Auto Repair Market

• Increased vehicle sales propel market growth

The expanding global vehicle sales are essentially driving market CAGR for automotive repair. As vehicle sales rise and more automobiles are on the road, there is an increased demand for maintenance, repairs, and servicing. This rise is driven by a variety of factors, including population growth, greater disposable income, urbanization, and the expansion of the middle class in emerging economies. Consumers swap in their older cars for newer ones, and the vehicle replacement cycle contributes significantly to the continued demand for repair and maintenance services.

As vehicles become more sophisticated with cutting-edge technologies and intricate systems, the need for frequent maintenance and expert repairs grows to ensure peak performance and dependability.

Automotive repair and maintenance companies are increasingly placing diagnostic devices in customer vehicles to enhance their service offerings. Onboard diagnostics systems are used to monitor vehicle characteristics and identify potential faults through diagnostics. For instance, Koovers, an automobile maintenance service provider, offers an onboard diagnostics tool to its registered customers. Its call center receives the fault detected by the tool and contacts the customer for the necessary repair work. This allows garages to check for essential parts for the car even before it is brought in for service, lowering wait times.

The rising automotive sector is likely to drive future expansion in the automotive repair market. The automotive industry is a broad term that refers to the organizations and businesses that design, develop, produce, market, sell, and maintain automobiles. Automotive repair and maintenance services are an essential component of the whole automotive industry, working together to ensure the continuous functionality, safety, and longevity of vehicles.

For example, in May 2023, data from the European Automobile Manufacturers Association, a Belgian-based association that represents automobile manufacturers, showed a 5.7% increase in global motor vehicle production in 2022, reaching 85.4 million units compared to the previous year. As a result, the rising automobile sector is propelling the automotive repair market. Thus driving the Auto Repair Market revenue.

The Global Auto Repair Market Industry experiences growth driven by rising vehicle ownership worldwide. As urbanization accelerates and disposable incomes increase, more individuals acquire personal vehicles. This trend is particularly evident in emerging economies, where vehicle ownership rates are projected to rise significantly. The increase in the number of vehicles on the road directly correlates with a heightened demand for auto repair services. In 2024, the market is valued at 916.9 USD Billion, and as vehicle ownership continues to grow, the industry is poised for expansion, potentially reaching a valuation of 2488.5 USD Billion by 2035.

The shift towards electric vehicles (EVs) is reshaping the Global Auto Repair Market Industry. As governments worldwide implement stricter emissions regulations and consumers become more environmentally conscious, the demand for EVs is surging. This transition necessitates specialized repair services and knowledge, creating new opportunities within the auto repair sector. Repair shops are increasingly investing in training and equipment to cater to this evolving market. The growth of the EV segment not only diversifies the services offered but also contributes to the overall market expansion, aligning with the projected growth trajectory of the industry.

The Global Auto Repair Market Industry faces challenges due to the increasing complexity of vehicle systems. Modern vehicles are equipped with advanced technologies, including intricate electronic systems, sensors, and software components. This complexity necessitates specialized knowledge and tools for effective repairs, leading to a demand for skilled technicians. As vehicles become more sophisticated, repair shops must adapt by investing in training and advanced diagnostic equipment. This trend highlights the importance of continuous education and adaptation within the industry, ensuring that repair services can meet the evolving needs of consumers.

The Global Auto Repair Market Industry is influenced by stringent regulatory compliance and safety standards. Governments worldwide enforce regulations to ensure vehicle safety and environmental protection, which directly impacts repair practices. Repair shops must adhere to these regulations, necessitating investments in compliance training and equipment. This focus on safety and compliance not only enhances consumer trust but also drives demand for professional repair services. As regulations evolve, the industry must remain agile, adapting to new standards while maintaining high-quality service, thereby contributing to the overall growth of the market.

The Global Auto Repair Market Industry is significantly influenced by technological advancements in automotive repair. Innovations such as diagnostic tools, computerized systems, and advanced repair techniques enhance service efficiency and accuracy. For instance, the integration of artificial intelligence and machine learning in vehicle diagnostics allows for quicker and more precise repairs. This technological evolution not only improves customer satisfaction but also reduces operational costs for repair shops. As these technologies become more prevalent, they are expected to drive the market's growth, contributing to a projected CAGR of 9.5% from 2025 to 2035.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. In 2023, the North American market became the leading force in the worldwide vehicle repair and maintenance services sector. This importance can be linked to the region's high auto ownership rate, combined with an aging vehicle fleet, resulting in a huge need for auto repair and maintenance services. Furthermore, the presence of multiple notable car manufacturers and suppliers has aided the development of a strong automotive repair and maintenance service sector in the region.

Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Auto Repair Market Share By Region 2024 (Usd Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Auto Repair Market accounts for the second-largest market share. This is due to the large vehicle population and the culture of car ownership. Independent repair shops, franchise companies, and dealership service centers are major industry players, offering services ranging from routine maintenance to intricate repairs. Further, the German Auto Repair Market held the largest market share, and the UK Auto Repair Market was the fastest-growing market in the European region.

The Asia-Pacific Auto Repair Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to urbanization and population growth. Buyers want automobiles with automotive repair and maintenance services that have innovative repair methods that are both durable and fast. Moreover, China’s Auto Repair Market held the largest market share, and the Indian Auto Repair Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Auto Repair Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Auto Repair industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Auto Repair industry to benefit clients and increase the market sector. In recent years, the Auto Repair industry has offered some of the most significant advantages to medicine. Major players in the Auto Repair Market, including Bosch Car Service, ADNOC, Nippon Express Co., Car Parts.com Inc, Belron International Ltd., EUROPART Holding GmbH and others, are attempting to increase market demand by investing in research and development operations.

Belron International Limited is a British automotive glass repair and replacement company that operates in 34 countries and employs more than 25,000 people. Belron is headquartered in Egham, Surrey, United Kingdom, and its brands include Autoglass in the United Kingdom, Ireland, and Poland, Carglass in the majority of Europe, O'Brien AutoGlass in Australia, Safelite in the United States, Smith & Smith in New Zealand, and Lebeau and Speedy Glass in Canada. In November 2022, Belron International Ltd. confirmed its submission of a Commitment Letter to the Science Based Targets initiative (SBTi).

This letter represents their determination to adopt science-based emission reduction targets that fit with the objectives of the Paris Agreement.

TVS Group is an Indian conglomerate headquartered in Madurai. It owns over 50 companies, including the two-wheeler producer TVS Motor Company and TVS Supply Chain Solutions. In June 2022, MyTVS Accessories, a completely owned subsidiary of TVS Automobile Solutions Pvt. Ltd., sells car accessories. Ltd. developed its "Life360" digital platform to provide its clients with a variety of auto maintenance services. A three-year subscription costs $60 (INR 5,000) due to the use of a subscription-based business strategy. In addition to mechanical, collision and maintenance, diagnostic, roadside assistance, accessories, and vehicle services, it also provides full repair services.