by The vehicle protection service market comprises various types of protection plans and extended warranties that provide services like roadside assistance, repair coverage, replacement coverage, and others. Vehicle protection services help save expenditure on unexpected repair costs and provide safe travel experience to customers. They protect vehicles from risks against unforeseen repair costs, enhance resale value, and reduce repair turnaround times through direct repairer payments.
The global vehicle protection service market is estimated to be valued at US$ 168.21 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the vehicle protection service market are The prominent market players in the RFID market include Zebra Technologies Corp. (US), Alien Technology, LLC (US), CAEN RFID S.r.L. (Italy), Impinj, Inc. (US), Avery Dennison Corporation (US), Honeywell International Inc.(US), NXP Semiconductors (Netherlands), GAO Group (Canada), HID Global Corporation (US), Invengo Information Technology Co., Ltd. (China), Infotek Software & Systems (P) Ltd (i-TEK) (India), Bartronics India Limited (India), Bartech Data Systems Pvt. Ltd., ORBCOMM Inc. (US), GlobeRanger (US), Mojix (US), SAG Securitag Assembly Group Co., Ltd. (Taiwan), Linxens (France), Checkpoint Systems, Inc. (US), Identiv, Inc. (US), Confidex (Finland), Datalogic S.p.A. (Italy), Nedap N.V. (Netherlands), Jadak (US).
The key opportunities in the vehicle protection service market include new product development and launch, increasing distribution network in emerging markets, collaborations and partnerships. North America dominates the global market currently; however, Asia Pacific is expected to grow at the highest CAGR owing to increasing vehicle production and fleet in developing countries like China and India.
Market drivers
The major market driver for Vehicle Protection Service Market Size is the growing demand for roadside assistance services. With increasing vehicle fleet worldwide and long/intercity travels, roadside assistance has become necessity. Vehicle protection services provide 24/7 roadside support to customers in the eventuality of towing, fuel delivery, flat tire support, lockout, or dead battery, thereby boosting the market growth.
PEST Analysis
Political: Vehicle protection service market is regulated by various laws and regulations related to vehicle insurance and consumer protection. Any changes in such laws can impact this market.
Economic: Fluctuations in vehicle sales and consumer spending directly impact demand for additional vehicle protection services. A stable economy encourages more vehicle owners to opt for such paid services.
Social: Changing lifestyles and increased vehicle ownership among urban populations fuels demand. However, some rural areas still rely on public transportation instead of personal vehicles.
Technological: Advancements like telematics and mobile apps enable remote vehicle monitoring and management of protection plans digitally. This improves customer experience and encourages higher adoption rates.
Concentration of Market by Geographical Regions
In terms of value, the vehicle protection service market is currently concentrated in developed regions like North America and Europe owing to high vehicle ownership rates and demand for premium after-sales services. The United States accounts for the largest share currently due to the large size of its automobile fleet and high consumer spending power.
Fastest Growing Regional Market
The Asia Pacific region is expected to showcase the fastest growth in the vehicle protection service market during the forecast period. This is attributed to rapid urbanization, rising disposable incomes, and expansion of global service providers into emerging countries like China and India where vehicle sales are growing robustly. Increased awareness about such value-added services will further support market growth in the Asia Pacific.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
