Market Trends of US Automotive Service Industry
Growing Demand for Commercial Vehicles Likely to Drive the Market
Although commercial vehicle sales have been rising year after year since the post-recession period, there is a shift in consumer preference in the United States toward pick-up trucks capable of transporting both cargo and passengers. For instance,
Approximately 12 million commercial vehicles were sold in 2021, up from approximately 11.5 million units reported in 2020. Motor vehicles used for transporting goods or paying passengers are included in this category.
Commercial vehicles, such as medium and heavy-duty trucks, typically travel longer distances than passenger vehicles. As a result, they are frequently in need of maintenance. Their part and component maintenance and replacement cycle are also more frequent due to the large distances traveled in a relatively short period. For instance,
According to a study, the average age of light vehicles in operation (VIO) in the United States increased to 12.2 years this year, up nearly two months from the previous year.
The average vehicle age in the United States has risen for the fifth year in a row. This year's average age is another all-time high, even as the vehicle fleets recovered, increasing by 3.5 million units in the previous year.
According to the executive director of the Car Care Council, with an average vehicle age of more than 11.5 years, the likelihood of a breakdown or service issue on an older vehicle is much higher.
- The Car Care Council strongly advises drivers of older vehicles to implement a preventative maintenance plan for their vehicle in order to reduce the likelihood of a roadside breakdown and to help their vehicle run more efficiently and economically.
Engine oils, brake and transmission fluids, air filters, brake pads, and other common components deplete more quickly. Most vehicle owners seek the services of aftermarket garages or workshops after the warranty period has expired.
Furthermore, because most commercial vehicles are diesel-powered, they require more maintenance than their gasoline-powered counterparts. To purify diesel, a single filter or a combination of primary and secondary filters is used. These filters must be replaced on a regular basis, depending on the vehicle's build and variant. This is expected to drive the market over the forecast period.
As the electric vehicle era has started, most logistic companies focus on adding commercial electric vehicles to their fleet to deliver goods. For instance,
- In July 2022, Amazon and Rivian intended to deploy thousands of custom electric delivery vehicles in over 100 cities by the end of 2022, increasing to 100,000 by 2030.
- In January 2022, Walmart Inc. reserved 5,000 electric vans from General Motors' BrightDrop subsidiary to support the retailer's expanding e-commerce delivery operations.
Based on the aforementioned factor, the United States automotive service market's growth is expected to continue during the forecast period.
Growing Number of Auto Repair and Maintenance Centers
There will be nearly 239,100 auto repair and maintenance centers in the United States in the fourth quarter of 2021, a 2% increase from the previous year. The industry added over 17,700 establishments between the fourth quarter of 2010 and 2021.
Automobile maintenance:
- The number of vehicles on the road in the United States has mostly increased, and recent estimates indicate that the average age of vehicles on American roads is increasing year after year.
- These developments suggest that the automotive repair industry has room for expansion. The revenue generated by the automotive repair industry is expected to grow in the coming years.
According to a study, the average age of light vehicles in operation (VIO) in the United States increased to 12.2 years this year, up nearly two months from the previous year.
- The average vehicle age in the United States has risen for the fifth year in a row. This year's average age is another all-time high, even as the vehicle fleets recovered, increasing by 3.5 million units in the previous year.
According to the executive director of the Car Care Council, with an average vehicle age of more than 11.5 years, the likelihood of a breakdown or service issue on an older vehicle is much higher.
- The Car Care Council strongly advises drivers of older vehicles to implement a preventative maintenance plan for their vehicle in order to reduce the likelihood of a roadside breakdown and to help their vehicle run more efficiently and economically.
The automotive service market in the United States is fragmented, with numerous market players. Companies are either forming joint ventures, forming partnerships, or launching new products with advanced technology in order to gain a competitive advantage. For Instance-
- In December 2022, AutoNation Inc., one of America's largest automotive retailers, announced the acquisition of RepairSmith, a full-service mobile solution for automotive repair and maintenance headquartered in Los Angeles, CA, with a significant operational footprint in southern and western United States.
