Vehicle Roadside Assistance Industry Market Overview:
The market for vehicle roadside assistance is expected to expand rapidly in the next years. The global vehicle roadside assistance industry market was worth $21.7 billion in 2019, and it is projected to be worth $28.7 billion by 2026, expanding at a compound annual growth rate (CAGR) of about 4.1%.
A flat tire isn’t the only thing that roadside assistance can fix; they can also help with mechanical issues. The National Highway Traffic Safety Administration reports that out of a total of 36,096 fatalities in 2018, an estimated 38,680 were caused by traffic accidents involving motor vehicles. According to the Triple-I study, the number of road fatalities per 100 vehicle kilometers traveled rose as driving speeds increased. Additionally, the fatality rate per mile traveled increased by nearly 24% in 2018, the largest annual increase since the National Safety Council forecasted 42,060 deaths as a result of car crashes in 2020, an increase of 8% from 2019.
Manufacturers and third-party companies often provide emergency roadside assistance for customers. In the event of a vehicle breakdown or accident, this service is there to help. Whether your car has broken down due to a dead battery or a flat tire, or any number of other frequent roadside emergencies, you can count on the experts at Mr. The market for automotive roadside assistance is undergoing a revolutionary shift due to the advent of mobile gasoline delivery services. Booster, a firm in the United States that provides mobile fuel delivery to businesses, homes, and fleets, is gaining popularity.
The rising number of older automobiles, which are prone to a variety of electrical and mechanical problems, is largely responsible for the increased demand for roadside assistance services. Market expansion is also helped by the fact that response times for roadside assistance services have been cut in half thanks to app-based services. Many drivers all around the world have to resort to battery jump starts because of the extreme weather. This is especially true in the winter, when the cold drains the power from car batteries. Along with the unsafe driving that increases the likelihood of deadly road accidents due to the ice and snowy terrain in some locations, this necessitates the necessity for roadside car assistance.
Future Growth Factors
The growing use of smartphones and mobile applications are driving growth in the vehicle roadside assistance industry market. In order to increase the popularity of roadside assistance plans, companies in the industry choose to operate through specific channels.
However, new car buyers can receive free roadside assistance from their dealership. In the long run, this would increase the dealer’s leverage in the auto industry and boost car sales. For the sake of simplicity, let’s say that the sale of a vehicle is proportional to the sale of an insurance package add-on. As a result, better customer service to enable roadside assistance services is a crucial part of industry growth.
The market for roadside assistance services is broken down by segment, which in turn is broken down by vehicle type. It is expected that the passenger car market would remain the largest sector of the Vehicle Roadside Assistance Industry Market from 2022-2030.
The industry is expanding rapidly because of the increasing number of private vehicle owners who have a high need for roadside assistance. One of the most important driving elements of market dynamics is the rising ratio of insurance claim settlements for roadside assistance. As an additional factor, the end-user market features a number of competing companies.
One Moto India, a British electric vehicle manufacturer, teamed up with roadside assistance provider Global Assure in March 2022 to offer around-the-clock client help in the event of a vehicle failure.
In an effort to ensure the safety of its diverse fleet of vehicles and their owners, electric vehicle manufacturer Omega Seiki Mobility teamed with roadside assistance provider Europ Assistance in November 2021.
In November of 2021, Force Motors made an announcement that all Gurkha SUV purchasers would receive complimentary roadside assistance.