by The global automotive repair and maintenance services market is estimated to be valued at US$ 770.7 Bn or Mn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The automotive repair and maintenance services market involves servicing vehicles to keep them in good working condition. This includes routine maintenance tasks like oil changes, tune-ups, brake repairs, tire rotations, and more extensive repairs involving replacing or repairing mechanical and electrical vehicle components. Such services help diagnose problems with vehicles and carry out repairs to fix issues, ensuring roadworthiness and safety. They play a vital role in extending the lifetime of vehicles on the road by detecting early damage and performing preventive maintenance.
Market key trends:
The rise of mobile mechanics is a key trend in the automotive repair and maintenance services market. With people’s busy schedules and hectic lifestyles, driving to repair shops can be inconvenient. This presents an opportunity for mobile mechanics who can perform basic services like oil changes, tire repairs, and tune-ups at customers’ homes or offices, saving them time. Many mobile mechanic businesses are emerging that offer flexible on-demand repair schedules. Their ability to come on-site is attracting more customers. Another trend is the growing demand for electric vehicle maintenance support. As EV adoption increases, there is a need for mechanics trained to service high-voltage components, as well as diagnose and fix EV-specific issues. Automotive service providers are expanding their capabilities to cater to the electric vehicle aftermarket.
Porter’s Analysis
Threat of new entrants: The automotive repair and maintenance services market presents a moderate threat of new entrants due to the high costs involved in setting up repair facilities, maintenance of diagnostic tools and training required for technicians.
Bargaining power of buyers: The bargaining power of buyers is high given the large number of existing automotive repair shops and availability of substitute options. Buyers can easily switch between repair shops based on the offered services and prices.
Bargaining power of suppliers: Original equipment manufacturers (OEMs) and diagnostic tool manufacturers exercise significant influence over automotive repair shops as suppliers of spare parts and tools required for repairs. This gives them strong bargaining power over automotive repair shops.
Threat of new substitutes: The threat of substitutes is low as automotive repairs and maintenance services have no close substitutes. However, used cars and ride-sharing services pose a moderate threat as alternatives to vehicle ownership.
Competitive rivalry: Intense given the fragmented nature of local markets and availability of several independent repair shops and national auto repair chains competing on price and quality of services.
Key Takeaways
The global automotive repair and maintenance services market is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period, due to increasing vehicle parc and rising demand for general vehicle maintenance services.
The automotive repair and maintenance services market in Asia Pacific is projected to be the fastest growing as well as the most lucrative region. Rapid motorization in China and India coupled with rising aftermarket services is fueling the demand in the region. Countries like China, India and Japan are dominating the APAC automotive repair and maintenance services market.
Key players operating in the automotive repair and maintenance services market include Firestone Complete Auto Care, Ashland Automotive, Inc., Driven Brands, Inc., Carmax Autocare Center, Sumitomo Corporation, Monro Muffler Brake, Inc., Belron International Ltd., Goodyear Tire & Rubber Co., Jiffy Lube International Inc., MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc. The market is highly fragmented with the presence of both international as well as regional players. The key players are focusing on expanding their service networks as well as digitalizing their offerings to cope with the competition
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.
