US$ 750 Bn Global Automotive Repair and Maintenance Services Market on a Rapid Growth Track
The global automotive repair and maintenance services market is estimated to reach a market valuation of US$ 441.3 Bn by 2016 end, growing at a 5.6% CAGR over the forecast period, 2016-2016.
Rapid deterioration rate in vehicles is a factor fuelling demand for automotive repair and maintenance services. Equipped with enhanced technology and materials related to automotive manufacturing, the mean age of passenger cars in the U.S. increased from 9 years in 2000 to 11.6 years in 2015. In parallel with rising sales of vehicles in the U.S. and Western Europe, demand for automotive repair and maintenance services have escalated significantly. Furthermore, reduction in oil and gas prices have indirectly led to an increase in total miles driven, which, in turn contributes to wear and tear of various vehicle parts. Due to such reasons there is a compelling need for automotive repair and maintenance services, which is a factor escalating towards growth of the automotive repair and maintenance services market.
Escalating demand for aftermarket services in the automotive sector for various services and parts such as tires, engine oil along with wear and tear of various automotive parts will gain traction in the coming years. Among various automotive-related parts, the market for tires will grow at a CAGR of 7.9%. Whereas, the market for services related to wear and tear of automotive parts will create incremental opportunity of 14.1% and 8.6% shares in the coming decade. However, the market for automobile dealerships services provider will be valued over US$ 100 Bn in 2016, growing at a CAGR of 4%.
In addition, among various cars, the market for passenger cars will account for major revenue share in 2015 and will gain significant market share in the coming years. Furthermore, owing to increase in sales of passenger cars, the automotive repair and maintenance service market is expected to gain 200 BPS over the following decade.
The automotive repair and maintenance services market in North America accounts for over 26% share in terms of revenue in 2016. Whereas, attributed to increasing vehicle parc and under developed roads in various countries of APEJ, the automotive repair and maintenance services market will hold significant share in terms of revenue, growing at a CAGR of 8.6% over the next decade.
Trend of adopting mergers and acquisitions is likely to be a preferred strategy among various key players in order to expand their global presence and increase market share. Companies operating in the market include Asbury Automotive Group Inc., Jiffy Lubes International Inc., Monro Muffler Brake Inc., Driven Brands Inc. and Belron International Ltd.
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