Roadside Assistance Market Expected to Reach $47.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Roadside Assistance Market," The roadside assistance market size was valued at $28.9 billion in 2022, and is estimated to reach $47.6 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032.

The global roadside assistance industry is dominated by Asia-Pacific. Increase in demand for vehicles along with rise in per capita income drive the market growth. In addition, this region is the most attractive automotive market for numerous market players. Penetration of advanced driver assistance and electric vehicles have encountered significant automotive sales in the region and that in turn has increased the road assistance insurance services demand.

Furthermore, the growth of the market can also be attributed to the increasing road accidents and breakdowns, growing vehicle fleets, and rising demand for mobility solutions in Asia-Pacific. In addition, key players in India adopting various key strategies to drive the growth of the roadside assistance market.

Towing is a crucial component of roadside assistance services. It involves the transportation of a disabled vehicle from its location to a designated repair facility or another desired destination. Towing services are typically provided when a vehicle cannot be immediately repaired on-site or is involved in an accident that renders it inoperable. Roadside assistance providers usually have partnerships or contracts with towing companies or have their own fleet of tow trucks.

Tire replacement assistance is another vital service provided in the roadside assistance market. It aims to assist drivers who experience a flat tire while driving, ensuring their safety, and helping them get back on the road quickly. Tire replacement assistance is designed to provide convenience to drivers who encounter tire problems on the road. It saves them from the inconvenience of changing a tire themselves, especially in unfavorable weather conditions or when they lack the necessary tools or experience.

The rise in the number of older vehicles with numerous electrical and mechanical problems is the major factor driving the growth of the roadside assistance market. In addition, the roadside assistance industry is growing since app-based services have sped up roadside help response times. Extreme weather conditions have an influence on many drivers throughout the world, especially in cold weather when battery power drains and battery jump starts are necessary. Further, icy and snowy driving conditions in some areas increase the occurrence of deadly traffic collisions, necessitating roadside vehicle assistance.

Advanced technologies such as telematics, GPS tracking, and vehicle diagnostics offer immense potential for roadside assistance providers. These technologies enable real-time monitoring of vehicles, allowing providers to proactively identify potential issues, track vehicle locations, and offer faster response times. With precise location information, providers may dispatch assistance more efficiently, minimizing wait times and improving overall service quality. Furthermore, connected car technologies allow for remote diagnostics and troubleshooting, enabling technicians to assess vehicle problems remotely and potentially resolve minor issues without physical intervention.

In addition, mobile applications and digital platforms play a crucial role in improving customer experience and convenience. Roadside assistance providers can develop user-friendly mobile apps that allow customers to request assistance, track the arrival of service vehicles, and receive updates in real-time. These digital platforms may also facilitate seamless communication between customers and service providers, enhancing transparency and customer satisfaction. As autonomous and electric vehicles gain traction, it is expected to provide new opportunities for roadside assistance providers to specialize in servicing these specific vehicle types.

COVID-19 Impact Analysis

The outbreak of COVID-19 led to reduced demand for roadside assistance services due to nationwide lockdowns and restrictions on mobility. The reduction in vehicle usage directly affected the demand for assistance services, resulting in decreased revenue for roadside assistance providers. Furthermore, the economic impact of the pandemic led to financial constraints for individuals and businesses. However, post-pandemic, an increase in demand for vehicles, mobility, and road traffic has encouraged market players to deliver enhanced roadside assistance services to cater to the increase in market demand.

KEY FINDINGS OF THE STUDY

• By service, the battery assistance segment is anticipated to exhibit significant growth in the future.
• By provider, the OEM segment is anticipated to exhibit significant growth in the future.
• By vehicle, the commercial vehicle segment is anticipated to exhibit significant growth in the future.
• By region, Europe is anticipated to register the highest CAGR during the forecast period.

Key players operating in the global roadside assistance market include Agero, Allianz Global Assistance, Allstate Insurance Company, ARC Europe SA, AutoVantage, Falck A/S, Paragon Motor Club, Roadside Transportation LLC, SOS International, and Viking Assistance Group AS.