Authorized Car Service Center Market Size, Share and Growth Projections

Authorized Car Service Center Market Size, Share and Forecast

The authorized car service center market is forecast to grow from USD 302.02 billion in 2025 to USD 479.08 billion by 2034, driven by a CAGR of 5.26% from 2025 to 2034.

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Introduction

The authorized car service center market is a crucial branch of the automotive industry. This industry deals in delivering authorized car services to the consumers. There are several types of services provided by this sector consisting of routine maintenance, mechanical repairs, electrical repairs, bodywork and paintwork, tire services, diagnostic services and some others. These services cater to the needs of numerous vehicles including passenger cars, commercial vehicles, SUVs, luxury cars and some others. The authorized car service centers are owned by several entities comprising of independent owners, franchise owners, chain owners and some others. The growing sales of passenger vehicles has contributed to the overall industrial expansion. This market is expected to rise significantly with the growth of the electric vehicle industry in different parts of the world.

• According to the OICA, around 54742117 passenger vehicles were sold globally in 2020 that increased to 67542081 in 2024. (Source: OICA)

Highlights of the Authorized Car Service Center Market

• North America held the highest share of the authorized car service center market.
• Asia Pacific is expected to grow with the highest CAGR during the forecast period.
• By vehicle type, the passenger cars segment dominated this industry.
• By vehicle type, the commercial vehicles segment is predicted to rise with a significant CAGR during the forecast period.
• By service type, the routine maintenance segment led the industry.
• By service type, the electrical repairs segment is likely to grow with a considerable growth rate during the forecast period.
• By ownership type, the independent segment held the largest share of the industry.
• By ownership type, the franchised segment is projected to rise with a notable CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of Authorized Car Service Center Market in 2025?

The major trends in this industry consists of rising sales of electric vehicles, collaborations and smart diagnostic solutions.

Rising Sales of Electric Vehicles

The growing adoption of EVs has increased the demand for regular services such as tire maintenance and electrical repairing to maintain these vehicles. According to the International Energy Agency, around 2.2 million BEVs were sold in Europe during 2024. (Source: law enforcement agency (LEA))

Collaborations

Several automotive brands are collaborating with aftermarket companies to deliver high-grade car maintenance services. For instance, in April 2025, VinFast collaborated with LKQ Netherlands. Thid collaboration is done for providing a high-quality aftersales and maintenance network in Netherlands. (Source: VinFast)

Smart Diagnostic Solutions

Numerous automotive component manufacturers are integrating advanced technologies such as AI and IoT in diagnostic tools to enhance car repairing process. For instance, in May 2025, Mucar launched 892BT. 892BT is an AI-based diagnostic tool designed for enhancing car repairing procedure. (Source: Aftermarketinternational)

Vehicle Type Insights

The passenger cars segment dominated this industry. The rising production of passenger vehicles in various countries such as China, India, Germany, U.S. and some others has boosted the market growth. Additionally, rapid adoption of electric cars along with increasing sales of SUVs is contributing to the overall industrial expansion. Moreover, numerous automotive brands are opening up new service centers to cater the needs of the passenger car owners, thereby driving the growth of the authorized car service center market.

• According to the Society of Indian Automobile Manufacturers, around 42.19 lakh passenger vehicles were sold in India during FY 2023-24. (Source: SIAM)

The commercial vehicles segment is predicted to rise with a significant CAGR during the forecast period. The growing demand for heavy-duty trucks in several industries such as logistics, electronics, oil and gas, energy and some others has boosted the market expansion. Additionally, the rapid adoption of LCEVs in e-commerce sector along with increasing sales of luxury buses is further contributing to the industrial growth. Moreover, rapid investment by commercial vehicle companies to inaugurate service centers for delivering high-quality services to the fleet owners is anticipated to propel the growth of the authorized car service center market.

• According to the International Council on Clean Transportation, around 74000 heavy-duty trucks were sold in Europe during the 2nd quarter of 2024. (Source: Theicct)

Service Type Insights

The routine maintenance segment led the industry. The rising demand for regular car services among car owners has boosted the market growth. Also, the growing adoption of these services for preventing car accidents and avoiding costly repairs is crucial for the industrial expansion. Moreover, offers and incentives provided by automotive brands to increase the awareness of regular automotive services is driving the growth of the authorized car service center market.

The electrical repairs segment is likely to grow with a considerable growth rate during the forecast period. The growing adoption of advanced equipment in automotive service centers to detect faults in electronics system has boosted the market expansion. Additionally, the rising use of complex electronics parts in EVs has increased the demand for regular services, thereby driving the industrial growth. Moreover, the increasing use of advanced electronic components such as LED displays, ambient lighting, cameras and some others in modern cars has driven the growth of the authorized car service center market.

Ownership Type Insights

The independent segment held the largest share of the industry. The growing demand for regular car maintenance services has enabled individual owners to open authorized service centers, thereby driving the market growth. Also, the rise in number of independent automotive repairing shops in developing nations has boosted the growth of the authorized car service center market.

The franchised segment is projected to rise with a notable CAGR during the forecast period. The rising demand for genuine car services among car owners has boosted the market growth. Additionally, numerous offers and incentives provided by franchised companies to their distributors for delivering superior automotive services is anticipated to foster the growth of the authorized car service center market.

Geographical Insights

North America held the highest share of the authorized car service center market. The rising demand for luxury vehicles in several countries such as the U.S. and Canada has boosted the market growth. Additionally, technological advancements in automotive industry along with rapid investment by automotive brands to inaugurate new car service centers is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Ford Motor Company, Tesla, Chevrolet, General Motors and some others is anticipated to propel the growth of the authorized car service center market in this region.

• In January 2024, Tesla announced to open a new service center in Vancouver, British Columbia. This service center is inaugurated to cater the EV owners of North America. (Source: Tesla)

U.S. dominated the market in this region. The growing sales of luxury SUVs along with technological advancements in automotive industry has boosted the market expansion. Also, rapid adoption of electric vehicles coupled with the rise in number of car service centers is likely to shape the industry in a positive direction.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. The growing sales and production of commercial vehicles in several countries such as Japan, India, China, South Korea and some others has boosted the market growth. Also, the rapid investment by automotive brands for opening new EV service centers along with integration of advanced technologies such as AI and IoT in car service centers is contributing to the industrial expansion. Moreover, the presence of various authorized car service center companies such as Nissan Motor Corporation, Toyota, Honda, Kia and some others is expected to drive the growth of the authorized car service center market in this region.

• According to the OICA, around 277926 commercial vehicles were manufactured in South Korea during 2024. (Source: OICA)

China is the major contributor in this region. In China, the market is generally driven by the growing demand for autonomous vehicles along with availability of skilled workforce. Additionally, the presence of independent service center chains coupled with rapid adoption of hybrid vehicles is likely to shape the industrial landscape.

Industry Leader Announcement

• In February 2025, Mathias Busse, the CEO at Porsche Korea made an announcement stating that, “Porsche is committed to innovating the brand experience through a ‘value over volume’ strategy, actively investing in network expansion and after sales service enhancement, The opening of Porsche Service Centre Seongsu is a prime example of this commitment, highlighting the importance of the Korean market and our vision for sustainable growth.”

Competitive Landscape

The authorized car service center market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Kia Motors Corporation, Tata Motors, Volkswagen AG, Mercedes-Benz, Mahindra and Mahindra, Mannaz Automotive Group, Toyota Tsusho Corporation, Ford Motor Company, Fiat Chrysler Automobiles, Toyota Motor Corporation, Hyundai Motor Company and some others. These companies are constantly engaged in delivering superior car services and adopting numerous strategies such as partnerships, joint ventures, business expansions, acquisitions, collaborations, launches and some others to maintain their dominance in this industry.

• In April 2025, Mercedes-Benz announced to open 3 new service centers in South India. These services centers will be opened in Bengaluru and Hyderabad. (Source: Acko Drive)

Recent Developments

• In April 2025, Hyundai announced to launch Smart Care Clinic in India. These clinics are designed to cater the needs of the Hyundai car owners in this country. (Source: CarDekho)

• In March 2025, Ferrari inaugurated a new service center in India. This service center is opened to serve the sports car owners of Bangalore, India. (Source: Freepressjournal)

• In February 2024, Volkswagen announced to open a new car service center in Riyadh, Saudi Arabia. This service center is inaugurated to cater the luxury car owners of this nation. (Source: Saudishopper)

Authorized Car Service Center Market Segments

By Vehicle Type

• Passenger Cars
• Commercial Vehicles
• SUVs
• Luxury Cars

By Service Type

• Routine Maintenance
• Mechanical Repairs
• Electrical Repairs
• Bodywork and Paintwork
• Tire Services
• Diagnostic Services

By Authorization Level

• Manufacturer-Authorized
• Independent Authorized
• Independent Non-Authorized

By Ownership

• Independent
• Franchise
• Chain

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa