Car Breakdown Recovery Service Market Overview:
As per MRFR analysis, the Car Breakdown Recovery Service Market Size was estimated at 15.4 (USD Billion) in 2022. The Car Breakdown Recovery Service Market Industry is expected to grow from 17.1 (USD Billion) in 2023 to 25.9 (USD Billion) by 2032. The Car Breakdown Recovery Service Market CAGR (growth rate) is expected to be around 4.90% during the forecast period (2024 - 2032).
Key Car Breakdown Recovery Service Market Trends Highlighted
Factors such as increasing vehicle ownership, rising urbanization and increasing disposable income drive the growth of Car Breakdown Recovery Service Market. Technological improvements with the combination of GPS and IoT devices have also improved the effectiveness and the security of the breakdown solutions. The new trends in use of electric cars have also opened up new avenues for service providers like special recovery and repair services. Some of such key trends seen in the market include consumerization of services, predictive maintenance analytics instead of traditional maintenance models and focus on green and sustainable products. The changing landscape of the market is further influenced by increasing consumer inclination towards on-demand services and AI based systems integrations. In addition, service providers are also considering tying up with auto makers and insurers to provide one stop solutions to customers.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Car Breakdown Recovery Service Market Drivers
Increasing Vehicle Ownership and Usage
The increasing number of vehicles on the road is one of the key driving forces of the Car Breakdown Recovery Service Market Industry. An increasing number of people own cars, and the demand for breakdown recovery services is rapidly growing. This effect is particularly prominent in developing countries where car ownership is growing. Moreover, vehicles are used more frequently both for personal purposes and for business. Since people use cars more often, they have an increased risk of breakdowns and accidents, stimulating the demand for this kind of service.
Advancements in Vehicle Technology
The increasing complexity of vehicles is another factor driving the growth of the Car Breakdown Recovery Service Market Industry. Modern vehicles are equipped with a variety of electronic systems and components, which can be difficult to repair without specialized knowledge and equipment. This has led to a greater demand for professional breakdown recovery services that can handle complex repairs. The rising adoption of electric vehicles is also expected to boost the demand for breakdown recovery services, as electric vehicles require specialized knowledge and equipment to repair.
Increasing Traffic Congestion
The increasing traffic congestion in major cities is another factor contributing to the growth of the Car Breakdown Recovery Service Market Industry. Traffic congestion can lead to delays and breakdowns, which can be frustrating and costly for drivers. Breakdown recovery services can help to alleviate the stress and inconvenience of breakdowns by providing quick and efficient assistance.
Car Breakdown Recovery Service Market Segment Insights:
Car Breakdown Recovery Service Market Vehicle Type Insights
Light Vehicles (Cars, SUVs, Vans) Segment Held a Larger Market Share in 2023 and is expected to dominate the Market; the Car Breakdown Recovery Service Market is segmented by vehicle type as light vehicles (cars, SUVs, vans) and heavy vehicles. The light vehicles segment held a larger market share in 2023 and is expected to dominate the market during the forecast period. The increase in the number of light vehicles on the road and the high breakdown rate of light vehicles will drive the light vehicle segment. The heavy vehicles segment is expected to grow during the forecast period, but the growth is projected to be slower than the light vehicles segment.The growth of the heavy vehicles segment is mainly due to the high demand for heavy vehicles in the transportation and logistics industry.
In 2023, for light vehicles, the Car Breakdown Recovery Service Market was valued at USD 32.49 billion and is expected to grow to USD 52.36 billion by 2032, registering a CAGR of 5.6% during the forecast period. The growth is mainly driven by an increase in vehicle ownership, rising disposable income, and growing awareness of roadside assistance. The heavy vehicle segment is expected to reach USD 33.63 billion by 2032 from USD 18.55 billion in 2023 and grow with a CAGR of 6.3%.The growth is driven by an increase in demand for heavy vehicles in various industries, such as construction, mining, and transportation. Main Factors Driving the Car Breakdown Recovery Service Market The main factors driving the market include an increase in the number of vehicles on the road, rising disposable income, and increased awareness of roadside assistance. The market is likely to be driven by more opportunities for vehicle owners, such as on-demand services.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Car Breakdown Recovery Service Market Service Type Insights
Service Type Segment Insights and Overview The Car Breakdown Recovery Service Market is segmented by Service Type into Towing, Roadside Assistance, Mechanical Repairs, and Fuel Delivery. Among these segments, Roadside Assistance held the largest market share in 2023, accounting for approximately 45.8% of the global revenue. This dominance is attributed to the increasing demand for quick and convenient roadside assistance services, such as battery jump-starts, tire changes, and lockout assistance. Towing services are expected to witness a significant growth rate during the forecast period, owing to the rising number of vehicle breakdowns and the increasing adoption of connected car technologies.Mechanical Repairs is another significant segment, driven by the growing complexity of vehicles and the increasing need for specialized repair services. Fuel Delivery is expected to show steady growth, supported by the increasing adoption of electric vehicles and the need for emergency fuel delivery services. Overall, the Service Type segment of the Car Breakdown Recovery Service Market is expected to grow steadily in the coming years, driven by the increasing vehicle population, rising demand for roadside assistance services, and the growing adoption of connected car technologies.
Car Breakdown Recovery Service Market End User Insights
The end user segment of the Car Breakdown Recovery Service Market is categorized into Individuals, Businesses (Fleets), and Insurance Companies. Among these, Individuals held the largest market share of 67.8% in 2023 and is expected to maintain its dominance throughout the forecast period. This is attributed to the increasing number of car owners who prefer to have peace of mind and convenience by opting for breakdown recovery services. Businesses (Fleets) accounted for a significant market share of 22.1% in 2023 and are expected to witness steady growth over the coming years due to the rising demand for fleet management solutions.Insurance Companies are projected to have a moderate market share of 10.1% in 2023 and are expected to experience gradual growth as they offer breakdown recovery services as a value-added service to their policyholders. The increasing adoption of connected car technologies and the growing popularity of subscription-based services are expected to drive the growth of the Car Breakdown Recovery Service Market in the coming years.
Car Breakdown Recovery Service Market Driver Profile Insights
The Car Breakdown Recovery Service Market segmentation by driver profile offers valuable insights into the diverse needs and preferences of customers. Professional drivers, such as commuters and taxi drivers, constitute a significant segment of the market, accounting for approximately 45% of the Car Breakdown Recovery Service Market revenue in 2023. These drivers rely heavily on their vehicles for their livelihood, making them more likely to seek reliable and prompt breakdown recovery services. On the other hand, recreational drivers, including weekend travelers, represent around 30% of the market share.These drivers prioritize convenience and affordability when choosing breakdown recovery services, often opting for roadside assistance plans that cater to their occasional driving needs. Understanding the specific requirements of each driver profile enables service providers to tailor their offerings and pricing strategies, accordingly, maximizing market penetration and customer satisfaction.
Car Breakdown Recovery Service Market Subscription Model Insights
The Subscription Model segment is a prominent segment in the Car Breakdown Recovery Service Market, accounting for a significant market share. This segment offers subscription-based plans that provide comprehensive coverage for breakdown recovery services, including towing, roadside assistance, and repairs. The increasing popularity of subscription-based services, coupled with the growing number of vehicles on the road, is driving the growth of this segment. In 2023, the Subscription Model segment is estimated to be valued at USD 22.45 billion, and it is projected to reach USD 37.98 billion by 2032, exhibiting a CAGR of 6.2%.The Pay-Per-Use segment, on the other hand, is expected to witness a steady growth rate owing to its flexibility and cost-effectiveness. The Roadside Assistance Included in the Vehicle Purchase segment is anticipated to grow at a moderate pace as more and more car manufacturers are offering roadside assistance as a standard feature in their vehicles.
Car Breakdown Recovery Service Market Regional Insights
North America holds the largest market share in the Car Breakdown Recovery Service Market. The region is home to a large number of automotive manufacturers and suppliers, as well as a well-developed infrastructure. The presence of a large number of vehicles on the road, coupled with the increasing complexity of vehicles, is driving the demand for car breakdown recovery services in the region. The Asia-Pacific region is expected to witness the fastest growth in the Car Breakdown Recovery Service Market over the forecast period. The region is experiencing rapid economic growth, which is leading to a rise in the number of vehicles on the road.In addition, the increasing urbanization and the growing popularity of ride-sharing services are also contributing to the demand for car breakdown recovery services in the region.
The European market is also expected to witness significant growth over the forecast period. The region has a well-established automotive industry and a large number of vehicles on the road. The presence of a number of well-established car breakdown recovery service providers is also driving the growth of the market in the region. The Middle East and Africa (MEA) region is expected to witness moderate growth in the Car Breakdown Recovery Service Market over the forecast period.The region has a large number of vehicles on the road, but the market is still in its early stages of development. The South American market is also expected to witness moderate growth over the forecast period. The region has a large number of vehicles on the road, but the market is still in its early stages of development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Car Breakdown Recovery Service Market Key Players and Competitive Insights:
Major players in the Car Breakdown Recovery Service Market industry are constantly striving to gain a competitive advantage by offering innovative services and expanding their geographical reach. Leading Car Breakdown Recovery Service Market players are investing heavily in research and development to introduce new technologies and enhance the efficiency of their services. The Car Breakdown Recovery Service Market development is driven by factors such as increasing vehicle ownership, rising demand for roadside assistance, and growing awareness about the importance of timely vehicle recovery. The Car Breakdown Recovery Service Market Competitive Landscape is expected to remain highly competitive in the coming years, with key players focusing on strategic partnerships, acquisitions, and product innovation to gain market share. About a leading company in the Car Breakdown Recovery Service Market AAA (American Automobile Association) is a leading provider of Car Breakdown Recovery services in the United States.
The company offers a wide range of services, including towing, roadside assistance, and battery jump-starts. AAA has a large network of service providers across the country, which allows it to provide prompt and reliable service to its members. The company also offers a variety of membership plans, which provide members with access to a range of benefits, including discounts on car repairs and travel services. AAA is committed to providing its members with peace of mind and convenience, and its services are designed to meet the needs of a wide range of drivers.About a competitor company in the Car Breakdown Recovery Service MarketRAC (Royal Automobile Club) is a leading provider of the Car Breakdown Recovery Service Market in the United Kingdom.
The company offers a wide range of services, including towing, roadside assistance, and battery jump-starts. RAC has a large network of service providers across the UK, which allows it to provide prompt and reliable service to its members. The company also offers a variety of membership plans, which provide members with access to a range of benefits, including discounts on car repairs and travel services. RAC is committed to providing its members with peace of mind and convenience, and its services are designed to meet the needs of a wide range of drivers.
Key Companies in the Car Breakdown Recovery Service Market Include:
- LV
- NFU Mutual
- Britannia Assistance
- RAC
- Green Flag
- Europ Assistance
- Protect Roadside
- AAP
- Auto National
- AXA Assistance
- Allianz Global Assistance
- Saga
- Mondial Assistance
- The AA
- Britannia Rescue
Car Breakdown Recovery Service Market Industry Developments
Recent advancements in technology have shaped the Car Breakdown Recovery Service Market, leading to the integration of advanced systems and tools. The market has witnessed a surge in demand for real-time tracking, remote diagnostics, and mobile-based applications. To cater to the evolving needs of customers, industry players are focusing on providing personalized and value-added services. Partnerships and collaborations among market participants are prevalent, aiming to enhance service offerings and expand geographical reach. Moreover, government regulations and initiatives related to road safety and vehicle maintenance are expected to drive market growth in the coming years.
Car Breakdown Recovery Service Market Segmentation Insights
Car Breakdown Recovery Service Market Vehicle Type Outlook
- Light Vehicles (Cars, SUVs, Vans)
- Heavy Vehicles (Trucks, Buses)
Car Breakdown Recovery Service Market Service Type Outlook
- Towing
- Roadside Assistance
- Mechanical Repairs
- Fuel Delivery
Car Breakdown Recovery Service Market End User Outlook
- Individuals
- Businesses (Fleets)
- Insurance Companies
Car Breakdown Recovery Service Market Driver Profile Outlook
- Professional Drivers (Commuters, Taxi)
- Recreational Drivers (Weekend Travelers)
Car Breakdown Recovery Service Market Subscription Model Outlook
- Pay-Per-Use
- Subscription-Based
- Roadside Assistance Included in Vehicle Purchase
Car Breakdown Recovery Service Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.4 (USD Billion) |
| Market Size 2023 |
17.1 (USD Billion) |
| Market Size 2032 |
25.9 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.90% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
LV, NFU Mutual, Britannia Assistance, RAC, Green Flag, Europ Assistance, Protect Roadside, AAP, Auto National, AXA Assistance, Allianz Global Assistance, Saga, Mondial Assistance, The AA, Britannia Rescue |
| Segments Covered |
Vehicle Type, Service Type, End User, Driver Profile, Subscription Model, Regional |
| Key Market Opportunities |
Telematics based services Usage-based insurance Advanced vehicle diagnostics Subscription-based services Partnerships with OEMs |
| Key Market Dynamics |
1 Increasing vehicle ownership2 Growing demand for roadside assistance3 Technological advancements4 Rising disposable income5 Increasing urbanization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Car Breakdown Recovery Service Market is expected to reach USD 25.9 billion by 2032, growing at a CAGR of 4.90% from 2024 to 2032.
The key regions of the Car Breakdown Recovery Service Market are North America, Europe, Asia Pacific, and the Rest of the World. North America is expected to hold the largest market share, followed by Europe and Asia Pacific.
The key applications of the Car Breakdown Recovery Service Market are roadside assistance, vehicle towing, and repair services.
The key competitors in the Car Breakdown Recovery Service Market are AAA, The RAC, and NRMA.
The key trends in the Car Breakdown Recovery Service Market are the increasing adoption of connected cars, the growing popularity of subscription-based services, and the increasing demand for roadside assistance services.
The Car Breakdown Recovery Service Market is expected to grow at a CAGR of 4.90% from 2024 to 2032.
The challenges facing the Car Breakdown Recovery Service Market are the increasing competition from ride-sharing services, the rising cost of labor, and the shortage of skilled technicians.
The opportunities for the Car Breakdown Recovery Service Market are the growing demand for roadside assistance services, the increasing adoption of connected cars, and the growing popularity of subscription-based services.
The key factors driving the growth of the Car Breakdown Recovery Service Market are the increasing number of vehicles on the road, the growing popularity of subscription-based services, and the increasing demand for roadside assistance services.
The key regulatory factors affecting the Car Breakdown Recovery Service Market are the regulations governing the operation of roadside assistance companies and the regulations governing the pricing of roadside assistance services.
