Authorized Car Service Center Market

The global authorized car service center market was valued at USD 237.40 Billion in 2022 and is projected to reach a value of USD 390.98 Billion by 2031, expanding at a CAGR of 5.7% between 2023 and 2031. The market is attributed to rising concern about counterfeit spare parts and the growing implementation of advanced fuel systems, ignition, and in-car entertainment systems.

Authorized vehicle service centers are independent or manufacturers' brand outlets that handle a variety of repair and maintenance tasks for a particular automaker. These service shops are gaining popularity among vehicle owners, due to increased worries about fake spare parts and the adoption of modern fuel, ignition, and in-car entertainment systems, which force customers to choose approved auto repair. The demand for passenger vehicles in the European Union (EU) increased by 14.5 percent and reached 1.2 million units overall in September 2019, according to the European Automobile Manufacturers Association (ACEA). These service providers collaborate closely with their franchisees to guarantee that their mechanics have the skills necessary to perform great auto repair across a variety of brands and diagnostic equipment while upholding strict quality standards.

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Authorized Car Service Center Market Trends, Drivers, Restraints, and Opportunities

• Increasing demand for passenger cars and aftersales service is fueling authorized car service center market.

• Strict rules & regulations made by the government for fuel economy and to reduce carbon emission by the government is expected to drive the demand for authorized car service center in the coming years.

• Continuous innovation is increasing the costs, which in turn, is expected to hamper the market growth.

• Increasing adoption of innovative technologies in smart automobiles, such as the Internet of Things (IoT) and Advanced Driver Assistance Systems (ADAS) is expected to create lucrative opportunities for the market players. 

Scope of Authorized Car Service Center Market Report

The report on authorized car service center market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Authorized Car Service Center Market Segment Insights

The authorized service workshop segment is projected to hold significant market share

In terms of auto body workshop, the authorized car service center market can be bifurcated into OEM authorized workshops and organized multi-brand service providers. The original equipment manufacturer (OEM) authorized service centers segment is expected to dominate the global market. Most car dealerships have their own authorized service centers, and there are also independent OEM authorized service centers that are not affiliated with any car dealerships but provide services to a certain manufacturer's vehicles.

The tire segment is projected to hold major market share during forecast period

Based on services, the market can be fragmented into transmission, engine, suspension, brakes, body, tire, electrical, and belts & accessories. The tire segment is estimated to grow at a rapid pace during the forecast period. The need for automobile repair and services has also increased as a result of heavy traffic congestion, bad roads, and numerous accidents. The body segment is expected to hold significant market share, due to the increasing number of accidents and the surge in demand for car repair.

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The more than 3 years segment is expected to expand at a rapid pace

On the basis of vehicle age, the market can be segregated into less than 3 years and more than 3 years. The more than three years segment is estimated to expand at significant rate during the forecast period, due to the sheer inexpensive cost of their fast and efficient services, independent repair shops are preferred in India for routine and basic vehicle servicing. The need for car repair and services in the country has increased as a result of increased traffic congestion, substandard roadways, and frequent accidents.

North America is constituted a significant share of the market

In terms of regions, the global authorized car service center market can be split into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America constituted a significant share of the market during the forecast period, due to the presence of major companies and increasing number of passenger cars in the region. Further, strict regulations made by the government for regulating carbon emissions is expected to increase the regional market.

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Segments

Auto Body Workshop

• OEM Authorized Workshops
• Organized Multi-brand Service Providers

Service

• Engine
• Transmission
• Brakes
• Suspension
• Electrical
• Body
• Tire
• Belts & Accessories

Vehicle Age

• Less than 3 years
• More than 3 years

Regions

• North America
• Europe
• Latin America
• Asia Pacific
• Middle East & Africa

Key Players

• 3M Car Care
• Automovill Technologies Pvt. Ltd.
• Bayerische Motoren Werke AG
• Carmozo
• Volkswagen
• Carxpert Garage
• Groupe Renault
• Honda Motor Co. Ltd.
• Lansdowne Automobile
• The Toyota Motor Corporation

Competitive Landscape

Key players in the authorized car service center market include 3M Car Care, Automovill Technologies Pvt. Ltd., Bayerische Motoren Werke AG, Carmozo, Volkswagen, Carxpert Garage, Groupe Renault, Honda Motor Co. Ltd., Lansdowne Automobile, and The Toyota Motor Corporation. These players engage in mergers & acquisitions, collaborations, agreements, and partnerships to strengthen their geographical presence.