United States Automotive Service Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

The United States Automotive Service Market is Segmented by Vehicle Type (Passenger Cars and Commercial Vehicles), Service Type (Mechanical, Exterior and Structural, and Electrical and Electronics), and Equipment Type (Tires, Seats, Batteries, and Other Equipment Types). The report offers market size and forecast for the United States Automotive Service Market in value (USD billion) for all the above segments.

Market Snapshot

United States Automotive Service Market_Overview
Study Period: 2018 - 2026
Base Year: 2019
CAGR: >3 %

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Market Overview

The United States automotive service market was valued at USD 63 billion in 2020, and it is expected to reach USD 75 billion by 2026, registering a CAGR of around 3% during the forecast period (2021 - 2026).

The impact of the COVID-19 pandemic is inevitable on any industry and is almost visible with varied short-term and long-term effects on the market. The impact of COVID-19 on the US Automotive service market is mild, and this can be attributed to the service-based model of the market. Although several production halts hammered the overall supply chain of the entire automotive industry, the impact on automotive service providers remained unchanged.

Some automotive service companies are increasingly using artificial intelligence-based automated vehicle inspection technology for vehicle inspection to widen the customer base. For instance, Scope technology, a US-based tech company, has developed an AI automated vehicle inspection technology in collaboration with Microsoft’s Azure cloud computation. This entire visual inspection process is completed in less than 5 minutes and reduces costs by 50%.

Additionally, various factors, such as the rise in the average age of vehicles due to technological advancements, rise in the average miles driven per vehicle, and surge in road safety awareness in people, are likely to fuel the growth of the automotive service market. Furthermore, an increase in the sales of used cars creates numerous opportunities for key players operating in the US automotive service market.

Scope of the Report

Automotive services include mechanical and electrical inspection, maintenance, and repair of automobiles. Routine services, such as oil changes, tire repair, and air conditioning, as well as non-routine services, such as rust-proofing and exterior painting, are all considered part of the service industry. The United States Automotive Market report covers the latest trends, covid-19 impact followed by technological developments in the market. The scope of the report covers segmentation based on vehicle type, service type, and equipment type.

By vehicle type, the market is segmented into passenger cars and commercial vehicles. By service type, the market is segmented into mechanical, exterior and structural, and electrical and electronics. Moreover, by equipment type, the market is segmented into tires, seats, batteries, and other equipment types. For each segment, the market sizing and forecast have been done on the basis of value (USD billion).

By Vehicle Type
Passenger Cars
Commercial Vehicles
By Service Type
Mechanical
Exterior and Structural
Electrical and Electronics
By Equipment Type
Tires
Seats
Batteries
Other Equipment Types

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Key Market Trends

New Opportunities in the Electric Vehicles Market

The market for electric vehicles is increasing Y-o-Y, impacting the growth of the automotive industry. The annual sales of plug-in electric cars crossed the 400 thousand mark in 2019, gathering more than 1% of the United States' overall vehicle sales share. Although the adoption of electric vehicles is still in its early stages, long-term projections show a rapid increase, globally.

According to the International Energy Agency (IEA), the number of electric vehicles (EVs) is likely to grow up to 125 million in 2030 from just 3.1 million in 2017. The electric vehicle demand creates newer opportunities for the OEMs, aftermarkets, tire manufacturers, and the supply chain industry. As a result, IC engine vehicle parts and components services centers expand into electric vehicles as electric vehicles become more accessible.

In August 2019, Tesla opened 25 new service centers and added 100 new service vehicles to its existing fleet. Currently, Tesla is establishing more auto service centers. The recent locations include a showroom in London's posh Westfield shopping center, Warwick, Rhode Island, and an upgraded showroom in Santa Monica near its current store location.

United States Automotive Service Market_Key Market Trend1

Growing Demand for Commercial Vehicles Likely to Drive Market

Although the sale of passenger cars has been declining in the country since 2018, commercial vehicles continued to record a Y-o-Y increase in sales since the post-recession period. The shifting consumer preference in the United States to pick-up trucks that can transport both cargo and passengers is one of the reasons behind the growth.

Commercial vehicles like medium and heavy-duty trucks tend to cover more miles on average than passenger cars. Hence, they often require servicing. Even their part and component maintenance & replacement cycle is more frequent due to high distances traveled in a relatively short period.

Common parts, like engine oils, brake and transmission fluids, air filters, brake pads, etc., are consumed faster. Most vehicle owners tend to reach out to aftermarket garages or workshops for these kinds of jobs after the warranty period. Additionally, since most commercial vehicles run on diesel, they require even more service than their petrol counterparts. For instance, most petrol vehicles nowadays come with a non-serviceable fuel filter and can go on even without a filter replacement during their lifetime.

But purification of diesel is done using either a single filter or a combination of primary and secondary filters. These filters need to be replaced at regular intervals based on the build and variant of vehicles. This is expected to drive the market for this class of vehicles over the forecast period.

United States Automotive Service Market_Key Market Trend2

Competitive Landscape

The United States automotive service market is fragmented with the presence of market players, such as Firestone Complete Auto Care, Jiffy Lube, Meineke, Midas, Monro Muffler Brake, and Safelite Group, who hold the most significant shares. In order to have the edge over their competitors' companies are making joint ventures, partnerships, launching new products with advanced technology. For instance,

  • In August 2020, Asbury Automotive Group Inc. completed the acquisition of Park Place Dealerships worth USD 1.7 billion approximately to increase its brand portfolio among the luxury segments of vehicles across the United States.
  • Jiffy Lube continues its focus on expanding the brand’s footprint by establishing more than 2,081 franchisee-owned service centers across North America. 45 new Jiffy Lube service centers were opened in the U.S. in January 2017, by expanding into new markets and growing communities.

Recent Developments

  • In April 2020, Driven Brands announced the acquisition of fix Auto USA and Auto Center Auto Body Inc. to improve its services in the collision repair space. The acquisition adds nearly 150 franchised and ten company collision repair locations to the paint, collision, and glass segments of driven brands.
  • In November 2020, Safelite Group announced an agreement to acquire the assets of the Lee & Cates Glass auto glass business to expand its flat/residential operations for customers improving its footprint all across the United States.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Driver

    2. 4.2 Market Restraint

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Buyers/Consumers

      2. 4.3.2 Bargaining Power of Suppliers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Cars

      2. 5.1.2 Commercial Vehicles

    2. 5.2 By Service Type

      1. 5.2.1 Mechanical

      2. 5.2.2 Exterior and Structural

      3. 5.2.3 Electrical and Electronics

    3. 5.3 By Equipment Type

      1. 5.3.1 Tires

      2. 5.3.2 Seats

      3. 5.3.3 Batteries

      4. 5.3.4 Other Equipment Types

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Firestone Complete Auto Care

      2. 6.2.2 Jiffy Lube

      3. 6.2.3 Meineke

      4. 6.2.4 Midas

      5. 6.2.5 Monro Muffler Brake

      6. 6.2.6 Safelite Group

      7. 6.2.7 Walmart

      8. 6.2.8 Sears Auto

      9. 6.2.9 Pep Boys

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The United States Automotive Service Market market is studied from 2018 - 2026.

The United States Automotive Service Market is growing at a CAGR of >3% over the next 5 years.

The United States Automotive Service Market is valued at 69 Billion USD in 2018.

The United States Automotive Service Market is valued at 75 Billion USD in 2026.

Monro Muffler Brake, Midas, Meineke , Firestone Complete Auto Care, Jiffy Lube are the major companies operating in United States Automotive Service Market.

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