- 22 October 2019 17:36
Vehicle Roadside Assistance Market Driving Industry Future
Regionally, the booming sales in Europe have boosted the number of vehicle crashes and need for assistance on the roadside vehicles. The vehicle roadside assistance market in Europe and North America is propelled by the presence of robust opportunities to the roadside assistance services providers. Thanks to this factor, Europe accounted for a leading share of 38.67% in the overall vehicle roadside assistance market and the region is expected to expand at a CAGR of 3.86% during the forecast period of 2019 to 2027. However, the growing capita income, consumer preferences for luxuries cars has led to an increase in car sales in the developing countries in the Asia Pacific, which is boosting the need for roadside assistance. This is a major factor responsible for the growth of the region at a most lucrative growth rate in the forecast period.
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The global vehicle roadside assistance market features an extremely fragmented vendor landscape due to the presence of a large number of players in the vehicle roadside assistance market. ARC Europe SA, SOS International A/S, Viking Assistance Group AS, Falck A/S, and Swedish Auto are some of the key players in the global vehicle roadside assistance market. Additionally, some of the other important players in the global market are AAA, Agero, Inc., AutoVantage, Allstate Insurance Company, Paragon Motor Club, and Best Roadside Service.
Need for High Maintenance to Aging Vehicles Boosts Market Growth
The global vehicle roadside assistance market is gaining traction on the back of an increase in the number of older vehicles. These vehicles increasingly need care and attention, as they are likely to witness a large number of breakdown and face numerous mechanical & electric issues. This, in turn, boosts demand for the vehicle roadside assistance services and propels growth of the market. Thus, ARC estimates that the market is likely to attain a value of US$32 Bn by end of 2027 by expanding at a CAGR of 4% over the forecast period.
Moreover, adoption of the app-based services is leading to a significant reduction of response time to the vehicles require roadside assistance services. This, in turn, is fuelling growth of the global vehicle roadside assistance market. Furthermore, extreme weather change affects numerous roadside assistance globally precisely the cold weather. Due to the sudden temperature lowering and frigid air, the vehicles experience breakdown and dysfunctioning of electrochemical reactions in vehicles batteries of vehicles. This also reduces the driving conditions and increases the risk of road accidents substantially. This, in turn, is driving growth for vehicle roadside assistance services market.
High Cost of Service to Pose as a Challenge to Market Growth
However, the high cost of the vehicle roadside assistance service such as pay per use is a major factor hampering growth of the global vehicle roadside assistance market. Additionally, the cost and payment for the labor and service charge are higher as the plans and memberships are presently based on pay per use service. Further, each company has their own plan, type of assistance, and terms and conditions. Lack of knowledge of these terms and conditions and confusion over plans may pose as a challenge to the growth of the global vehicle roadside assistance market. Nonetheless, expansion of these services across developing countries is expected to offer lucrative opportunities for growth of the global vehicle roadside assistance market.
By Service: Towing, Fuel Delivery, Jump Start/Pull Start, Lockout/ Replacement Key Services, Battery Assistance, Trip Routing/ Navigational Assistance, Winch, Tire Replacement, Other Mechanic Services
By Provider: Motor Insurance, Independent Warranty, Auto Manufacturer, Automotive Clubs
By Vehicle: Commercial Vehicle, Passenger Vehicle