The global vehicle roadside assistance market is estimated to grow at a CAGR of 3.92% over the forecast period 2020 to 2027 and to reach the market value of over US$ 30 Bn by 2027.
Augmented demand for vehicle roadside assistance service is primarily due to increasing number of aging vehicles that faces several electrical & mechanical issues. Moreover, app-based services have reduced the response time for roadside assistance services that propels the market growth. Extreme weather condition impacts several drivers across the world, especially during cold weather, battery power drain-out that leads to battery jump start. As well as the icy and snowy terrain in several regions leads to risky driving that increases the chance of fatal road accidents and thus needs roadside vehicle assistance.
However, the pay per use service of the roadside vehicle assistance is likely to restrain the market growth. This is mainly due to the service and labor charges that are included in the membership plan also user need to pay per use service charges. Each service provider offers all the services under their membership plan, though every player has their own terms and conditions. Nonetheless, spike in vehicle registration along with rise in per capita income are likely to boost the demand for vehicle roadside assistance in the coming years.
Towing service accounted for the highest revenue share in the global vehicle roadside assistance market in the year 2019. Breakdown and collision are the major cause for the rising demand for towing service. The U.S. department of Transportation and National Highway Traffic Safety Administration has declared that total motor vehicle crashes in 2018 were 6,734,000. Towing is the most common service provided during the emergency roadside assistance. In 2019, the U.S. registered almost all revenue only from towing services. In addition, technological advancements in towbars such as retractable, electric, and detachable towbars projected to flourish the towing services during the forecast period.
On the other hand, tire replacement, battery assistance, Jump Start/Pull Start, Trip Routing/ Navigational Assistance, and other mechanical services contribute notably to the market revenue.
Auto manufacturer segment is likely to dominate the global vehicle roadside assistance market in next few years. This is mainly attributed to the warranty services and after sales assistance services offered by automobile manufacturers. Several auto manufacturers, for example Honda, provide vehicle roadside assistance services in many countries. Similarly, Toyota, Ford, Hyundai, General Motors, and many other auto manufacturers provide roadside assistance to their customers.
Passenger vehicle is the most lucrative segment with significant revenue share in the global vehicle roadside assistance market. The segment growth is primarily due to attractive after-sales services and warranty offered by the automobile manufacturers. In addition, passenger vehicles recorded higher sales as compared to commercial vehicles that also contribute prominently to the segment revenue growth every year. As per International Organization of Motor Vehicle Manufacturers (OICA), in 2019, total sales of passenger vehicles were 64 Mn, whereas, total sales of commercial vehicles were only 27 Mn.
Rapid growth of automobile sector in Europe has led the region as the most prominent revenue generator for the global vehicle roadside assistance market in 2019. Rising sales of vehicles across Europe coupled with significant number of on-road vehicle in the region are some of the prime factors driving the growth of the market. Escalated per capita income, consumer preference for lavishness, high standard of living, and rise in sale of premium vehicles are flourishing the demand for vehicle roadside assistance services in the region. Furthermore, North America roadside vehicle assistance market growth is also high owing to rising number of aging vehicles and adverse weather condition in several areas.
Asia Pacific is likely to observe the finest CAGR compared with other regions in the next few years. Increasing demand for vehicles along with rising per capita income are the significant factors that drives the market growth. In addition, this region is the most attractive automotive market for numerous market players. Penetration of advanced driver assistance, and electric vehicles have encountered significant automotive sales in the region and that in turn has increased the vehicle roadside assistance service demand.
Key Companies & Market Share Insights
The global vehicle roadside assistance market is highly competitive and fragmented owing to presence of large number of service providers. The market growth is sluggish with less development aspects in future. However, increasing warranty and after-sales services by automotive dealers and manufacturers to deliver quality service to their customers is expected to fuel the market growth during years to come.
Some of the noticeable market participants in the vehicle roadside assistance market include:
Segments Covered in the Report
The global vehicle roadside assistance market analyzes and predicts report market size and its growth trend at global, regional, and country levels. This research study also offers assessment of the cutting-edge trends in all of the market sub-segments from 2016 to 2027. In order to provide comprehensive analysis this research report segments market on the basis of service, provider, vehicles, and region:
By Regional Outlook
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