The Global Automotive Repair and Maintenance Services Market, 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) by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 805,836.98 million by 2027, exhibiting a CAGR of 5.7% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Automotive repair and maintenance services include a variety of services. It includes services related to tire, engine, batteries, wear and tear parts, lighting, brakes, driveline, suspension, etc. Generally, these services are provided by automobile dealership owners or small locally-owned shops. The franchise general repairs include the shops that are owned by other parties for a particular brand or company. For example Jiffy Lubes franchises, Meineke (Driven Brands, Inc.). Furthermore, specialty shops are independently owned to provide particular services. Locally-owned shops include small garages, body shops. These shops usually provide all kinds of services. Moreover, tire shops provide various services such as lube, oil, filter change, tire replacement, tire alignment, brake disc pads, brake fluid replacement, catalytic converter, transmission, and broken muffler.
The global automotive repair and maintenance services market was valued US$ 515,594.707Mn in 2019 and expected to reach US$ 805,836.9 Mn by 2027.
Poor quality of road infrastructure is expected to boost growth of the global automotive repair and maintenance services market during the forecast period
The quality of road infrastructure has a major impact on the performance and life of vehicle and its parts. A pothole can cause a severe impact on tires or can cause wheel rim damage, while pits on the road can lead to premature wear on struts and shocks, steering system misalignment, suspension damage, and exhaust system damage or engine damage. Poor quality of road infrastructure is typically observed in emerging economies such as India, which results in frequent need for repair and maintenance services in these regions. Thus, these factors are expected to support the market growth over the forecast period. According to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive vehicle production output in 2015 was 90.1 Mn units, with Asia Pacific and Oceania accounting for 51.9% of the total production. Thus regions in APEJ act as lucrative markets for repair and maintenance services and the lacking road infrastructure is expected to drive repair and maintenance market in APEJ region.
Providing a wide range of repair and maintenance services can present lucrative growth opportunities for local shop owners
As most of the small locally owned repair shops don’t offer a complete range of repair and maintenance services, they can follow a competitive strategy of specializing on any particular service or they can increase the number of services they are providing. Moreover, the small local shop owners can engage themselves in partnerships or standardized contracts with the fleet operators and leasing firms to provide repair and maintenance services at lower prices
Significant increase in repair and maintenance costs is expected to hinder the global automotive repair and maintenance services market growth over the forecast period
Rising technical intricacy of the vehicles has let to increase in cost for repair and maintenance services significantly over time. Furthermore, advancements in repair and maintenance tools and equipment increase service costs. These factors supplemented with increasing labor costs across the globe and unwillingness of customers to adopt these high-cost services acts as a factor restraining the growth of the market.
Small locally-owned shops hold a significant share in used vehicle maintenance though relatively a smaller share in new vehicle maintenance as compared to authorized dealership owners. This low share can be increased if local repair and maintenance service shop owners entering into a strategic partnership with insurance firms, leasing firms, and fleet owners so as to increase their market share and hence profits. By providing lucrative prices and enhanced reliability through remote diagnostics, local shop owners can compete with authorized dealerships.
Key companies in the global automotive repair and maintenance services market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in 2012, TBC Corporation (a subsidiary of Sumitomo Corporation), a marketer of automotive replacement tires acquired Midas Inc. – a U.S. based provider of automotive repair and maintenance services. Furthermore, in 2015, Asbury Automotive Group Inc., a U.S. based automotive retailer, acquired Nissan Authorized Dealership store in Georgia, U.S.
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.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.