Enjoy complimentary customisation on priority with our Enterprise License!
The US automotive service market size is estimated to grow by USD 79.4 billion at a Compound Annual Growth Rate (CAGR) of 9.45% between 2023 and 2028. The market is driven by a combination of factors. Firstly, the increasing average age of vehicles on the road necessitates more frequent maintenance and repair services, boosting demand. Additionally, technological advancements in vehicles, such as complex electronic systems and advanced safety features, require specialized expertise for automotive services. Moreover, the growing preference for preventive maintenance as well as automotive prognostics to avoid costly repairs contributes to the market growth. Furthermore, the rising complexity of modern vehicles prompts owners to rely on professional automotive service providers for efficient diagnosis and repair, driving the demand for automotive service centers.
To learn more about this US Automotive Service market report, View Report Sample
The US automotive service market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The mechanical services segment is estimated to witness significant growth during the forecast period. mechanical services provide various services such as oil filter replacement, wiper blade replacement, and battery replacement. The increasing performance and reliability needs of modern vehicles, including electric vehicles, require sophisticated solutions and, as a result, a rising demand for automotive services.
Get a glance at the market contribution of various segments. View the PDF Sample
The mechanical services segment was the largest segment and was valued at USD 48.90 billion in 2018. The focus on self-driving cars in the US represents a potential opportunity for advanced technologies to enable self-driving, as well as the country's willingness to upgrade to higher levels of automation. Due to the increasing focus on the development of technologically advanced vehicles in the US, the market anticipates a high demand for automotive services, which is expected to drive the growth of the market during the forecast period.
In the evolving landscape of automotive industry, Sport Utility Vehicles (SUVs) and traditional cars alike are navigating challenges related to aging cars, escalating annual maintenance costs, and the demand for replacement parts. This growth is mirrored in the rise of shared vehicles and the expansion of shared mobility services, facilitated by online sales platforms and advancements in software vehicle systems. Automotive repair and maintenance sectors are adapting with a focus on aftermarket maintenance and specialized services for components such as automotive batteries, air filters, cabin filters, oil filters, and wiper blades. Collision body repairs and the availability of starters and alternators are crucial for sustaining vehicle longevity and safety. Companies like MyTVS Accessories are pivotal in offering diverse aftermarket solutions, supported by software expertise to enhance vehicle performance and efficiency in response to consumer demands and industry growth.
Increasing vehicle population is the key factor driving the growth of the market. The automotive care market thrives on the increasing vehicle population, with the US emerging as a major hub for luxury cars. Luxury SUVs, in particular, witness robust demand, driven by factors such as accessible credit, reduced fuel prices, and heightened personal mobility needs. Notably, sales of luxury SUVs in the US surpass those of other luxury cars. These premium vehicles, known for their advanced features and aesthetic appeal, experience heightened demand, especially when coupled with readily available credit. Consequently, the rising preference for luxury cars is poised to fuel demand for automotive services, including transmission services, wheel alignment, suspension repair, and more, driving market growth during the forecast period.
Increasing vehicle digitization and electrification is the primary trend shaping the growth of the market. The automobile industry is growing due to the ever-growing need for increased information to the driver, decreased fuel consumption, lower emissions, raised safety, driver assistance, and an easy and pleasant driving experience. Original equipment manufacturers (OEMs) are preparing their further products to fulfill this ongoing trend.
Moreover, automobiles are evolving to be more efficient without compromising performance, comfort, or reliability. Numerous OEMs are developing hybrid and plug-in hybrid automobiles. Such developments give possibilities to automotive service providers to offer various engineering solutions that aid in developing and optimizing the product, which will drive the growth of the market during the forecast period.
Uncertainty in the automotive industry is a challenge that affects the growth of the market. The automotive industry is facing a range of negative impacts from the global semiconductor chip shortage and the ongoing war between Russia and Ukraine. Currently, car manufacturers are suffering from a shortage of automotive chips, which is disrupting the production of new cars. The ongoing chip crisis is expected to continue to impact the automotive industry in 2023. Therefore, the automotive chip crisis will have a negative impact on the automotive industry and, in turn, the market
Moreover, disturbances in production in global automotive factories could deepen ongoing automotive supply problems. Therefore, the ongoing war between Russia and Ukraine led to disruptions in the supply chains of automobiles and affected the export of automobiles. Hence, such factors are hindering the growth of the automobile industry and, in turn, the automotive services. Therefore, continuous situations have created uncertainty in the automotive industry and impeded the production of new automobiles in various parts of the globe. This will impede the growth of the market during the forecast period.
The US automotive service market growth analysis report includes the adoption lifecycle of the market, covering from the innovatorâs stage to the laggardâs stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the US automotive service market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AutoNation Inc.: The company offers automotive services such as Warranty Repair Service, Engine Light Diagnoses Service, Tire Rotation and Replacement Service, and Brakes Service.
The US automotive service market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the dynamic landscape of automotive services, aftermarket automotive services play a crucial role, navigating through evolving government rules and embracing advancements in connected vehicles and electric vehicles. The rise of mobility fleet sharing is reshaping how domestic passenger vehicles are used, influencing sectors from leisure and tourism to vehicle components and automotive repair and service. From engine diagnostics and OEM authorized service centers to tire stores and repair chains, the industry caters to diverse needs across taxis, automobile electronics, and hybrid vehicles. Specialist services focus on predictive maintenance technologies and subscription-based maintenance programs, catering to price-sensitive customers seeking efficient repair time and profitability. Technological advancements in connected car technologies and self-driving capabilities are complemented by data analytics and sensors for predictive maintenance. Luxury vehicles and urbanization trends drive facility expansion and new technologies adoption, supported by automotive safety norms and vehicle customization. Elitek Vehicle Services exemplifies innovation in automotive post-sale services, leveraging a subscription-based model and digital platforms like Life360 for enhanced roadside assistance and collision services.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.45% |
Market growth 2024-2028 |
USD 79.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.41 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alloy Wheel Repair Specialists LLC, Automotive Service Center, AutoNation Inc., Belle Tire Distributors Inc., Bridgestone Corp., Caliber Holdings LLC, D Ieteren Group SA NV, Driven Brands Holdings Inc, Drivers Tire and Service Center, Hyundai Motor Co., Icahn Automotive Group LLC, Mavis Tires and Brakes, Michelin Group, Monro Inc, Nissan Motor Co. Ltd., Shell plc, The Goodyear Tire and Rubber Co., Toyota Motor Corp., USA Automotive, and Walmart Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our US automotive service market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this US automotive service market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Market Segmentation by Propulsion
9 Customer Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.