Vehicle Roadside Assistance Market Growth
Vehicle roadside assistance refers to providing on-site support and towing
services to vehicle owners facing breakdown issues or accidents. Growing
motorization has led to increasing demand for reliable support services across
the globe. Roadside assistance plans offer membership benefits including
jump-starts, fuel delivery, flat tire repair, lockout services, and towing to
ensure seamless mobility even during emergencies. Technological advancements
have enabled tracking vehicles and dispatching assistance within a short span.
The global
vehicle roadside assistance market is estimated to be valued at US$ 25.76 Bn in
2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to
2031.
Key takeaways
Key players: Key players operating in the Vehicle
Roadside Assistance Market Growth include 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.
Growing demand: Increasing motorization and complex vehicle designs have fueled
the demand for roadside assistance. Rising awareness about membership benefits
among customers is propelling the market growth.
Global expansion: Key players are expanding their international presence via
partnerships and acquisitions. Growth opportunities lie in emerging economies
witnessing a boom in automobile sales and infrastructure development.
Market Key Trends
Introduction of connected services: Integration of IoT and telematics allows
real-time monitoring of vehicles. Connected car technologies enable automated
accident detection and breakdown assistance. This improves the response time
and customer experience.
Multi-modal transport solutions: Market players are diversifying offerings by
providing last-mile commuting solutions during towing. Collaboration with taxi
and rental car aggregators ensures seamless mobility alternatives.
Porter’s Analysis
Threat of new entrants: New entrants face high initial capital requirements for
setting up infrastructure and gaining customers' trust which acts as a barrier.
However, with growing market and technological advancements threat increases.
Bargaining power of buyers: Buyers have low bargaining power as roadside
assistance is not a highly differentiated service and switching costs are low.
Bargaining power of suppliers: Suppliers have moderate bargaining power as they
provide customized service depending on vehicle make and breakdown location.
Threat of new substitutes: Threat of new substitutes is low as there are
limited substitutes for reliable on-call vehicle roadside assistance services.
Competitive rivalry: Rivalry is high due to large number of players offering
similar services leading to pricing pressures.
Geographical regions:
North America accounts for the major share in terms of value owing to high
vehicle ownership and large road network. Major roadside assistance providers
have strong presence across US and Canada in this region.
Asia Pacific region is poised to witness fastest growth during forecast period
supported by rising motorization, increasing road connectivity and expansion of
insurance companies offering emergency services. Countries like India and China
are expected to drive high demand for vehicle roadside assistance backed by
their large population base.