Automotive Repair and Service Market

Automotive Repair and Service Market Size and Share Statistics:

The global automotive repair and service market size reached USD 714.51 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,052.50 Billion by 2033, exhibiting a growth rate (CAGR) of 4.18% during 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 34.3% in 2024. Rising vehicle sales worldwide, the implementation of stringent government regulations, and the integration of artificial intelligence (AI) represent some of the key factors increasing the automotive repair and service market share.

The automotive repair and service market is driven by the growing number of vehicles worldwide, increasing vehicle lifespan, and rising awareness about timely maintenance. Advancements in vehicle technology, including electric and hybrid models, require specialized repair and servicing, creating new opportunities. The increase in disposable income and urbanization has resulted in higher vehicle ownership, driving a greater demand for repair services. Strict government regulations on emissions and vehicle safety standards also encourage regular servicing. Additionally, the widespread adoption of predictive maintenance technologies and telematics promotes preventive repairs, which also represent one of the key automotive repair and service market trends. The surge in e-commerce platforms offering car repair services enhances accessibility for consumers. Moreover, the demand for certified and skilled technicians and the expansion of service centers in rural and urban areas further propel the market. 

The automotive repair and service market in the United States is driven by the growing number of vehicles on the road and an aging vehicle fleet requiring regular maintenance. Advances in automotive technology, including electric and hybrid vehicles, create the demand for specialized repair services. Increasing awareness of preventive maintenance and government regulations on emissions and safety standards encourages vehicle servicing. The rise in disposable incomes and longer vehicle lifespans contribute to steady market growth. Digital innovations, such as online booking platforms and mobile repair services, enhance customer convenience. Additionally, the expansion of certified service centers and the demand for skilled technicians support the market. The widespread adoption of predictive maintenance using telematics also boosts service efficiency and customer satisfaction, which, in turn, is contributing to the automotive repair and service market growth. For instance, in December 2024, Auto-Wares, a leading supplier of automotive parts, tools, and equipment in North America, partnered with Repairify, the global leader in remote diagnostics, calibrations, programming, and automotive intelligence for the collision and mechanical repair sectors, to form a strategic alliance. Through this partnership, Auto-Wares clients will have access to asTech's cutting-edge diagnostic tools and repair solutions, enhancing the automotive repair sector's operational effectiveness and service precision.

Automotive Repair and Service Market Trends

Increasing Ownership of Vehicles

The increasing sales of vehicles across the globe is one of the primary factors driving the market growth. Automotive repair and service are integral to a vehicle's proper functioning as it involves engine tuning, brake inspection, lubrication, and changing of tires, air filters, wear and tear parts, engine oil, and coolants, which enhances driver safety, maintains vehicle value, and lowers operating costs. Moreover, the inflating disposable income of consumers and rising preference for convenient modes of transportation are further accelerating the sales of passenger cars. For instance, according to an industrial report, revenue in the passenger cars market is projected to reach USD 2,069.0 Billion in 2024. Passenger cars market unit sales are expected to reach 72.54 million vehicles in 2028. Furthermore, in India, sales of passenger cars also increased from 14,67,039 to 17,47,376, utility vehicles from 14,89,219 to 20,03,718, and vans from 1,13,265 to 1,39,020 units, in the financial year 2022-23. Such a significant rise in the ownership of vehicles is anticipated to propel the automotive repair and service market demand in the coming years.

Government Initiatives

The increasing concerns regarding carbon emissions are prompting the government authorities of various countries to take initiatives regarding vehicle emission reduction. For instance, the Bureau of Automotive Repair (BAR), a division of the Department of Consumer Affairs (DCA), protects Californians by effectively supervising the automotive repair industry and administering vehicle emissions reduction and safety programs. Similarly, to lower the risk of a roadside breakdown and to help their vehicle run more economically and efficiently, drivers of older vehicles are strongly encouraged to implement a preventative maintenance plan, according to the Car Care Council, a non-profit organization that aims to educate drivers about the importance of regular vehicle care. Apart from this, the concerned government authorities of various nations are implementing policies for the timely repair and services of vehicles, which is further creating a positive outlook for the overall market. For instance, in May 2023, the Department of Consumer Affairs, India, launched the 'Right to Repair' initiative and portal, which protects a vehicle's warranty even if an individual has repairs made at a third-party workshop. The portal is currently live, and two-wheeler manufacturers, including Hero MotoCorp and Hona Motorcycles and Scooters, have already come on board.

Technological Advancements

Technological advancements in automotive repair and service have significantly evolved over the years, introducing innovative tools, diagnostic equipment, and processes to enhance efficiency, accuracy, and safety in vehicle maintenance. Moreover, various automotive service companies are increasingly using artificial intelligence-based automated vehicle inspection technology for vehicle inspection to widen their customer base. For instance, in February 2022, a US-based tech company, Scope Technology developed AI-automated car inspection technology in partnership with Microsoft's Azure cloud computing. This visual inspection takes less than 5 minutes and saves 50% on costs. Similarly, in December 2023, GoMechanic, a leading technology-driven automotive service company, launched 'Electric Vehicle Services' for key fleet operators in the EV space. The company will target to service/repair over 10,000+ smart vehicles across India in the year 2024-25. EV fleet services will include periodic vehicle service to major repairs – including paint, tires, windshield, side mirrors, brake pads, repair, and replacements. Such innovations are projected to catalyze the growth of the market in the coming years.

Automotive Repair and Service Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with automotive repair and service forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on type, vehicle type, propulsion type, and service provider.

Analysis by Type:

• Mechanical
• Exterior and Structural
• Maintenance Services

Mechanical leads the market with around 46.8% of market share in 2024. According to the report, mechanical represented the largest segment. Mechanical type typically refers to a category of repairs and services that involve traditional mechanical components of a vehicle, as opposed to electronic or electrical systems. Various key market players are increasingly investing in upgrading their equipment to facilitate the easy and smooth service of the mechanical component of the vehicle. For instance, in October 2023, Hunter Engineering Company and Totalkare, a major distributor of Hunter's state-of-the-art heavy-duty wheel alignment equipment, announced a collaboration that would propel three products to the forefront of the commercial vehicle maintenance market.

 Analysis by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Two Wheelers

Passenger cars leads the market with around 35.6% of market share in 2024. According to the report, passenger cars accounted for the largest market share. Due to characteristics like their fashionable appearance, small size, and affordability, passenger cars have been incredibly popular among drivers in recent years. In many developed nations, passenger vehicles are the most widely used form of transportation. Furthermore, the inflating spending capacities of consumers and increasing preference for convenient modes of transportation are also augmenting the demand for passenger vehicles. According to the Society of Indian Automobile Manufacturers, in 2022–2023 passenger car sales climbed from 14,67,039 to 17,47,376 units. The rise in number of passenger vehicles is resulting in their increased repair services, which is creating a positive outlook for the overall market.

Analysis by Propulsion Type:

• Internal Combustion Engine (ICE)
• Electric

According to the report, internal combustion engine (ICE) accounted for the largest market share. Internal combustion engine (ICE) vehicles have been the dominant form of transportation for over a century, but they have undergone significant advancements over time. It is estimated that the European ICE vehicle sales will be around 9.9 million units in 2030. Similarly, the total production of passenger internal combustion engine (ICE) vehicles in China is forecasted to reach around 22.08 million units by 2030. Moreover, continuous research and development efforts have led to significant improvements in the efficiency of internal combustion engines. Technologies such as turbocharging, direct fuel injection, variable valve timing, and cylinder deactivation have all contributed to better fuel economy and reduced emissions.

Analysis by Service Provider:

• Local Garage
• Franchise General Repairs
• OEM Authorized Service Centers
• Tire Stores and Repair Chains
• Others

Local garage leads the market with around 32.0% of market share in 2024. According to the automotive repair and service market insights, local garage accounted for the largest market share. Local garage service providers offer comprehensive automotive repair and maintenance services, including engine diagnostics, brake repairs, and oil changes. With skilled technicians and state-of-the-art equipment, they ensure prompt and reliable solutions for vehicle issues. These establishments often prioritize personalized customer service and strive to build long-term relationships within the community. Whether for routine maintenance or complex repairs, local garage service providers offer convenience and expertise to keep vehicles running smoothly.

Regional Analysis

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa

In 2024, Asia Pacific accounted for the largest market share of over 34.3%. According to the report, Asia Pacific was the largest market for automotive repair and service. Some of the factors driving the Asia Pacific market included rising automotive sales, the implementation of various government initiatives, and significant technological advancements. For instance, India's Automotive Mission Plan FAME-II strongly emphasizes funding the nation's expanding auto and component manufacturing sector. Besides that, in February 2022, Tesla announced its plan to increase production capacity in China to at least one million cars per year, with a second plant planned near its present production in Shanghai's Lingangfree trade zone. Such a significant rise in the production of vehicles is anticipated to impact the automotive repair and service market outlook positively.

Automotive Repair and Service Market Regional Takeaways:

United States Automotive Repair and Service Market Analysis

In 2024, the United States accounted for the largest market share of over 83.60% in North America. The ageing vehicle fleet, increase in vehicle ownership, and technological improvements lead to growth in the business of the U.S. automobile repair and service sector. Average age of vehicles in the United States 2023 was 12.2 years, and this also indicates that demand for services of older cars is growing. The market benefits from a large client base, including passenger automobiles and light trucks, in a total of 280 million vehicles in use countrywide, according to the reports. The growing popularity of electric cars and hybrids, which together accounted for about 7% of new car sales in 2023, Kelley Blue Book estimates, is creating opportunities for specialized repair and maintenance services, such as battery diagnostics and electric motor repairs. The growth of advanced driver-assistance systems is also fueling the need for qualified technicians who can manage intricate repairs. Access to maintenance services has been eased through the increasing number of apps booking repair service. Such companies include RepairPal and YourMechanic. Additionally, the demand for servicing is uniform across states as these states have their set of standards regarding emissions and safety inspection. All these aspects enhance the trend in growth for the U.S. market, not to mention a consistent rise in vehicle miles driven.

Europe Automotive Repair and Service Market Analysis

Strict environmental laws drive the European car repair and maintenance market due to strict environmental laws in the automotive sector, growing aftermarket automotive industry, and aging auto fleet. This is what has driven growth in sales of hybrid or electric automotive services; such cars captured more than 22 percent of all the new registered cars in the region at the end of 2023 and nearly 7.75% of new-registered vans, as per an industry report. The majority share of the market and well over 50% regional servicing demand is dominated by nations like Germany, UK, and France owing to their large car densities and developed automotive industry. A maintenance service and replacement of parts are in growing demand as European passenger cars were reportedly 12.3 years old according to European Environment Agency data. Moreover, the increasing number of car connectivity and telematics has made advanced diagnostic and maintenance tools a must. About 70% of the region's motorists prefer to get repair services from independent garages and workshops, which underlines the importance of the aftermarket. Furthermore, customers now have greater accessibility and convenience due to Europe's embracing digital service platforms for scheduling and overseeing repairs.

Asia Pacific Automotive Repair and Service Market Analysis

Rising disposable incomes, fast urbanisation, and an expanding vehicle population are driving the Asia-Pacific automobile repair and service industry. A third of all automobiles are found in the Asia-Pacific area, which has a fleet of 543 million vehicles (140 vehicles per 1000 persons), according to automotive digital marketing firm Hedges & Company. The region's two biggest markets, China and India, together account for almost 65% of demand because of their vast car fleets and expanding middle classes. The demand for repair services is further increasing consistently in car sales throughout Southeast Asia. Electric vehicles are also gaining prominence day by day, and they already accounted for more than 60% of the world's EV sales in China in 2023, and such electric vehicles need specialized maintenance services as indicated by International Energy Agency data. Moreover, governments that promote road safety and observe vehicle maintenance rules are adding to the demand. India's periodic fitness certificate is one such scheme that contributes to the services market. For car owners in urban regions, the advent of application-based service aggregators like GoMechanic and Cars24 has made access better.

Latin America Automotive Repair and Service Market Analysis

The market for auto repair and maintenance in Latin America is driven by the dependency of the region on independent service providers, an ageing automobile fleet, and a growing demand for used cars. Brazil and Mexico contribute to over 70% of the market demand since they have a large middle-class consumer base and large car populations. Since the reports show that more than 60% of cars in the region are over ten years old, the need for regular maintenance and part replacement is more relevant. The increasing popularity of ride-hailing services, such as Uber and DiDi, has also heightened the requirement for regular repair. In addition to strengthening the accessibility to repairs and services, the expansion of the aftermarket industry and a corresponding increase in reasonably priced spare parts are further facilitating business.

Middle East and Africa Automotive Repair and Service Market Analysis

Rising car ownership, harsh climate and the demand for premium and high-performance vehicles propel this market for auto repair and service in the Middle East and Africa.

As per industry reports, Middle-East owns more than 50 Million vehicles and Africa owns 26 million vehicles in 2024. Owing to their large vehicle concentrations, the UAE and Saudi Arabia dominate the market, supplying more than 60% of regional demand. These areas' extremely high temperatures call for regular maintenance, especially on tires and cooling systems. There is also a rising demand for EV-specific services because electric vehicles are becoming more prominent, especially in the United Arab Emirates. Service delivery is being improved with the growth of digital booking systems and organized service centers.

Leading Automotive Repair and Service Companies:

The automotive repair and service market is highly competitive, comprising independent repair shops, authorized dealerships, and franchise service chains. Independent shops dominate due to cost advantages, while dealerships attract customers seeking specialized expertise and genuine parts. Franchise chains leverage brand recognition and standardized services to compete effectively. Key players focus on expanding service networks, adopting advanced diagnostic tools, and offering value-added services like warranties. The rise of online platforms and mobile repair services intensifies competition by enhancing customer convenience. Additionally, the shift toward electric and hybrid vehicles creates opportunities for players investing in EV-specific repair capabilities and skilled technician training.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Asbury Automotive Group Inc.
• Bridgestone Corporation
• CarMax Autocare Center
• Hance’s European
• Inter Cars S.A.
• Jiffy Lube International Inc. (Shell plc)
• LKQ Corporation
• MyTVS Accessories (TVS Group)
• Safelite Group Inc. (Belron Group S.A.)
• Sun Auto Service
• Wrench Inc.

Latest News and Recent Developments:

• April 2024: Nippon Paint, a paint and coating company in the Asia Pacific region, launched its automotive body and paint repair service brand, Mastercraft. This brand covers services ranging from high-quality body and paint work, and car maintenance services to quick repairs.
• April 2024: Meta Mechanics, Dubai's premier auto repair center, unveiled comprehensive car services emphasizing reliability, transparency, and client satisfaction.
• January 2024: O2 Investment Partners announced that Straightaway Tire & Auto, a leading independent, full-service aftermarket automotive repair and service platform, completed the acquisitions of Maple Grove Auto Service and Warzecha Auto Works.
• January 2024: Pune-based KPIT partnered with Microsoft to introduce an Azure OpenAI Service-powered Copilot to transform automotive repair and maintenance.

Automotive Repair and Service Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, automotive repair and service market forecast, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global automotive repair and service market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive repair and service industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.