Automotive Repair and Service Market Expected to Reach $2354.5 Billion by 2034

According to a new report published by Allied Market Research, titled, “Automotive Repair and Service Market," The Automotive Repair and Service Market Size was valued at $1.1 trillion in 2024, and is estimated to reach $2354.5 billion by 2034, growing at a CAGR of 7.6% from 2025 to 2034.

Automotive repair and service are typically attributed to repairing automotive machines when they malfunction or no longer run correctly. Automotive repair and service are required to keep vehicles driving down the road. Automotive engines must be serviced regularly to keep them in good operating condition. At present, many countries are mandating stringent rules and regulations to replace car accessories after the expiry date. For instance, National Highway Traffic Safety Administration (NHTSA) has stated a new regulatory norm for car parts such as tires, rims, seat belts, and others to be manufactured initially and must be replaced according to the life span of the product. Such mandates are expected to boost the sales of passenger car accessories, thereby contributing to market growth.

In addition, the automotive repair and service market has witnessed significant growth in recent years, owing to the increased demand for improved vehicle performance & safety and the collaboration of local shop owners with fleet operators to provide repair and maintenance services at discounted prices. Furthermore, the companies operating in the automotive repair and service indusry have adopted partnerships, investments, and business expansion to increase their Global Automotive Repair and Service Market share and expand their geographical presence. For instance, in December 2019, Jiffy Lube International, Inc. expanded its presence by opening a new automotive service center in Milwaukee, Wisconsin. The service center offered a wide range of automotive services for components, including brakes, tires, and engine diagnostics.

Factors such as increase in automotive sales, growth of automotive post sale services, and stringent government regulations to replace or upgrade vehicle components supplement the growth of the automotive repair and service market. However, volatile prices of raw materials and rise in demand for shared mobility are the factors expected to hamper the growth of the automotive repair and service market. In addition, rise in trend of vehicle customization coupled with increase in disposable income and increase in automotive safety norms & demand for technologically advanced features create opportunities for the key players operating in the automotive repair and service market.

The automotive industry is rapidly evolving, driven by sustainability initiatives, shift in consumer preferences, and technological advancements such as electric vehicles (EVs), connected cars, and shared mobility solutions. Emerging markets like India, China, and Brazil are at the forefront of this transformation.

In India, despite a modest 3% decline in passenger vehicle sales in FY2025, Tata Motors maintained its position as the leading passenger vehicle manufacturer, with total wholesales of 553,585 units. Notably, SUVs dominated the market, accounting for approximately 55% of new car sales, reflecting a strong consumer preference for larger vehicles.

In Europe, passenger car registrations experienced a slight increase of 0.8% in 2024, totaling over 10.6 million units. This growth was primarily driven by a surge in hybrid vehicle sales and the entry of Chinese automotive brands into the market.

Governments worldwide are enforcing stricter emissions regulations, compelling automakers to invest heavily in research and development to produce efficient, low-emission vehicles. For instance, the European Union's stringent CO₂ emission targets have prompted manufacturers to accelerate the development of cleaner technologies.

Consequently, the increasing demand for automotive production and sales, coupled with the need for regular maintenance of technologically advanced vehicles, is expected to drive significant growth in the automotive repair and service market in the coming years.

The automotive Repair and Service Industry is segmented on the basis of type, service provider, vehicle type, propulsion type, and region. By type, the market is divided into mechanical, exterior & structural, and maintenance services. By service provider, it is fragmented into franchise general repairs, OEM authorized service centers, local garage, tire stores & repair chains, and others. By vehicle type, it is categorized into passenger cars, light commercial vehicles, heavy commercial vehicles, and two wheelers. By propulsion type, it is further classified into internal combustion engine (ICE) and electric. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The leading players included in the Automotive Repair and Service Market Analysis are Asbury Automotive Group, Inc., Carmax Autocare Center, CarParts.com, Inc., EUROPART, Firestone Complete Auto Care, Hance's European, Inter Cars S.A., Jiffy Lubes International, Inc., LKQ Corporation, M&M Automotive, MEKO, Mobivia Groupe, myTVS Accessories, Safelite Group, Sun Auto Service, USA Automotive, and Wrench, Inc.

Key Market Findings

• Based on type, the mechanical segment has the dominating Automotive Repair and Service Market Sizeshare in the year 2024 and is likely to remain dominant during the Automotive Repair and Service Market Forecast period.
• Based on service providers, the local garage segment has dominating Automotive Repair and Service Market Size in the year 2024 and is likely to remain dominant during the forecast period.
• Based on vehicle type, the passenger cars segment has the dominating automotive repair and service market share in the year 2024 and is likely to remain dominant during the forecast period.
• Based on propulsion type, the ICE segment has the dominating Global Automotive Repair and Service Market in the year 2024 and is likely to remain dominant during the forecast period.
• Based on region, the Asia-Pacific region has the dominating Automotive Repair and Service Industry in the year 2024, and is likely to remain dominant during the forecast period.