Garage and Service Station Market Size - By Product Type (Mechanical Repair, Collision Repair, Car Wash, Oil Change, Lubrication), Ownership (Automobile Dealerships, Franchise General Repair Shops, Franchise Speciality Shops, Locally Owned Repair Shops), Business Structure & Forecast, 2023 - 2032

Garage and Service Station Market Size

Garage and Service Station Market was valued at USD 801.4 billion in 2022 and is anticipated to register a CAGR of over 7% between 2023 and 2032, due to increasing vehicle ownership and usage. According to the Society of Indian Automobile Manufacturers, from April 2022 to March 2023, the industry manufactured a combined total of 25,931,867 vehicles, encompassing Passenger Vehicles, Commercial Vehicles, Three Wheelers, Two Wheelers, and Quadricycles. This marks an increase compared to the 23,040,066 units produced from April 2021 to March 2022.
 

As more individuals and businesses rely on cars for daily transportation, the demand for maintenance, repair, and refueling services has surged. This trend stimulates market growth as service stations and garages play a pivotal role in keeping vehicles roadworthy and ensuring safe, efficient, and convenient travel, thus capitalizing on the expanding automotive landscape.
 

Stringent environmental regulations focused on mitigating vehicle emissions will boost the garage and service station market growth. Stricter emissions and environmental regulations require vehicles to be well-maintained. Service stations are adapting to provide emissions testing and eco-friendly solutions to meet these regulatory requirements and customer demands. On the other hand, the transition to electric vehicles poses a challenge to traditional service stations and garages, as EVs require less maintenance and different types of services. This shift can reduce the demand for conventional automotive services, thus impacting the market outlook.
 

COVID-19 Impact

The COVID-19 pandemic had a notable impact on the garage and service station industry. Lockdowns and reduced travel during the crisis led to decreased vehicle usage, resulting in lower demand for maintenance and repair services. Service stations also experienced lower fuel sales due to limited mobility. These challenges affected the revenue and profitability of businesses in this sector, compelling them to adapt to changing market dynamics and explore new revenue streams.
 

Garage and Service Station Market Trends

The integration of electrification services stands to bolster the garage and service station industry growth. The latest release of the IEA's annual Global Electric Vehicle Outlook reveals that over 10 million electric cars were purchased globally in 2022, with an anticipated 35% increase in sales for 2023, reaching 14 million units. This remarkable surge indicates that electric vehicles now account for 14% of the total automobile market, up from approximately 4% in 2020, and is projected to rise further to 18% this year, as per the IEA's most recent forecasts.
 

With the growing adoption of electric vehicles (EVs), service stations offering EV charging infrastructure and maintenance will tap into a burgeoning market. This diversification aligns with the global shift toward sustainable transportation, ensuring that these businesses remain relevant and profitable while meeting the evolving needs of environmentally conscious consumers.
 

Garage and Service Station Market Analysis

Based on product type, the mechanical repair segment held major market share in 2022. Mechanical repair services remain in high demand at garages and service stations due to the widespread reliance on internal combustion engine (ICE) vehicles. These traditional vehicles still make up a significant portion of the automotive market. Routine maintenance, engine repairs, brake replacements, and other mechanical services are essential for keeping these vehicles safe and operational. If ICE vehicles are prevalent, the need for mechanical repairs will persist, driving demand for these services.
 

Based on business structure, the road segment held around 74% of the market share in. Regulatory compliance and safety standards necessitate structured operations to meet legal requirements. As vehicles become more technologically advanced, customers expect efficient and reliable services, which an organized business structure can provide. In addition, organized management streamlines operations improve customer service, and facilitates adaptation to evolving automotive trends, ensuring the industry's competitiveness and long-term viability.
 

Asia Pacific garage and service station market market revenue to crossed of USD 310.9 billion in 2022. A thriving automotive culture, high vehicle ownership rates, and a preference for personal mobility drive consistent demand for maintenance and repair services. Additionally, Asia Pacific is witnessing the rapid adoption of electric vehicles (EVs), creating opportunities for service stations to offer EV-specific services and charging infrastructure. Moreover, modern digitalization and contactless service options have enhanced customer experiences, further fuelling the industry's growth.
 

Garage and Service Station Market Share

Major players operating in the garage and service station industry are:

• Jiffy Lube International, Inc.
• Safelite Group
• The Pep Boys
• Valvoline
• Firestone Complete Auto Care.
• Midas International, LLC
• Meineke Car Care Centers, LLC.

Major participants are employing various strategies to enhance their presence. This includes diversifying service offerings to include electric vehicle maintenance, adopting advanced technology for efficient operations, and providing exceptional customer experiences to build loyalty and capture a larger share of the automotive service market.
 

Garage and Service Station Industry News

• In June 2022, Valvoline announced the expansion of its automotive service business by including heavy-duty vehicles. Valvoline has applied the proven service approach utilized for customers with light-duty passenger vehicles in its Valvoline Instant Oil ChangeSM service centers to customize these exclusive procedures for Class 5-8 vehicles, which can exceed 30,000 pounds in weight.
   

This garage and service station market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Product Type

• Mechanical repair
  • Engine
  • Brake
  • Transmissions
  • Tires
  • Others
• Collision Repair
• Car Wash
• Oil Change
• Lubrication
• Others

By Ownership

• Automobile Dealerships
• Franchise general repair shops
• Franchise specialty shops
• Locally owned repair shops

By Business Structure

• Organized
• Unorganized

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia