December 5, 2024

Vehicle Roadside Assistance Market to Witness Strong Growth By 2032

The global vehicle roadside assistance market size reached USD 23.61 billion in 2022 and it is expected to touch over USD 39.65 billion by 2032,with CAGR of 5.3% during the forecast period 2023 to 2032.

Vehicle Roadside Assistance Market Size 2023 To 2032

 

Vehicle roadside assistance represents an on-site vehicle maintenance service designed to aid drivers in the event of a breakdown or collision. This service offers fundamental assistance to drivers and vehicle owners, encompassing support for flat tires, minor mechanical or electrical repairs at the site, assistance with lockouts due to lost keys, jumpstarting of batteries, fuel delivery, and vehicle towing.

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Factors Contributing to Growth

The surge in the number of accidents and vehicle collisions stands as the primary driver for the expansion of the vehicle roadside assistance market. According to the World Health Organization (WHO), approximately 1.35 million individuals lose their lives in road traffic accidents annually. Interestingly, 93% of these fatalities occur in middle and low-income countries, even though these countries house 60% of the world’s vehicles.

Furthermore, the growing demand for hybrid and electric vehicles, coupled with an increased need for connectivity solutions within vehicles, is expected to propel the growth of the vehicle roadside assistance market. Modern vehicle features such as real-time highway alerts, telematics systems, sensors, built-in Wi-Fi, and GPS enhance the driver experience. However, these sophisticated systems, being electronically controlled, can encounter issues at any point, contributing to the expansion of the vehicle roadside assistance market.

However, the additional charges imposed by service providers for pay-per-service models might impede market growth. While service providers often offer membership plans covering all roadside assistance and emergency services, they also levy extra fees for individual services.

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Report Highlights

  • Asia Pacific seeks to be the most opportunistic market during the forecast period. Prime factors attributed to this are augmented per capita income, significant number of automotive sales, and rising adoption of electronic assistance features in the vehicle.
  • Europe led the global vehicle roadside assistance market in terms of revenue share in 2019. The region is the hub of automotive manufacturers and register significant adoption of advanced vehicle assistance feature by the drivers that in turn fuels the market growth.
  • By service, towing service encountered maximum revenue share in the global vehicle roadside assistance market in 2019. It is the most common emergency service offered by the service providers due to fatal roadside accidents and collisions. Furthermore, advanced towing devices have provided ease in the towing service that adds as an advantage to the toeing service market.
  • Passenger vehicle captured maximum revenue share in the global vehicle roadside assistance market. Rising sales of passenger vehicles and increased number of vehicle registration has triggered the growth of passenger vehicles in the vehicle roadside assistance market.

Regional Insights

In 2019, Europe played a pivotal role in contributing to the global vehicle roadside assistance market revenue and is anticipated to experience significant growth in the forecast period. The escalating number of vehicle registrations and sales in recent years has substantially bolstered market growth. Additionally, Europe’s cold climate contributes to vehicle breakdowns and battery drain, thus supporting the demand for highway vehicle services and driving the vehicle roadside assistance market.

Likewise, North America stands as another prominent revenue-generating region for the vehicle roadside assistance market. This is attributed to the notable rise in road accidents in the United States and Canada. Statistics indicate that the U.S. witnesses nearly 6 million car accidents annually, with 72% resulting in property damage. Meanwhile, the Asia Pacific region is projected to exhibit the fastest growth due to population growth and increasing per capita income.

Key Players and Strategies

The global vehicle roadside assistance market operates within a niche and fragmented landscape, with intense competition among players striving to deliver quality services to customers. Some providers even offer collection and delivery services to enhance service quality. Automotive manufacturers such as Honda, General Motors, Toyota, and Mitsubishi, among others, extend vehicle roadside assistance services to their customers.

Some of the key players of the market are Viking Assistance Group AS, ARC Europe SA, Swedish Auto, SOS International A/S, Allianz Global Assistance, Falck A/S, Allstate Insurance Company, AAA, Agero, Inc., Best Roadside Service, AutoVantage, Roadside Masters, Paragon Motor Club, and Good Sam Enterprise, LLC. Other companies operating in this marketplace are Access Roadside Assistance, Better World Club, Emergency Road Services Corporation, Honk technologies, National General Insurance, span wings, URGENT.LY INC., Twenty Four OTR Pvt Ltd, TVS Auto Assist India Limited, ASSURANT, INC., RESCUE Vehicle Services Private Ltd., Emirates Insurance Co. (PSC), CHUBB Ltd, Prime Assistance Inc., and Arabian Automobile Association among others.

Vehicle Roadside Assistance Market Market Segments:

By Service

  • Tire Replacement
  • Towing
  • Jump Start/Pull Start
  • Fuel Delivery
  • Lockout/Replacement Key Service
  • Battery Assistance
  • Winch
  • Trip Routing/Navigational Assistance
  • Other Mechanic Service

By Provider

  • Motor Insurance
  • Auto Manufacturer
  • Automotive Clubs
  • Independent Warranty

By Vehicle

  • Commercial Vehicle
    • Light Commercial Vehicle
    • Heavy Commercial Vehicle
  • Passenger Vehicles
    • Hatchback
    • Sedan
    • Utility Vehicles

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

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