The global vehicle roadside assistance market is expected to grow at a CAGR of around 5.5% from 2021 to 2028 and is expected to reach the market value of around US$ 38.5 Bn by 2028.
Vehicle roadside assistance provides services for emergencies ranging from a lack of fuel to a mechanical malfunction. For example, if an insured vehicle becomes immobilized due to a flat tire, the driver will receive assistance from a vehicle technician to replace the flat tire with the vehicle's stepney tire at the location of the breakdown. Vehicle roadside assistance is available on national highways, state highways, and city motorable roads.
Rising number of vehicle associated problems results in high demand for vehicle roadside assistance market
The growing number of vehicle problems, such as tire blowouts, worn tires, faulty/worn brake lines, and so on, creates a high demand for roadside assistance. According to the Crown's report, more than 48,500 motorway breakdowns occurred between the last week of June and the first weekend of September in 2018. In addition, Highways England anticipates responding to an additional 700 breakdowns, bringing the average number of motorway breakdowns per week to nearly 5,000. Therefore, with the number of vehicle breakdowns increases, results in a high demand for vehicle roadside assistance. According to a report published by the United States Department of Transportation, vehicle breakdown is one type of incident that frequently occurs on highways, accounting for more than 80% of all types of incidents. The aforementioned factors have a positive impact on the overall growth of the global vehicle roadside assistance market.
Global vehicle roadside assistance market is booming due to increasing road accidents
According to the U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) statistical projection of traffic fatalities, an estimated 38,680 people died in motor vehicle traffic crashes in 2019, representing nearly 7.2% of the 36,096 fatalities in 2019. According to the Triple-I report, faster driving contributed to an increase in traffic fatalities per 100 vehicle miles travelled. Furthermore, the death rate mileage increased by about 24% in 2018, marking the highest annual increase since the National Safety Council (NSC) estimated 42,060 people died in motor vehicle crashes in 2020, an increase of 8% from 2019. Apart from that, the phenomenal rise in industrialization in both developed and developing countries, combined with increased transportation activity, have increased demand for roadside assistance services. These are the factors that will influence the overall growth of the global vehicle roadside assistance market.
|Market||Vehicle Roadside Assistance Market|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Service, By Provider, By Vehicle and By Geography|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||
Viking Assistance Group AS, AutoVantage, Best Roadside Service, Access Roadside Assistance, Paragon Motorclub, Roadside Masters, ARC Europe SA, and SOS International A / S, among others
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
|Customization Scope||10 hrs of free customization and expert consultation
The global vehicle roadside assistance market is segmented based on service, provider and vehicle. Based on service, the market is segmented as towing, fuel delivery, jump start/pull start, lockout/ replacement key services, battery assistance, trip routing/ navigational assistance, winch, tire replacement, and other mechanic services. By provider, the market is segregated as motor insurance, independent warranty, auto manufacturer, and automotive clubs. Furthermore, vehicle segment is bifurcated into commercial vehicle and passenger vehicle. Commercial vehicle is further split into light commercial vehicle and heavy commercial vehicle.
Based on service, the towing segment is estimated to have a dominating market share of around 34% by 2028 and is expected to grow at a CAGR of 3.7% from 2021 to 2028. The basic roadside assistance coverage includes towing; it has grown in popularity in the global market. Towing has gained significant attention in the global market due to numerous cases of flat tire, tire explosion, tire puncture, and so on, ultimately contributing to the growth of the global vehicle roadside assistance market.
Based on provider, the motor insurance segment will account for a sizable portion of the global vehicle roadside assistance market growth. Motor insurance is estimated to account for 22.6% of the market by 2028, with a projected CAGR of 3.7% from 2021 to 2028. All new vehicles sold in the United States include at least two auto warranties, with many including roadside assistance coverage. This is one of the key factors contributing to segmental growth, which ultimately leads to positive growth in the global vehicle roadside assistance market as a whole.
By vehicle segment, the passenger vehicle segment is estimated to account for nearly 70% of the market in 2028, with a projected CAGR of 3.9% from 2021 to 2028. Rising transportation activities and rapid industrialization have resulted in significant growth for passenger vehicles over the years.
Europe records dominating share; Asia Pacific to register fastest growing CAGR in the coming years
Europe will continue to dominate the vehicle roadside assistance market until the forecast period because motorways in France and other European countries are privately managed. Furthermore, the reimbursement charges for vehicle towing are offered, making it a lucrative region for overall market growth.
Asia Pacific, on the other hand, is expected to have the fastest-growing CAGR in the vehicle roadside assistance market in the coming years. This is due to rising demand for vehicles as per capita spending rises, which is one of the key factors contributing to regional growth.
The prominent players of the vehicle roadside assistance market involve Viking Assistance Group AS, AutoVantage, Best Roadside Service, Access Roadside Assistance, Paragon Motorclub, Roadside Masters, ARC Europe SA, and SOS International A / S, among others.
Market by Service
Market by Provider
Market by Vehicle
Market By Geography
Market value of around US$ 38.5 Bn by 2028 and CAGR of around 5.5% from 2021 to 2028
Rising number of vehicle associated problems is one of the prominent factors that drive the demand for vehicle roadside assistance market
Viking Assistance Group AS, AutoVantage, Best Roadside Service, Access Roadside Assistance, Paragon Motorclub, Roadside Masters, ARC Europe SA, and SO S International A / S, among others.