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| Vehicle Roadside Assistance Market Growth |
The vehicle roadside assistance market offers support to stranded motorists
facing mechanical breakdown, flat tires, dead batteries, empty fuel tanks,
lock-outs, or accidents. Vehicle roadside assistance services ensure quick help
through call centers that dispatch service providers. Towing, tire replacement,
fuel delivery, locksmith, and winching services form the core offerings. Demand
is driven by the growing frequency of vehicle breakdowns and road accidents
with aging vehicles worldwide. Vehicle roadside assistance aids in minimizing
inconvenience and provides safety to motorists during emergencies.
The vehicle roadside assistance market is estimated to be valued at US$ 25.76 Bn in 2024 and is expected to
reach US$ 36.82 Bn by 2031, growing
at a compound annual growth rate (CAGR)
of 5.2% from 2024 to 2031.
Key Takeaways
Key players operating in the Vehicle
Roadside Assistance Market Growth are Agero Inc., ALD SA, Allianz SE,
American Automobile Association Inc., ARC Europe SA, AutoVantage, Best Roadside
Service, Camping World Holdings Inc., Falck Danmark AS, Assicurazioni Generali
S.p.A., Honk Technologies Inc., Paragon Motor Club Inc., Prime Assistance Inc.,
RAC Group Holdings Ltd., Roda Assistance Pvt. Ltd., Sompo Holdings Inc., SOS
International AS, The Allstate Corp., and Uber Technologies Inc.
Key opportunities in the market include expanding roadside assistance service
offerings, leveraging IoT and telematics for faster response times, and
partnering with insurers and auto clubs. Emerging markets in Asia Pacific and
Latin America present ample scope for providers looking to establish global
operations.
Globally, companies are focusing on geographical expansions to gain market
share. Strategic mergers and acquisitions allow vendors to bolster service
networks across borders. Collaboration with automakers is also crucial to
bundle roadside assistance with new vehicle sales.
Market Drivers
Growing vehicle fleet worldwide: Rising motorization, economic growth, and
increasing per capita income have led to a substantial increase in the number
of passenger and commercial vehicles globally. This amplifies demand for
roadside assistance services.
Rising road accidents: High accident rates due to reckless driving, poor road
infrastructure, and aging vehicles have boosted the need for timely rescue and
towing support. This acts as a key driver for the market.
Market Restrains
Data privacy and security concerns: Sharing location data during emergencies
raises issues around confidential user information and potential hacking of
rescue networks. This inhibits market expansion.
High service costs: Roadside assistance subscriptions and pay-per-use charges
impose additional expenditure for consumers and fleet operators. Affordability
remains a restraining factor in developing nations.
Segment Analysis
The vehicle roadside assistance market can be segmented into vehicle type,
service provider, and service. Based on vehicle type, the passenger vehicles
sub segment dominates the market due to high number of passenger vehicles on
road globally. Based on service provider, the auto manufacturers sub segment
dominates as auto manufacturers provide roadside assistance services mainly to
increase customer satisfaction and retention rate.
Global Analysis
North America dominates the global vehicle roadside assistance market due to
high vehicle ownership and developed road infrastructure in US and Canada.
Europe is the second largest market due to strong roadside assistance policies
by European government and auto manufacturers. Asia Pacific is fastest growing
market for vehicle roadside assistance mainly due to rising vehicle sales and
government initiatives to improve road infrastructure in developing countries
like India and China. Roadside assistance service providers are focusing on
expanding their reach in major auto markets of Asia Pacific region to tap
potential growth opportunities.
Get More Insights On This Topic: Vehicle
Roadside Assistance Market