NEW YORK, Jan. 12, 2017 /PRNewswire/ -- Will the global automotive repair and maintenance services market show sustained growth in the near future?
The automotive aftermarket includes the maintenance and repair of various services and parts such as changing the engine oil, gear oil, brake oil, etc. Tire services include repair of flat tires, tire pressure monitoring, misalignment of tires, and replacement of tires. Battery services include automotive batteries replacement. Wear and tear parts include shock absorbers, brake wheel end, engine, driveline, and suspension. Collision body includes coating and painting, crash parts, refinishing, and repair materials. Starters and alternators include armature, field coil, brushes, end shield, and solenoid. Lighting includes automotive lighting and aftermarket services. Exhaust components include mufflers, exhaust manifold, catalytic convertor, and tail pipe. Spark plugs include spark plug- hot and cold, glow plug- metal, and ceramic.
Indeed, automotive repairs and maintenance services is definitely a booming business at a global level. According to our research, the global automotive repair and maintenance services market is anticipated to be valued at US$ 441.3 Bn by the year end and is projected to expand at a CAGR of 5.6% over the forecast period, to exceed US$ 750 Bn in the coming decade.
Impressive? Definitely. But how will the market shape up in the wake of advancements in automotive technology? Will these new-age intelligent technologies boost the market or act as restraints slowing down the growth of an already over-crowded market?
We feel there are several factors that are likely to impact the global automotive repair and maintenance services market. Increase in the average age of vehicles has led to a rise in demand for repair and maintenance services. The poor quality of road infrastructure in the developing countries of Asia Pacific Excluding Japan (APEJ) is expected to drive the market for automotive repair and maintenance services in this region. The increase in vehicle parc in regions such as North America, Western Europe, and APEJ has also led to a growth in automotive aftermarket services. With the declining oil and gas prices, the average miles driven has increased. This is closely associated with the wear and tear of parts thus requiring maintenance.
One of the major trends likely to govern the global automotive repair and maintenance services market is remote diagnostics. This enables real-time monitoring of vehicle parameters to assess its performance against benchmarks. Another trend observed in the global automotive repair and maintenance services market is that the small locally owned shops are pairing up with fleet operators to gain more maintenance contracts.
Having said this, an increase in repairs and maintenance services costs and a careless attitude on the part of vehicle owners towards structured maintenance and services may pose challenges to the growth of this market in the near future.
Our segment analysis shows that increasing annual mileage per vehicle is estimated to contribute significantly to the growth of the Tires Services and Parts segment
The Tires Services and Parts segment accounted for a major market share in terms of value in 2015 and is expected to expand at a significant CAGR over the forecast period (2016-2026). Along with another segment in the Services and Parts category, the Tires segment is likely to represent more than two-third share in the total incremental opportunity created over the next 10 years. Our research indicates that the Tires segment will reach a market valuation exceeding US$ 300 Bn by the end of the forecast period.
Some of the big regional markets are showing decent growth in the global automotive repair and maintenance services market
The North America automotive repair and maintenance services market is estimated to account for more than 25% of the market share in the global automotive repair and maintenance services market by 2016 end. The automotive repair and maintenance services market in Asia Pacific is expected to expand at a relatively high CAGR over the forecast period. North America and Western Europe are estimated to collectively account for about 50% of the total market share of the global automotive repair and maintenance services market by the end of 2016.
Will a structured business strategy of mergers and acquisitions help key market players augment market share in the global automotive repair and maintenance services market?
Some of the leading players identified in the global automotive repair and maintenance services market are Jiffy Lubes International Inc., Driven Brands Inc., Asbury Automotive Group Inc., Sumitomo Corporation, Belron International Ltd., Monro Muffler Brake Inc., Firestone Complete Auto Care, Goodyear Tire & Rubber Co., Ashland Automotive Inc., and Carmax Autocare Center.
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