The vehicle roadside assistance market has seen significant growth globally over recent years. Roadside assistance programs offer assistance to drivers in the event of an accident breakdown, including towing service, vehicle repair onsite, fuel delivery, jump starts, tire changes and other services. Such programs provide an affordable means of support during unexpected vehicle issues, helping ensure drivers can quickly get back on the road. Connected vehicle technology advancements are enabling the integration of roadside assistance programs directly into new vehicles, allowing issues to be detected remotely and support dispatched automatically in many cases. This emerging trend towards automation is expected to further accelerate market adoption going forward.
The vehicle roadside assistance market is estimated to be valued at US$ 25.76 Bn in 2024 and is expected to reach US$ 36.82 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Key Takeaways
Key players operating in the Vehicle Roadside Assistance Market Growth are Agero Inc., ALD SA, Allianz SE, American Automobile Association Inc., ARC Europe SA, AutoVantage, Best Roadside Service, Camping World Holdings Inc., Falck Danmark AS, Assicurazioni Generali S.p.A., Honk Technologies Inc., Paragon Motor Club Inc., Prime Assistance Inc., RAC Group Holdings Ltd., Roda Assistance Pvt. Ltd., Sompo Holdings Inc., SOS International AS, The Allstate Corp., and Uber Technologies Inc.
The key opportunities in the market include large potential for growth in developing regions as vehicle ownership increases. Partnerships between roadside assistance providers and automotive manufacturers/dealerships also present an opportunity to bundle services and drive further adoption.
Developments in connected vehicle technologies are enabling the integration of roadside assistance programs directly into new vehicles. This allows issues to be detected remotely and support dispatched automatically in many cases. Over-the-air updates are also allowing existing vehicles to gain such connected capabilities post-purchase.
Market Drivers
One of the key drivers of the vehicle roadside assistance market is the convenience it provides drivers. By offering support services through a single provider at an affordable cost, it removes much of the hassle and financial risk associated with unexpected vehicle issues away from roadside. As driving continues to be a necessity for many, demand for relief during problems will keep the market growing. Increased integration with automotive technologies is also enabling more effortless usage of such services.
Current challenges in the vehicle roadside assistance market
The vehicle roadside assistance market faces several challenges like rising instances of breakdowns and accidents due to increasing traffic congestion and aged vehicle fleet in many regions. Higher vehicle repair and maintenance costs are putting pressure on service providers. Expanding network coverage across rural regions is also challenging due to low vehicle densities and difficult terrains. Stricter regulations around service quality, safety standards and data privacy further add to operational complexities.
SWOT Analysis
Strength: Large customer base due to rising vehicle population creates stable demand. Established players have strong brand recall and nationwide service networks.
Weakness: Fragmented industry structure limits bargaining power. Smaller players find it difficult to compete against well funded companies.
Opportunity: Growth in ride-sharing and self-driving vehicles will require new service models. Digital platforms can improve customer experience and service efficiency.
Threats: Changing mobility patterns with shared, public and electric transport pose risks. Potential disruptions from technology startups cannot be ruled out.
Geographical regions with high market concentration
North America accounts for the largest share currently owing to high vehicle ownership and well developed road infrastructure in the US and Canada. Europe is another major market led by countries like Germany, UK, France and Italy.
Fastest growing region
Asia Pacific region is projected to witness the fastest gains with annual growth over 5% driven by swift economic expansion, rising incomes and rapid motorization particularly in China and India. Government initiatives to boost road connectivity in rural areas will further support the market expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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