Garage and Service Station Market Growth Drivers, Challenges and Opportunities

Garage and Service Station Market Size, Growth and Transformation

The garage and service station market is forecasted to expand from USD 846.10 billion in 2025 to USD 1,225.27 billion by 2034, growing at a CAGR of 4.20% from 2025 to 2034.

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Introduction

The garage and service station market is undergoing significant transformation, driven by shifting consumer expectations and technological advancements. As automobiles grow more intricate and incorporate digital systems, the demand for garages and service stations is increasing rapidly to satisfy the need of the car owners. The service stations have started to expand their capabilities for electric vehicles and hybrid vehicles.

Highlights of the Garage and Service Station Market

• Asia Pacific dominated the market with the largest market share in 2024.
• Middle East & Africa is expected to expand at the fastest CAGR during the forecast period.
• Europe held a considerable share of the garage and service station market
• By type of garage and service station, the independent repair segment held the largest share of the market in 2024.
• By type of garage and service station, the national chains' services firms segment is likely to rise with the highest CAGR during the forecast period.
• By service type, the general maintenance segment dominated the market with the largest market share.
• By service type, the body and paint services segment is expected to grow at the fastest rate in the garage and service station market.
• By vehicle type, the passenger cars segment dominated the garage and service station market with the largest share in 2024
• By vehicle type, the light-duty trucks segment is expected to grow at the fastest rate in the market.
• By revenue model, the hourly rates segment dominated the garage and services stations market with the largest share in 2024.
• By revenue model, the flat rates segment is expected to grow at the fastest rate in the market.

Key Metrics and Overview

What are the Trends of Garage and Service Station- 2025?

The trends in this industry consists of EV servicing, Digitization & Smart Workshops, and Contactless & subscription-based services.

Electric Vehicle (EV) Servicing

The electric vehicle servicing sector is rapidly evolving, reflecting the growing adoption of electric vehicles (EVs) worldwide due to the growing use of electric cars. Several startups have started investing heavily for opening EV service centers in different parts of the world.

Digitization & Smart Workshops

Digitization and smart workshops involve using technology to enhance the efficiency of garages and service centers. The use of digital tools for managing customer information and vehicle histories helps in enhancing the overall car service experience. Workshops are utilizing AI for quicker diagnostics and automation to streamline processes. Additionally, customers benefit from online appointment bookings and tracking, making the service experience more convenient.

Contactless & subscription-based services

Contactless and subscription-based services are transforming how customers interact with garages and service stations. Contactless services allow customers to book appointments, make payments, and even receive vehicle updates without face-to-face interactions, enhancing convenience and safety. Subscription-based models enable customers to pay a fixed monthly fee for services such as maintenance and repairing. This approach simplifies vehicle ownership and helps in building customer loyalty by delivering high-quality service.

Type of Garage and Service Station Insights

Independent repair segment dominated the garage and service station market with the largest share in 2024 due to their widespread availability, especially in suburban and rural areas. Customers prefer these shops for their personalized service, cost-effectiveness, and flexibility in handling various vehicle issues without brand restrictions. Their ability to offer quicker and often more affordable solutions compared to branded centers keeps them in high demand in developing nations such as India and Thailand.

National chains segment is expected to grow at the fastest rate in the market due to their strong brand presence, professional infrastructure, and consistent service quality. Global automotive brands are opening up new service centers to cater the needs of the elite-class consumers.

Service Type Insights

General maintenance and repair services segment dominated the garage and service station market with the largest share in 2024. The segment is rapidly growing as they cover routine car maintenance services such as tire rotations, brake inspections, oil changes, and fluid checks. Additionally, the rise in number of local garages that deals in general servicing of vehicles has further accelerated the growth of the garage and service station market.

Body and paint services segment is expected to grow at the fastest rate in the market, due to the rise in number of traffic accidents along with the growing desire for aesthetic improvements in vehicles. Services such as dent removal, collision repair, and repainting are becoming popular in developed nations including U.S. and Germany. The growth of this market is being further accelerated by technological developments in paint-matching and repair tools. This, in turn drives the growth of the garage and service station market.

Vehicle Type Insights

Passenger cars segment dominated the garage and service station market with the largest share in 2024 due to their massive global ownership base. As the most used vehicles for personal and family transportation, they generate high demand for routine maintenance, repairs, and diagnostics, thereby driving the market expansion. Also, the growing sales and production of passenger vehicles in several countries such as U.S., China, India and some others is further accelerating the growth of the garage and service station market.

Light duty trucks segment is expected to grow at the fastest rate in the market, driven by the growing usage of these vehicles in various sectors such as last-mile delivery, e-commerce, and logistics. Since these vehicles are vital to business operations, routine maintenance is required to reduce downtime. Their growing importance in corporate fleets and urban transportation is driving up demand for preventive and corrective maintenance services, thereby driving the growth of the garage and service station market.

Revenue Model Insights

Hourly rates segment dominated the garage and service station market with the largest share in 2024. Many people agree with this conventional pricing approach, particularly for intricate repairs where the amount of time needed can vary greatly. Furthermore, both technicians and car owners are familiar with this model because it is firmly based on industry standards. Hourly billing is still the most preferred method for labor-intensive repairs and diagnostics, thereby driving the growth of the garage and service station market.

Flat rates segment is expected to grow at the fastest rate in the market. This model increases customer trust and lowers billing disputes by providing attractive pricing for certain services such as brake pad replacements or oil changes. Time-conscious clients who prefer upfront clarity on service costs without having to worry about hourly variations also use this revenue model. More service providers are implementing flat rates as competition increases to increase client satisfaction and simplifying their services.

Geographical Insights

Asia Pacific dominated the garage and service station market in 2024 due to the rising passenger and commercial vehicle ownership as well as rapid urbanization. Along with rising consumer spending on auto maintenance, the growth of authorized service centers solidifies its leading position. Newer technologies are being adopted by garages in response to the growing demand for maintenance services that in turn increases customer satisfaction and service efficiency. Furthermore, the development of automotive infrastructure through supportive government initiatives contributes to the growth of the garage and service station market in this region.

• In September 2024, Ola Electric launched its 'HyperService' initiative to double its EV service centers in India. (Source: indianstartupnews.com)

Middle East & Africa is likely to grow at the fastest rate in the upcoming years, encouraged by the growth of EV infrastructure and rapid urbanization. A rise in commercial transportation and an increase in car sales are two major factors driving up demand for maintenance and repair services. To improve customer experience and service accessibility, the area is gradually moving towards organized service centers and integrating digital technologies to enhance the car servicing capabilities. Additionally, it is anticipated that rising consumer awareness of vehicle maintenance and greater investment in automotive aftermarket services is further adding to the growth of the garage and service station market in this region.

• In September 2024, MySyara partnered with Mobil UAE. This partnership aims at opening 20 locations by the end of 2025, revolutionizing car servicing in the region. (Source: Wikipedia)

Europe held a considerable share of the garage and service station market, fueled by the robust automotive sector, high rate of car ownership, and extensive use of cutting-edge service technologies in this region. The market is expanding throughout European nations due to the existence of well-established car service networks along with rising demand for effective automotive maintenance solutions.

• In April 2025, Porsche announced to inaugurate classic center in Germany. This center is opened to deliver a wide range of automotive services to the car owners of this country. (Source: Flatsixes.com)

Competitive Landscape

The garage and service station industry in 2025 is marked by the presence of several leading players focused on expanding their service offerings and embracing new technologies. Prominent companies in this sector include Maruti Suzuki India Ltd., Bosch Car Service, Ola Electric, Nayara Energy, Mahindra First Choice Services, Shell, BP, and Ascona Group. These companies continuously engage in various strategies such as network expansions, technology integration, partnerships, digitalization, and sustainability initiatives to strengthen their market position and meet evolving customer demands.

• In December 2024, Maruti Suzuki announced plans to expand its service network by adding 2,760 new service touchpoints by FY31, aiming to reach a total of 8,000 across India. (Source: Maruti Suzuki)

Recent Developments

• In April 2025, ATS ELGI announced the launch of cutting-edge garage solutions. These solutions are designed to deliver superior car service experience in India. (Source: Motorindia)

• In April 2025, Rosmerta Group announced the launch of its direct-to-consumer automotive service facility. This facility is named as MyRaasta COCO Garage that is opened to cater the consumers across Gurgaon, India. (Source: N.U.R.C. MediaNext Private Ltd)

• In December 2024, GoMechanic revealed a plan to scale up its operations to 2,500 garages across 500 cities in India by 2027. (Source: The Economic Times)

Garage and Service Station Market Segments

By Type of Garage and service station

• Independent Repair Shops
• Car Dealerships
• National Chairs
• Fleet Services Providers

By Service Type

• General Maintenance and Repair
• Mechanical Services
• Electrical Services
• Body and Paint Services

By Vehicle Type

• Passenger Cars
• Light Duty Truks
• Medium Duty Trucks
• Heavy Duty Trucks

By Revenue Model

• Hourly Rates
• Flat Rates
• Performance-Based Contracts

By Technology Integration

• Online Appointment Scheduling
• Digital Vehicle Diagnostics
• Automated Repair Processes

By Region

• North America
• Europe
• South America
• Asia Pacific
• Middle East & Africa