipment that facilitates the easy and smooth service of the mechanical component of the vehicle. For instance, in October 2023, Totalkare, a key distributor of Hunter’s cutting-edge heavy-duty wheel alignment equipment, announced a partnership with Hunter Engineering Company, bringing a trio of products to the forefront of the commercial vehicle maintenance industry.

Breakup by Vehicle Type:

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

Passenger cars accounted for the largest automotive repair and service market share

A detailed breakup and analysis of the market based on the vehicle type has also been provided in the report. This includes passenger cars, light commercial vehicles, heavy commercial vehicles, and two wheelers. According to the report, passenger cars accounted for the largest market share.

Passenger cars have gained immense popularity among drivers over the past few years due to features such as stylish design, compact size, and economic value. Passenger cars are the most common mode of transportation in numerous advanced countries. Furthermore, the inflating spending capacities of consumers and increasing preference for convenient modes of transportation are also augmenting the demand for passenger vehicles. According to the Society of Indian Automobile Manufacturers, sales of passenger cars increased from 14,67,039 to 17,47,376 units in 2022-23. The rise in number of passenger vehicles is resulting in their increased repair services, which is creating a positive outlook for the overall market.

Breakup by Propulsion Type:

• Internal Combustion Engine (ICE)
• Electric
   

Internal combustion engine (ICE) accounted for the largest market share

A detailed breakup and analysis of the market based on the propulsion type has also been provided in the report. This includes internal combustion engine (ICE) and electric. According to the report, internal combustion engine (ICE) accounted for the largest market share.

Internal combustion engine (ICE) vehicles have been the dominant form of transportation for over a century, but they have undergone significant advancements over time. It is estimated that the European ICE vehicle sales will be around 9.9 million units in 2030. Similarly, the total production of passenger internal combustion engine (ICE) vehicles in China is forecasted to reach around 22.08 million units by 2030. Moreover, continuous research and development efforts have led to significant improvements in the efficiency of internal combustion engines. Technologies such as turbocharging, direct fuel injection, variable valve timing, and cylinder deactivation have all contributed to better fuel economy and reduced emissions.

Breakup by Service Provider:

• Local Garage
• Franchise General Repairs
• OEM Authorized Service Centers
• Tire Stores and Repair Chains
• Others
   

Local garage accounted for the largest market share

A detailed breakup and analysis of the market based on the service provider has also been provided in the report. This includes local garage, franchise general repairs, OEM authorized service centers, tire stores and repair chains, and others. According to the automotive repair and service market insights, local garage accounted for the largest market share.

Local garage service providers offer comprehensive automotive repair and maintenance services, including engine diagnostics, brake repairs, and oil changes. With skilled technicians and state-of-the-art equipment, they ensure prompt and reliable solutions for vehicle issues. These establishments often prioritize personalized customer service and strive to build long-term relationships within the community. Whether for routine maintenance or complex repairs, local garage service providers offer convenience and expertise to keep vehicles running smoothly.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific was the largest market for automotive repair and service

The automotive repair and service market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific was the largest market for automotive repair and service.

Some of the factors driving the Asia Pacific market included rising automotive sales, the implementation of various government initiatives, and significant technological advancements. For instance, India's Automotive Mission Plan FAME-II emphasizes providing government support to the country's growing automotive and components manufacturing industry. Besides that, in February 2022, Tesla announced its plan to increase production capacity in China to at least one million cars per year, with a second plant planned near its present production in Shanghai's Lingangfree trade zone. Such a significant rise in the production of vehicles is anticipated to positively impact the automotive repair and service market outlook.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Asbury Automotive Group Inc.
• Bridgestone Corporation
• CarMax Autocare Center
• Hance’s European
• Inter Cars S.A.
• Jiffy Lube International Inc. (Shell plc)
• LKQ Corporation
• MyTVS Accessories (TVS Group)
• Safelite Group Inc. (Belron Group S.A.)
• Sun Auto Service
• Wrench Inc.
   

(Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)

Global Automotive Repair and Service Market Latest News:

• April 2024: Nippon Paint, a paint and coating company in the Asia Pacific region, launched its automotive body and paint repair service brand, Mastercraft. This brand covers services ranging from high-quality body and paint work, and car maintenance services to quick repairs.
• April 2024: Meta Mechanics, Dubai's premier auto repair center, unveiled comprehensive car services emphasizing reliability, transparency, and client satisfaction.
• January 2024: O2 Investment Partners announced that Straightaway Tire & Auto, a leading independent, full-service aftermarket automotive repair and service platform, completed the acquisitions of Maple Grove Auto Service and Warzecha Auto Works.
• January 2024: Pune-based KPIT partnered with Microsoft to introduce an Azure OpenAI Service-powered Copilot to transform automotive repair and maintenance.

Global Automotive Repair and Service Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the automotive repair and service market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global automotive repair and service market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive repair and service industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.