PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603862
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1603862
According to Stratistics MRC, the Global Vehicle Roadside Assistance Market is accounted for $25.0 billion in 2024 and is expected to reach $38.9billion by 2030 growing at a CAGR of 7.6% during the forecast period. Vehicle roadside assistance is a service that helps drivers with unexpected vehicle issues while on the road. It provides support for problems such as flat tires, dead batteries, lockouts, fuel shortages, or engine breakdowns. Services typically include towing, tire changes, jump-starts, fuel delivery, and locksmith services. Roadside assistance is often offered by insurance providers, auto clubs, or as part of a car warranty. It ensures quick resolution of issues, minimizing disruptions and ensuring safety for drivers in emergency situations.
According to the International Energy Agency, in 2023, SUVs represented 48% of global car sales. 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.
Rising vehicle ownership
The increasing vehicle ownership worldwide is driving the growth of the market. As more people rely on personal transportation, the demand for on-demand roadside support services such as tire changes, fuel delivery, and emergency towing is expanding. With vehicles becoming more complex and urban congestion rising, drivers seek reliable assistance to minimize downtime and ensure safety. This trend is further fueled by the rise of mobile apps and subscription-based services, offering convenience and faster response times.
Limited service availability
Limited service availability in the Vehicle Roadside Assistance market can negatively impact customer satisfaction and overall market growth. In areas with insufficient coverage, drivers may experience long wait times or be unable to access essential services during emergencies. This lack of reliability can lead to frustration, reduced trust in service providers, and a reluctance to invest in subscription-based assistance plans. Ultimately, it hinders the expansion and competitiveness of the industry.
Increasing adoption of connected cars
The increasing adoption of connected cars is transforming the market by enabling real-time diagnostics and automatic alerts. These smart vehicles can detect issues such as low battery or tire malfunctions and immediately notify drivers or service providers. This proactive approach improves response times, enhances service efficiency, and reduces downtime. As connected car technology advances, it drives greater demand for integrated, data-driven roadside assistance solutions.
Competition from third-party providers
Competition from third-party providers in the market can pressure traditional service providers to lower prices, potentially compromising service quality. With numerous independent players entering the market, consumers may face difficulty distinguishing between reliable and subpar services. This intense competition may also lead to fragmented offerings, reducing consistency in coverage and response times. As a result, customer satisfaction and brand loyalty can be negatively affected.
The COVID-19 pandemic significantly disrupted the Vehicle Roadside Assistance market, with reduced road traffic and travel restrictions leading to a temporary decline in demand for services. However, the market gradually rebounded as vehicle usage increased post-lockdown. The pandemic also accelerated digital transformation, with more customers opting for app-based and contactless roadside assistance services, highlighting a shift toward more convenient, remote, and tech-driven solutions in the industry.
The fuel delivery segment is projected to be the largest during the forecast period
The fuel delivery segment is projected to account for the largest market share during the projection period offering drivers a convenient solution when they run out of fuel.. This service is increasingly popular due to its ability to save time and prevent drivers from having to walk to the nearest gas station. With mobile apps and GPS tracking, fuel delivery services provide quick and efficient assistance, contributing to enhanced customer satisfaction and the overall growth of the market.
The insurance companies segment is expected to have the highest CAGR during the forecast period
The insurance companies segment is expected to have the highest CAGR during the extrapolated period. Many insurers partner with third-party providers to offer benefits like towing, flat tire assistance, and fuel delivery. This integration enhances customer value, offering convenience and peace of mind during emergencies. As a result, insurance-driven roadside assistance services are becoming increasingly popular, contributing to market expansion and customer retention.
North America region is projected to account for the largest market share during the forecast period driven by increasing vehicle ownership. With a well-developed infrastructure and a strong presence of both traditional and digital service providers, North American consumers benefit from fast, reliable assistance through mobile apps and subscription models. Rising urbanization, along with a focus on enhanced safety and efficiency, further fuels market expansion in the region.
Asia Pacific is expected to register the highest growth rate over the forecast period driven by urbanization, and rising disposable incomes. Rising concerns over vehicle safety, along with the expansion of insurance companies and service providers, are further propelling market growth. Additionally, technological advancements such as mobile apps and GPS tracking are improving service efficiency, making roadside assistance more accessible and reliable across countries in the region.
Key players in the market
Some of the key players in Vehicle Roadside Assistance market include Falck A/S, Allstate Insurance Company, Agero, Inc., Best Roadside Service, Viking Assistance Group, ARC Europe SA, SOS International A/S, Allianz Partners, Good Sam Enterprise, LLC, Access Roadside Assistance, American Automobile Association, National General Insurance, Prime Assistance Inc., AutoVantage, Emirates Insurance Co. and CHUBB LIMITED.
In September 2024, Agero announced it has renewed its multi-year partnership with Hagerty, an automotive enthusiast brand and a leading specialty vehicle insurance provider. With this agreement, Agero will continue providing unparalleled roadside assistance services to Hagerty clients and Hagerty Drivers Club members across the U.S.
In January 2024, Emirates Roads Assistance has launched its latest offering, a battery exhaustion support service, now available through its innovative "Emirates Roads Assistance" app. The new service enriches the existing suite of assistance provided by the company across the UAE, utilizing a robust fleet of 500 vehicles.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.