Automotive Service Market Trends

Increasing automotive sales are driving market growth

The automobile industry is moving quickly into a new era marked by increasing sustainability, shifting consumer habits, the inclusion of connected and electric vehicles, mobility fleet sharing, and bettering lifestyles. India, China, and Brazil are among the developing nations that provide the most promise for the automotive industry. Tata Motors said in February 2022 that domestic passenger vehicle sales increased by 47%. 

Additionally, compared to the same month in the previous year, there was a 10% increase in passenger car registrations in the European Union in June 2021. The demand for Special Utility Vehicles (SUVs) has also increased recently as a result of the growing leisure and tourism industries everywhere. Additionally, governments are putting pressure on the producers of passenger cars to create effective and low-emission vehicles, which has put great pressure on those companies to work on R&D.

As a result, the industry for automotive repair and maintenance is anticipated to grow throughout the forecast period due to an increase in demand for automobile production and sales.

The replacement of a vehicle's broken part or the addition of new components to an existing vehicle are both done through automotive repair and service. Customers must replace different parts of their autos at predetermined intervals. For instance, depending on driving conditions, passenger automobiles need new tires every 3–4 years. Thus, there is a sizable aftermarket for automotive components. Additionally, the market for repairs and services is expanding as a result of consumer preferences for installing cutting-edge automotive components to enhance vehicle appearance and ensure driver safety. 

The market for automobile repair and service is anticipated to expand in the near future as a result of this rising customer propensity and the rise of the aftermarket service. Additionally, the market's expansion is aided by the contributions of manufacturers of automotive components. For instance, Jiffy Lube International, Inc. will increase its footprint in the Greater Detroit Metropolitan Area in 2020 by building a new service center. It provided a variety of automobile services including brakes, tires, and engine diagnostics, among other things.

The market for automotive repair and service is anticipated to expand significantly over the course of the projected period as a result of all these factors.  Thus, driving the Automotive Service market revenue.

The Global Automotive Service Market Industry experiences a notable surge in demand due to the increasing vehicle ownership worldwide. As urbanization progresses and disposable incomes rise, more individuals acquire vehicles, leading to a greater need for maintenance and repair services. In 2024, the market is valued at approximately 773.9 USD Billion, reflecting the growing consumer reliance on automotive services. This trend is expected to continue, with projections indicating a market value of 1396.4 USD Billion by 2035. The rising number of vehicles on the road necessitates regular servicing, thereby driving growth in the automotive service sector.

The Global Automotive Service Market Industry is projected to experience robust growth in the coming years. With a market valuation of 773.9 USD Billion in 2024, it is anticipated to reach 1396.4 USD Billion by 2035. This represents a compound annual growth rate (CAGR) of 5.51% from 2025 to 2035. Such growth is indicative of the increasing reliance on automotive services as vehicle ownership rises and technological advancements reshape the industry landscape. The market's expansion reflects broader trends in consumer behavior and regulatory frameworks, suggesting a dynamic future for automotive service providers.

The Global Automotive Service Market Industry benefits from the expansion of aftermarket services, which encompass a wide range of offerings beyond standard maintenance. This includes performance upgrades, customization, and specialized repairs. As consumers seek to enhance their vehicles' performance and aesthetics, service providers are diversifying their offerings to cater to these demands. The growth of e-commerce platforms also facilitates access to aftermarket products and services, further driving market expansion. With the increasing consumer inclination towards personalized vehicle experiences, the aftermarket segment is poised for significant growth, contributing to the overall dynamics of the automotive service market.

The shift towards electric vehicles (EVs) significantly influences the Global Automotive Service Market Industry. As governments worldwide implement stricter emissions regulations and consumers become more environmentally conscious, the demand for EVs is on the rise. This transition necessitates specialized services and maintenance tailored to electric vehicles, creating new opportunities for service providers. The market is expected to adapt to these changes, with a projected compound annual growth rate (CAGR) of 5.51% from 2025 to 2035. As EV adoption increases, the automotive service sector must evolve to meet the unique requirements of this emerging vehicle category.

The Global Automotive Service Market Industry is propelled by a heightened focus on vehicle safety and maintenance. Consumers are increasingly aware of the importance of regular servicing to ensure vehicle reliability and safety. This trend is further supported by government regulations mandating periodic inspections and maintenance checks. As a result, service providers are likely to see a rise in demand for routine maintenance services, contributing to the overall market growth. The emphasis on safety not only enhances consumer confidence but also drives the need for comprehensive automotive services, thereby solidifying the industry's position in the global market.

Technological innovations play a pivotal role in shaping the Global Automotive Service Market Industry. The integration of advanced diagnostic tools, telematics, and automation enhances service efficiency and accuracy. For instance, the adoption of artificial intelligence and machine learning in vehicle diagnostics allows for quicker identification of issues, improving customer satisfaction. As technology evolves, service providers are likely to invest in these advancements to remain competitive. This trend not only streamlines operations but also attracts tech-savvy consumers who seek modern solutions for their automotive needs, thereby contributing to the market's expansion.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Service market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive Service industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Service industry to benefit clients and increase the market sector. In recent years, the Automotive Service industry has offered some of the most significant advantages to medicine.

Major players in the Automotive Service market, including Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., Europart, Firestone, Hance’s European, Inter Cars S.A., Jiffy Lube International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, MyTVS Accessories, Safelite Group, Sun Auto Service, USA automotive, Wrench, Inc., are attempting to increase market demand by investing in research and development operations.

Grocery stores, supermarkets, hypermarkets, department and discount stores, and local markets are all operated by Walmart Inc. (Walmart). The company's stores offer consistently low prices on goods in the categories of consumables, health & wellness, technology, office supplies, entertainment, hardlines, fashion, and home. 

It also manages Sam's Clubs and other warehouse clubs. Walmart sells goods under a number of private labels and licensed brands, including Equate, Mainstays, George, Onn, Parent's Choice, Time and Tru, Wonder Nation, and No Boundaries. In addition to other related products, the company offers financial services, fuel, gift cards, money orders, prepaid cards, money transfers, check cashing, and bill payment services. It sells stuff on several e-commerce websites in the Americas, Africa, and Asia. The headquarters of Walmart are in Bentonville, Arkansas, in the United States.

Walmart Inc. made a reservation for 5,000 electric vans from the BrightDrop division of General Motors in January 2022 to assist the retailer's increasing e-commerce delivery operations.

The automotive and energy firm Tesla Inc. It creates, develops, produces, sells, and rents energy generation and storage technologies in addition to electric automobiles. The Model Y, Model 3, Model X, Model S, Cybertruck, Tesla Semi, and Tesla Roadster are among the automobiles that the business manufactures and markets. 

Additionally, Tesla sells solar electricity, installs and maintains energy systems, and provides end-to-end clean energy products, including generation, storage, and consumption. Through a network of business-owned stores and galleries, it markets and sells vehicles to consumers. Tesla, Inc. intends to build a 100,000 square foot plant in St. Pete, Florida, in April 2022. Sales, servicing, and deliveries in the region will be handled by the new Tesla center.