Vehicle Roadside Assistance Market Size - By Service, By Vehicle, By Provider, By Service Channel, By Industry Vertical Analysis, Share, Growth Forecast, 2024 - 2032

Vehicle Roadside Assistance Market Size

The global vehicle roadside assistance market size was valued at USD 26.3 billion in 2023 and is projected to grow at a CAGR of 4.4% between 2024 and 2032. The increase in vehicle ownership is driving higher demand for roadside assistance services. More vehicles on the road mean more breakdowns and accidents. The International Organization of Motor Vehicle Manufacturers (OICA) reported about 92.7 million vehicles worldwide in 2023. This number is expected to rise significantly by 2040 due to economic growth, urbanization, and a growing middle class in emerging economies.
 

The COVID-19 pandemic has changed commuting habits, with many people now relying more on personal vehicles, increasing the need for roadside help. Urban migration also boosts the demand for convenient transportation. The United Nations estimates that by 2050, nearly 68% of the global population will live in urban areas, leading to more vehicle purchases and a higher demand for roadside assistance services.
 

Additionally, a 2023 Statista report showed that plug-in electric light vehicle (PEV) sales reached about 13.7 million units, indicating a strong shift toward electric mobility. The Chinese automotive market has bounced back after a slowdown in 2020 due to the pandemic, showing its resilience.
 

In Europe, electric vehicle sales surged in 2023 across the five largest markets, reflecting a global move towards sustainable transportation. This shift changes the types of services needed, especially for electric vehicles, and highlights the need for comprehensive roadside assistance for a diverse range of vehicles. With rising vehicle ownership and new vehicle technologies, the demand for reliable and efficient roadside assistance services is expected to grow significantly in the coming years.
 

Vehicle Roadside Assistance Market Trends

AI improves roadside assistance by streamlining vehicle dispatching. AI algorithms analyze real-time traffic data, customer locations, and service needs to efficiently dispatch the nearest service provider. This reduces response times and provides tailored assistance. GPS technology allows precise tracking, helping service providers locate both the distressed vehicle and the nearest tow truck. This geolocation capability aids route planning and enhances communication between providers and customers.
 

Real-time tracking increases customer satisfaction by providing accurate arrival time updates. The IoT enhances connectivity between vehicles and roadside assistance platforms. IoT devices enable vehicles to share their operational status, allowing service providers to anticipate and address needs proactively. This connectivity lets users request assistance directly through their automotive infotainment system, creating a smoother customer experience.
 

The limited number of service providers restricts the growth of the roadside assistance market. In many areas, especially rural ones, there are not enough providers to offer timely assistance. This shortage can lead to longer waiting times, reducing customer satisfaction and potentially discouraging vehicle owners from using these services. Additionally, this uneven service distribution means urban areas have better options, while rural customers often feel neglected. These disparities affect customer experience and overall market growth. If reliable help isn't easily accessible, potential customers in underserved regions may not see the value in roadside assistance plans.
 

Vehicle Roadside Assistance Market Analysis

Based on service, the market is segmented into towing, tire replacement, fuel delivery, lockout/replacement key service, and battery assistance. In 2023, the towing accounted for over 30% of the market share and is expected to exceed USD 12 billion by 2032. When vehicles break down, towing is often the only way to move them to repair shops or safe places. This need keeps the demand for towing services steady, covering situations such as mechanical failures, accidents, and unauthorized vehicle removals.
 

As more vehicles hit the road, breakdowns become more common, highlighting the importance of towing services. Modern cars, with their advanced technologies, increase the need for professional help, including towing. Towing services are seen as a crucial part of roadside assistance, making them essential for service providers to include in their offerings.
 

Based on the vehicle, the vehicle roadside assistance market is divided into passenger cars and commercial vehicles. The passenger cars segment held 65% of the market share in 2023, due to the high number of passenger vehicles on the road. As the main mode of transportation for individuals and families, passenger cars often need roadside assistance for breakdowns, accidents, and other issues. Additionally, the increased use of personal vehicles for daily commutes after the COVID-19 pandemic has raised the demand for roadside assistance services.
 

Consumers now prioritize safety and convenience, leading them to invest more in roadside assistance plans. The competitive landscape of the automotive industry also supports the growth of this segment. Many automotive manufacturers and insurance companies offer roadside assistance services with new vehicle purchases or as part of insurance policies, making these services more accessible to a wider customer base. 
 

U.K. vehicle roadside assistance market accounted for 30% of the revenue share in 2023. The UK has a strong network of automotive services and high demand for roadside assistance. This is due to the high number of vehicles, leading to more breakdowns and the need for quick help. Many automotive clubs and insurance companies offer reliable roadside assistance programs. Established companies such as AA and RAC have built strong reputations and extensive service networks, strengthening the market. Additionally, UK regulations on vehicle safety and insurance make roadside assistance essential for vehicle owners.
 

In North America, the roadside assistance market is driven by high vehicle ownership and a focus on consumer protection and convenience. Many comprehensive automotive insurance plans include roadside assistance, boosting market growth. Companies such as AAA and Allstate provide extensive services, increasing customer loyalty and market reach. Technology, such as mobile apps and GPS, improves response times and service efficiency, enhancing consumer trust in roadside assistance programs.
 

The Asia-Pacific (APAC) region is seeing rapid growth in the vehicle roadside assistance market due to more vehicles and urbanization. Countries such as China and India are experiencing a rise in vehicle sales, increasing the demand for roadside services. As the automotive industry grows, the need for reliable support systems becomes more important. Improvements in telecommunications and smart technologies are making roadside assistance more efficient. The growing middle class in APAC countries is also more likely to invest in services like roadside assistance, driving market growth.
 

Vehicle Roadside Assistance Market Share

The vehicle roadside assistance industry includes a variety of competitors, with major companies like GEICO, AA PLC, Agero, Allstate Insurance, American Automobile Association, ARC, and Liberty Mutual Insurance leading the way. In 2023, these companies held a significant 40% market share.
 

Brands such as GEICO and AAA are well-known for their long history in the insurance and automotive assistance sectors. Their reliable services build consumer trust, making them popular choices for roadside assistance. These companies offer more than just basic roadside help; they also provide insurance coverage, vehicle maintenance, and travel planning services.
 

Vehicle Roadside Assistance Market Companies

Major players operating in the vehicle roadside assistance industry are:

• AA PLC
• Agero
• Allstate Insurance
• American Automobile Association
• ARC
• GEICO
• Liberty Mutual Insurance
• MAPFRE-ASISTENCIA
• National General Motor Club
• Nissan Motor
   

Vehicle Roadside Assistance Industry News

• In May 2024, The Automobile Association (AA) launched fully electric recovery vehicles to improve roadside assistance. This step aims to reduce carbon emissions in the automotive recovery sector and supports the UK's electrification and net-zero goals.
   
• In December 2023, AAA partnered with Apple to offer satellite-based roadside assistance for iPhone 15 and iPhone 14 users, even in areas without cellular service. Using Apple's satellite system, users can contact AAA after completing a brief questionnaire for real-time help.
   

The vehicle roadside assistance market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2021 to 2032, for the following segments:

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Market, By Service

• Towing
• Tire replacement
• Fuel delivery
• Lockout/replacement key service
• Battery assistance
• Others

Market, By Vehicle

• Passenger cars
  • Towing
  • Tire replacement
  • Fuel delivery
  • Lockout/replacement key service
  • Battery assistance
  • Others
• Commercial vehicles
  • Towing
  • Tire replacement
  • Fuel delivery
  • Lockout/replacement key service
  • Battery assistance
  • Others

Market, By Provider

• Motor insurance
• Auto manufacturer
• Automotive clubs
• Independent warranty providers

Market, By Service Channel

• OEM networks
• Insurance company networks
• Independent providers
• Third-party service providers

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

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