April 23, 2024
Vehicle Roadside Assistance Market

Vehicle Roadside Assistance Market Poised to Expand Owing to Rising Vehicle Ownership Rates

Vehicle roadside assistance provides emergency services to motorists who experience breakdowns or accidents while driving. This includes jump starts, fuel delivery, flat tire changes, lockout services, and towing. The growing vehicle fleet size driven by rising personal incomes and urbanization has fueled demand for such protection services.

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: 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.

Agero is among the largest player offering 24/7 roadside dispatch and assistance programs. Allianz is a major player providing roadside assistance and accident coverage via insurance packages globally.

Key opportunities: On-demand service models using mobile apps and GPS provide real-time assistance and are gaining traction. Emerging economies in Asia Pacific and Latin America with growing vehicle fleet represent major opportunities.

Global expansion: Players are expanding via partnerships and acquisitions to offer standardized global coverage. For instance, ALD acquired Falck’s roadside business to become a major global provider.

Market drivers

The primary driver fueling the vehicle roadside assistance market is rising vehicle ownership rates across major economies. For instance, between 2010-2020, the number of registered vehicles in India increased from about 150 million to over 250 million. Further, over 95% of travel in the U.S. is done via personal vehicles. This growing dependence on private transport has increased demand for protection services against breakdowns.

PEST Analysis

Political: Regulations around road safety and roadside assistance services. Highway safety laws mandate roadside assistance coverage for commercial vehicles.

Economic: Economic growth drives demand for personal vehicles and commercial fleets, increasing need for roadside assistance. Rising disposable incomes also fuel demand.

Social: Ownership and usage of personal vehicles continues growing worldwide. Mobility solutions gain traction improving access to roadside assistance services.

Technological: Advanced systems leverage IoT, AI, predictive diagnostics helping proactive management of vehicle issues. Adoption of connectivity solutions facilitates remote access to roadside assistance.

Around 60% of the total market value is concentrated in North America and Europe. The high vehicle density, well-developed road infrastructure along with stringent road safety regulations drive the large market size in these regions.

The Asia Pacific region is emerging as the fastest growing market for vehicle roadside assistance. Factors such as rapid urbanization, rising middle class, growing personal vehicle fleet and government investments in highway networks are fueling strong demand growth. Additionally, several large economies like China and India still have low roadside assistance penetration offering scope for increased adoption.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it