The vehicle roadside assistance market provides roadside assistance services such as towing service, fuel delivery, tire repair, battery replacement, lockout service, etc. These services can greatly help drivers in case of an emergency on the road and reduce the stress and hassle of breakdowns. With the growing number of vehicles across the globe, the instances of roadside emergencies are also increasing rapidly. This rising demand is fueling the growth of the vehicle roadside assistance market.

The Global Vehicle Roadside Assistance Market is estimated to be valued at US$ 30 Billion in 2024 and is expected to exhibit a CAGR of 12 % over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Vehicle Roadside Assistance market are AAA, Allstate Insurance Company, The Auto Club Group, ARC Europe, Access Roadside Assistance, Falck A/S, SOS International, Viking Assistance Group, Signature Auto, and RACE. The growing number of vehicles has increased the Vehicle Roadside Assistance Market Demand for roadside assistance services.

According to the data by International Organization of Motor Vehicle Manufacturers, the global vehicle production increased by 2.5% from 92.2 million units in 2018 to 94.6 million units in 2019. Various technological advancements such as AI-enabled vehicle diagnostics tools and mobile apps for assistance booking are helping provide better services to customers.

Market Trends

The increasing adoption of smart connected vehicles is enabling remote diagnostics of Vehicle Roadside Assistance Market Size and Trends. This helps roadside assistance providers to determine the exact issues remotely and send required assistance. Another key trend is the integration of location services which allows automatic detection of breakdown location and dispatch of nearest assistance vehicle.

Market Opportunities

One of the key opportunities is expanding service offerings to include other value-added services like providing rental cars during repairs. Another opportunity is to leverage IoT and AI to develop fully autonomous roadside assistance vehicles that can reach customers independently in case of emergencies.

Impact of COVID-19 on Vehicle Roadside Assistance Market

The COVID-19 pandemic has severely impacted the vehicle roadside assistance market. During the initial phase of lockdowns in 2020, the market witnessed a decline in demand due to travel restrictions and less number of vehicles plying on roads. With people confined to their homes, the requirement of roadside services reduced drastically. However, post lockdowns with increasing vaccination rates and relaxation in travel norms, the market is regaining momentum gradually. As more vehicles are back on roads for both personal and commercial use, the need for roadside assistance is rising due to accidents, breakdowns and other emergencies.

To follow social distancing norms, roadside assistance providers have strengthened their digital and contactless service offerings. They are encouraging customers to avail services through mobile applications and websites for filing service requests. Remote features like dispatching technicians to help spots maintaining safety protocols are gaining traction. Service providers are also sanitizing repaired vehicles before handing them back to customers. With future uncertainties around new variants, companies are focusing on strengthening their pandemic preparedness through online channels and safety compliant operations. Governments are also supporting the industry through subsidies and incentives to boost confidence among customers.

Geographically, North America dominates the market in terms of value, accounting for more than 30% share due to high vehicle ownership and usage. Factors like expansive road networks, frequent long distance travels and climatic adversities increase roadside risks, driving service needs. Europe is the second largest region owing to stringent road safety regulations and widespread premium vehicles requiring quality after-sales support. Meanwhile, Asia Pacific is identified as the fastest growing region on account of rapidly developing road infrastructure and surging motorization led by countries like China and India. With growing middle class cohort, the need for safety and convenience features are propelling service adoption.

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