US Automotive Service Market Size (2024 - 2029)

The US automotive service industry is experiencing growth, driven by factors such as the increasing age of vehicles, which necessitates more frequent maintenance, and the rising demand for shared mobility. The market's expansion is further supported by the growing penetration of electric vehicles, aided by government initiatives aimed at reducing crude oil dependence. Despite challenges like the global automotive chip shortage, the industry is leveraging advancements in technology, such as AI-based vehicle inspection, to enhance efficiency and customer reach. The market's capacity to serve a diverse range of vehicles and the strategic reduction of overhead costs are also contributing to its growth trajectory.

Market Size of US Automotive Service Industry

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United States Automotive Service Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 188.13 Billion
Market Size (2029) USD 251.52 Billion
CAGR (2024 - 2029) 5.98 %
Market Concentration Medium

Major Players

US Automotive Service Market Major Players

*Disclaimer: Major Players sorted in no particular order

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US Automotive Service Market Analysis

The US Automotive Service Market size is estimated at USD 188.13 billion in 2024, and is expected to reach USD 251.52 billion by 2029, growing at a CAGR of 5.98% during the forecast period (2024-2029).

The COVID-19 pandemic compelled about 95% of all automotive-related companies to put their workforces on hold during the lockdowns in the year 2020. However, the United States witnessed a lockdown for only a few weeks compared to other countries worldwide. The country's high motor vehicle demand fuels an active automotive industry. The road vehicle and parts retail trade has quickly recovered from the COVID-19 pandemic, generating over USD 1.5 trillion in revenue. The global automotive chip shortage, on the other hand, poses a challenge to the industry, and the monthly inventory-to-sales ratio has been falling since April 2020.

Over the long term, automotive service companies are increasingly using artificial intelligence-based automated vehicle inspection technology for vehicle inspection to widen their customer base. For instance, In February 2022, Scope Technology, a US-based tech firm, collaborated with Microsoft's Azure cloud computation to develop AI-automated vehicle inspection technology. This visual inspection takes less than 5 minutes and saves 50% on costs.

The increasing age of vehicles will benefit industry growth because older vehicles require more frequent maintenance and replacement parts. Furthermore, increasing demand for shared mobility is one of the key factors increasing yearly maintenance spending on cabs or shared vehicles owing to a higher yearly distance driven.

The increasing penetration of electric vehicles will have a significant impact on market growth. The rapid adoption of electric vehicles can be attributed to government initiatives and support for improving environmental quality to reduce reliance on crude oil. Overall, battery electric vehicle repair and maintenance costs are expected to be around 40% lower than ICE vehicle costs.

The establishments typically include a variety of service bays to provide repair and maintenance services for a wide range of vehicles, including hatchbacks, sedans, MPVs, and SUVs, as well as two-wheelers. Lowering overhead costs contributes significantly to lowering overall service charges. Effective communication and independent mechanics improve customer relationships and foster customer goodwill. The ability to serve multiple vehicle brands and the easier availability of spare parts are driving market demand even higher.

The Bureau of Automotive Repair (BAR), a division of the Department of Consumer Affairs (DCA), protects Californians by effectively supervising the automotive repair industry and administering vehicle emissions reduction and safety programs.

US Automotive Service Industry Segmentation

Automobile mechanical and electrical inspection, maintenance, and repair are examples of automotive services. The service industry includes routine services like oil changes, tire repair, and air conditioning and non-routine services like rust-proofing and exterior painting.

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 forecasts for the United States Automotive Service Market in value (USD Billion) for all the above segments.

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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US Automotive Service Market Size Summary

The US automotive service industry is poised for significant growth over the forecast period, driven by various factors including the increasing age of vehicles and the rising demand for shared mobility. As vehicles age, they require more frequent maintenance and replacement parts, which boosts the demand for automotive services. The market is also witnessing a shift towards electric vehicles, supported by government initiatives aimed at reducing environmental impact. This transition is expected to lower maintenance costs compared to traditional internal combustion engine vehicles. The industry is leveraging advanced technologies such as artificial intelligence for automated vehicle inspections, enhancing efficiency and reducing costs. The recovery from the COVID-19 pandemic has been swift, with the automotive sector rebounding quickly, although challenges like the global chip shortage persist.

The market landscape is characterized by fragmentation, with numerous players vying for market share through strategic partnerships, acquisitions, and technological advancements. Companies like AutoNation, Tesla, and FullSpeed Automotive are expanding their footprints and enhancing service offerings to gain a competitive edge. The increasing number of vehicles on the road, coupled with the rising average age of these vehicles, presents ample opportunities for growth in the automotive service sector. Regulatory bodies like the Bureau of Automotive Repair play a crucial role in overseeing the industry, ensuring safety and emissions standards are met. As the market continues to evolve, the focus on cost-effective, efficient, and environmentally friendly solutions is expected to drive further expansion.

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US Automotive Service Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Driver

    2. 1.2 Market Restraint

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Buyers/Consumers

      2. 1.3.2 Bargaining Power of Suppliers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size Value in USD Million)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Commercial Vehicles

    2. 2.2 By Service Type

      1. 2.2.1 Mechanical

      2. 2.2.2 Exterior and Structural

      3. 2.2.3 Electrical and Electronics

    3. 2.3 By Equipment Type

      1. 2.3.1 Tires

      2. 2.3.2 Seats

      3. 2.3.3 Batteries

      4. 2.3.4 Other Equipment Types

US Automotive Service Market Size FAQs

The US Automotive Service Market size is expected to reach USD 188.13 billion in 2024 and grow at a CAGR of 5.98% to reach USD 251.52 billion by 2029.

In 2024, the US Automotive Service Market size is expected to reach USD 188.13 billion.

US Automotive Service Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)