The vehicle service market is projected to expand at a CAGR of 4.2% during the forecast period of 2024 and 2032. Throughout the forecast period, the market share of vehicle services is estimated to be driven by the rising demand for passenger vehicles and the expansion of the aftermarket automotive service industry. Increasing global adoption of electric vehicles also contributes to market growth. In addition, a surge in demand for short-term vehicle subscriptions and an increase in concern over carbon emissions in automobiles are fuelling the expansion of the vehicle services industry. To attract customers, authorized auto service centers offer annual membership plans with appealing discounts and prizes. This presents a favorable opportunity for raw material providers in the automotive services market. Market leaders are developing new service facilities and novel products with cutting-edge technologies to expand their market share.
The repairs and maintenance conducted at a service center improve the performance of the vehicle. In turn, this boosts the average vehicle's durability. Local garages and company-specified/authorized service centers undertake most car maintenance. Essentially, vehicle maintenance involves the change of engine oil and other components that operate continuously. In addition to replacing the filter, maintenance entails evaluating the tires, lights, steering, and brakes. Since car components are susceptible to degradation and require frequent repair, regular servicing is required. Car maintenance services are experiencing a rise in demand due to the increased need for shared mobility. In addition, an increase in the demand for passenger vehicles, problems with spare parts, and a surge in the need for technologically advanced vehicle components are major factors propelling market expansion. Service facilities lure customers by offering discounts and rewards on annual car services and maintenance. This offers industry participants tremendous market potential for automobile services. Increased automobile sales and the introduction of stringent government regulations to upgrade or replace deteriorating components have a beneficial effect on the value of the vehicle servicing industry. In the next years, however, a rise in the cost of raw materials and high monthly fees for short-term subscription programs are anticipated to have a negative impact on market estimates.
Improvements in vehicle customization, automotive safety regulations, discretionary income, and demand for novel features in autos create opportunities for major competitors to gain market share. For vehicles less than three years old, approved service providers provide timely and trustworthy maintenance. Owing to the global increase in the number of automobiles that may be driven on public roads, the market demand for vehicle services is rising significantly. To maximize efficiency, each vehicle must undergo maintenance after a predetermined time interval. Vehicle owners have a higher level of confidence in recognized service centers due to the use of high-quality materials and components, as well as the promise of prompt and efficient service. They frequently visit authorized dealers until the warranty expires for vehicle maintenance. Also, a number of customers prefer extended warranties for hassle-free automobile operations.
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The rise of the automotive sector, the increasing prevalence of connected and electric vehicles, and the expansion of global transportation operations are driving demand for vehicle repair and maintenance services. In developing countries like India, China, and Brazil, the automobile sector is thriving. According to Tata Motors, sales of domestic passenger vehicles surged by 47.0% in February 2023. In addition, passenger car registrations in the European Union grew by about 10 percent in June 2021 compared to the same month the year prior. They represent the motor industry's fast global expansion. Due to an increase in tourism and leisure activities, there is a growing demand for luxury sport utility vehicles. Two major automobile manufacturers based in India, Maruti Suzuki and Mahindra & Mahindra, saw their automobile sales climb by 22.3% and 62.2%, respectively, in December 2023.
Throughout the projection period, Asia-Pacific is expected to lead the global market. The region contains significant developing nations with sizable populations, like India and China. As a result of a rise in vehicle production, the expansion of road connections and infrastructure, and the lucrative presence of major automakers, the Asia-Pacific region is experiencing an increase in demand for automobile services. Rising passenger car demand and rising per capita income in emerging economies also help the growth of the Asia-Pacific industry. In 2023, there were 22 vehicles per 1,000 people in India. It is anticipated that this will encourage market growth for automobile services in the region. During the projected period, North America and Europe are also expected to contribute significantly. Automobile owners in some locations appreciate the importance of vehicle maintenance services. The average age of automobiles in these areas increased from 11,9 years in 2020 to 12,1 years in 2021.
Large firms dominate the industry. According to the estimate of the future of the market for automobile services, companies are developing supply chain networks to boost their revenue. In the coming years, it is projected that new entrants will achieve large profit margins. Through partnerships, mergers, acquisitions, and the extension of product lines, major corporations are enhancing their market position. Arnold Clark Automobiles Limited, Carfax Car Care, Carmax Autocare Center, Conroe's Choice Automotive, Driven Brands, Inc., Firestone Complete Auto Care, Gomechanic, Halfords Group Plc., Jiffy Lube International, Inc., Lookers Group, Monro Muffler Brake, and Pendragon Vehicle Management are key players in the global vehicle services market.
