The global automotive repair & maintenance services market is expected to attain a valuation of USD 915.88 billion in 2023 and is projected to reach USD 1,850 billion by 2033, registering a CAGR of 7.2%.
The automotive repair & maintenance market has witnessed exponential growth in the last few years. This growth is projected to continue, subsequently increasing demand for automotive repair & maintenance services for regular vehicle checkups to avoid any malfunction. Factors such as an increase in automotive production and vehicle fleet size have boosted the repair and maintenance market.
The increasing awareness of vehicle maintenance and safety is anticipated to augment the demand for automotive repair and maintenance services in the coming years. Additionally, the presence of numerous independent auto services and maintenance providers is anticipated to contribute to the growth of the automotive repair and maintenance service market.
The automotive repair and maintenance services market is poised for growth in the near future due to key factors such as service flexibility, cost competitiveness, and dependable maintenance services. Additionally, the rising number of vehicles on the road worldwide is anticipated to drive the demand for automotive repair and maintenance services during the forecast period.
The rising automotive sales, expansion of automotive post-sale services, and the implementation of strict government regulations mandating the replacement or upgrading of vehicle components are further anticipated to fuel market expansion.
| Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 915.88 billion |
| Anticipated Forecast Value (2033) | USD 1,850 billion |
| Projected Growth Rate (2023 to 2033) | CAGR of 7.2% |
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The automotive repair & maintenance services market was worth USD 710.6 billion in 2017. It accumulated a market value of USD 850.5 billion in 2022 while growing at a CAGR of 3.6% during the historical period.
The time period of vehicle ownership has increased now as compared to previous years. Extended longevity of vehicles has been fuelling the demand for auto repair & maintenance services. Furthermore, reliable maintenance services, service flexibility, and cost competitiveness are expected to make automotive repair and maintenance services highly sought-after.
Increase in the number of passenger cars is expected to accelerate the repair & maintenance services sales. There has been a rise in demand for electric vehicles in some regions as compared to previous years which also is creating demand for auto repair & maintenance services.
The market is likely to expand as many companies are investing in research and development (R&D) activities to launch innovative repair and maintenance equipment such as automotive diagnostics tools, which are used to determine the cause of any damage to the vehicle.
With the help of augmented reality apps, repair and maintenance providers can are facilitated by a live view of the vehicle to understand complex repairs, making it easier for them to provide services. Big data is helping service providers analyze customer and car data. This has been paving the way for a future where predictive maintenance of vehicles will be easily accessible. Advent of these novel technologies is likely to accelerate repair and maintenance services sales.
Many companies provide aftermarket auto parts to automotive repair shops and end users. Easily available repair parts have been one of the major reasons for the growth of the repair and maintenance market. Increase in demand for repair parts is increasing due to increasing trend of Do It Yourself (DIY) among automobile owners. North America and Europe take up a large share of the global Automotive Aftermarket followed by growth in the Asia Pacific region.
Deferred maintenance towards the start of the pandemic is now driving customers to visit repair and maintenance dealerships which may slightly increase the demand for this market.
Some automotive repair and maintenance dealerships are incorporating conveniences such as free vehicle pick up and drop off services, thereby attracting customers who would not have rather visited the dealerships in person.
With a number of end users affected in regions like North America, Europe, East Asia, and Asia-Pacific, reluctance of customers to visit repair shops is expected to result in a significant drop in Y-O-Y growth yet FMI expects global automotive repair and maintenance market to grow at a 7.2% CAGR through 2033.
Unlike dealerships, automotive repair and maintenance services are aligned with the servicing of more than one make of vehicle thereby not being tied to any specific manufacturer. Many auto repair stores have authorized dealerships of different car companies where they offer vehicle repair and maintenance services for all car models. Some even have franchise stores at different locations where they offer overall servicing of vehicles.
Automotive repair & maintenance shops are investing increasingly in expanding their online presence. Use of digital platforms by companies for acquiring new customers is emerging as a new channel strategy. Some of them offer various discounts on their websites to increase the online booking of repair services.
Online retailing of auto parts also has increased in some regions as the required parts are easily available to consumers on the website. Digitization has increased price transparency for automotive services and parts for customers.
Principal Consultant
FMI has projected the United States to remain one of the most lucrative markets throughout the course of the forecast period. The market in this region is expected to grow with a CAGR of 6.8% throughout the forecast period. This region is expected to account for over USD 250 billion in automotive service and maintenance market by 2033. One of the key factors supporting the market is the increase in number of repair and maintenance centers in the country. Also, the increasing average age of vehicles and increase in use of second-hand (used) vehicles is fuelling the demand for auto repair and maintenance services in the United States.
The increase in car fleets in the country is anticipated to continue fuelling the demand for maintenance and repair services. Smaller companies in the United States are competing effectively by strategically introducing shops in convenient locations and prioritizing customer service. However, a high median age of service technicians in United States along with the shortage of new and qualified technical workers in the repair industry may present itself as a challenge.
The repair and maintenance market in Germany is rising considerably in response to the increasing investment in research and development into automotive parts for other equipment manufacturers (OEM) and aftermarkets. There are many auto manufacturers and suppliers in Germany which has created a conducive environment for growth. However, the German market has been facing challenges due to rigid European Union regulations on CO2 emission norms.
As Germany’s electric vehicle market is also rising considerably, growth in the German automotive repair and maintenance market is pegged to exhibit a 5.4% y-o-y growth.
In Asia Pacific, Indian market is expected to be second in terms of market share in the automotive repair services market after China. The market in this region is expected to grow with a CAGR of 7% during the forecast period.
The Indian automotive industry is a major contributor to the country’s GDP. Auto repair and maintenance services market is growing sharply with the entry of big car brands in the country. Authorized service centers that take care of auto repair and maintenance are increasing with the growing number of on-road vehicles in India.
The sales of passenger vehicles are poised to surge in India. With the increase in use of vehicles, the demand for repair and maintenance services is bound to increase in India. Reluctance of customers to visit repair shops however has been a key restraint to the growth in the repair and maintenance services market.
United Kingdom is expected to grow with a CAGR of 5.5% in automotive repair and maintenance market during the forecast period. The region is expected to accumulate over 14% market share by end of the forecast period.
The Brexit scenario impacted the manufacturers and consumers in the United Kingdom auto repair and maintenance market. The repair and maintenance market is estimated to face difficulty since s one of the major challenges that United Kingdom’s automotive industry is most likely to face is the exemption from the European Union’s Right to Repair scheme. The Right to Repair Act makes the information regarding mechanisms and inner workings from car manufacturers for their vehicles available to independent repair shops.
It will be difficult for independent repair shops to provide latest services in this constantly advancing car technology. The independent repair shops will have to constantly keep updating themselves with latest manufacturing technologies which are going to cost more to them.
The United Kingdom is a leading manufacturer in the automotive industry. Europe was the largest destination for United Kingdom-manufactured vehicles, which accounted for 50% of United Kingdom vehicle imports. The United Kingdom’s car manufacturing industry is worried about trade barriers for them after Brexit.
The aftermarket replacement parts used in the United Kingdom are imported from European union-based suppliers and the automotive parts exported from United Kingdom will bear major tariffs which is a key concern in the Europe market.
China is projected to dominate the Asian Pacific automotive repair and maintenance market by growing at a CAGR of 7.1% throughout the forecast period. The region is estimated to account for over 20% global market share by end of the forecast period.
The automotive repair and maintenance services market in China is expected to present offer attractive opportunities owing to increasing vehicle production. With this, a large volume of vehicles in China will require repair and maintenance services. The expansion of online presence of various service providers is expected to aid the overall growth in China.
China’s automotive repair & maintenance market is projected to exhibit stronger growth in the coming years as the age of average vehicle in China is increasing. Although China was a key channel for sourcing low-cost spare parts for various companies, but post the pandemic manufacturers are refocusing on sourcing from regions such as Canada and Mexico.
In terms of services & parts, the demand in tire segment is expected to be significantly high. Tires are expected to dominate the automotive repair and maintenance market by capturing over 32% market share by end of the forecast period. The segment is expected to grow with a CAGR of 6.9% during the forecast period.
The demand for automotive repair parts is increasing with growing production of new vehicles and increased life of vehicles. Online retailing of automotive repair parts, including tires is increasing with increase in digitization and evolution of e-commerce.
The power of digital influence is anticipated to continue driving tire sales. Companies such as Robert Bosch and Denso Corporation offer OEM and aftermarket repair parts in brick-and-mortar stores as well as on the website. Companies such as CarMax Auto Care Center and Firestone Complete Auto Care offer online servicing booking for automotive.
The automobile dealership segment is projected to grow with a significant CAGR of 7.1% during the forecast period. The demand for automobile dealerships and franchise general stores is increasing with a rise in vehicle ownership and an increasing focus on vehicle safety.
Service providers can be authorized dealership stores, franchise stores, and local repair shops in different regions that provide vehicle servicing. Demand for service providers decreased due to the pandemic as all the service centers were closed, which has impacted the automotive repair and maintenance services market.
Passenger cars are expected to occupy over 64% of overall market by end of the forecast period. This segment is expected to dominate the automotive repair & maintenance market while growing at a CAGR of 7.4% during the forecast period.
Passenger cars are the most common mode of transport in many countries. Sales of passenger cars have decreased due to the pandemic in many regions as production and supply stood increasingly hampered amid pandemic. Decrease in new car registrations affected the automotive sector globally. This also affected the sales of automotive repair and maintenance services.
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Start-ups are crucial in identifying growth opportunities, including the automotive repair & maintenance services market. They efficiently convert inputs to outputs and adapt to market changes, contributing to the industry's expansion. Some start-ups are expected to drive growth in the automotive repair & maintenance services market.
The automotive repair & maintenance services market is highly competitive, with several key industry players investing heavily in the production of these services. The key industry players are Arnold Clark Automobile Ltd., Asbury Automotive Group Inc., Ashland Automotive Group Inc., Belron International Ltd, Driven Brands Inc., Carmax Autocare Center, Firestone Complete Autocare, Goodyear Tire & Rubber Company, Halfords Group PLC, Monro Inc.
Some recent developments in the market are:
Key industry players are utilizing organic growth strategies like acquisitions, mergers, tie-ups, and collaboration to bolster their product portfolio. This is expected to propel the global automotive repair & maintenance services market.
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 915.88 billion |
| Market Value in 2033 | USD 1,850 billion |
| Growth Rate | CAGR of 7.2% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2017 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Services & Parts, Vehicle Type, Service Providers, Region |
| Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; Middle East & Africa |
| Key Countries Profiled | United States, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, India, Malaysia, Singapore, Thailand, China, Japan, South Korea, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Arnold Clark Automobile Ltd.; Asbury Automotive Group Inc.; Ashland Automotive Group Inc.; Belron International Ltd; Driven Brands Inc.; Carmax Autocare Center; Firestone Complete Autocare; Goodyear Tire & Rubber Company; Halfords Group PLC; Monro Inc. |
| Customization | Available Upon Request |
The market is predicted to secure a valuation of USD 915.88 billion in 2023.
The market is expected to develop a CAGR of 6.4% through 2033.
The United States may witness significant growth with a CAGR of 6.8%.
Tires are expected to hold 6.9% of the global market share.
The increasing number of passenger cars is predicted to fuel the Market growth.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Services & Parts 5.1. Engine Oil 5.2. Gear Oil 5.3. Brake Oil 5.4. Grease 5.5. Tires 5.6. Batteries 5.7. Wear & Tear Parts 5.8. Air Filter 5.9. Cabin Filter 5.10. Oil Filter 5.11. Wiper Blades 5.12. Others 6. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Passenger Cars 6.2. LCV 7. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Service Providers 7.1. Automobile Dealerships 7.2. Franchise General Repairs 7.3. Specialty Shops 7.4. Locally Owned Repair Shops 7.5. Tire Shops 7.6. Others 8. Global Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA 9. North America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2017 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Arnold Clark Automobile Ltd. 18.2. Asbury Automotive Group Inc. 18.3. Ashland Automotive Group Inc. 18.4. Belron International Ltd 18.5. Driven Brands Inc. 18.6. Carmax Autocare Center 18.7. Firestone Complete Autocare 18.8. Goodyear Tire & Rubber Company 18.9. Halfords Group PLC 18.10. Monro Inc. 19. Assumptions & Acronyms Used 20. Research Methodology
Automotive
May 2023
REP-GB-6443
250 pages
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Automotive Repair & Maintenance Services Market
