The global roadside assistance market size was valued at $28.9 billion in 2022, and is projected to reach $47.6 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032.
Key Highlighters:
- The report covers segments such as service, vehicle, and provider. The report is studied across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
- The study integrates high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
- Over 3,700 product literatures, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
The roadside assistance market provides services to drivers who encounter vehicle breakdowns or emergencies while on the road. Roadside assistance services are designed to offer immediate support and help drivers get their vehicles back on the road or to a safe location. These services are typically offered by dedicated companies or as part of an insurance policy, vehicle manufacturer warranty, or automotive club membership. It is designed to assist drivers in resolving common vehicular problems, such as flat tires, dead batteries, engine failures, accidents, lockouts, and other similar situations that may leave them stranded or unable to continue their journey.
Roadside assistance companies typically offer continuous service and have a network of professional technicians and service providers who may quickly respond to customer calls for help. These companies often operate through membership programs, where customers pay a subscription fee to access the services when needed.
The roadside assistance services may vary include services like towing, jump-starting a vehicle, fuel delivery, tire changes, battery replacements, locksmith services, and minor mechanical repairs. Some roadside assistance providers may also offer additional benefits like trip interruption coverage, reimbursement for lodging or transportation expenses, and concierge services. The roadside assistance market is segmented into vehicle, service, provider, and region. By vehicle, the market is differentiated into passenger vehicles and commercial vehicles. Depending on service, it is fragmented into towing, tire replacement, fuel delivery, jump start/pull start, lockout/replacement key service, winch, battery assistance, trip routing/navigational assistance, and others.
The provider segment is segmented into OEM, motor insurance, independent service provider and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The roadside assistance market analysis includes top companies operating in the market such as Agero, Allianz Global Assistance, Allstate Insurance Company, ARC Europe SA, AutoVantage, Falck A/S, Paragon Motor Club, Roadside Transportation LLC, SOS International, and Viking Assistance Group AS. These players have adopted various strategies to increase their market penetration and strengthen their roadside assistance market share.
Various companies are expanding their current services to meet the continuous rise in demand with increase in demand for car roadside assistance. For instance, in September 2022, FixiGo and Roadzen announced their partnership to provide 24x7 nationwide roadside assistance (RSA) services. It includes on-call support, repair-on-spot, towing for mechanical and electrical breakdown and accidental cases, vehicle repatriation services, fuel delivery in case of fuel run-out, minor on-site repair, battery jump-start, on-demand assistance, and key retrieval support. Customers can also benefit from new features such as real-time access, dedicated DID (direct inward dialing) numbers, hotel assistance, medical assistance, vehicle custody services, luggage transportation, hotel/house medical assistance during travel, chauffeur on-demand, replacement/courtesy cars, and chauffeur on-call for mobile applications.
Furthermore, market players are expanding their market share by introducing various new products in the roadside assistance market. For instance, in October 2020, Walmart-owned digital payments firm PhonePe launched insurance products for private cars and two-wheelers in India, partnering with Bajaj Allianz General Insurance for the service. The customers may get renewals, cashless repair services at an extensive countrywide network of garages and instant claim settlement within 20 minutes. Further, PhonePe users may also customize their car insurance plan based on their needs with a range of value-added offerings such as zero depreciation, continuous roadside assistance and engine protection.
Increase in vehicle ownership
With an increasing number of individuals and businesses owning vehicles, the probability of encountering breakdowns, accidents, or other emergencies on the road rises. This growing ownership creates a need for reliable and prompt assistance services, providing an opportunity for roadside assistance providers to cater to a larger customer base. With a higher number of vehicles on the road, the demand for assistance services expands. Vehicle owners seek the assurance of having a professional service available to help them in case of unexpected incidents or vehicle malfunctions. This demand is especially prevalent in densely populated urban areas where traffic congestion and longer commutes increase the likelihood of encountering road-related issues.
Furthermore, increasing vehicle ownership extends beyond private cars. The rise of commercial fleets, including delivery vehicles, rideshare vehicles, and other transport services, contributes to the growing demand for roadside assistance. These businesses rely on the uninterrupted operation of their vehicles to provide services, making efficient assistance crucial for their operations. As vehicle ownership continues to rise globally, the roadside assistance market benefits from a larger potential customer base. To meet this demand, roadside assistance providers need to invest in expanding their service networks, enhancing service quality, and leveraging technology to efficiently dispatch assistance and ensure customer satisfaction. Therefore, these factors further drive demand for the roadside assistance market.
Increase in consumer awareness and convenience
Nowadays consumers become more informed about the benefits and availability of roadside assistance services, leading to increased demand. The convenience offered by roadside assistance plays a crucial role in driving customer interest. Increased consumer awareness regarding the potential risks and uncertainties of being stranded on the road without assistance has led to a growing demand for roadside assistance. People are recognizing the value of having a reliable service at their disposal in case of emergencies, breakdowns, or accidents. They understand that professional assistance may ensure a swift resolution to their roadside issues.
Moreover, the convenience factor is one of the key drivers behind the increasing demand for roadside assistance. Modern lifestyles are characterized by busy schedules and limited time availability. Individuals and businesses alike seek convenient solutions that may minimize disruptions and save valuable time. Roadside assistance services offer a quick and efficient way to address vehicle-related problems, allowing customers to resume their activities without unnecessary delays.
The advent of technology has further amplified the convenience aspect of roadside assistance. Many service providers offer mobile apps or helplines that enable customers to request assistance with just a few taps on their smartphones. This ease of access, coupled with efficient service dispatching and real-time updates, enhances overall convenience and customer experience. Thus, the consumer awareness and the convenience provided by roadside assistance services drives the demand in the market.
Rise in the need for safety and security of supplying activities
Ensuring the safety and security of goods and drivers throughout the supply chain becomes a paramount concern as the transportation and logistics industry expands. Roadside assistance plays a crucial role in addressing unexpected incidents and emergencies that may occur during the transportation of goods. Supplying activities involve the movement of goods across various locations, often covering long distances and diverse terrains. The potential risks and challenges associated with this process, such as vehicle breakdowns, accidents, or unforeseen obstacles, may disrupt the timely delivery of goods and impact the overall supply chain efficiency. To mitigate these risks, businesses increasingly rely on roadside assistance services to promptly address any issues that arise on the road.
Roadside assistance providers offer specialized services tailored to the unique needs of the supplying industry. These services may include 24/7 emergency support, rapid response times, and dedicated teams trained to handle specific situations encountered in the transportation of goods. By having a reliable roadside assistance partner, businesses may ensure the safety of their drivers, protect the integrity of their cargo, and minimize downtime caused by unexpected incidents.
Furthermore, the need for safety and security has been amplified by regulatory requirements and industry standards. Compliance with regulations related to driver welfare, cargo protection, and response to emergencies has become a priority for businesses involved in supplying activities. Roadside assistance providers who may demonstrate adherence to these regulations and provide comprehensive safety and security measures have a competitive advantage in the market. Thus, the rise in the need for safety and security in supplying activities is a key driver for the demand in the roadside assistance market.
Increase in technology complexities
Modern vehicles are equipped with intricate computer systems, sensors, and specialized components that require specific knowledge and expertise to diagnose and repair. Roadside assistance providers must continually invest in training their technicians and equipping them with the latest diagnostic tools and equipment. However, the rapid pace of technological advancements may make it challenging to keep up with the evolving requirements, potentially leading to a shortage of skilled technicians capable of addressing complex vehicle issues.
From a customer perspective, the increasing technological complexity of vehicles may create a perception that repairs and assistance services are best handled by authorized dealerships or specialized technicians. Some vehicle owners may prefer taking their vehicles to dealership service centers that have direct access to manufacturer expertise and advanced diagnostic tools, rather than relying on roadside assistance providers. This shift in customer preference may potentially restrain the demand for roadside assistance services. Thus, the increasing technological complexity of vehicles may pose challenges for the roadside assistance industry.
Recent Developments:
- In September 2022, Agero, Inc., introduced platform enhancements and services to enhance the roadside assistance and vehicle support experience. These updates include digital repair coupons, improved event communication, and EV battery monitoring, among others. Agero aims to increase efficiency, expedite service completion, and provide new options for consumers.
- In July 2022, Allianz SE in Egypt introduced the "Free Roadside Assistance Initiative" for all travelers in Egypt, with a special focus on the North Coast road highway. This initiative aims to provide complimentary roadside assistance services to ensure the safety and convenience of motorists during their travels.
The roadside assistance market is segmented into Provider, Vehicle and Service.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the roadside assistance market analysis from 2022 to 2032 to identify the prevailing roadside assistance market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the roadside assistance market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global roadside assistance market trends, key players, market segments, application areas, and market growth strategies.
Roadside Assistance Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 47.6 billion |
 Growth Rate | CAGR of 5.2% |
 Forecast period | 2022 - 2032 |
 Report Pages | 261 |
 By Provider |
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 By Vehicle |
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 By Service |
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 By Region |
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 Key Market Players | Agero, Inc., Paragon Motor Club, Inc., SOS International A/S, Allstate Insurance Company, Falck A/S, Roadside Transportation LLC., Allianz SE, AutoVantage, ARC Europe SA, Viking Assistance Group, LLC |
The top companies in the roadside assistance market include Agero, Allianz Global Assistance, Allstate Insurance Company, ARC Europe SA, AutoVantage, Falck A/S, Paragon Motor Club, Roadside Transportation LLC, SOS International, and Viking Assistance Group AS.
The global roadside assistance industry generated $28.9 billion in 2022, and is anticipated to generate $47.6 billion by 2032, witnessing a CAGR of 5.2% from 2023 to 2032.
The largest regional market for roadside assistance is Asia-Pacific.
The leading service of roadside assistance market is towing.
The upcoming trends in the roadside assistance market include increase in aging vehicle fleet, rise in consumer awareness and need for convenience, and adoption of advanced technologies.
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