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Essential Auto Service Industry Trends


Technological advancement has seen high-end disruptions in the auto service industry. And with these new innovations, auto service providers have better tools for automobile repair and maintenance. 

With auto service repair providers embracing innovations in the vehicle industry to meet their clients needs, there is great potential for market growth in the auto industry. Read on for insights into the key trends and how to capitalize on them!

Table of Contents
Market growth for the auto service and repair industry
Innovations in the auto service industry
Must-have products in auto service and repair
The road ahead

Market growth in the auto service and repair industry

The auto service industry took an upward trend in 2022 as more vehicles increased their mileage. The auto service global market size was US$ 685.25 billion in 2021. Market analysts have projected a 5% compound annual growth rate (CAGR) between 2022 and 2028.

Many factors have led to auto service and repair market growth. Among them are increased used car sales and improved living standards. Many rural areas are also experiencing urbanization which improves roads and creates a favorable driving environment. 

Demand for auto service and repair will continue growing as governments regulate used car disposal. Furthermore, improved standards of living among the middle and lower class leads to more second hand vehicles that require regular servicing and repair.

Innovations in the auto service industry

Digitization has brought advanced car parts for improved driving

Battery electric vehicles

an electric car parked by the roadside

Environmental pollution from fuel powered vehicles is a global concern. To curb this effect, motorists are opting for battery electric vehicles (BEVs). Electric vehicles come with rechargeable battery packs. They don’t have gas engines and are therefore zero emission vehicles. 

The battery electric vehicle and its lighting system parts’ market demand is growing, although service providers have to embrace digitization. In addition, there is a need for skill upgrades in the service and repair market to meet the technical skills required for vehicle maintenance.

BEVs require regular maintenance and the replacement of certain parts such as power inverters, charge ports, and electric motors and battery packs. In addition to repair services, knowledge and skills on handling these parts is necessary for the current market. 

Advanced driver assistance systems (ADAS)

Advanced driver assistance systems are slowly penetrating the auto market, and with a CAGR of 10.2% from 2022 to 2028, the auto service demand will grow alongside them. 

Currently manually operated vehicles are leading in the global market size of vehicles, and the number of automatic car owners remains low. However, the adoption of ADAS parts is growing significantly. For example, car sensors and other ADAS parts are used widely in a range of auto vehicles, and therefore there is growing need for their repair and maintenance services.

It may take long time for the repair service providers to enjoy high profit margins from ADAS, but embracing the new developments and stocking the latest models is a step forward. 

Original equipment manufacturer (OEM) control

Innovation causes change in vehicle repair requirements

Vehicles are seeing a shift towards more software control. This poses a challenge as to whether repair and auto service providers will remain relevant in the future. So in order to stay ahead, service providers may have to shift towards greater software service provision. 

Although the number of repair cases decrease as vehicle parts get digital, motorists require training and installation services. Auto businesses can therefore remain relevant by offering OEM control training and installation of software. 

Must-have products in auto service and repair

Auto service tools improve efficiency

Auto service and repair businesses need tools for efficient service delivery to clients. These tools make work easier and enable them to track their progress. Must-have tools include the following:

  • Digital tools. They include auto software which helps service providers to inspect the state of a vehicle and detect any faults. They also track information about the vehicle maintenance record for appropriate action during repair. Customer relationship management, timers and accounting software are among the must have digital tools for auto service providers.
  • Remote access. Auto service and repair providers need tools to enable them to track data from vehicles remotely. This comes in handy when detecting problems in a vehicle on the road. Remote access helps in prompt service delivery and making the correct diagnosis. For example, a technician can use an augmented reality headset to detect faulty car parts.
  • One stop service for all vehicle needs. Service providers with different vehicle parts under one roof have a competitive advantage in the auto service and repair market. In addition to saving customers’ time, it is easier to track vehicle performance. This also helps them to earn customers’ trust.
  • Bespoke. Vehicle owners have different needs in the design and ADAS parts. Auto service providers should have the skills and equipment to meet all customers requirements and modify the car to their desire. For example, service providers need driver assistance parts, materials for body repair and paints. 
  • Scheduled timing. A vehicle maintenance schedule is crucial for efficient functioning. Auto repair providers should create a time schedule for their customers’ vehicle service. Other tools like timers can help them track the time and remind car owners of their next visit. 

The road ahead

The road ahead for auto service and repair is positive. Many factors are contributing to the growing number of vehicle owners leading to high demand for maintenance and repair services. With urbanization, better infrastructure and improved living standards, the auto industry is set to expand. 

However, auto businesses have to embrace technology. Training staff on emerging trends, the latest vehicle part models, and new software are therefore essential to help providers stay ahead. 

With customers’ varying preferences, there is no one-size-fits-all. This means that stocking different vehicle parts and software is a good way to increase one’s customer base. It also helps in meeting varying customer needs and maintaining affordability.

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