With the advent of digitization, automobile service applications are becoming increasingly crucial in providing comprehensive maintenance services.
The global Car Service Application market is anticipated to increase at a 18.83% CAGR to reach value USD 187.05 Bn in 2030
Impact of Covid-19
Due to COVID-19, the governments of all major countries have declared a state of emergency, resulting in business closures. Since all automobile manufacture, maintenance, and repair have been suspended, and car sales have also plummeted, the need for car servicing has been impacted. Furthermore, the lockdown and travel restrictions resulted in a lack of workers needed for auto service, which further hampered the business. Car service application is a developing industry that has been harmed by the epidemic. Furthermore, as car sales increase, the necessity for maintenance and servicing will drive the expansion of the auto service application market following the pandemic.
The repair segment is the largest segment in the market in 2019,
Repair was the largest category in the car service application market in 2019, and this trend is expected to continue in the future years. This is due to the fact that such software provides comprehensive original equipment manufacturer (OEM) information, expert technician insights, and colorful wiring schematics. These technologies also enable personnel, regardless of their level of expertise, to diagnose difficulties and be more efficient in the process.
The on-premises segment will continue to dominate the automobile repair software market
The on-premises segment will continue to dominate the automobile repair software market until 2028. This is due to the fact that the majority of repair shops are small and independent firms, which means they are unable to implement sophisticated technology and must instead rely on cost-effective alternatives. On-premises software is also favored since client data input, inventory management, appointment scheduling, and other critical functions can be handled at the store. Furthermore, because they are integrated on a local server, such solutions do not pose many cyber security risks.
The passenger vehicle segment would have the largest proportion of the car service application industry
Because of the increasing sales of passenger vehicles worldwide, the passenger vehicle segment would have the largest proportion of the car service application industry through 2030. Furthermore, a large number of repair shops specialize on passenger vehicles, thus this segmentation will increase quicker in the next years.
North America Holds Highest Revenue in the 2020
North America generated the largest revenue in the car service application market in 2020, owing to the region's early adoption of sophisticated technology. Furthermore, the region's growing average age of autos produces a strong demand for repair software. Because of expanding disposable income, which allows individuals to embrace modern technology, Asia-Pacific (APAC) will be the fastest growing market for such solutions in the future years. APAC also has the greatest automotive sales, resulting in a strong need for repair and maintenance services.
Car service companies provide aftermarket maintenance and servicing for vehicles in order to extend the life of the vehicle by replacing consumable products such as tires, batteries, wear and tear parts, air filters, cabin filters, oil filters, wiper blades, collision body, starters and alternators, and others. Furthermore, the program guarantees that users can comprehend and monitor their automobiles if there is a problem, as well as propose the necessary maintenance.
Furthermore, rather than visiting garages, the application alleviates the users' load. Physically, the program is a one-stop shop where customers can submit their automobile problems and receive quotations from all garages that offer that service. Furthermore, this allows consumers to compare the quotations of numerous service providers and make an informed decision. The program also offers numerous deals and discounts, as well as doorstep services in which the automobile is picked up for servicing and returned after it is repaired, saving the customers’ time, effort, and money.
The global market for car services is expected to reach $678.4 Million by 2028 increasing at a CAGR of 12%. Car services imply maintaining all features and systems of the vehicle operational in close adherence to the manufacturer's original design.
The auto maintenance and repairs industry is driven by online tech platforms. In developing countries such as India alone, according to a new analysis released on Monday. The online segment's share is also predicted to rise from 1% in CY20 to 15% by CY30, as online digital platforms accelerate their focus on digitizing the whole automobile ownership cycle in India, from car search to car purchase, car finance, and car insurance to sales.
The current global market is a vast amalgamation of diverse forces that are constantly interacting with one another in ever-increasingly complex ways. The introduction of improved technology has enabled corporations to monitor their markets in ways that were previously impossible. It has also created an atmosphere in which enterprises who fail to keep up with new trends or reinvent their operations will gradually go away. As a result, in order to remain relevant in their respective industries, firms must now perform substantial study into these new trends. Integration of mobile applications into one's existing framework is one such trend. As a substantial portion of the public now has a smartphone, mobile applications have become the bread and butter of most enterprises.
The market is expected to develop because to an increase in demand for commercial cars, an increase in vehicle safety, and an increase in demand for efficient and low-cost automobile service. The market's development, however, is anticipated to be impeded by a lack of knowledge of service application and the needed frequent application maintenance. Furthermore, rising demand for electric cars, an increase in aftermarket repair and maintenance, and simple issue identification and resolution may all serve as tremendous prospects for market growth.
The market for electric cars is expanding, which has an influence on the expansion of the automobile sector. Because the electric vehicle has sophisticated characteristics and makes use of the internet of things (IoT), it will be more suitable with the car service application. In 2019, yearly sales of plug-in electric vehicles surpassed 400,000, accounting for more than 1% of total vehicle sales in the United States.
Some of the major companies dominating the global car service application are Spritmonitor, Drivvo, Fuelio, Totalcarcheck, Carfax Car Care, Gomechanic, Gasbuddy, InCarDoc, OBDeleven, Carlcare, and GoMechanic etc
Recent Innovations in the Global Car Service Application Market:
- In August 2019, Tesla launched 25 new service facilities and added 100 additional service trucks to its existing fleet. As a result, all of these advancements in electric cars serve as a catalyst for the expansion of the car service application industry.
Car Service Application Market Scope
|Revenue forecast in 2030
|USD 187.05 billion
|CAGR of 18.83 % during 2020-2030
|Offering, Deployment, Vehicle Type, Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|Spritmonitor, Drivvo, Fuelio, Totalcarcheck, Carfax Car Care, Gomechanic, Gasbuddy, InCarDoc, OBDeleven, Carlcare, and GoMechanic etc
Segment Analysis of Car Service Application Market
Offering Overview, (USD Billion)
Deployment Overview, (USD Billion)
- On premise
- On cloud
Vehicle Type Overview, (USD Billion)
- Passenger vehicle
- Commercial vehicle
Vehicle Type Overview, (USD Billion)
- Repair Workshop
- Manufacturer /OEM retailer
- Parts Wholesaler
Region Overview, (USD Billion)
- North America
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Middle East & Africa
- Saudi Arabia
Rest of the Middle East & Africa