Automotive Repair and Service Market Expected to Reach $1,656.21 Billion by 2031

According to a new report published by Allied Market Research, titled, “Automotive Repair and Service Market," The automotive repair and service market was valued at $789.80 billion in 2021, and is estimated to reach $1,656.21 billion by 2031, growing at a CAGR of 7.6% from 2022 to 2031.

Automotive repair and service are typically attributed to repairing automotive machines when they malfunction or no longer run correctly. Automotive repair and service are required to keep vehicles driving down the road. Automotive engines must be serviced regularly to keep them in good operating condition. At present, many countries are mandating stringent rules and regulations to replace car accessories after the expiry date. For instance, National Highway Traffic Safety Administration (NHTSA) has stated a new regulatory norm for car parts such as tires, rims, seat belts, and others to be manufactured initially and must be replaced according to the life span of the product. Such mandates are expected to boost the sales of passenger car accessories, thereby contributing to market growth.

In addition, the automotive repair and service market has witnessed significant growth in recent years, owing to the increased demand for improved vehicle performance & safety and the collaboration of local shop owners with fleet operators to provide repair and maintenance services at discounted prices. Furthermore, the companies operating in the automotive repair and service indusry have adopted partnerships, investments, and business expansion to increase their market share and expand their geographical presence. For instance, in December 2019, Jiffy Lube International, Inc. expanded its presence by opening a new automotive service center in Milwaukee, Wisconsin. The service center offered a wide range of automotive services for components, including brakes, tires, and engine diagnostics.

The factors such as increasing automotive sales, growth of automotive post sale services, and stringent government regulations to replace or upgrade vehicle components supplement the growth of the automotive repair and service market. However, volatile prices of raw materials and rise in demand for shared mobility are the factors expected to hamper the growth of the market. In addition, rise in trend of vehicle customization coupled with increase in disposable income and increasing automotive safety norms & demand for technologically advanced features creates market opportunities for the key players operating in the automotive repair and service market.

COVID-19 Impact Analysis:

The automotive industry acts as a core supporting block for multiple economies such as the U.S., China, and India. The automotive industry has observed a decline in sales and revenue, owing to lockdown sand restrictions implemented by nations globally. Sales and aftersales services of the automotive industry were severely hit by the pandemic and led to a rise in adoption of cost-cutting measures by automotive companies, such as decreasing operational costs and workforce globally. Economic impacts of the COVID-19 outbreak on the automotive industry have major impacts on subsidiary industries such as automotive components and automotive aftermarket industries. Surge in COVID-19 cases globally forced authorities to impose unanticipated closure of international and national borders since the inception of the COVID-19 outbreak in early 2020. The production of vehicles was stunted globally, owing to the pandemic and the automotive manufacturers focused on development of new products and announced strategic expansion and collaboration across the industry.

KEY FINDINGS OF THE STUDY

• By type, the maintenance services segment dominated the global automotive repair and service market in terms of growth rate.
• By service provider, the others segment dominated the global automotive repair and service market in terms of growth rate.
• By vehicle type, the heavy commercial vehicles segment dominated the global automotive repair and service market in terms of growth rate.
• By propulsion type, the electric segment dominated the global automotive repair and service market in terms of growth rate.

The leading players operating in the automotive repair and services market are Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., EUROPART, Firestone Complete Auto Care, Hance's European, Inter Cars S.A., Jiffy Lubes International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, myTVS Accessories, Safelite Group, Sun Auto Service, USA Automotive, and Wrench, Inc.