USA Automotive Service Market
The USA Automotive Service Market is experiencing significant growth, driven by increasing vehicle ownership and the rising complexity of automotive technologies. As more consumers opt for advanced vehicles equipped with sophisticated electronics and software, the demand for specialized automotive services is surging. In 2025, the market is projected to reach approximately $90 billion, reflecting a compound annual growth rate (CAGR) of around 4.5% from 2020 to 2025.
Key factors contributing to this growth include the aging vehicle population and the trend towards maintenance and repair services over new vehicle purchases. With a growing emphasis on sustainability, many service providers are also adopting eco-friendly practices, including the use of recycled parts and green technologies. Additionally, the rise of electric vehicles (EVs) is reshaping service offerings, as technicians require specialized training to handle the unique needs of these vehicles.
Technological advancements are also playing a crucial role in the automotive service sector. The integration of artificial intelligence (AI) and machine learning in diagnostic tools is improving service efficiency and accuracy. Furthermore, mobile service units are becoming more prevalent, allowing for on-the-go repairs and maintenance, which cater to the increasingly busy lifestyles of consumers.
As the USA Automotive Service Market continues to evolve, companies that invest in technology and customer service will likely gain a competitive edge. The focus on customer experience, coupled with an expanding range of services, will be pivotal in capturing market share in this dynamic environment.
According to an analysis by MRFR, the global Automotive Service Market was valued at approximately USD 773.93 billion in 2024. The market is projected to grow steadily, reaching USD 816.59 billion in 2025 and further expanding to around USD 1,323.49 billion by 2034, at a compound annual growth rate (CAGR) of 5.51% during the forecast period from 2025 to 2034. This growth is being driven by rising vehicle ownership and an increased demand for maintenance and repair services. Technological advancements in automotive diagnostics and servicing are also contributing to market expansion.
The automotive service market, a vital component of the global automotive ecosystem, plays a key role in ensuring the longevity, performance, and safety of vehicles. This market encompasses a wide range of services, including maintenance, repair, diagnostics, and the replacement of parts. As vehicles become more sophisticated and the global vehicle fleet expands, the demand for automotive services has grown significantly. In this article, we will explore the current landscape of the automotive service market, key growth drivers, challenges, and emerging trends shaping its future.
The Scope of the Automotive Service Market
The automotive service market comprises several segments, including preventive maintenance, repair services, diagnostics, and component replacement. Services offered by independent garages, authorized dealerships, and franchise service centers all fall under this broad umbrella. The market caters to various types of vehicles, including passenger cars, commercial vehicles, two-wheelers, and off-road vehicles.
The primary goal of automotive service providers is to enhance vehicle reliability, safety, and performance. With regular maintenance, such as oil changes, tire rotations, and brake inspections, vehicles can operate more efficiently and have a longer lifespan. In contrast, repair services are often required when vehicles experience mechanical failures or accidents, while diagnostics help identify potential issues before they become major problems.
Automotive Service Market Overview
According to MRFR analysis, the global Automotive service market is expected to register a CAGR of ~5.51% from 2025 to 2034 and hold a value of over USD 1,323.49 billion by 2034.
The automotive service market refers to the range of maintenance, repair, and after-sales services provided for vehicles. It includes services such as routine maintenance, oil changes, tire rotations, brake repairs, engine diagnostics, and warranty repairs. The COVID-19 pandemic had a significant impact on the automotive service market. The temporary closure of dealerships and service centers, reduced vehicle usage, and economic uncertainty initially led to a decline in demand for automotive services.
However, as restrictions eased and vehicle owners sought to maintain their vehicles, the market started to recover. The shift towards contactless and online service booking, increased emphasis on vehicle sanitization and safety measures, and the rise of remote diagnostics and telematics are reshaping the automotive service industry in the post-pandemic era. Service providers are adapting to changing customer expectations and implementing innovative solutions to meet the evolving needs of vehicle owners.
Key Companies in the Automotive Service market include
Asbury Automotive Group, Inc.
Carmax Autocare Center
com, Inc.
Europart
Firestone
Hance’s European
Inter Cars S.A.
Jiffy Lube International, Inc.
LKQ Corporation
MM Automotive
MEKO
Mobivia Groupe
MyTVS Accessories
Safelite Group
Sun Auto Service
USA automotive
Wrench, Inc.
Regional Analysis
North America and Europe are major regions in the market, driven by a large vehicle population, established dealer networks, and a strong culture of vehicle maintenance. These regions have a well-developed automotive service infrastructure and a high demand for both routine maintenance and repair services.
Asia-Pacific, particularly China and India, is witnessing significant growth in the market, fueled by a growing vehicle ownership rate and an increasing preference for professional automotive services.
Latin America and the Middle East are emerging markets, with rising disposable incomes and a growing demand for automotive maintenance and repair services. The regional growth of the automotive service market is influenced by factors such as vehicle ownership trends, economic conditions, regulatory frameworks, and consumer awareness of vehicle maintenance practices.
United States Automotive Service Market is expanding due to the growing vehicle fleet, increasing demand for maintenance, and advancements in automotive technologies. Key services include routine repairs, diagnostics, and specialized services for electric and autonomous vehicles. The market is driven by consumer preferences for quality service, extended warranties, and the rise of vehicle connectivity.
Market Segmentation
The Global Automotive service market has been segmented into type, Service Provider and Propulsion Type
Based on Type: Maintenance Services, Mechanical, Exterior Structural
Based on Service Provider: Franchise General Repairs, OEM Authorized Service Centers, Local Garage, Tire Stores Repair Chains and Others
Based on Vehicle Type: Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles and Two Wheelers
Based on Propulsion Type: Internal Combustion Engine (ICE) and Electric
Automotive Service Market Restrain
One significant restraint in the automotive service market is the increasing complexity of vehicle technology. Modern vehicles are equipped with advanced electronics, sensors, and computer systems that require specialized knowledge and equipment for diagnostics and repairs. This complexity poses a challenge for service providers who must invest in continuous training and expensive tools to keep up with the evolving technology.
Moreover, the proliferation of electric vehicles (EVs) presents another restraint for the automotive service market. EVs have different components and systems compared to traditional internal combustion engine vehicles. Service providers need to acquire new skills, tools, and infrastructure to handle EV maintenance and repairs effectively. This transition can be costly and time-consuming for many service providers, especially smaller ones with limited resources.
Asbury Automotive Group, Inc. – 2025 Highlights
Strategic Growth and Financial Targets
Revenue Goal: Asbury has set an ambitious revenue target of $32 billion by 2025, up from the previous $20 billion goal. This includes $12 billion from acquisitions and $8 billion from its Clicklane digital platform.
Q4 2024 Performance: Reported a record $4.5 billion in revenue, an 18% year-over-year increase. The parts and service segment saw an 11% rise in same-store gross profit.
Technology Partnership
Tekion Collaboration: In January 2024, Asbury partnered with Tekion to implement its Automotive Retail Cloud (ARC), aiming to enhance guest experiences across retail, service, parts, and CRM operations. A pilot is planned for late 2024.
Cybersecurity Measures
Board Appointment: Shamla Naidoo, former IBM Global CISO, joined Asbury's Board effective January 1, 2025, bringing expertise in technology and cybersecurity.
CDK Cyber Incident: In June 2024, a cyber-attack on vendor CDK Global impacted Asbury's operations. Contingency plans kept sales and service functional, though some systems experienced slowdowns.
Industry Recognition
Fastest-Growing Companies: Asbury was named among America’s Fastest-Growing Companies for 2024 by the Financial Times, with a 114% absolute growth rate and a 28.88% compound growth rate.
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