About the Report
The automotive repair & maintenance market has witnessed exponential growth in the last few years. This growth is projected to continue, subsequently increasing demand of automotive repair & maintenance services for regular vehicle checkups to avoid any malfunction. Factors such as increase in automotive production and vehicle fleet size have boosted the repair and maintenance market.
In its new study, ESOMAR-certified market research and consulting firm, Future Market Insights (FMI), offers insights about key factors driving the demand for repair and maintenance services. The report tracks the various repair parts and maintenance services offered in 20+ high-growth markets where North America is the highest growing market followed by Europe and Asia Pacific market, along with analyzing the impact COVID-19 has had on the Automotive Repair & Maintenance Services in particular.
What is the Future Outlook on Automotive Repair & Maintenance Services Market in Comparison to Historic Sales?
?The time period of vehicle ownership has increased now as compared to previous years. Extended longevity of vehicles have been fuelling the demand for auto repair & maintenance services. Furthermore, reliable maintenance services, service flexibility, and cost competitiveness are expected to make automotive repair and maintenance services highly sought-after.
Increase in number of passenger cars will accelerate the repair & maintenance services sales. There has been a rise in demand for electric vehicles in some regions as compared to previous years which also is creating demand for auto repair & maintenance services.
The market is likely to expand as many companies are investing in research and development (R&D) activities to launch innovative repair and maintenance equipment such as automotive diagnostics tools, which are used to determine the cause of any damage to the vehicle.
With the help of augmented reality apps, repair and maintenance providers can are facilitated by live view of the vehicle to understand complex repairs, making it easier for them to provide services. Big data is helping service providers analyze customer and car data. This has been paving way for a future where predictive maintenance of vehicles will be easily accessible. Advent of these novel technologies is likely to accelerate repair and maintenance services sales.
Many companies provide aftermarket auto parts to automotive repair shops and end users. Easily available repair parts have been one of the major reasons for the growth of the repair and maintenance market. Increase in demand of repair parts is increasing due to increasing trend of Do It Yourself (DIY) among automobile owners. North America and Europe take up a large share of the global Automotive Aftermarket followed by growth in the Asia Pacific region.
The ongoing crisis caused by COVID-19 pandemic has affected all industry verticals, resulting in subdued capital investments, decreased production rate, and restricted supply. Lesser footfalls in auto repair shops due to COVID-19 has had a major impact on repair and maintenance service providers. However, deferred maintenance towards the start of the pandemic is now driving customers to visit repair and maintenance dealerships which will slightly increase the demand for this market.
Also some automotive repair and maintenance dealerships are incorporating conveniences such as free vehicle pick up and drop off services, thereby attracting customers who would not have rather visited the dealerships in person. With a number of end users affected in regions like North America, Europe, East Asia and Asia-Pacific, reluctance of customers to visit repair shops are expected to result in a significant drop in Y-O-Y growth yet FMI expects global automotive repair and maintenance market to grow at 3.2% CAGR through 2031.
What is the Commercial Potential of Automotive Repair and Maintenance?
Unlike dealerships, automotive repair and maintenance services are aligned with the servicing of more than one make of vehicle thereby not being tied to any specific manufacturer. Many auto repair stores have authorized dealership of different car companies where they offer vehicle repair and maintenance services for all car models. Some even have franchise stores at different locations where they offer overall servicing of vehicles.
Automotive repair & maintenance shops are investing increasingly in expanding their online presence. Use of digital platforms by companies for acquiring new customers is emerging as a new channel strategy. Some of them offer various discounts on their websites to increase the online booking of repair services. Online retailing of auto parts also has increased in some regions as the required parts are easily available to consumers on the website. Digitization has increased price transparency for automotive services and parts for customers.
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What are the Factors Driving the U.S. Auto Repair and Maintenance Market?
FMI has projected the U.S. to remain one of the most lucrative markets throughout the course of the forecast period. One of the key factors supporting the market is the increase in number of repair and maintenance centers in the country. Also, the increasing average age of vehicles and increase in use of second hand (used) vehicles is fuelling the demand for auto repair and maintenance services in the U.S.
The increase in car fleet in the country will continue fuelling the demand for maintenance and repair services. Smaller companies in the U.S. are competing effectively by strategically introducing shops in convenient locations and prioritizing customer service. However, a high median age of service technicians in U.S. along with the shortage of new and qualified technical workers in the repair industry may present itself as a challenge.
Will Germany’s Strong Automotive Repair and Maintenance Market Prosper Further?
The repair and maintenance market in Germany is rising considerably in response to the increasing investment in R&D into automotive parts for other equipment manufacturers (OEM) and aftermarket. There are many auto manufacturers and suppliers in Germany which has created a conducive environment for growth. However, the German market has been facing challenges due to rigid EU regulations on CO2 emission norms.
As Germany’s electric vehicle market is also rising considerably, growth in the German automotive repair and maintenance market is pegged to exhibit 1.4% y-o-y growth. The market suffered due to COVID-19 outbreak as car owners remained indoors during the extended period of lockdown. However, recovery is on cards as normalcy slowly returns.
What’s the Outlook on India’s Repair and Maintenance Services Market?
Indian automotive industry is a major contributor to the country’s GDP. Auto repair and maintenance services market is growing sharply with the entry of big car brands in the country. Authorized service centers that take care of auto repair and maintenance are increasing with the growing number of on-road vehicles in India.
The sales of passenger vehicles are poised to surge in India. With the increase in use of vehicles, the demand for repair and maintenance services is bound to increase in India. Reluctance of customers to visit repair shops however has been a key restraint to the growth in the repair and maintenance services market.
Will Brexit Weaken Demand in U.K.’s Automotive Repair & Maintenance Market?
Brexit scenario is impacting the manufacturers and consumers in the U.K. auto repair and maintenance market. The repair and maintenance market will face difficulty since s one of the major challenges that U.K. automotive industry will face is the exemption from EUs “Right to Repair” scheme. The Right to Repair act makes the information regarding mechanisms and inner working from car manufacturers for their vehicles available to independent repair shops.
It will be difficult for independent repair shops to provide latest services in this constantly advancing car technology. The independent repair shops will have to constantly keep updating themselves with latest manufacturing technologies which is going to cost more to them.
The U.K. is a leading manufacturer in the automotive industry. EU was the largest destination for U.K. manufactured vehicles, which accounted for 50% of UK vehicle imports. The U.K. car manufacturing industry is worried about trade barriers for them after Brexit. The aftermarket replacement parts used in the U.K. are imported from EU based suppliers and the automotive parts exported from UK will bear major tariffs which is a key concern in the Europe market.
Is China a Lucrative Market for Automotive Repair & Maintenance?
The automotive repair and maintenance services market in China is expected to present offer attractive opportunities owing to increasing vehicle production. With this, a large volume of vehicles in China will require repair and maintenance services. The expansion of online presence of various service providers will aid the overall growth in China.
China’s automotive repair & maintenance market will exhibit stronger growth in the coming years as the age of average vehicle in China is increasing. Although China was key channel for sourcing low cost spare parts for various companies, but post the pandemic manufacturers are refocusing on sourcing from regions such as Canada and Mexico.
Which Services & Parts Type is in High Demand?
In terms of services & parts, the demand in tire segment is expected to be significantly high. The demand for automotive repair parts is increasing with growing production of new vehicles and increased life of vehicles. Online retailing of automotive repair parts, including tires is o increasing with increase in digitization and evolution of ecommerce.
The power of digital influence will continue driving tire sales. Companies such as Robert Bosch and Denso Corporation offer OEM and aftermarket repair parts in brick and mortar stores as well as on the website. Companies such as CarMax Auto Care Center and Firestone Complete Auto Care offer online servicing booking for automotive.
Who are the Sought-after Automotive Service Providers?
The demand for automobile dealership and franchise general stores is increasing with rise in the vehicle ownership and increasing focus on vehicle safety. Service providers can be authorized dealership stores, franchise stores, and local repair shops in different regions that provide vehicle servicing.
Demand for service providers decreased due to COVID-19 pandemic as all the service centers were closed, which has impacted the automotive repair and maintenance services market.
Which is the Key Vehicle Type Exhibiting High Demand?
Passenger cars are occupy the largest share in the automotive repair & maintenance market. Passenger cars are the most common mode of transport in many countries. Sales of passenger cars has decreased due to COVID-19 in many regions as production and supply stood increasingly hampered amid pandemic.
Decrease in new car registrations affected the automotive sector globally. This also affected the sales of automotive repair and maintenance services.
The automotive repair & maintenance market is highly competitive, exhibiting the presence of a large number of players offering automotive repair services. Some of the players are focusing to carve a niche for specific demography, while others are focusing on strategic tie-ups
- Goodyear Tire & Rubber Company is collaborating with Voyomotive that is a connected car technology company which are working on tire monitoring solutions for efficient operations of vehicles in US. They are using real- time vehicle data to process information by Goodyear Analytics to create tire pressure monitoring solutions for enhanced vehicle efficiency and safety.
- Belron International has been working in windscreen technology for generation of smart windscreens for vehicles using Augmented Reality Displays.
- Asbury Automotive Group has announced a new communication technology app that is an online platform for car buying and selling. They launched this online automotive retail platform with Gubagoo.
Some of the leading services providers in the market are:
- Arnold Clark Automobile Limited
- Asbury Automotive Group Inc.
- Ashland Automotive Group Inc.
- Belron International Ltd
- Carmax Autocare Center
- Driven Brands Inc.
- Firestone Complete Auto Care
- Goodyear Tire & Rubber Company
- Halfords Group PLC
- Monro Inc.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and Units for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa
Key Countries Covered
US, Canada, Brazil, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Oceania, Turkey, Northern Africa, South Africa
Key Segments Covered
Parts, Service Providers, Vehicle Type and Region.
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
Which is the most lucrative market for Automotive Repair & Maintenance Services?
The U.S. currently leads the global market for automotive repair & maintenance service market.
Who are the leading automotive repair & maintenance service providers?
Automobile dealership stores and franchise repair shops currently account for the maximum share of automotive repair and maintenance services offered globally.
Who are some of the leading automotive repair and maintenance service providers?
Some of the leading companies providing auto repair & maintenance services and parts are Robert Bosch, Denso Corporation, Continental AG, Goodyear Tire & Rubber Company, etc.
Which vehicle type is in most need for automotive repair and maintenance services?
Passenger vehicles are often considered important assets. Car owners are likelier to spend on maintenance and repair of their vehicles to ensure longevity.
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Automotive Repair & Maintenance Market
By Services & Parts
- Engine Oil
- Gear Oil
- Brake Oil
- Wear & Tear Parts
- Air Filter
- Cabin Filter
- Oil Filter
- Wiper Blades
- Collision Body
- Starters & Alternators
- Exhaust Components
- Spark Plugs
By Service Providers
- Automobile Dealerships
- Franchise General Repairs
- Specialty Shops
- Locally Owned Repair Shops/Body Shops
- Tire Shops
By Vehicle Type
- Passenger Cars
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa