Authorized Car Service Center Market Size Set to Reach USD 669.73 Billion by 2

Authorized Car Service Center Market Size Set to Reach USD 669.73 Billion by 2032 with 5.26% CAGR

Status: Published Category: Aftermarket Insight Code: 1101 Format: PDF / PPT / Excel

Overview:

The authorized car service center market size valued at USD 258.97 billion in 2022 and is expected to grow by USD 410.76 billion in 2032 with a CAGR of 5.26% in the forecast period.

According to a report published in November 2021 by the World Economic Forum (WEF), the total share of car trips taken by customers is predicted to reach 76.1% and 40.3% in North America and Asia respectively by 2050. These figures might prompt companies to open authorized car service centers to serve their growing customer base.

According to the European Environment Agency (EEA), the transportation sector is one of the biggest contributors to carbon dioxide emissions. Cars and vans account for close to two-thirds of the total carbon discharge, which will accelerate the establishment of authorized car service centers to ease access to high-quality vehicle servicing solutions.

Authorized Car Service Center Market Analysis

The automotive industry has shown commendable growth in recent years, owing to the ever-increasing need for two- and four-wheelers. Organized multi-brand service providers are offering services at more economical rates to encourage more customers to get their cars serviced on a regular basis. In addition, the demand for pre-owned cars is also rising each year, thereby enhancing the need for authorized multi-brand service centers.

Authorized car service center industry from the engine service segment is likely to expand at around 8% growth up to 2032. Vehicle owners are growing increasingly aware of the importance of changing engine oil at regular intervals. This is due to several factors including the formation of sludge & wear particles within the components and the continuous operation of the engines. Regular servicing of engines can augment their operating efficiency, improve fuel economy, and provide proper lubrication to ensure a smooth driving experience for customers. These factors will further promote the development of authorized car service centers offering engine maintenance solutions.

Customers owing vehicles that are older than 3 years commonly prefer multi-brand service centers or local, independent garages as these establishments offer reliable and quick services at lower costs. Vehicle owners also tend to opt for servicing centers that are within the proximity of their homes, which will urge service center owners to support their operations to areas that have a vast percentage of vehicle owners with cars ages 3 years and over.

Europe Authorized Car Service Center Market Analysis

Europe region has a large population of high-income earning individuals, who are willing to purchase high-end cars. This has positively influenced the businesses of luxury as well as low-cost automobile manufacturers that provide a wide range of services at varied price ranges.

The COVID-19 outbreak in 2020 had a negative effect on the demand for car servicing solutions as the production and sales of automobiles slowed down during this period. Since movement restrictions, such as lockdowns were put in place to curb viral transmission, the number of customers visiting service centers for regular servicing declined considerably. This may have restricted the authorized car service center market development to some extent.

Authorized Car Service Center Market Share

Some of the leading players in the global authorized car service center industry include:

  • Toyota
  • Volkswagen
  • Suzuki Motor Corporation
  • Robert Bosch GmbH

Many of these companies are focusing on increasing the chain of service centers and equipping these establishments with skilled professionals and advanced technologies to enhance customer experience.

To cite an instance, in September 2022, MG Motor India launched the 'MG Service on Wheels' program to provide customers with at-home car repair and maintenance services. Similar initiatives by other participants may also contribute to industry progress.

This market research on authorized car service center report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

Authorized Car Service Center Market Segmentation

By Auto Body Workshop

  • OEM authorized Workshops
  • Organized multi-brand service providers

By Service

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

By Vehicle Age

  • Less than 3 Years
  • More than 3 Years

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • UK
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
  • Latin America
    • Brazil
    • Middle East and Africa
  • South Africa

About The Author

Adriel Mergulhao is a distinguished professional renowned for his expertise in consulting, market research, and primary market analysis. With over the year of experience, Adriel has solidified his position as a senior solution advisor, providing invaluable insights to numerous clients across diverse industries. His proficiency in primary market research methodologies allows him to uncover deep-seated consumer preferences and trends, empowering businesses to make strategic decisions confidently.

Adriel's strategic insight and analytical prowess have earned him a reputation for delivering actionable recommendations that drive business growth and profitability. He has a proven track record of success in translating market insights into tangible results, making him a sought-after advisor in the competitive market research landscape. Adriel's dedication to excellence and commitment to client success underscore his position as a trusted expert in the field.

FAQ's

An authorized car service center is a facility that is officially recognized and endorsed by vehicle manufacturers to provide maintenance, repairs, and warranty services for their vehicles. Unlike independent auto repair shops, authorized service centers have direct access to manufacturer-specific training, diagnostic tools, and genuine OEM (Original Equipment Manufacturer) parts, ensuring the highest quality of service and adherence to manufacturer standards.

Servicing a vehicle at an authorized car service center offers several advantages, including access to manufacturer-trained technicians with specialized knowledge and expertise, warranty coverage for repairs and replacements, access to proprietary diagnostic equipment and software specifically designed for the vehicle\'s make and model, and availability of genuine OEM parts that ensure compatibility and performance.

Authorized car service centers prioritize customer trust and satisfaction by providing transparent service recommendations based on thorough diagnostic evaluations, accurate diagnosis of vehicle issues using manufacturer-approved procedures and equipment, and timely communication with customers regarding the status of repairs, estimated costs, and completion timelines. This transparency and communication build confidence and loyalty among customers, enhancing their overall service experience.

Vehicle manufacturers implement rigorous certification programs and performance standards for authorized car service centers to ensure the quality and consistency of service. This includes ongoing training and education for service technicians, adherence to strict service protocols and procedures, performance metrics and benchmarks for service quality and efficiency, and mechanisms for collecting and acting upon customer feedback to continuously improve service delivery.

Authorized car service centers invest in training and equipment to stay abreast of technological advancements and industry trends, such as servicing electric and hybrid vehicles, integrating connected car technologies for remote diagnostics and predictive maintenance, and adopting digital service platforms for online appointment scheduling, service reminders, and customer communication. By embracing innovation and staying ahead of the curve, authorized service centers remain well-equipped to meet the evolving needs of modern vehicle owners.

Toyota, Volvo Cars, Audi, BMW, Porsche.

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