Vehicle Roadside Assistance Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Service Type (Towing, Tire Replacement, Fuel Delivery, and Others), By Providers (Auto Manufacturers, Motor Insurance, Independent Warranty, and Automotive Clubs), and Regional Forecast, 2023–2030

The global vehicle roadside assistance market size was valued at USD 23.33 billion in 2022. The market is anticipated to grow from USD 24.34 billion in 2023 to USD 35.73 billion by 2030, exhibiting a CAGR of 5.6% during the forecast period.

Vehicle roadside assistance is a service provided by automakers or other service providers. The service offers assistance in the event of a crash or breakdown of the vehicle. Roadside vehicle aid offers onsite support, such as electrical & mechanical repairs and other roadside problems, including flat tires, dead batteries, and others.

With the intensifying competition in the automotive industry, the automakers are providing 24*7 vehicle roadside assistance to their customers. The automakers offer these services to attract a diverse customer base and grab revenue growth opportunities through roadside assistance. Rapidly growing vehicle sales globally are one of the major driving factors for the market. Additionally, increasing demand for automotive connectivity solutions, such as road safety alerts, weather alerts, and other road safety and emergency solutions, is expected to propel the market growth during the forecast period.

The high frequency of road crashes and growing road safety concerns among the worldwide population are expected to boost market growth in the coming years. According to the Centers for Disease Control and Prevention data, nearly 3,700 people are killed daily in crashes worldwide involving bicycles, buses, cars, motorcycles, trucks, or pedestrians. A rise in road accidents may raise awareness about the importance of having access to roadside assistance services, leading more people to subscribe to such services among drivers. In addition, the service portfolio expansion of key players regarding roadside assistance is expected to fuel the vehicle roadside assistance market growth during the forecast period.

COVID-19 IMPACT

COVID-19 Pandemic Adversely Impacted the Demand for Roadside Assistance Services

The outbreak of the COVID-19 pandemic had a mild impact on the vehicle roadside assistance market share. The pandemic brought about several challenges and changes in consumer behavior, influencing the demand for roadside assistance services.

During lockdowns and periods of restricted movement, vehicle usage was significantly reduced due to stay-at-home orders and limited travel. With fewer vehicles on the road, breakdowns and accidents decreased, leading to a temporary decline in demand for roadside assistance services. The shift to remote work and virtual meetings reduced the frequency of daily commutes for many employees. As a result, the need for immediate roadside assistance decreased as fewer people drove long distances regularly.

Despite these challenges, the market also experienced positive trends during the pandemic. Roadside assistance remained crucial for essential services, such as healthcare workers, delivery drivers, and emergency responders who needed reliable transportation during the pandemic. Several OEMs extended their warranty and service period to ease the challenges faced by customers during the pandemic and fulfill their commitment to their customers. For instance, Renault India extended its warranty and service period, including 24*7 roadside assistance to ensure customer support in an emergency.

LATEST TRENDS

Adoption of Connected and Autonomous Vehicles Along with Digitalization to Spur the Market Demand

The growing adoption of autonomous and connected vehicles is anticipated to create lucrative opportunities for vehicle roadside assistance market growth. Connected cars generate a large amount of data that provides insights such as current vehicle location, real-time running status, and other crucial vehicle usage information. This enables the company to find the breakdown cause and ensure the provision of quick vehicle roadside assistance. The connected car-generated data assists the company in solving the vehicle breakdown problem in a short time.

Roadside assistance providers were increasingly adopting digital platforms and offering on-demand services. Customers could request assistance through mobile apps and websites, making the process more convenient and accessible. Digitalization in the automotive industry enabled the company to provide remote vehicle roadside assistance to customers through various mobile apps and IoT devices, positively influencing the market.

DRIVING FACTORS

Increased Vehicle Ownership to Propel the Demand for Roadside Assistance Services

As the number of vehicles on the roads continues to increase, the likelihood of breakdowns and accidents also rises. More vehicles mean a larger pool of potential customers who may require roadside assistance services.

Many countries have an aging vehicle fleet, with vehicles more prone to breakdowns and mechanical issues. As vehicles age, they require frequent maintenance and are more likely to need roadside assistance services. Roadside assistance companies have introduced subscription and membership models that offer affordable and value-added services. These models encourage more drivers to sign up for continuous coverage, driving demand.

RESTRAINING FACTORS

Limited Availability of Service Providers May Restrain The Market Growth

In some regions, there may be a limited number of roadside assistance providers, resulting in longer wait times for drivers in need. Additionally, if there is only one dominant provider, it might lead to higher costs and limited options for drivers. Communication between the stranded driver and the assistance service can be challenging in remote areas or places with poor cellular network coverage. This can hinder coordination and lead to delays in dispatching help.

SEGMENTATION

By Vehicle Type Analysis

Rising Passenger Car Sales to Drive Segment Growth

By vehicle type, the market is segmented into passenger car and commercial vehicle. The passenger car segment held the largest market share in 2022 as various passenger car manufacturers include roadside assistance services in their free warranty. The growing number of passenger car sales is expected to fuel the segment growth in years to come. As per the International Energy Agency, over 16 million passenger cars were sold in advanced economies in 2022. Some motor insurance companies also cover roadside assistance services in their insurance plan on pay-per-usage.

Moreover, customer preference for the service further influences segment growth. In addition, increasing sales of new-generation connected automobiles will positively influence segment growth. The commercial vehicle segment is also expected to register a significant CAGR over the forecast period. The growing demand for roadside assistance during the long haul in the logistics and trucking industry to reduce operational costs is anticipated to fuel the segment growth.

By Service Type Analysis

Rising Number of Road Crashes to Drive the Growth of Towing Service Segment

By service type, the market is segmented into towing, tire replacement, fuel delivery, and others which include jump star, lockout replacement, key services, and others. The towing segment dominated the market in 2022 and is expected to continue its dominance during the forecast period. Breakdown towing is the most basic service required during the breakdown of the vehicle. Additionally, the high number of road crashes in developed countries further propels the segment growth.

The tire replacement segment is the fastest-growing segment. The growing incidence of tire bursts has increased the demand for tire replacement services. According to the European Tyre and Rubber Manufacturer Association, replacement consumer tires grew 7.2% in 2022 compared to 2021. Poor road conditions, including potholes and road hazards, can cause tire damage or punctures. These conditions are prevalent in many areas, especially in regions with harsh weather conditions, increasing the need for tire replacement assistance.

Moreover, some newer vehicle models come without a spare tire as a space-saving measure. In case of a flat tire, drivers may be left stranded and need roadside assistance for tire replacement. Services, including tire replacement, jump start, and battery assistance, are also expected to witness eye-catching growth over the forecast period. These are the most common reasons for vehicle breakdowns.

By Providers Analysis

Automakers’ Focus on Providing Aftersales Services to Boost the Market Growth

By providers, the market is segmented into auto manufacturer, motor insurance, independent warranty, and automotive clubs. The auto manufacturer segment has dominated the market in 2022 and is expected to continue its dominance over the forecast period. Automaker's policies to provide aftersales assistance to customers through free warranty is expected to boost the segment growth during the forecast period. Additionally, an increase in passenger vehicle sales due to improving living standards, overburdened public transport, and availability of financial services for vehicle purchases are some of the factors expected to boost the segment's growth. The automotive clubs are anticipated to register a high CAGR over the forecast period. The provision of roadside assistance services by automotive clubs is a growing trend. Automotive clubs, also known as auto clubs or motoring organizations, have offered roadside assistance for their members for many years. However, recently, they have expanded and enhanced their roadside assistance offerings to cater to a broader range of customer needs and preferences.

REGIONAL ANALYSIS

Europe Held a Significant Market Share Owing to its Higher Road Assistance Subscription

Geographically, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

Europe held the largest market share in 2022 and is expected to continue its dominance over the forecast period. The strong presence of major players in the region drives the market growth. High disposable income coupled with a strong awareness about vehicle roadside assistance services among the populace is anticipated to boost the market growth in future years. Additionally, increased sales of premium vehicles in Europe further accelerate the market growth.

The Asia Pacific is also anticipated to witness a significant growth rate over the forecast period. A growing number of road crashes and increasing awareness and preference for roadside assistance among the populace in emerging countries of Asia Pacific, including China, Japan, India, and others, is anticipated to propel the market growth in the region.

North America has one of the highest vehicle ownership rates globally. As the number of vehicles on the roads continues to increase, the likelihood of breakdowns and accidents rises, leading to a greater demand for roadside assistance services. Moreover, most provide roadside vehicle assistance services to customers as part of their after-sales support and customer service offerings. OEMs often partner with roadside assistance providers to offer these services to their customers. Companies such as Honda offer 24/7 roadside vehicle assistance and mechanic service to customers whose vehicles are under warranty. Honda offers 24-hour emergency road service in the U.S., Puerto Rico, and Canada with three-year/36,000-mile limited warranty.

The Rest of the World is anticipated to witness an upward growth trajectory owing to increasing economic development and improving living standards. As the number of vehicles on the roads increases, so does the likelihood of breakdowns and accidents, driving up the demand for roadside assistance services.

KEY INDUSTRY PLAYERS

Focus on Collaborations and Partnerships by Market Players to Gain Competitive Edge

Various regional and international players consistently develop advanced strategies for competitive advantage. Many companies are adopting mergers & acquisitions and partnership & collaboration strategies and launching customized roadside assistance services to enable market growth. For instance, in May 2022, Towing El Paso, one of the leading towing service providers, announced the launch of an extension of their roadside assistance El Paso services. The company has decided to bolster its tow truck across El Paso, Texas, by training its mechanics and technicians to deal with various roadside assistance issues.

List of Key Companies Profiled:

• Viking Assistance Group (Norway)


• ARC Europe SA (Belgium)


• SOS International A/S (Denmark)


• Allianz Partners (France)


• Falck A/S (Denmark)


• Allstate Insurance Company (U.S.)


• American Automobile Association (U.S.)


• Agero, Inc. (U.S.)


• Best Roadside Service (U.S.)


• AutoVantage (U.S.)


• Paragon Motor Club (U.S.)


• Good Sam Enterprise, LLC (U.S.)


• Access Roadside Assistance (Canada)


• Honk Technologies (U.S.)


• National General Insurance (U.S.)


• ASSURANT, INC. (U.S.)


• RESCUE Vehicle Services Private Ltd. (India)


• Emirates Insurance Co. (PSC) (UAE)


• CHUBB LIMITED (Switzerland)


• Prime Assistance Inc. (Japan)


• Arabian Automobile Association (UAE)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 –Stellantis signed a five-year agreement with the RAC to provide roadside assistance services to all Stellantis users in the U.K. and the Republic of Ireland. The user will get all necessary support by pressing either the emergency SOS or the breakdown button in a Stellantis vehicle.


• May 2023- Progressive Insurance, in collaboration with TTN Fleet Solutions, announced to offer Heavy Truck Roadside Assistance service as optional coverage to its commercial auto customers. This policy will cover the cost of towing and labor at the disablement site.


• September 2022 – FixiGo, a car repair platform, in partnership with Roadzen, an insurance company, launched 24*7 roadside assistance services in India. This partnership will offer Fixigo access to Roadzen's chain of workshops to expand service coverage in all Indian states and venture into the roadside assistance segment.


• April 2022 – Crayon Motors, an electric mobility startup, partnered with Global Assure, a travel, health & wellness service provider, to offer its roadside assistance services to its customers in India. The initiative is aimed at promoting electric mobility in the country.


• October 2021 – Agero Inc. launched new conversational artificial intelligence (AI) tools that aid consumers in accessing the breakdown assistance they need more efficiently while providing a more transparent service experience

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

Report Scope & Segmentation