US Automotive Service Market Research Report By Service Type (Maintenance Services, Mechanical, Exterior Structural), By Service Provider (Franchise General Repairs, OEM Authorized Service Centers, Local Garage, Tire Stores Repair Chains, Others), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Two Wheelers) and By Propulsion Type (Internal Combustion Engine (ICE), Electric) - Forecast to 2035

US Automotive Service Market Overview:

As per MRFR analysis, the US Automotive Service Market Size was estimated at 179.71 (USD Billion) in 2023. The US Automotive Service Market Industry is expected to grow from 189.61 (USD Billion) in 2024 to 367.68 (USD Billion) by 2035. The US Automotive Service Market CAGR (growth rate) is expected to be around 6.205% during the forecast period (2025 - 2035).

Key US Automotive Service Market Trends Highlighted

The US Automotive Service Market is experiencing notable trends driven by the growing vehicle population and advancements in technology. Key market drivers include the rising need for vehicle maintenance and repair services as vehicles age, with many on the road being over ten years old. The shift toward electric vehicles is also influencing service needs, as workshops need to adapt to new technologies and training for electric and hybrid models. Opportunities exist in expanding services related to advanced driver-assistance systems (ADAS) and telematics. As these systems become more common, service centers can expand their offerings to include diagnostics and repairs specific to these technologies.

 In recent times, there has been an increasing demand for mobile automotive services, driven by consumer preferences for convenience and safety, especially following the pandemic. More people are seeking services that come to their location, and businesses are adapting to this trend with mobile mechanics and on-site repairs. The growing importance of sustainability has led to an uptick in interest in eco-friendly products and services, encouraging service providers to consider greener repair methods and parts.  Moreover, the emergence of connected vehicles creates avenues for service providers to offer enhanced maintenance tracking and real-time diagnostics.

Overall, the US Automotive Service Market is poised for growth as it navigates these trends, focusing on vehicle technology advancements, customer convenience, and sustainability practices.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Automotive Service Market Drivers

Increase in Vehicle Ownership

One of the main factors propelling the US automotive service market industry is the rise in car ownership in the country. In 2021, there were more than 270 million registered automobiles in the nation, up more than 3% from the year before, according to the U.S. Department of Transportation. The number of cars on the road is increasing, which raises the need for auto maintenance, repairs, and part replacement.

Furthermore, older cars need more regular maintenance and repairs because the average vehicle lifespan has increased to more than 12 years as a result of improvements in manufacturing processes and materials. Trust in routine maintenance is increased by groups like the Automotive Service Association, which promote high-quality service standards. The US automotive service market is therefore expected to develop steadily due to the rise in car ownership and an aging fleet, and this growth pattern is expected to continue in the years to come.

Rise in Electric Vehicle Adoption

The rise in electric vehicle (EV) adoption significantly impacts the US Automotive Service Market Industry. According to the U.S. Energy Information Administration, sales of electric vehicles increased by nearly 70% from 2020 to 2021, with over 500,000 electric vehicles sold in just one year. This growing segment not only changes the expectations and design of automotive services but also creates opportunities for specialized service and maintenance.

Major automobile manufacturers such as Tesla, Ford, and General Motors are investing heavily in EV technology and are developing dedicated service centers to cater to this expanding market. Consequently, the increase in electric vehicles contributes to the evolution of automotive service providers, enhancing their importance in the overall market growth.

Stricter Emission Regulations

The U.S. government has implemented increasingly stringent emissions regulations which are driving growth in the US Automotive Service Market Industry. The U.S. Environmental Protection Agency has expanded policies focusing on reducing greenhouse gas emissions from vehicles, setting ambitious targets for automakers. These regulations have led to an increased demand for certified emissions testing and service centers to ensure compliance. The implementation of technologies such as catalytic converters and diesel particulate filters necessitates specialized servicing, which has driven a corresponding increase in the need for trained technicians and dedicated service facilities.

This regulatory landscape positions established automotive service providers, such as Jiffy Lube and AAA, to adapt and thrive in a market increasingly focused on compliance and sustainability, thus supporting their continued growth.

Advancements in Automotive Technology

Advancements in automotive technology are revolutionizing the US Automotive Service Market Industry. Innovations such as advanced driver-assistance systems (ADAS), telematics, and connectivity improvements require specialized skills and equipment for servicing. The Consumer Technology Association reports that the automotive technology sector is expected to grow significantly, with estimates suggesting a compound annual growth rate of over 9% through 2025.

As automobiles become more complex, the demand for well-trained technicians and high-tech service equipment is therefore on an upward trajectory. Organizations like the National Institute for Automotive Service Excellence emphasize the importance of certifications and training. With the growing complexity of vehicle systems requiring specific service protocols, this environment enhances the market potential for established automotive service providers adapting to new technologies in the US.

US Automotive Service Market Segment Insights:

Automotive Service Market Service Type Insights  

The US Automotive Service Market segment, particularly focusing on Service Type, exhibits a dynamic landscape that is critical to understanding the overall health and growth prospects of the industry. This market encompasses various vital components, namely Maintenance Services, Mechanical repair, and Exterior and Structural work, which together play a crucial role in vehicle longevity and performance. Maintenance Services are fundamental, as they ensure vehicles operate efficiently and safely, involving routine tasks such as oil changes, tire rotations, and brake checks, all of which foster customer loyalty and repeat business. Meanwhile, the Mechanical aspect covers essential repairs that include engine work, transmission fixes, and electrical systems, representing a substantial share of market activities as vehicles become increasingly complex with advanced technologies. The Exterior and Structural segment further adds value by focusing on body work, collision repair, and paint services, which not only restore the aesthetic appeal of vehicles but also maintain their structural integrity post-accident.

As vehicles in the US grow older, with a significant portion exceeding a decade in age, the demand for all service types is poised to rise, reflecting the need for continued maintenance and repair to keep these vehicles operational. The evolving automotive landscape, characterized by the growing market of electric vehicles and autonomous technologies, also indicates increased complexity in service requirements, which the industry must adapt to. Furthermore, consumer trends signal preferences toward convenience and accessibility, prompting service providers to explore mobile and on-demand service solutions. This flexibility aligns with the broader market growth as consumers seek to balance their time and financial investments in vehicle maintenance. With a substantial number of vehicles traveling on US roads, the Service Type market remains an integral component of the automotive ecosystem, driven by factors such as technological advancements, increasing vehicle age, and consumer expectations, illustrating the essential nature of this sector in ensuring safety, reliability, and satisfaction for drivers across the nation.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automotive Service Market Service Provider Insights  

The Service Provider segment of the US Automotive Service Market plays a crucial role in the overall automotive ecosystem, comprising various types of service providers such as Franchise General Repairs, OEM Authorized Service Centers, Local Garages, Tire Stores, and Repair Chains. Franchise General Repairs are important as they offer comprehensive services and brand reliability, while OEM Authorized Service Centers maintain the high standards set by manufacturers and cater specifically to warranty services. Local Garages contribute significantly to the market due to their personalized service and community trust, addressing a wide array of maintenance needs at competitive prices.

Tire Stores and Repair Chains dominate the tire service segment, including selling new tires and providing related services such as alignment and rotations. This segment of the market is driven by a growing vehicle population, increasing complexity of automotive technology, and changing consumer preferences toward convenient and reliable vehicle care. However, challenges such as labor shortages and the need for continuous technician training are present. The market continues to offer ample opportunities for innovation and growth as technology evolves, especially with the rise of electric vehicles and advanced diagnostic tools in the automotive service industry.

Overall, the Service Provider segment reflects diverse offerings that cater to different consumer needs and preferences across the US.

Automotive Service Market Vehicle Type Insights  

The Vehicle Type segment of the US Automotive Service Market plays a crucial role in shaping the industry's landscape. This segment encapsulates various vehicle categories, primarily focusing on Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Two Wheelers. Passenger cars represent a significant portion of the market, given their widespread ownership and the essential services they require, including maintenance, repairs, and parts replacement. Light commercial vehicles are vital in supporting small businesses and delivery services, thus driving demand for specialized automotive services.

Heavy commercial vehicles, pivotal for logistics and freight transport, often undergo extensive service intervals, presenting continuous opportunities for automotive service providers. Meanwhile, Two Wheelers are gaining popularity due to their cost-effectiveness and convenience in urban environments, further diversifying the market. Overall, understanding the dynamics of these vehicle types is crucial for capturing market growth as consumer preferences evolve and new technologies emerge, fostering innovation and enhancing service efficiencies within the US Automotive Service Market.

The segmentation of this market also reflects broader trends in vehicle ownership, environmental concerns, and the increasing reliance on mobility solutions across the nation.

Automotive Service Market Propulsion Type Insights  

The US Automotive Service Market, categorized by Propulsion Type, encompasses significant segments, including Internal Combustion Engine (ICE) and Electric vehicles. The dominance of Internal Combustion Engine vehicles in the market has been driven by their extensive presence and familiarity among consumers. However, the Electric segment has been gaining traction, particularly with rising concerns surrounding environmental sustainability and government incentives promoting clean energy technologies. As the US government prioritizes reducing carbon emissions, the shift towards Electric vehicles presents substantial opportunities for growth in automotive services related to battery maintenance and charging infrastructure.

Increasing consumer awareness and acceptance of Electric vehicles are crucial trends that are shaping the landscape of the US Automotive Service Market. The evolution of technology also plays a pivotal role, as advancements in ICE efficiency and Electric vehicle performance continuously reshape the market dynamics. Consequently, the segmentation within the Propulsion Type market highlights varying service requirements, reflecting differing maintenance needs for Internal Combustion Engine and Electric vehicles, ultimately influencing the direction of service providers in adapting to these changes in the automotive landscape.

US Automotive Service Market Key Players and Competitive Insights:

The US Automotive Service Market is characterized by a dynamic competitive landscape where various players are continually striving to differentiate themselves through unique service offerings, innovative technologies, and customer-centric solutions. As the automotive industry evolves with advancements in vehicle technology, including electric and autonomous vehicles, service providers must adapt their operations and capabilities to meet changing consumer needs. The market encompasses a wide range of services, including routine maintenance, repairs, tire services, and more specialized offerings such as diagnostic and electronic systems services. Key trends such as the growing demand for transparency in pricing and the emphasis on high-quality customer service have further intensified competition, leading to an environment where organizations must be agile and responsive to retain market share and appeal to a diverse customer base.

AAMCO stands out in the US Automotive Service Market due to its extensive network and strong brand recognition. As one of the leading transmission and total auto care service providers, AAMCO has established a solid reputation built on delivering high-quality services and focusing on customer satisfaction. The company's strengths lie in its specialized expertise in transmission repairs, which garners customer loyalty and trust. AAMCO has effectively utilized a franchise model, allowing it to maintain a widespread presence across the nation while offering extensive training and support to its franchisees. This strategic approach not only enhances operational efficiency but also ensures that customers receive consistent service quality, further solidifying AAMCO's position as a trusted service provider in the competitive automotive service landscape.

Firestone is a well-respected name within the US Automotive Service Market, primarily recognized for its comprehensive tire services along with a range of automotive repair and maintenance offerings. The company boasts a robust network of service centers strategically located across the country, enabling it to serve a vast customer base. Firestone’s strengths lie in its well-established brand heritage, commitment to quality, and a strong focus on customer service. The company provides key products, including tires, brake services, oil changes, and alignment services, catering to diverse automotive needs. In recent years, Firestone has pursued various mergers and acquisitions to expand its market presence and capabilities, positioning itself as a leader in tire sales and automotive services. This strategic growth approach enhances its competitiveness, allowing the company to leverage economies of scale while enriching its service offerings to meet the demands of a wide range of consumers across the US market.

Key Companies in the US Automotive Service Market Include:

• AAMCO


• Firestone


• Advance Auto Parts


• CarMax


• Pep Boys


• NAPA Auto Parts


• AutoZone


• SherwinWilliams


• Goodyear


• O'Reilly Auto Parts


• Bridgestone


• Jiffy Lube


• Maaco


• Valvoline


• Sears Auto Center

US Automotive Service Market Industry Developments

Recent developments in the US Automotive Service Market have highlighted an ongoing evolution among major players. AAMCO, known for its transmission and general vehicle repair services, has been expanding its footprint, aligning its franchise strategy with emerging technologies in vehicle diagnostics. Firestone has made headlines by committing to enhance its tire and vehicle maintenance services, promoting sustainability through eco-friendly product offerings. In terms of market dynamics, Advance Auto Parts and AutoZone continue to experience significant growth driven by an increase in DIY automotive service enthusiasts, particularly during the pandemic recovery phase. Meanwhile, major companies like Pep Boys and NAPA Auto Parts are focusing on technological integration in their services to improve customer experience. On the mergers and acquisitions front, Bridgestone announced its acquisition of a regional tire retailer in June 2023, solidifying its supply chain capabilities and expanding its market reach. Valvoline's decision in August 2023 to acquire a network of quick-lube locations has positioned it for increased service offerings in the competitive automotive service landscape. These market movements reflect a collective shift towards enhanced service models, technological adoption, and strategic partnerships among leading companies in the sector.

Automotive Service Market Segmentation Insights

Automotive Service Market Service Type Outlook

• Maintenance Services


• Mechanical


• Exterior Structural 

Automotive Service Market Service Provider Outlook

• Franchise General Repairs


• OEM Authorized Service Centers


• Local Garage


• Tire Stores Repair Chains 


• Others

Automotive Service Market Vehicle Type Outlook

• Passenger Cars


• Light Commercial Vehicles


• Heavy Commercial Vehicles


• Two Wheelers

Automotive Service Market Propulsion Type Outlook

• Internal Combustion Engine (ICE)


• Electric

Report Attribute/Metric	Details
Market Size 2023	179.71 (USD Billion)
Market Size 2024	189.61 (USD Billion)
Market Size 2035	367.68 (USD Billion)
Compound Annual Growth Rate (CAGR)	6.205% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	AAMCO, Firestone, Advance Auto Parts, CarMax, Pep Boys, NAPA Auto Parts, AutoZone, SherwinWilliams, Goodyear, O'Reilly Auto Parts, Bridgestone, Jiffy Lube, Maaco, Valvoline, Sears Auto Center
Segments Covered	Service Type, Service Provider, Vehicle Type, Propulsion Type
Key Market Opportunities	Electric vehicle servicing expansion, Advanced driver assistance system repairs, Enhanced digital service platforms, Mobile servicing solutions growth, Sustainability and eco-friendly practices
Key Market Dynamics	Technological advancements, Increasing vehicle complexity, Rising consumer safety concerns, Growth of electric vehicles, Demand for eco-friendly services
Countries Covered	US