The Automotive Repair And Maintenance Services market is estimated to be valued at US$ 770.7 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive repair and maintenance services include maintenance, repairs, and servicing of vehicles including passenger and commercial vehicles. These services help ensure the upkeep and functioning of vehicles. The market provides services like Oil change, Tune-up, Brake repair, Tire replacement, Battery replacement, Coolant flush, and General inspections among others. This helps in extending vehicle life and preventing unexpected breakdowns.
Market Dynamics:
Growing vehicle ownership levels and rising vehicle fleet are some of the major drivers of automotive repair and maintenance services market growth. According to OICA 2019, total vehicle sales have increased from 80 million in 2012 to around 94 million in 2019. This rising vehicle parc requires timely maintenance and repair services. Furthermore, the average age of vehicles on road is also increasing which necessitates frequent repairs and services to ensure proper functioning. Another key driver is the stringent emission regulations related to vehicular emissions which require services like oil change, filter replacement at regular intervals to comply. However, recent advancement in electric vehicles promises lower maintenance needs, which can hamper the market growth.
SWOT Analysis
Strength: The automotive repair and maintenance services market enjoys high demand as vehicle usage increases. There is a skilled labor force focused on automotive repair and maintenance. Diagnostic technology solutions help improve efficiency and service quality.
Weakness: Variations in service quality across different providers can undermine customer loyalty. Rising labor and infrastructure costs pose operational challenges.
Opportunity: Connected vehicle technologies are expected to drive new revenue streams through telematics and predictive maintenance services. The rising adoption of electric vehicles will increase demand for specialized repair and servicing requirements.
Threats: Strict emission regulations may reduce demand for conventional auto repair jobs. Customers choose to repair vehicles themselves using online tutorials, reducing demand for professional services.
Key Takeaways
The global automotive repair and maintenance services market is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period, due to increasing vehicle usage across regions. Transportation needs are rising rapidly with expanding urbanization and disposable income levels. Proper maintenance keeps vehicles safely operational for longer durations.
North America dominates the global market, accounting for around 35% share in 2023. The US is a major contributor due to the large existing vehicle parc that requires regular upkeep. Asia Pacific exhibits the fastest growth led by China and India. Rising motorization coupled with hot and dusty road conditions increase repair and wear & tear related visits.
Key players operating in the automotive repair and maintenance services market are Firestone Complete Auto Care, Ashland Automotive, Inc., Driven Brands, Inc., Carmax Autocare Center, Sumitomo Corporation, Monro Muffler Brake, Inc., Belron International Ltd., Goodyear Tire & Rubber Co., Jiffy Lube International Inc., MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc. The market remains fairly competitive as national brands vie for market share against regional players.