Home > Automotive & Transportation > Automotive Repair & Maintenance Services Market
Automotive Repair & Maintenance Services Market size exceeded USD 685.25 billion in 2021 and is estimated to exhibit over 5% CAGR from 2022 to 2028. The increasing vehicular age will positively impact the industry growth, since aged vehicles are more likely to require frequent maintenances and replacement parts. Moreover, the increasing demand for shared mobility is one of the key factors increasing the yearly maintenance spending on cabs or shared vehicles owing to a higher yearly distance driven.
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Many consumers are utilizing online sales channels to gain a clearer picture of quality and cost; for instance, over one-fourth of aftermarket consumers in the Germany, France, and the UK use online channels to evaluate workshops for their car repair & maintenance services. With the increasing use of software vehicle systems in engines and car electronics, software knowledge has become the core competency factor. Thus, mechanics-based garages or workshops may lose their positions to an automotive repair & maintenance services ecosystem in the upcoming years.
|Market Size in 2021:||USD 685.25 Billion|
|Forecast Period:||2022 to 2028|
|Forecast Period 2022 to 2028 CAGR:||5%|
|2028 Value Projection:||USD 953.87 Billion|
|Historical Data for:||2018 to 2021|
|No. of Pages:||200|
|Tables, Charts & Figures:||186|
|Segments covered:||Vehicle, Type, Service Provider and Region|
|Pitfalls & Challenges:|
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The rising penetration of electric vehicles worldwide will significantly impact the market growth. A high adoption of electric vehicles can be credited to governmental initiatives and support for enhancing the environmental quality to overcome crude oil dependence. Overall, the repair & maintenance costs of battery electric vehicles are projected to be around 40% lesser than that of ICE vehicles. Industry participants will gain a competitive edge by making their products and operations more sustainable, such as restored solutions, and by training a technical understanding of electric vehicle components.
The passenger cars segment is poised to hold nearly 65% of the automotive repair & maintenance services market share by 2028. According to Japan Automobile Manufacturers Association (JAMA), the global passenger cars in use was nearly 72% of the total automotive vehicle parc. In emerging countries including China, India, and Mexico, the potential of passenger cars in use is slated to increase prominently led by the growing middle class, a young population, and increasing household incomes. Furthermore, passenger car travel allows medical assistance and home care as well as a range of other emergency services.
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The local garage segment is expected to generate more than USD 320 billion revenue by 2028. These outfits typically incorporate various service bays to provide repair & maintenance services for a wide range of vehicles, ranging from hatchbacks, SUVs, and sedans to MPVs including two-wheelers. Lower overhead costs significantly contribute to the lowering of overall service charges. Effective communication and independent mechanics enable improved customer relationship and foster goodwill among customers. The ability to serve multiple vehicle brands and an easier availability of spare parts are further propelling the market demand.
The tires & wheels segment is predicted to capture about 30% of the mechanical automotive repair & maintenance services market share by 2028. The tire & wheels demand is stronger in commercial vehicles due to the lucrative growth in faster deliveries in the e-commerce industry and motorcycle tires owing to their lower product life cycle. However, the COVID-19 pandemic has negatively impacted the sale of tires & wheels in the aftermarket impelled by lower road freight transport globally.
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North America is set to account for USD 180 billion in automotive repair & maintenance services market by 2028 driven by rising number of parc vehicles in the region. In 2019, the total vehicle parc was around 311 million units. Moreover, in 2020, average age of a vehicle the U.S. rose to 12.1 years in 2021 as compared to 11.9 years in 2020. Such factors will increase routine services such as tire repairs, filter changes, air conditioning, and oil changes as well as unscheduled maintenance services such as car body repairs and exterior painting.
The industry is extremely fragmented due to the presence of companies in regional & global levels. To capture a larger industry share, participants are anticipated to develop their supply chain networks to profit from being consumer friendly. New entrants will surge steadily by high profit margins. Moreover, to gain a lucrative portion of the business and strengthen their independent aftermarket positions, many automotive manufacturers are offering discounts or complimentary inspections.
Some of the key players in the automotive repair & maintenance services market include LKQ Corporation, Mobivia Groupe, Inter Cars, Mekonomen Group, Hance's European, EUROPART Holding GmbH, USA Automotive, CarParts.com, Inc., myTVS, M & M Auto Repair, Bosch Car Service, Wrench, Inc., and Sun Auto Service. Some of the key strategies adopted by these companies are workshop expansion and investments in automotive repair & maintenance equipment.
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Market, by Vehicle
Market, by Type
Market, by Service provider
The above information is provided on a regional and country basis for the following: