VEHICLE ROADSIDE ASSISTANCE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Vehicle Roadside Assistance Market Size and Trends

The vehicle roadside assistance market is estimated to be valued at US$ 25.76 Bn in 2024 and is expected to reach US$ 36.82 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

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The market spans roadside assistance services such as tire repair, fuel delivery, lockout, and jump-start services provided by automobile clubs and mobile centers to commercial and private vehicle owners. The vehicle roadside assistance market is driven by factors such as increasing traffic volumes leading to higher chances of breakdowns, the proliferation of automotive subscription plans that bundle roadside services, and growth in advanced services such as accident assistance, winching, and car rental. However, the emergence of self-driving vehicles and car-sharing could reduce the demand for traditional roadside assistance over the long run.

Vehicle Roadside Assistance Market Drivers:

Rising Road Traffic and Vehicle Population: As vehicle ownership continues to increase rapidly across both developed and developing nations, so does the frequency of roadside complications like accidents, breakdowns, flat tires, and others. With ever more cars, trucks, motorcycles, and other vehicles traveling busy road networks each day, the chances of something going wrong along the way inevitably rise. Many modern vehicles have become more computerized and electronically intricate under their hoods as well, meaning minor issues could potentially disable a vehicle if not addressed promptly. The surge in vehicle populations strains infrastructure and increases traffic congestion too, compounding accident and malfunction risks in some cases. Drivers realize they need a helping hand they can depend on to tow, jumpstart, or fix their vehicles whenever emergencies strike, sparing them potential costs and consequences of being stranded by the roadside. Roadside assistance providers aim to fulfill this vital and growing demand.

For instance, in May 2023, Progressive Insurance, in partnership with TTN Fleet Solutions is a company that specializes in providing fleet management solutions, introduced an optional heavy truck roadside assistance service for its commercial auto customers. This coverage will pay for towing and labor expenses at the location of a breakdown.

Consumers' preferences are clearly evolving towards on-demand, app-based services that deliver speed, convenience, and value. Ride-hailing apps showed how a modern, tech-enabled approach could revolutionize transportation. Now, even industries like roadside assistance are being disrupted as tech-savvy operators launch digital platforms empowering drivers with immediate assistance at the touch of a button. Drivers stuck in a jam or broke down in an unfamiliar location appreciate the quick response and transparency these new programs provide. Their standardized, consistent nationwide coverage also gives peace of mind whether at home or traveling abroad. Over time, drivers may become accustomed to the simplicity and advantages of digital roadside services over traditional phone-based models. This disruption encourages both legacy operators and startups to digitize and customize their offerings, remaining competitive in a dynamic marketplace where convenience is king.

For instance, in September 2022, FixiGo, a platform for car repairs, teamed up with Roadzen, an insurance company, to introduce 24/7 roadside assistance services in India. This collaboration will grant FixiGo access to Roadzen's network of workshops, enabling them to broaden their service coverage across all Indian states and enter the vehicle roadside assistance market.