Authorized Car Service Center Global Market Report 2024

The authorized car service center market size has grown strongly in recent years. It will grow from $220.62 billion in 2023 to $235.43 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increasing rates of vehicle ownership, the growing complexity of automobiles, offerings of warranty and service packages, compliance with manufacturer standards, and an increased focus on vehicle safety.

The authorized car service center market size is expected to see strong growth in the next few years. It will grow to $299.61 billion in 2028 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to the growing fleet of electric vehicles, advancements in automotive technologies, the expansion of car subscription services, a focus on environmental sustainability, and the integration of digital service platforms. Major trends in the forecast period include an emphasis on sustainability practices, the introduction of subscription-based services, training and skill development, efforts in brand loyalty programs, and the integration of augmented reality (AR) in service procedures.

The automotive industry's rapid expansion is anticipated to drive growth in the authorized car service center market. With a focus on providing genuine OEM parts and quality services, these centers play a crucial role in ensuring vehicles receive authentic maintenance post-purchase. As the automotive sector continues to grow, the demand for authorized service centers will rise, enabling access to reliable and genuine services. For example, in 2021, the U.S. witnessed automotive sales reaching 15,079,182 units, with a notable 5.3% increase in truck and SUV sales, as reported by MarkLines Co., Ltd. This expansion underscores the significance of authorized service centers in meeting vehicle maintenance needs.

Urbanization is a significant driver of the authorized car service center market. The burgeoning urban population leads to increased vehicular concentration in cities, intensifying the demand for specialized automotive services. With urban areas witnessing a surge in vehicle density, the need for dependable and specialized services offered by authorized car service centers becomes imperative. According to data from the United Nations, the world's urban population rose to 56.5% in 2021 and is projected to reach 68% by 2050. This escalating urbanization underscores the crucial role played by authorized service centers in catering to the intricate requirements of city dwellers' vehicles.

Technological advancements represent a prominent trend within the authorized car service center market. Leading companies in this sector are actively investing in innovative technologies. For instance, Volvo Car Corporation introduced UVeye in March 2022 - a cutting-edge automated vehicle inspection technology. Leveraging high-speed, camera-based systems, UVeye conducts rapid inspections scanning tires, underbody components, and exteriors for flaws or missing parts. This automated inspection method, completing assessments within seconds, significantly outpaces manual inspection procedures.

Major companies within the authorized car service center market are leveraging mobile applications to gain a competitive advantage. These apps streamline various aspects of the customer experience, offering functionalities such as simplified appointment scheduling, real-time service updates, and seamless communication between customers and service providers. An example of this is myTVS, an Indian car services company, which introduced myTVS Life360 in June 2022. This super app provides a comprehensive suite of services including vehicle maintenance, emergency assistance, parts procurement, insurance services, payment platforms, and accessories. Available on both Android and iOS platforms, myTVS Life360 is paired with a personalized device provided by myTVS, ensuring safe and personalized experiences for car owners. Additionally, it enables customers to store essential documents such as insurance copies, driver's licenses, and registration certificates for easy access.

In February 2023, Performance Plus Quick Oil Change, a prominent US-based oil change and car wash company, acquired Sparkle Car Care Centers, marking a strategic move to fortify Performance Plus's industry position. This acquisition aimed to blend the strengths of both companies. Sparkle Car Care Centers, renowned for their quality car washes and efficient oil change services, complements Performance Plus's offerings, fostering a perfect synergy between two leading automotive care entities.

Major companies operating in the authorized car service center market report are 3M Company, Volkswagen Aktiengesellschaft, Toyota Motor Corporation, Bayerische Motoren Werke AG, Suzuki Motor Corporation, Robert Bosch GmbH, Castrol Limited, Honda Motor Co. Ltd., Hyundai Motor Company, Carmozo Mobility Pvt. Ltd., Carxpert Services Pvt. Ltd., Carnation Auto India Pvt. Ltd., The Lansdowne Motor Company Limited, Renault Group, Automovill Technologies Private Limited, Mahindra First Choice Services Limited, TVS Automobile Solutions Private Limited, ExxonMobil Corporation, Carz Limited, Lansdowne Automobile, Meineke Car Care Centers LLC, Tilden international Inc., Groupe Renault, Mobil1 Car Care, Maruti Suzuki India Limited, Mercedes-Benz, Michelin SCA., Nissan Motor Co. Ltd., Porsche AG, Skoda Auto, Volvo Cars, Yokohama Rubber Co. Ltd.

North America was the largest region in the authorized car service center market in 2023. The regions covered in the authorized car service center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the authorized car service center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

There are two main types of authorized car service centers such as OEM authorized workshops and organized multi-brand service providers. OEM authorized workshops have obtained certification from the original equipment manufacturer (OEM) to use factory-approved parts and employ certified methods for service. They provide services for various vehicle components such as engine, transmission, brakes, suspension, electrical systems, bodywork, tires, and belts and accessories. These services cater to vehicles that are both less than three years old and more than three years old.

The authorized car service center market research report is one of a series of new reports that provides authorized car service center market statistics, including authorized car service center industry global market size, regional shares, competitors with an authorized car service center market share, detailed authorized car service center market segments, market trends and opportunities, and any further data you may need to thrive in the authorized car service center industry. This authorized car service center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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