The vehicle service market is projected to expand at a CAGR of 4.2% during the forecast period of 2023 and 2031. Throughout the projected period, the market share of vehicle services is anticipated to be driven by the increasing demand for passenger vehicles and the expansion of the automotive aftermarket service industry. Increased global electric car penetration is also contributing to market expansion. In addition, a surge in demand for short-term vehicle subscriptions and a rise in concern over automotive carbon emissions are driving the expansion of the vehicle services industry. To entice clients, authorized vehicle service shops provide annual subscription plans coupled with enticing discounts and prizes. This creates an attractive potential for raw material suppliers serving the market for automotive services. To increase their market share, market leaders are introducing new service facilities and innovative products with cutting-edge technologies.
The repairs and maintenance performed at a vehicle service center enhance the vehicle's performance. This, in turn, increases the average vehicle longevity. Mostly, vehicle maintenance is performed at company-specified/authorized service centers and local garages. Primarily, vehicle maintenance is the replacement of engine oil and various other continuously operating components. Maintenance also includes replacing the filter and inspecting the tires, lights, steering, and brakes. Since vehicle components are subject to deterioration and necessitate frequent maintenance, servicing must be performed at regular intervals. Increased demand for shared mobility is driving an increase in demand for car maintenance services. In addition, an increase in demand for passenger vehicles, problems with spare parts, and a surge in the need for technologically advanced vehicle components are significant drivers driving market expansion. Using techniques such as discounts and rewards on annual car services and maintenance, service centers entice clients. This is offering significant market potential for car services for industry participants. The value of the vehicle services industry is being positively impacted by an increase in automobile sales and the implementation of severe government regulations to upgrade or replace deteriorated components. In the coming years, however, an increase in raw material costs and hefty monthly fees for short-term subscription programs are projected to hinder market figures.
Approved Service Centres Provide Rapid and Dependable Assistance
Increases in vehicle customization, automotive safety standards, discretionary money, and desire for innovative features in automobiles are creating chances for important players to acquire market share. For automobiles that are less than three years old, authorized service providers offer prompt and dependable maintenance. Due to the global expansion in the number of road-going cars, the market demand for vehicle services is expanding steadily. Each vehicle must receive maintenance after a predetermined time interval to maximize efficiency.
Due to the use of quality materials and components, as well as the assurance of quick and efficient service, vehicle owners have a greater level of confidence in approved service centers. They often visit authorized dealers for vehicle maintenance until the expiration of the warranty. Also, several clients favor extended warranties for hassle-free car operations.
An increase in Car Sales Boosts Vehicle Services Market Dynamics
Demand for vehicle repair & maintenance services is being fueled by the expansion of the automotive sector, the rising prevalence of connected and electric vehicles, and the expansion of global transportation operations. In developing nations such as India, China, and Brazil, the automobile industry is very prosperous. In February 2023, according to Tata Motors, sales of domestic passenger vehicles increased by 47.0%. Moreover, passenger vehicle registrations in the European Union increased by almost 10% in June 2021 compared to the same month the previous year. They reflect the rapid global expansion of the automobile industry. Due to an increase in tourism and leisure activities, the demand for luxury utility vehicles is growing. Maruti Suzuki and Mahindra and Mahindra, two important vehicle manufacturers based in India, saw their automobile sales increase by 22.3% and 62.2%, respectively, in December 2023.
APAC to Remain as the Global Leader
Asia Pacific is predicted to lead the global market throughout the forecast period. The region includes important developing nations with substantial populations, such as India and China. Asia-Pacific is experiencing a rise in demand for car services as a result of a rise in vehicle production, the expansion of road connections and infrastructure, and the lucrative presence of important manufacturers. Increasing demand for passenger vehicles and rising income per capita in emerging economies also contribute to the expansion of the Asia-Pacific market. In 2023, there were 22 automobiles per 1000 inhabitants in India. This is predicted to stimulate market growth for car services in the region. During the projection period, North America and Europe are also anticipated to account for a substantial proportion. Some regions' car owners recognize the significance of vehicle maintenance services. In these places, the average age of vehicles increased to 12,1 years in 2021 from 11,9 years in 2020.
Supply Chain Networking to Enhance Market Share
The market is dominated by large corporations. According to the analysis of the future of the car services market, businesses are establishing supply chain networks to increase their revenue. In the coming years, new entrants are anticipated to post high-profit margins. Major firms are improving their market position through partnerships, mergers, acquisitions, and the expansion of their product lines.
Arnold Clark Automobiles Limited, Carfax Car Care, Carmax Autocare Center, Conroe's Choice Automotive, Driven Brands, Inc., Firestone Complete Auto Care, Gomechanic, Halfords Group Plc., Jiffy Lube International, Inc., Lookers Group, Monro Muffler Brake, and Pendragon Vehicle Management are among the major players in the global vehicle services market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Vehicle Services market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Type
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Service Provider
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Vehicle Type
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Propulsion
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
