Authorized Car Service Center Market Report 2025

The authorized car service center market size has grown strongly in recent years. It will grow from $233.24 billion in 2024 to $248.04 billion in 2025 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to rising vehicle ownership rates, growing complexity of automobiles, warranty and service package offerings, compliance with manufacturer standards, 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 $318.05 billion in 2029 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to growing fleet of electric vehicles, advancements in automotive technologies, expansion of car subscription services, focus on environmental sustainability, integration of digital service platforms. Major trends in the forecast period include emphasis on sustainability practices, introduction of subscription-based services, training and skill development, efforts in brand loyalty programs, integration of augmented reality (AR) in service procedures.

The rapid expansion of the automobile industry is projected to enhance the growth of the authorized car service center market in the coming years. The automobile industry encompasses businesses involved in the manufacturing, distribution, retail, and maintenance of vehicles. Authorized service centers are essential for ensuring that vehicles receive authentic OEM (Original Equipment Manufacturer) parts and high-quality services after purchase. As the automobile industry continues to grow, the demand for authorized service centers will increase to provide genuine and superior services, thereby boosting the market for authorized car service centers. For example, in April 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that electric car sales reached 3.5 million units in 2023, marking a 35% increase from 2022. Thus, the rapid growth of the automobile industry is expected to drive the growth of the authorized car service center market during the forecast period.

The rise in urbanization is a significant factor propelling the authorized car service center market. Urbanization refers to the concentration of populations in cities and the expansion of urban areas, characterized by the development of infrastructure and increased societal complexity. As urban populations continue to grow, there is a rise in the number of vehicles in urban areas. This increase in vehicular density results in a greater demand for reliable and specialized automotive services. Authorized car service centers, which possess the necessary technical expertise, access to genuine parts, and compliance with industry standards, are crucial in addressing the complex needs of urban residents' vehicles. For instance, in July 2023, the United Nations reported that over half (55%) of the global population resides in urban areas, a figure projected to rise to 70% by 2050. Furthermore, according to the World Bank, a US-based international financial institution, more than 50% of the global population currently lives in urban areas, with the urban population expected to increase by 1.5 times by 2045, reaching 6 billion. Therefore, the rise in urbanization is driving the growth of the authorized car service center market.

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 include 3M Company, Volkswagen AG, 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 2024. 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.

The authorized car service center is a designated facility or workshop authorized by the car manufacturer, an authorized dealer, or the company to perform various services. These services include routine maintenance such as tire rotations, oil and filter changes, and comprehensive inspections.

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 authorized car service center market includes revenues earned by entities by wheel alignment, wiper blade replacement, engine and cabin air filter replacement, brake fluid exchange, spark plug replacement, and other related services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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