Automotive Repair And Maintenance Service Market Size (2024 - 2029)

Automotive Repair and Maintenance Service Market Analysis

The Automotive Repair And Maintenance Service Market size is estimated at USD 741.34 billion in 2024, and is expected to reach USD 998.18 billion by 2029, growing at a CAGR of 6.13% during the forecast period (2024-2029).

Growing vehicle parc, increasing vehicle age, and the government's strict regulations on automotive safety standards to reduce road fatalities and traffic accidents serve as significant determinants to the growth of the automotive repair and maintenance service market worldwide. With the increasing age of vehicles, there exists an extensive need for routine checks and periodic maintenance to ensure smooth operation. Further, to maintain a higher resell value in the used vehicles market, passenger car and commercial vehicle owners often tend to replace parts and upgrade components with modern standards, which, in turn, positively impacts the demand for auto maintenance and repair.

• The number of vehicles in operation in the United States reached 286 million in Q1 2023 compared to 285.2 million in Q4 2022, representing a Y-o-Y growth of 0.1% between Q4 2022 and Q1 2023.
• Further, according to the United Kingdom Department of Transport, the number of licensed cars in the United Kingdom reached 33.2 million in 2022 compared to 32.7 million in 2021, representing a 1.5% Y-o-Y growth between 2021 and 2022.
• According to the German Federal Motor Transport Authority, passenger cars aged 5-9 years contributed to the highest share of 26.8% plying on German roads, while vehicles aged 10-14 years accounted for 21.7% in 2023.

However, the greater adoption of electric vehicles hinders the business potential of automotive maintenance and service companies as these vehicles require less frequent maintenance than traditional ICE vehicles. Electric cars do not have traditional engines, transmissions, and certain related parts. Therefore, as the proportion of electric vehicles on the road increases, the demand for transmission and exhaust services and oil changes is expected to decrease. Although these companies might witness an increase in demand for other services, such as electric vehicle battery replacement, there can be no assurance that the demand will be sufficient to maintain their historical sales performance.

• According to the International Energy Agency (IEA), the total number of battery electric vehicles (BEVs) sold worldwide reached 7.3 million units in 2022, compared to 4.6 million units in 2021, recording a 58.6% year-over-year growth between 2021 and 2022.

Rapid repair and maintenance technology advancement to cater to the increasing demand for autonomous, connected, and other modern-age vehicles is expected to be a vital driver in the automotive repair and maintenance service market. Service centers are increasingly adopting code readers, scanners, and other diagnostic tools to detect and diagnose vehicles' malfunctions faster.

Moreover, companies such as Revv are investing hefty sums to build digital platforms for repair centers to detect issues with ADAS systems, which are highly complex. Therefore, with the rising integration of technologies and aggressive investments to constantly offer innovative software to service centers, the automotive repair and maintenance service market is anticipated to showcase surging growth between 2024 and 2029.

Automotive Repair and Maintenance Service Industry Segmentation

Automotive repair and maintenance services refer to the inspection, diagnosis, and subsequent repair/replacement of parts and components in a vehicle. The automotive service market includes routine services, like oil changes, tire repair, and air conditioning, and non-routine services, like rust-proofing and exterior painting.

The automotive repair and maintenance service market is segmented by vehicle type, service type, component type, service provider, and geography. By vehicle type, the market is segmented into passenger cars, commercial vehicles, and two-wheelers. By service type, the market is segmented into mechanical (tires, lubricants, etc.), exterior and structural (body repair, windows, etc.), and electrical and electronics (electrical wirings, ignition system, etc.). By component type, the market is segmented into tires, seats, batteries, and others (engines, etc.). By service provider, the market is segmented into original equipment manufacturer (OEM) authorized service centers, auto care and repair franchises, and others (local garages, etc.). By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.

The report offers market size and forecasts for the automotive repair and maintenance market in value (USD) for all the above segments.