Automotive repair and maintenance services refer to the repair and maintenance activities undertaken to keep vehicles in good working condition. These services include maintenance services such as oil change, brake inspection, tire repair and replacement, air conditioning servicing, car wash and detailing as well as repair services such as engine repair, transmission repair and electrical systems repair. The demand for automotive repair and maintenance services is driven by the need to enhance vehicle safety and performance and extend vehicle life. The increasing vehicle fleet size across the world owing to rising vehicle sales is estimated to drive the growth of the global automotive repair and maintenance services market during the forecast period.
Key Takeaways
Key players operating in the automotive repair and maintenance services are Firestone Complete Auto Care, Ashland Automotive, Inc., Driven Brands, Inc., Carmax Autocare Center, Sumitomo Corporation, Monro Muffler Brake, Inc., copyright International Ltd., Goodyear Tire and Rubber Co., Jiffy Lube International Inc., MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc.
Global Automotive Repair and Maintenance Services Market is estimated to be valued at US$ 1360.5 Bn by 2030.
Key opportunities in the Automotive Repair And Maintenance Services Market Demand include expansion into newer markets through strategic partnerships and acquisitions. Furthermore, advancements in predictive maintenance enabled by technologies such as AI, big data and IoT presents lucrative growth opportunities. Diagnostics technologies enabled by AI and IoT allow for remote and predictive monitoring of vehicle health, enabling predictive maintenance servicing.
The increasing availability of mobile services, subscription-based service models and do-it-yourself repair options are some of the technological advancements in the market contributing to its growth. Advances in automotive technology have led OEMs to offer subscriptions for vehicle repairs and maintenance, allowing customers to avail scheduled preventive maintenance and repairs at discounted rates.
Market Drivers
The key driver for the automotive repair and maintenance services market is the rising vehicle fleet worldwide owing to increasing vehicle sales. According to OICA, global passenger car production increased from around 69 million units in 2010 to over 80 million units in 2019. The increasing number of vehicles on road has resulted in greater demand for repair and maintenance services to keep vehicles in good working condition.
Other drivers include the rising average vehicle age and service intervals prescribed by OEMs. Greater distances covered and stringent emission regulations have led to shorter service intervals, driving more frequent visits to workshops. Additionally, rising disposable incomes have also contributed to growth in demand as consumers can afford to invest more frequently in vehicle maintenance and repairs for safety and performance enhancement.
Current challenges in the Automotive Repair and Maintenance Services Market
The automotive repair and maintenance services market faces numerous challenges currently. Rising labor costs are putting pressure on profit margins for service providers. Additionally, changing technology is requiring technicians to continuously upgrade their skills to work on modern vehicles that use more electronics and advanced driver-assistance systems. Technician shortages are also an issue as fewer younger people are choosing automotive repair careers. Service providers also struggle with attracting and retaining qualified technicians. An aging customer base means many cars on the roads today require extensive repairs instead of simple maintenance needs. Environmental regulations to reduce emissions present compliance challenges as well for automotive service companies.
SWOT Analysis
Strength: Technicians have expertise in fixing a wide range of car issues efficiently. Weakness: High fixed operating costs and infrastructure needs place cost pressures. Opportunity: Demand from fleets and aging vehicles ensure a steady customer base. Threats: New technologies may reduce need for repairs and independent shops face competition from dealerships.
The United States currently accounts for the largest share of the global automotive repair and maintenance services market in terms of value. This is due to the massive size of the country's vehicle parc as well as Americans driving more annually than other nations on average. China represents another major geographical concentration area for the market, as rising incomes have led to a surge in private car ownership over recent decades despite government restraints.
In terms of growth rates, many developing markets in Asia and Latin America are projected to see more rapid expansion in automotive repair and maintenance services between 2024 and 2031. As their economies develop and populations become more urbanized, middle classes are growing rapidly who can afford personal vehicles for the first time. This is spurring much stronger demand for aftermarket automotive services in nations like India, Indonesia, Brazil and others.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
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