AUTOMOTIVE REPAIR AND MAINTENANCE SERVICES MARKET ANALYSIS

Global Automotive Repair and Maintenance Services Market is estimated to be valued at US$ 1360.5 Bn by 2030.

Gear oil, engine oil, brake oil, and other types of automotive services and parts are among the many things that fall under the umbrella term "automotive repair and maintenance service.” In this service, auto repair technicians check and service vehicles on a regular basis, diagnose problems with vehicles, and discuss options with customers in order to find solutions. Additionally, it includes businesses that provide aftermarket maintenance and servicing of the vehicles to extend the life of the vehicle by replacing vehicle components like tires, batteries, wear and tear parts, air filters, cabin filters, oil filters, wiper blades, collision bodies, starters & alternators, and others.

For instance, in June 2022, MyTVS Accessories, a Car Accessories brand, a 100% subsidiary of TVS Automobile Solutions Pvt. Ltd. launched its ‘Life360’ digital platform to offer its customers a range of automotive repair services. It adopted a subscription-based business model and charged $60 (INR 5,000) for a three-year subscription. It provided end-to-end repair services, including mechanical, collision and maintenance, diagnostic, roadside assistance, accessories, and vehicle services.

Global Automotive Repair and Maintenance Services Market: Regional Insights

North America held a dominant position in the Global Automotive Repair and Maintenance Services Market in 2022 with more than 29% of the market share. The automotive repair and maintenance services market in the Asia Pacific region is expected to expand at a relatively high CAGR over the forecast period. Asia Pacific is considered to be the second-largest market for automotive repair and service market.

Figure 1: Global Automotive Repair and Maintenance Services Market Share (%), By Region, 2022

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Due to rising vehicle sales and production, a booming used car market, and stringent government regulations for vehicle maintenance, the North American region currently dominates the market for automotive repair and maintenance services and is expected to continue to do so over the upcomig seven years.

Global Automotive Repair and Maintenance Services Market - Impact of Coronavirus (Covid-19) Pandemic

Due to restrictions imposed by countries around the world, the auto industry has experienced a decline in sales and profits. Sales and after-sales services in the automotive industry have been hit hard by the pandemic, which has forced automakers to step up cost-cutting measures such as cutting operating and labor costs. The Covid-19 outbreak has had a negative impact on the growth of the global automotive repair and maintenance market. Due to the rapid spread of the virus, the government had to decide quickly on total lockdown, movement restrictions and social distancing. For example, most of the world's population stayed at home during the pandemic.

This will affect sales of commercial and passenger cars. Sales also fell due to changes in consumer behavior and reduced spending on non-essential items.

The economic impact of the COVID-19 epidemic on the automotive industry greatly affected subsidiaries such as the auto parts and aftermarket industries. Since the outbreak of COVID-19 began in early 2020, due to an increase in cases of COVID-19, authorities around the world have unexpectedly closed international and national borders.

Vehicle production has been suspended worldwide due to the pandemic, with automakers focusing on new product development and announcing strategic expansion and collaboration across the industry. All these factors hindered the growth of the market during the Covid-19 pandemic.

Global Automotive Repair and Maintenance Services Market- Drivers:

Significant increase in the average age of vehicles is expected to drive growth of the global automotive repair and maintenance services market during the forecast period

Advancements in material and technology used for automotive manufacturing has increased the average operational age of vehicles. According to Coherent Market Insights’ analysis, the number of vehicles with over 12 years of age is expected to increase by 15% over the next five years. Moreover, the reliability of the vehicles has been significantly increased in the recent past. As average operational age of a vehicle is increasing, significant number of repair and maintenance is expected to boost thereby driving the market growth.

Increasing concern over vehicle safety is expected to propel the global automotive repair and maintenance services market growth over the forecast period

Increasing number of road accidents caused due to breakdown of automotive components has resulted in increased awareness among general public regarding timely maintenance and repair of the vehicle. Moreover, the service life of automotive components is highly dependent on utilization, as components have threshold lifespan. Constantly changing driving conditions warrant timely repair, maintenance, and replacement automotive parts.

Global Automotive Repair and Maintenance Services Market- Opportunities:            

Local shop owners can capitalize on untapped potential by providing a full range of services

Majority of shop owners do not offer a complete range of repair and maintenance services. However, they can follow a competitive strategy of specializing in any particular service or increase the number of services they are providing. Furthermore, local shop owners can collaborate with fleet operators and leasing firms to provide repair and maintenance services at discounted prices.

Authorized dealership owners can provide maintenance services at lucrative price

Majority of customers believe that authorized dealerships shops offer maintenance and repair services at significantly higher cost as compared to local shop owners. Thus, authorized shop owners need to offer services at lucrative prices to customers, in order to expand their consumer base. The authorized dealer shops are mostly preferred by the new vehicle owners as they enjoy warranty protection, thus authorized dealers are preferred for cars younger than 4 years. However, they need to focus on customer base with old cars by offering them service packages for lifetime with lower prices.

Global Automotive Repair and Maintenance Services Market- Trends:

Mergers and acquisitions among major market players are major trend

Key players in the market are focused on various strategic activities such as mergers and acquisitions, in order to enhance their market presence.

Growing adoption of remove vehicle diagnostics systems

Remote vehicle diagnostics systems enable real-time monitoring of vehicle parameters to assess its performance against benchmarks. Remote diagnostics system has gained significant traction in commercial and utility vehicles, owing to technological advancements in vehicles and increasing focus on vehicle safety and connected cars. Moreover, authorized dealers are laying emphasis on utilizing their capabilities and providing advanced services such as remote diagnosis to earn competitive advantage in the market.

Global Automotive Repair and Maintenance Services Market- Restraints:

Rise of Electric Vehicles

The increase in demand for electric vehicles is a significant barrier to the market's expansion. Electric vehicles (EVs) are vehicles that can be charged from an external source of electricity, such as the electricity stored in rechargeable battery packs, drives, or wall sockets. Due to the fact that these cars are electric, they contribute to better air quality and a decrease in health issues brought on by air pollution by reducing harmful air pollution. Additionally, using renewable energy to recharge the EV will result in less greenhouse gas emissions. EVs assist in lessening the negative effects on the environment as a result. As a result, they are seeing greater customer adoption.

EVs don't need oil changes because they run on electric engines, though. The need for providers of repair and maintenance services is also eliminated because they have fewer moving parts that rarely malfunction. Additionally, customers can repair EVs themselves using online-purchased parts or remotely using over-the-air updates. Providers of repair and maintenance services will be limited to damaged vehicles that have been in accidents. Therefore, the increase in EV demand during the forecast period may have a negative impact on the rate of global market growth.

Figure 2: Global Automotive Repair And Maintenance Services Market Share (%), By Service Provider, 2022

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Global Automotive Repair and Maintenance Services Market- Segmentation:

Global Automotive Repair and Maintenance market report is segmented into service & parts, service provide, & vehicle type.

By Services and Parts: Engine Oil, Gear Oil, Brake Oil, Grease, Tires, Batteries, Wear and Tear Parts, Air Filter, Cabin Filter, Oil Filter, Wiper Blades, Collision Body, Starters and Alternators, Lighting, Exhaust Components and Spark Plugs

By Service Provider: Automobile Dealerships, Franchise General Repairs, Specialty Shops, Locally owned repair shops, Tire Shops and Others

By Vehicle Type: Passenger Cars, LCV and HCV

Global Automotive Repair and Maintenance Services Market: Key Developments

Major market players are focusing on product launches in order to enhance their product portfolio. For instance,

In January, 2023 The company AutoNation, Inc. the largest auto retailer in the US, has revealed that it has successfully acquired RepairSmith, a full-service mobile solution for auto repair and maintenance with a notable operational footprint in the western and southern United States. RepairSmith is based in Los Angeles.

For instance, in June 2022, A wholly owned subsidiary of TVS Automobile Solutions Pvt. Ltd., MyTVS Accessories is a brand of car accessories. Ltd. launched its "Life360" digital platform to provide its clients with a selection of auto repair services. A three-year subscription cost $60 (INR 5,000) thanks to the adoption of a subscription-based business model. In addition to mechanical, collision and maintenance, diagnostic, roadside assistance, accessories, and vehicle services, it offered comprehensive repair services.

In June 2022, The American business YourMechanic, which offers mobile automotive repair and maintenance services to vehicle owners on-site, has been acquired by Wrench, a mobile vehicle services and technology marketplace. More than 35,000 zip codes will be serviced by the combined company's more than 20,000 monthly private and fleet vehicle customers.

In October 2022, A company devoted to auto repair, Caliber, announced that during the fourth quarter of 2021, it would purchase up to 17 collision repair facilities from American auto retailer AutoNation.

Global Automotive Repair and Maintenance Services Market: Key Companies Insights

Global Automotive Repair and Maintenance Services Market is highly competitive, due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the Global Automotive Repair and Maintenance Services Market are 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., and Jiffy Lube International Inc., MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc.

*Definition: The Automotive repair and maintenance service market is the secondary market of an automobile industry which include of manufacturing, installation remanufacturing, retailing, distribution and of all vehicle parts, equipment, accessories and chemicals after the sale of automobile.