Automotive and Transportation

Automotive Services Market Projected to Reach USD 1,493.20 Billion by 2031 with Increasing Vehicle Demand Fostering Market Expansion

Mar 2024

Automotive and Transportation

As per the report published by Kings Research, the global Automotive Services Market was valued at USD 844.40 billion in 2023. The market is projected to reach USD 1,493.20 billion by 2031, growing at a CAGR of 7.51% from 2024 to 2031.

The automotive services market encompasses a diverse range of services aimed at maintaining, repairing, and enhancing various types of vehicles. These services include routine maintenance such as oil changes, tire rotations, and brake inspections, as well as complex repairs involving engine diagnostics, electrical systems, and drivetrain components. Vehicle types serviced by the automotive industry span a wide spectrum, including passenger cars, light trucks, commercial vehicles, and specialty vehicles such as motorcycles and recreational vehicles.

Service providers in the automotive industry consist of independent repair shops, dealership service centers, specialty automotive chains, and mobile repair technicians, each offering unique expertise and service offerings to cater to different customer needs. Key drivers influencing the automotive services market include the growing vehicle parc worldwide, the increasing complexity of modern vehicles requiring specialized services, and rising consumer demand for convenience and personalized service experiences.

Key Insights

  • Based on type, the maintenance services segment is anticipated to grow at the highest CAGR of 8.69% over the forecast period
  • On the basis of service provider, the local garage segment garnered the highest revenue of USD 267.42 billion in 2023
  • By vehicle type, the passenger cars segment accounted for the largest revenue of USD 265.73 billion in 2023
  • On the basis of region, Asia Pacific is expected to witness the highest CAGR of 8.08% through the projected period

MEKO Partner with HiPhi to Offer Aftermarket Services

November 2023: MEKO partnered with electric car manufacturer HiPhi as part of MEKO's strategy to support new electric vehicle makers aiming to become a comprehensive aftersales partner. The company intended to leverage its strengths in workshop services and spare part logistics.

Diverse Range of Services Offered by Local Shop Owners to Present Promising Growth Opportunities

Local shop owners can seize opportunities by offering a diverse range of services, providing a convenient automotive service destination for customers. By expanding their service offerings to include a comprehensive range of maintenance, repair, and aftermarket services, local shop owners can attract a broader customer base and enhance customer loyalty. By leveraging their proximity to customers and personalized service approach, local shops can differentiate themselves from larger competitors and build strong relationships within their communities.

Furthermore, by investing in training and equipment to handle a diverse range of vehicle makes and models, local shop owners can position themselves as trusted automotive service providers capable of meeting the evolving needs of customers in their area.

Increasing Demand for Vehicles to Foster the Market Expansion

The automotive industry is experiencing a significant surge in demand for vehicles, driven by several key factors. Firstly, economic growth and rising disposable incomes across emerging markets are fueling consumer appetite for personal transportation. Moreover, urbanization and changing lifestyles are driving the need for convenient mobility solutions, stimulating demand for both passenger and commercial vehicles.

Additionally, technological advancements in vehicle design and manufacturing, including the emergence of electric and autonomous vehicles, are attracting consumers seeking more efficient, eco-friendly, and technologically advanced transportation options.

Furthermore, government incentives and regulations aimed at promoting cleaner and safer vehicles are influencing consumer preferences and accelerating the adoption of newer vehicle models. Overall, the increasing demand for vehicles presents substantial opportunities for automotive manufacturers, dealerships, and related service providers to capitalize on this trend and expand their market presence through strategic investments and innovative offerings.

Asia Pacific to Witness the Significant Growth at 8.08% CAGR Between 2024 to 2031

Asia Pacific is anticipated to emerge as the fastest-growing region over the review period, mainly driven by several factors, including rapid urbanization, rising disposable incomes, and increasing vehicle ownership. As countries in Asia Pacific continue to experience economic development and infrastructure improvements, there is a growing demand for automotive services such as maintenance, repair, and aftermarket solutions.

Furthermore, the growing adoption of advanced vehicle technologies and the emergence of electric and connected vehicles are creating potential opportunities for automotive service providers in the region. Additionally, government initiatives aimed at promoting automotive industry growth and supporting sustainable transportation solutions are fueling the expansion of the automotive services market in Asia Pacific. As a result, the region is poised to become a key hub for automotive service innovation and investment in the coming years.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global automotive services market is fragmented with key players such as Firestone Complete Auto Care, Robert Bosch Ltd, CarMax Enterprise Services, LLC, SUN AUTO SERVICE, MEKO, Midas International, LLC, Wrench, Inc., Safelite Group, M&M Automotive, Jiffy Lube International, Inc. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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