The Global Automotive Repair and Maintenance Services Market was valued at US$ 770.7 Bn in terms of value in 2022. Maintenance and repair of various services and parts, such as brake oil, engine oil, gear oil, and so on, are included in the automotive aftermarket. Suspension, brake wheel end, shock absorbers, engine, and driveline are among the wear and tear elements to maintain, while exhaust components include the mufflers, exhaust manifold, tailpipe, and catalytic converter. The tire services include misalignment of tires, tire pressure monitoring, repair of flat tires, replacement of tires, etc.
The Global Automotive Repair and Maintenance Services Market: Drivers
Growing Awareness of Timely Vehicle Maintenance and Repair Fuels Revenue Growth in the Automotive Components Market
The general public is now more aware of the value of prompt vehicle maintenance and repair as a result of an increase in traffic accidents brought on by the failure of automobile components. Furthermore, because automotive components have a threshold lifespan, their service life is strongly reliant on their use. The ever-changing nature of driving situations necessitates prompt repair and maintenance of automotive parts. In the coming years, this aspect will contribute to the target market's revenue growth.
Global Automotive Repair and Maintenance Services Market: Opportunities
Strategic Service Focus and Competitive Pricing in Automotive Repair and Maintenance Industry
The majority of business owners don't offer a complete array of repair and maintenance services. They can, however, pursue a competitive strategy by concentrating on a particular service or increasing the number of services they provide. Local business owners can collaborate with leasing companies and fleet operators to offer discounted repair and maintenance services.
The majority of customers think that authorized dealership shops charge significantly more than small shop owners for repair and maintenance services. As a result, authorized store owners must charge reasonable prices for their services in order to grow their customer base. Because they are covered by the manufacturer's warranty and are preferred by new car owners, authorized dealer shops are preferred for vehicles under four years old.
However, they ought to focus on serving clients who own older cars by offering lifetime maintenance plans at discounted rates.
In the coming ten years, a number of these factors will present fresh chances for the target market to grow.
Global Automotive Repair and Maintenance Services Market: Restraints
Increasing Technical Complexity and Unwillingness to Accept High-Cost Maintenance Services
Due to the increasing technical complexity of cars and automotive parts, maintenance and repair services are becoming more and more expensive. In addition, the target market is anticipated to be constrained over the following ten years as a result of rising labor costs and a lack of consumer acceptance of these expensive services.
Many car owners in developing nations like China, India, Brazil, and South Africa refuse to spend on preventative maintenance, which leads to astronomical costs. Most car owners have their cars serviced and parts changed while their cars are still covered by warranties. On the other hand, after the guarantee period has passed, owners make very little service-related investments. This is mainly due to the careless attitude that many car owners have toward their cars' safety as well as their additional focus on avoiding unnecessary preventive maintenance costs. In the near future, these factors are anticipated to limit market growth.
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Key Takeaways:
The Global Automotive Repair and Maintenance Services Market was valued at US$ 770.7 Bn in 2022 and is forecast to reach a value of US$ 1360.5 Bn by 2030 at a CAGR of 7.4% between 2023 and 2030.
LCV & HCV segment held dominant position in the Global Automotive Repair and Maintenance Services Market in 2022, accounting for 62% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Automotive Repair and Maintenance Services Market Trends:
Rise in trend of vehicle customization coupled with increase in disposable income.
The disposable income of individuals has been increasing globally. For example, in November 2021, the Organization for Economic Co-operation and Development (OECD) reported that the disposable income in OECD countries increased by 1 point 7 percent. Additionally, the Chinese government reports that in 2021, China's per capita disposable income increased by 8.1 percent.
Due to increased disposable income and an increase in car owners' attention to the aesthetics and looks of their vehicles, the trend of vehicle customization has also been on the rise. Some examples of passenger car accessories that improve the aesthetics of the vehicle include chrome accessories, spoilers, LED lights, alloy wheels, and others. As a result, the market for passenger car accessories around the world is expanding, which is expected to open up lucrative opportunities for the market for automotive maintenance and repair.
Global Automotive Repair and Maintenance Services Market: Competitive Landscape
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.
Global Automotive Repair and Maintenance Services Market: Recent Developments
For instance, in 2020, Jiffy Lube International, Inc., an American chain of automotive oil change specialty shop expanded its presence by opening a new service centre in the Greater Detroit Metropolitan Area. It offered a wide range of automotive services for components including brakes, tires, and engine diagnostics.
In Feb, 2020, Mobile car repairer RepairSmith Inc. has acquired CarDash Inc., a concierge car repair service company based in Menlo Park, Calif.
In September, 2022, MG Motor India, a subsidiary of Shanghai-based Chinese automotive manufacturer SAIC Motor which markets vehicles under the British MG marque introduces doorstep vehicle repair and maintenance.
