Automotive Service Market Analysis

Automotive Service Market Overview 

Automotive Service Market Size was valued at USD 695.2 Billion in 2022. The Global Automotive Service market industry is projected to grow from USD 733.5 Billion in 2023 to USD 1126.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.51% during the forecast period (2023–2032). Rising auto sales, expansion of aftermarket automotive services, and strict government rules governing the replacement or upgrading of vehicle components, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Service Market Trends

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  Increasing automotive sales are driving market growth

  
  

The automobile industry is moving quickly into a new era marked by increasing sustainability, shifting consumer habits, the inclusion of connected and electric vehicles, mobility fleet sharing, and bettering lifestyles. India, China, and Brazil are among the developing nations that provide the most promise for the automotive industry. Tata Motors said in February 2022 that domestic passenger vehicle sales increased by 47%. Additionally, compared to the same month in the previous year, there was a 10% increase in passenger car registrations in the European Union in June 2021. The demand for Special Utility Vehicles (SUVs) has also increased recently as a result of the growing leisure and tourism industries everywhere. Additionally, governments are putting pressure on the producers of passenger cars to create effective and low-emission vehicles, which has put great pressure on those companies to work on R&D. As a result, the industry for automotive repair and maintenance is anticipated to grow throughout the forecast period due to an increase in demand for automobile production and sales.

The replacement of a vehicle's broken part or the addition of new components to an existing vehicle are both done through automotive repair and service. Customers must replace different parts of their autos at predetermined intervals. For instance, depending on driving conditions, passenger automobiles need new tires every 3–4 years. Thus, there is a sizable aftermarket for automotive components. Additionally, the market for repairs and services is expanding as a result of consumer preferences for installing cutting-edge automotive components to enhance vehicle appearance and ensure driver safety. The market for automobile repair and service is anticipated to expand in the near future as a result of this rising customer propensity and the rise of the aftermarket service. Additionally, the market's expansion is aided by the contributions of manufacturers of automotive components. For instance, Jiffy Lube International, Inc. will increase its footprint in the Greater Detroit Metropolitan Area in 2020 by building a new service center. It provided a variety of automobile services including brakes, tires, and engine diagnostics, among other things. The market for automotive repair and service is anticipated to expand significantly over the course of the projected period as a result of all these factors.  Thus, driving the Automotive Service market revenue.

Automotive Service Market Segment Insights

Automotive Service Type Insights

The Automotive Service Market segmentation, based on Type, includes maintenance services, mechanical, and exterior & structural. The mechanical category accounted for the biggest market share in 2022, and it is anticipated that it will continue to dominate during the projected period. On the other hand, the category for maintenance services is anticipated to post the quickest CAGR throughout the projection period.

Automotive Service Service Provider Insights

The Automotive Service Market segmentation, based on Service Provider, includes franchise general repairs, OEM authorized service centers, local garage, tire stores & repair chains, and others. In 2022, the local garage category had the biggest market share. These businesses frequently have a variety of service bays to offer repair and maintenance services for a variety of cars, including hatchbacks, SUVs, sedans, and MPVs as well as two-wheelers.

Automotive Service Vehicle Type Insights

The Automotive Service Market segmentation, based on Vehicle Type, includes passenger cars, light commercial vehicles, heavy commercial vehicles, and two wheelers. In 2022, the market for automotive services was led by the passenger car category. Nearly 72% of all automotive vehicles worldwide are passenger cars, according to the Japan Automobile Manufacturers Association (JAMA). The potential for passenger car use is expected to rise significantly in emerging nations like China, India, and Mexico, driven by a young population, a burgeoning middle class, and rising family incomes.

Automotive Service Propulsion Type Insights

The Automotive Service Market segmentation, based on Propulsion Type, includes internal combustion engine (ICE) and electric. In 2022, the sector for internal combustion engines category had the biggest share. This is explained by the rise in demand for ICE vehicles following the COVID-19 issue and the general rise in demand for passenger automobiles around the world.

Figure 1: Automotive Service Market, by Propulsion Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Service Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Automotive Service market area will dominate this market. This is a result of the region's automobile service market experiencing rapid growth due to the presence of major automakers. With the increase in on-road automobiles across Asian nations, authorized service centers that handle auto repair and maintenance are developing. Moreover, China’s Automotive Service market held the largest market share, and the Indian Automotive Service market was the fastest growing market in the Asia-Pacific 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: Automotive Service Market Share By Region 2022 (Usd Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Automotive Service market accounts for the second-largest market share, due to growing investments in R&D for automotive parts for OEMs and the aftermarket. Germany has a large number of auto suppliers and manufacturers, which has fostered a favorable climate for expansion. Further, the German Automotive Service market held the largest market share, and the UK Automotive Service market was the fastest growing market in the European region

The North America Automotive Service Market is expected to register significant growth from 2023 to 2032. This is explained by the rise in the number of repair and maintenance facilities in the area. The need for auto repair and maintenance services in the United States is also being fueled by the rising average age of vehicles and the increased use of used cars. Further, the U.S. Automotive Service market held the largest market share, and the Canada Automotive Service market was the fastest growing market in the North America region.

Automotive Service Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Service 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, Automotive Service 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 Automotive Service industry to benefit clients and increase the market sector. In recent years, the Automotive Service industry has offered some of the most significant advantages to medicine. Major players in the Automotive Service market, including Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., Europart, Firestone, Hance’s European, Inter Cars S.A., Jiffy Lube International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc., are attempting to increase market demand by investing in research and development operations.

Grocery stores, supermarkets, hypermarkets, department and discount stores, and local markets are all operated by Walmart Inc. (Walmart). The company's stores offer consistently low prices on goods in the categories of consumables, health & wellness, technology, office supplies, entertainment, hardlines, fashion, and home. It also manages Sam's Clubs and other warehouse clubs. Walmart sells goods under a number of private labels and licensed brands, including Equate, Mainstays, George, Onn, Parent's Choice, Time and Tru, Wonder Nation, and No Boundaries. In addition to other related products, the company offers financial services, fuel, gift cards, money orders, prepaid cards, money transfers, check cashing, and bill payment services. It sells stuff on several e-commerce websites in the Americas, Africa, and Asia. The headquarters of Walmart are in Bentonville, Arkansas, in the United States. Walmart Inc. made a reservation for 5,000 electric vans from the BrightDrop division of General Motors in January 2022 to assist the retailer's increasing e-commerce delivery operations.

The automotive and energy firm Tesla Inc. It creates, develops, produces, sells, and rents energy generation and storage technologies in addition to electric automobiles. The Model Y, Model 3, Model X, Model S, Cybertruck, Tesla Semi, and Tesla Roadster are among the automobiles that the business manufactures and markets. Additionally, Tesla sells solar electricity, installs and maintains energy systems, and provides end-to-end clean energy products, including generation, storage, and consumption. Through a network of business-owned stores and galleries, it markets and sells vehicles to consumers. Tesla, Inc. intends to build a 100,000 square foot plant in St. Pete, Florida, in April 2022. Sales, servicing, and deliveries in the region will be handled by the new Tesla center.

Key Companies in the Automotive Service market include

• Asbury Automotive Group, Inc.


• Carmax Autocare Center


• com, Inc.


• Europart


• Firestone


• Hance’s European


• Inter Cars S.A.


• Jiffy Lube International, Inc.


• LKQ Corporation


• M&M Automotive


• MEKO


• Mobivia Groupe


• MyTVS Accessories


• Safelite Group


• Sun Auto Service


• USA automotive


• Wrench, Inc.

Automotive Service Industry Developments

December 2023- Global technology services supplier FPT legitimately introduces its automotive technology subsidiary – FPT Automotive, setting its vision on becoming a billion-dollar automotive services and products supplier by 2023. The prime mission for FPT Automotive is to steer the development of software-defined vehicles (SDV) to shape the new mobility era and safety standards. FPT Automotive provides a thorough suite of engineering services, including extensive in-vehicle infotainment, automotive UI/UX design, digital engineering, security, wireless connectivity, functional safety, and Electronic Control Units (ECU). Central to these offerings is MaaZ, the commercial AutoStar for turn-key ECU solutions. Using its strength in software development, the organization focuses on empowering global tier-1 suppliers, chipmakers, and OEMs to boost market competitiveness and offer more connected, sustainable, intelligent, and future-ready vehicles. 

The business guarantees full compliance with industry standards such as ISO26262 for Automotive Spice for software development and functional safety management processes in the automotive sector. FPT Automotive at present has a global team of 4,000 automotive software engineers and authorities across varied delivery models, enabling streamlined solutions, enhanced cost, and adaptability to clients' and industry's changing needs. Its major markets include South Korea, Europe, Vietnam, the United States, Japan, and China. The reveal of FPT Automotive responds to the global demand for SDVs, corresponds with FPT's deliberate financing in automotive product engineering services and solutions, and uses its extensive knowledge. Dr. Truong Gia Binh, the FPT founder and chairman, said that with more than ten years of experience in the automotive industry, a varied pool of talented human resources, brand-new technologies such as cloud computing, AI, and computer vision, and collaborations, and investments with prominent companies such as Cardinal Peak and Landing AI, the company seek to rush the rapid development of automotive, a sector now determined by software.

Automotive Service Market Segmentation

Automotive Service Type Outlook

• Maintenance Services


• Mechanical


• Exterior & Structural

Automotive Service: Service Provider Outlook

• Franchise General Repairs


• OEM Authorized Service Centers


• Local Garage


• Tire Stores & Repair Chains


• Others

Automotive Service Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicles


• Heavy Commercial Vehicles


• Two Wheelers

Automotive Service Propulsion Type Outlook

• Internal Combustion Engine (ICE)


• Electric

Automotive Service Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America