Automotive Repair And Maintenance Services Market
Market Overview
The automotive aftermarket includes maintenance and repair of different services and parts namely gear oil, engine oil, brake oil, etc. Furthermore, wear and tear parts maintenance is comprised of suspension, engine, shock absorbers, brake wheel end, and driveline, while exhaust components include exhaust manifold, tailpipe, mufflers, and catalytic converter. The tire services include tire pressure monitoring, misalignment of tires repair of flat tires, replacement of tires, etc. Similarly, battery services include, replacement of automotive batteries. Various services providers offer automotive repair and maintenance services including automobile dealership, OEM, etc. Moreover, the specialty shops are independently owned shops that are specialized to provide a particular service for suspension services, collision repair, services for exhaust and mufflers.
The global automotive repair and maintenance services market was valued US$ 515,594.7 Mn in 2019 and expected to reach US$ 805,836.9Mn by 2027.
Market Dynamics- Drivers
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. According to the same source, the number of vehicles that are 16-24 years old increased 1.3X in 2015 as compared to that in 2000. 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. According to the U.S. Department of Transportation, the average age of passenger cars in the U.S. increased from 9 years in 2000 to 11.6 years in 2015.
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. According to Coherent Market Insights’ analysis, the global automotive aftermarket is projected to be valued at US$ 1.2 Bn by 2020, expanding at a CAGR of 3.9% over 2016–2020. Thus, these factors are expected to support the market growth in the near future.
Europe region dominated the global automotive repair and maintenance services market in 2019, accounting for 27.5% share in terms of value, followed by North America, Asia Pacific, Latin America and Middle East and respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
Increasing technical complexity associated with vehicles and automotive parts has resulted in a high cost of maintenance and repair services. Moreover, increasing labor costs worldwide coupled with the reluctance of consumers to adopt to these high-cost services are expected to restrain the global automotive repair and maintenance services market in the near future. As per the primary interviews conducted with key opinion leaders, the annual passenger car maintenance cost per unit is expected to increase up to 2X over the forecast period.
Many car owners in emerging economies such as China, Brazil, India, and South Africa are unwilling to invest in preventive maintenance, which results in high costs. Majority of car owners get their vehicle serviced and parts replaced under the warranty period. However, owners invest very little in service post-warranty period. This is mainly due to the careless attitude of vehicle owners towards vehicle safety and more focus on saving additional expenditure in preventive maintenance. As per the primary interview conducted with one of the leading automotive dealers in India, less than 30% of customers get their oil & filter changed according to miles driven or as recommended by the manufacturer. Thus, these factors are expected to hamper the market growth in the near future.
Market Opportunities
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.
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.
Source: Coherent Market Insights
Market Trends
Key players in the market are focused on various strategic activities such as mergers and acquisitions, in order to enhance their market presence. For instance, in 2016, Driven Brands, Inc., an aftermarket service provider acquired Lube Stop, a U.S.-based provider of the oil change, battery replacement and fluid exchange for the automotive aftermarket. Furthermore, in 2016, Asbury Automotive Group Inc., a U.S. based automotive retailer, acquired Ford Authorized Dealership store in Florida, U.S.
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.
Segment information:
In global automotive repair and maintenance services market, by Service provider, the Automobile Dealerships, sub-segment dominated the global market in 2019, accounting for 27.0% share in terms of value, followed by Franchise General Repairs, Locally owned repair shops, Others, Specialty shops and Tire shops respectively.
Source: Coherent Market Insights
Competitive Section
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.
Key Developments
The automobile after 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. These services are provided by automobile dealership owner or small locally owned shops. Aftermarket component s are either provided by automobile companies or company certified shop owners. Furthermore wear and tear parts maintenance is comprised of suspension, engine, shock absorbers, brake wheel end, and driveline, while exhaust components include exhaust manifold, tailpipe, mufflers, and catalytic converter. The tire services include tire pressure monitoring, misalignment of tires repair of flat tires, replacement of tires, etc. Similarly, battery services include, replacement of automotive batteries. Furthermore, according to coherent market analysis, in passenger cars are the biggest contributor to global automobile after service market with 72% in 2019 and it is expected to remain increasing owing to increasing adoption of automobile vehicles in the developing countries such as India, China.
Market Dynamics
Automotive repair and maintenance services over the forecast period owing to Increasing disposable income of people, increasing number of vehicles, increasing focus on passenger safety in vehicles and increasing average age of vehicles. Furthermore, Changing rules and regulations of government about automobile manufacturing and services are expected to fuel the global automotive repair and maintenance service market over the forecast period. For instance, According to coherent market analysis, in 2017 Government of India implemented Bharat stage emission standards IV which are based on European laws to control exhaust gases emission. This laws emphasize on controlling and monitoring of exhaust gases, to prevent excessive emission of exhaust gases time to time maintenance and service is required.
However, increased costs associated with repair and maintenance services, increased costs associated with repair and maintenance services are few factors, which are expected to restrain growth of global automotive repair and maintenance services market over the forecast period.
Market Taxonomy
This report segments the global automotive repair and maintenance services market on the basis of services and parts, service provider, vehicle type and region. On the basis of Services and Parts, global automotive repair and maintenance services market is segmented into 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. On the basis of Service provider, the global automotive repair and maintenance services market is segmented into Automobile Dealerships, Franchise General Repairs, Specialty Shops, Locally owned repair shops, Tire Shops and Others. On the basis of vehicle type, the global automotive repair and maintenance services market is segmented into Passenger Cars, LCV and HCV. On the basis of region, global automotive repair and maintenance services market is segmented into North America, Latin America, Europe, Asia pacific, Middle East and Africa.
Key features of the study:
Detailed Segmentation:
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