Automotive Repair and Maintenance Services Market - Key Research Findings
- The global automotive repair and maintenance services market value is estimated to reach ~US$ 530 Bn in 2019.
- The automotive repair and maintenance services market is anticipated to grow at a CAGR of ~6% during the forecast period of 2019-2029.
- Increasing replacement rate of tires has been significantly contributing to the growth of the automotive repair and maintenance services market.
- Collectively, APEJ (Asia Pacific excluding Japan) and North America, are projected to hold ~55% of the value shares in the automotive repair and maintenance services market by the end of 2029.
- Automobile dealership owners continue to hold substantial share in the automotive repair and maintenance services market in line with increasing technical complexity in vehicles.
- Replacement of automotive air filter, oil filters, engine oil, brake oil and other wear parts are quite regular when it comes to scheduled servicing, hence these segments are projected to exhibit promising growth over the forecast period.
Key Factors Shaping Automotive Repair and Maintenance Services Market
- Increase in Average Age of Vehicles
Advancements in technology have led to improvement in the quality of materials used for automobile manufacturing, which has subsequently increased the average lifetime of vehicle. Use of automotive turbochargers, start-stop systems and emission control catalysts have improved vehicle fuel economy which has positively impacted on service life of vehicles.
In the view of increasing reliability, the number of vehicles which are in the range of 16-24 years old, has increased significantly across the globe. According to a survey, customers are keeping their old cars as second hand vehicles rather than reselling or scrapping them, which results in significant need for repair and maintenance services, thereby potentially fuelling the market growth.
- Online Retailing of Aftermarket Parts Affecting Traditional Outlets
Recent surveys and studies on automotive aftermarket sales have concluded that online retailing of automotive parts will have a negative impact on the business of traditional outlets, such as service centers and dealerships. E-retailers such as Amazon offer products at much lower prices, adding pressure on automotive dealerships to reduce their costs, which in turn, may restrain the growth of the automotive repair and maintenance services market during the forecast period.
Moreover, integration of B2B and B2C business models, which specifically target DIY customers, further derail the business of specialty and locally owned repair shops. Such factors are likely to represent a potential threat for stakeholders active in the automotive repair and maintenance services market.
- Motor Regulations in Developing Countries
Governments of developing countries are catching up with other countries in terms of implementation of regulations regarding environmental sustainability and improving the safety of passengers.
This would lead to mandatory installation of anti-lock braking systems in vehicles and designing of engines in such a way that they fulfill regulation criteria. As a result, the demand for automotive repair and maintenance services in developing countries is likely to ramp up in the foreseeable future.
- Increasing Number of Small Independent Repair Shops
Establishments of independent repair shops has been on the rise in developing countries, resulting in lower brand recognition among the end users. Independent repair shops are constantly focusing on providing maintenance and repair services at a lower cost as compared to dealerships and franchise owners, thereby gaining significant attention from the customers.
Automotive Repair and Maintenance Services Market Structure Analysis
- The global automotive repair and maintenance services market has a fairly competitive landscape, where prominent market players are focusing on forming joint ventures, concrete distribution partnerships, and a stronger global footprint.
- The automotive repair and maintenance services market has been fairly moderate in size, which is the key factor for its dynamic competitive nature.
- Prominent players in the automotive repair and maintenance services market are presently prioritizing business expansion through merger and acquisition of small or local players active in the automotive repair and maintenance services market.
- Extension of service portfolio is also identified to remain one of the key developmental strategies adopted by key players in the automotive repair and maintenance services market.
- Key market players are strategically focussing on strengthening their online portfolio in order to attract new customers and give a necessary boost to their revenue stream.
- With anticipated increase in sales of electric and hybrid vehicles over the forecast period, key players are equipping themselves with technologically-advanced equipment and software to cater to newer demands.
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Automotive Repair and Maintenance Services Market: Taxonomy
Services and Parts
- Engine Oil
- Gear Oil
- Brake Oil
- Wear & Tear Parts
- Air Filters
- Cabin Filters
- Oil Filters
- Wiper Blades
- Collision Body
- Starters & Alternators
- Exhaust Components
- Spark Plugs
- Automobile Dealerships
- Franchise General Repairs
- Specialty Shops
- Locally-owned Repair Shops/Body Shops
- Tire Shops
- Passenger Cars
- North America
- Latin America
- Eastern Europe
- Western Europe
- Middle East and Africa