May 07, 2019 (Global QYResearch via COMTEX) -- Recent study titled, Vehicle Roadside Assistance Market By Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 – 2026 which covers detailed statistical analysis and enlightens market dynamics and trends that provide a holistic picture of the industry.
The Global Vehicle Roadside Assistance Market size is estimated to grow at 3.8 % CAGR over the forecast time frame 2019-2026 and reach the market value around USD 29 billion by 2026.
Towing services are becoming increasingly demanding as vehicles are becoming more complex and more electronic integration becomes difficult on the spot to repair. Collision or disruption towers constitute the most important request for emergency aid. In 2018, the towing segment was a major part of the global roadside assistance market for vehicles. In addition, battery assistance is required for vehicles older than 5 years. The market segment of battery assistance is expected to increase the adoption of road side assistance for aging vehicles and sales of hybrid and battery electric vehicles.
The leading providers of roadside assistance for vehicles are car manufacturers. Most new vehicles sold in several developed countries are guaranteed to receive roadside aid. The roadside assistance coverage of vehicles produced in Honda after 2015 is 3 year/ 36,000 mile. Similar plans for new vehicles ranging from 2 to 7 years are being made by carmakers such as Hyundai, Toyota, General Motors, Ford and Mitsubishi. Thus it is anticipated that during the forecast period the car manufacturer sector of the world vehicle side assistance market will dominate. Motor insurance companies are the major service providers, but because of their low premium charges, they represent a relatively small market share in terms of revenue.
A large portion of the global vehicle roadside assistance market was held in the passenger car sector. In general, roadside assistance is provided under a car manufacturer’s guarantee for new passenger cars. Customers prefer to purchase roadside aid after the end of their warranty cover and thus the segment held a dominant market share. Passenger vehicles undergo a major re-engagement. Various light commercial vehicles are covered under roadside assistance from car manufacturers including those manufactured by Ford and General Motors. Furthermore, due to the large sales and on route registration numbers for light commercial vehicles, the light commercial vehicles segment represented a prominent market share in terms of revenues generated in fiscal year 2018.
Typical roadside problems like fading batteries, flat tires, wrong keys and other small mechanical and electric problems may arise from all kinds of vehicles. In addition, cars over 10 years of age are two-fold more likely than new vehicles to be blocked on the side of the road, with the chances of requiring a tow quadrupling. If a car is broken down or is involved in a road crash, car assistance on the side of the road will solve the problem on – the-spot, often. The expansion of roadside assistance network coverage thanks to app-based services have also led to an increased service supply, and have removed the stress and complexity of assistance on the road, which in turn drives the global roadside aid market for vehicles. In addition, the growing demand for roadside assistance services are boosts the number of aging vehicles.
Europe consists of several developed countries with an increasing income per capita and access to roadside service providers leading to a prominent generation of revenue from roadside aid services. Moreover, the growth of old vehicles in Europe and North America fuels the demand for services on the roadside. Increased fleet volumes due to expansion and increased transportation activities of common mobility services are boosting the demand for roadside assistance services. In the worldwide roadside assistance sector, Europe represented the leading share and North America followed.
Key Players & Strategies
The Vehicle Roadside Assistance market is consolidated with large number of manufacturers. The company profiling of key players in the market includes major business strategies, company overview and revenues. The key players of the market are Viking assistance group, AutoVantage, Best Roadside Service, Access Roadside Assistance, Paragom Motorclub, Roadside Masters, Viking Assistance Group AS, ARC Europe SA, and SO S International A / S, among others.
Companies engage in strategic alliances, including fusions and acquisitions, joint enterprises, partnerships and capacity expansion, to implement innovative technologies with capacity – building growth to cater for increasing industrial growth.