Published Date : 21 Jan 2022
The demand for technologies that offer vehicle roadside assistance will continue surging as focus on preventing accidents and improving road safety grows. Precedence research in its latest study has forecast the vehicle roadside assistance market to total US$ 30 Bn by 2027. The market also is forecast to register steady growth at 3.93% CAGR between 2020 and 2027.
Roadside assistance technologies are currently enjoying the spotlight in response to the demand for advanced safety measures. The trend will remain a long-lasting one, especially due to the increasing number of aging vehicles that witness a plethora of electrical and technical issues.
Sales of app-based services that offer roadside assistance in reduced response time will pick up at an accelerated pace. For instance, the report predicts towing services to continue accounting for a lion’s share of demand registered in the market through 2027.
Besides this, tire replacement, jump start/ pull start, battery assistance, trip routing/ navigational assistance, and other mechanical services also will register high demand in the coming years. The U.S. Department of Transportation and National Highway Traffic Safety Administration have reported that the U.S. registered a total of 6,734,000 cases of motor vehicle crashes in 2018.
Towing emerged as the most common services provided during emergency roadside assistance. Coupled with this, technological improvements in towbars, which included launch of electric, retractable, and detachable towbars, have pushed sales in the market over the last couple of years.
Auto manufacturers will retain their dominance as the leading provider of vehicle roadside assistance. They offer a wide array of services, which include warranty and aftersales services. While celebrated names in the automotive industry such as General Motors, Hyundai, Ford, Toyota, and Honda among others continue accounting for lion’s share, entry of newer players who provide similar services at competitive pricing will be observed in the coming years.
Europe is expected to remain at the epicenter of global expansion of the vehicle roadside assistance market. Besides rising vehicle sales, presence of some of the leading automakers in Germany and the U.K. will support growth in the region.
Thanks to increasing vehicle production, China will soon chase up with developed markets. Besides this, expansion of the automotive sector in India, Japan, and South Korea will catapult Asia Pacific to the global forefront.
Competition within the vehicle roadside assistance market is expected to intensify in the coming years. The presence of several companies has rendered the market highly fragmented. Precedence Research offers a detailed market intelligence, covering profiles of some of the leading market players such as Viking Assistance Group AS, Swedish Auto, AutoVantage, and Roadside Masters among others.
Vehicle Roadside Assistance Market Size and Growth Rate Comparison by Regions
The North America vehicle roadside assistance market size was US$ 5,558.4 Mn in 2018. With burgeoning demand for roadside vehicle assistance support in North America, the market is anticipated to gain traction over the estimated period in the region. Furthermore, the rise in the old and outdated vehicles and ready availability of the roadside vehicle support services on highways as well as roads will boost the vehicle roadside assistance market trends in North America. Moreover, there are a variety of organizations across North America that either directly or indirectly provides emergency roadside assistance services to their customers which has help North America to grab a significant share of the global market. Additionally, there are a variety of organizations across North America that either directly or indirectly provides emergency roadside assistance services to their customers. Examples include new vehicle manufacturers, insurance companies, and extended warranty companies, as well as membership organizations like motor clubs which also contribute to the market growth.
|Regions||2015||2018||Growth Rate 2018-26|
|Middle East & Africa (MEA)||1,682.4||1,848.4||3.32%|
The Europe vehicle roadside assistance market size was US$ 6,962.1 Mn in 2018. Europe held the prime share of the global vehicle roadside assistance market in 2018. The number of vehicle registrations & sales in Europe has increased in the past few years and this has added enormously towards the number of vehicle breakdowns on roads. Apart from this, cold climatic conditions have led to vehicle breakdowns on the roadways and this has prompted in the greater need for the vehicle roadside assistance service in the region. Additionally, easy availability of roadside automobile support service providers in the region will further boost the vehicle roadside assistance market earnings in the European continent.
The Asia-Pacific vehicle roadside assistance market size was US$ 5,057.5 Mn in 2018. Asia-pacific is anticipated to grow at the fastest pace in terms of CAGR amid the forecast period. Factors such as the rise in vehicle production with a massive need for locomotives in countries such as China and India will proliferate the progress of Asia Pacific vehicle roadside assistance industry. Apart from this, an increase in vehicle production and sales in the region has also culminated in traffic jams, road collisions, and vehicle breakdowns. This has made it mandatory for the governments as per as non-government organizations to provide vehicle roadside assistance to the vehicle owners or drivers which consequently boost the market for vehicle roadside assistance in this region.
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