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

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.

Market Concentration and Competitive Landscape

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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.

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Evolving Dynamics in the Vehicle Roadside Assistance Market: One of the key challenges faced by the vehicle roadside assistance market is the rising preference among customers for do-it-yourself solutions. Many customers now rely on community assistance apps and online support forums to help resolve common car issues like flat tires or dead batteries by themselves instead of calling roadside service providers. This has reduced the need for professional roadside services in some cases. Another challenge is the increasing reliability and longer service life of new vehicles which means they often do not breakdown as easily as older vehicles, thereby lowering demand for such services.

Vehicle Roadside Assistance Market Opportunities:

Growth Prospects in the Vehicle Roadside Assistance Market: However, there are still significant growth opportunities in this market. As more drivers use their vehicles for long distance travelling, the potential need for roadside assistance away from home increases. Advanced connected cars with telematics systems will also drive the integration of roadside services.

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In terms of vehicle type, passenger car contributes the highest share of 67% in 2024 in the market owing to the convenience and safety it offers customers. With busy work schedules and long commutes becoming commonplace, vehicle breakdowns can lead to significant hassles and delays. Roadside assistance services give passenger car owners peace of mind by providing on-call support for any issues while traveling. Whether it is a flat tire, empty fuel tank, dead battery, or mechanical failure, calling a single number allows one to get the problem addressed quickly without any stress. This convenient one-stop solution is a key reason for its popularity among private vehicle users.

Safety is another important factor, as being stranded on the road alone can be risky, especially at night. Immediate towing or repair assistance ensures passengers reach their destination safely. For many families with elderly parents or young children, this added security of having roadside help just a phone call away makes passenger cars a more reliable option than other modes of transportation. Insurance packages and automobile association memberships frequently bundle such coverage, further increasing accessibility for the mass market of passenger vehicle drivers.

Insights, By Service Type - Commercial Operations Rely on Heavy Duty Coverage

In terms of service type, towing contributes the highest share 41% in 2024 of the market due to the crucial support it provides commercial vehicles. Large freight trucks, trailers, buses, and other commercial fleet operations have zero downtime tolerances as delays directly impact timelines and productivity. Breakdowns not only stall operations but can also block traffic on highways posing a hazard. 24/7 on-call towing teams ensure that flat tires, engine failures, or accidents are addressed instantly to clear the road and get vehicles back in operation without loss of time.

Heavy freight requires special heavy duty tow trucks with capabilities to haul massive loads safely. Timely assistance is even more critical for long-haul trucks far away from bases. Towing contracts minimize disruption and losses and are an indispensable cost for commercial transportation services. Similarly, public transit agencies rely on towing assistance to minimize delays during rush hours. The infrastructure and equipment required to handle a range of commercial vehicles at short notice makes towing the most critical roadside service category for commercial operations.

Insights, By Providers - Insurance Drives Provider Market Share

In terms of providers, motor insurance contributes the highest share of 31% in 2024 of the market owing to its bundling of coverage. Unlike automobile clubs requiring annual subscriptions, insurance policies are a mandatory ongoing expenditure for commercial and private vehicle owners. Leveraging existing policyholder relationships and billing infrastructure, insurers can offer roadside services as value-added coverage with negligible incremental costs.

This bundled offering is highly convenient for customers as a single renewal takes care of multiple needs. Insurers also benefit from increased customer stickiness and opportunities for cross-selling other products. With assistance bundled as a policy add-on, coverage adoption becomes effortless. Additionally, insurers have large databases that enable dispatch of the nearest assistance provider swiftly for fastest response times. The synergy of existing motor insurance penetration and bundling strategy has made insurance the dominant provider channel for vehicle roadside services.

Regional Insights

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North America has established itself as the dominant regional market for vehicle roadside assistance services. The large size of the vehicle consisting of over 250 million vehicles has necessitated robust roadside assistance infrastructure in the region. Further bolstering market growth is the highly developed road networks spanning over 6 million miles that see heavy traffic. This exposes vehicles to a higher chance of breakdowns requiring roadside assistance providers.

The presence of leading global roadside assistance players, such as AAA, Allstate Roadside Services, and Agero, have created a saturated market structure. Years of market penetration have led to entrenched brand recognition and recall amongst drivers. Service operators leverage advanced technologies like automatic vehicle location for quick dispatch of assistance vehicles. The connectivity allows real-time tracking of road incidents. Insurers also offer roadside assistance add-ons, driving the need for a large network of service providers.

Meanwhile, the Asia Pacific region has emerged as the fastest growing marketplace for vehicle roadside assistance. Rapid motorization rates accompanied by improving economic conditions have boosted vehicle ownership in densely populated countries like China and India. As per capita incomes rise across the region, road infrastructure expansion is attempting to keep up with this growth in road usage. However, inadequate access to timely breakdown support persists, representing untapped market potential.

Many regional roadside operators are targeting this need by establishing local subsidiaries. For example, Chinese roadside assistance major County State-Aid Highway (CSAH) now operates in multiple Southeast Asian nations as well. Their local workforce is adept at handling language and cultural barriers during emergency response. Additionally, governments are implementing support schemes to boost road safety. This includes stipulating roadside coverage as mandatory for commercial fleets. The policy push and rising motorist demand will continue propelling the vehicle roadside assistance industry to newer heights in the foreseeable future.

*Definition: The vehicle roadside assistance market provides emergency roadside support services to motorists. It offers services such as towing, fuel delivery, jump starts, flat tire changes, lock-out service, extrication, or recovery of a vehicle and other on-site minor repairs. The services are offered either through membership programs provided by automobile clubs or insurance companies. It ensures safety and convenience to drivers facing mechanical breakdown or auto accidents away from home or workshop.

Market Report Scope

Market Segmentation

• Vehicle Type Insights (Revenue, USD BN, 2019 - 2031)
  • Passenger Car
  • Commercial Vehicle
•  Service Type Insights (Revenue, USD BN, 2019 - 2031)
  • Towing
  • Tire Replacement
  • Fuel Delivery
  • Others
•  Providers Insights (Revenue, USD BN, 2019 - 2031)
  • Auto Manufacturers
  • Motor Insurance
  • Independent Warranty
  • Automotive Clubs
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • North Africa
    • Central Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Agero Inc.
  • ALD SA
  • Allianz SE
  • American Automobile Association Inc.
  • ARC Europe SA
  • AutoVantage
  • Best Roadside Service
  • Camping World Holdings Inc.
  • Falck Danmark AS
  • Assicurazioni Generali S.p.A.
  • Honk Technologies Inc.
  • Paragon Motor Club Inc.
  • Prime Assistance Inc.
  • RAC Group Holdings Ltd.
  • Roda Assistance Pvt. Ltd.
  • Sompo Holdings Inc.
  • SOS International AS
  • The Allstate Corp.
  • Uber Technologies Inc.