Authorized Car Service Center Market Size worth $300bn by 2025
Published Date: November 13, 2019 Authors: Ankita Bhutani
Authorized Car Service Center Market size is set to surpass USD 300 billion by 2025; according to a new research report by Global Market Insights, Inc.
The authorized car service center market growth is attributed to the rapid development of the automobile aftermarket and the accelerated adoption of new vehicular technologies. The aftermarket segment consisting of suppliers of repair & maintenance products is expected to accelerate the adoption of tools & equipment for repair & enhancement of passenger vehicles. In APAC, the automotive aftermarket mainly comprising OEMs and franchised dealers is expected to witness a rapid growth over the forecast timeline due to the large-scale production of passenger cars in the countries including China, Japan, South Korea, and India. According to the International Trade Administration (ITA), the Chinese automobile parts and repair aftermarket will reach around USD 188 billion by 2020.
Rising investments in the automobile sector
Huge investments by automakers and favorable government initiatives are contributing to the development of the automobile industry globally. For instance, according to the IBEF, the Indian automotive industry (including component manufacturing) will reach USD 250 billion by 2026 due to Foreign Direct Investment (FDI) inflows. In September 2018, a Chinese automaker, SAIC Motor, planned to invest around USD 500 million in India by 2020 to develop new products. Similarly, in August 2018, Japan’s Nissan Motor Co. invested around USD 900 million to develop a new auto assembly plant in China. The new plant in Changzhou in Jiangsu province will accelerate the production capacity of the company. The profound growth of the sector will contribute toward the rise in the demand for auto repair services.
Browse key industry insights spread across 281 pages with 373 market data tables and 36 figures & charts from the report, “Authorized Car Service Center Market Size By Auto Body Workshops (OEM Authorized Workshops, Organized Multi-brand Service Providers), By Service (Engine, Transmission, Brakes, Suspension, Electrical, Tires, Body, Belts & Accessories), By Vehicle Age (Less than 3 years, More than 3 years), Industry Analysis Report, Regional Outlook), Growth Potential, Competitive Market Share & Forecast, 2019 – 2025” in detail along with the table of contents:
OEM authorized workshops gaining popularity
The global OEM authorized car service center market will grow at a CAGR of over 4% over the forecast timeline due to the huge demand for approved car repair service providers that provide high-quality services. Vehicle owners prefer certified garages and franchise repair shops when it comes to spare parts and technical quality. Also, loyalty to authorized shops is more in case of new vehicles as the service providers are increasingly offering spare parts at attractive prices to meet the needs of the used-vehicle owners.
Increasing demand for preventive maintenance services to keep the vehicle downtime low
The engine repair & maintenance services market held a market share of above 10% in 2018 as engines require periodic oil change due to several factors including continuous operation, the formation of sludge, and wear particles within the components. Preventive maintenance services such as oil change & inspection of important engine components including fuel injection systems, ignition cables, and head gaskets should be performed regularly to enable them to run smoother for a longer period of time. Proactive checking of these components will help to prevent further damages and improve performance.
New vehicle customers switching to OEM authorized workshops
Passenger cars of age less than three years will exhibit a growth rate of over 4% in the authorized car service center market from 2019 to 2025 as the vehicle owners prefer to repair, maintain, and service their vehicles across OEM-certified car service centers owing to various benefits offered including replacements under warranty, discounts, and appropriate tools for carrying out vehicle servicing. However, low servicing costs offered by the unauthorized cap repair centers are expected to hamper the growth of the authorized service center market.
Presence of multiple automobile manufacturers is driving European market
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The Europe authorized car service center market is projected to hold a significant market share of over 35% by 2025 due to the profound growth of the automobile sector. The automobile industry is one of the major contributors to the economy of the European Union (EU) and represents around 7% of the EU’s total GDP. According to Germany Trade & Invest (GTAI), Germany is expected to dominate the market share and accounted for around 30% of all passenger cars manufactured (5.12 million) and around 20% of all new car registrations (3.43 million). In the region, the presence of several leading automotive brands, such as BMW Group, Hyundai Motor Europe, Renault Group, Volkswagen Group, and many others, is driving the market growth as this will augment the demand for service centers to cater to the vehicle requirements and provide high-quality repair service.
The companies present in the market are focusing on strategic partnerships to offer personalized consumer services. As the pricing of car service packages is also a major factor determining the success of the brand in the global market, the companies are focusing on upgrading their packages and delivering doorstep services to gain more market share. Some of the key players operating in the authorized car service center market are Automovill Technologies Pvt. Ltd., 3M, BMW, Carmozo, Carnation, Carxpert Garage, Carz Care, Castrol, Groupe Renault, Honda Motor Co. Ltd, Hyundai Motor Company, Lansdowne Automobile, Mahindra First Choice Services (MFCS), Meineke Car Care Centers, LLC, Midas International LLC, Mobil1 Car Care, Mobivia Groupe, Robert Bosch GmbH, Suzuki Motor Corporation, Tilden International Inc., Toyota Motor Corporation, TVS Automobile Solutions Private Limited, and Volkswagen AG.
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