Rising Automobile Demand
With the prominent rise in the automotive sector and aging of the vehicles that can more easily experience a breakdown on the roads. The rising incorporation of technologies such as artificial intelligence, accurate GPS systems and in-build vehicle monitoring systems have enabled drivers to get the necessary assistance in minimum period of time. The application-driven services have minimized the response period of vehicle roadside assistance service.
Moreover, reduction in vehicle loan interest rates along with increase in per capita income of consumers are some of the factors driving vehicle sales and production which results in higher roadside assistance solutions.
Government has made it mandatory for non-government organizations to provide vehicle roadside assistance solution to the vehicle owners or drivers. Additionally, cold weather, snowy, and icy terrain or slopes have led to road fatalities in many countries. This has led to government bodies taking measures such as offering vehicle roadside assistance to drivers in tough environmental conditions and other emergencies such as flat tire, lock down and engine knocking.
The high cost associated with connected roadside assistance solutions during the pay per use service act as the key factor due to labor and service charge rates. All services are offered by the service provider in terms of membership plan. Also, limited geographical coverage by the service providers also limit the adoption of connected roadside assistance solutions.
The connected roadside assistance solution market is anticipated to record a CAGR of 18.2% over the forecast period i.e. 2019-2027. The market is segmented by mechanic service into auto manufacturer, motor insurance and independent warranty out of which auto manufacturer is anticipated to hold the major share. The market is segmented on the basis of service type into towing, tire replacement and fuel delivery industry and on the basis of vehicles into personal vehicle and commercial vehicle out of which personal vehicle is anticipated to capture a high demand due to rising number of people purchasing vehicles for personal use.
Currently, the connected roadside solution market is observing vibrant growth owing to increasing demand for emergency assistance at different locations, highly advanced services are adopted to reduce the time taken by assistance team to reach the location and get vehicle to service center if major fault is discovered.
The connected roadside assistance solution market is booming on the back of growing automotive industry which is further enabling the rise of the demand for assistance for various vehicles for situations such as flat tire, out of fuel, dead battery or lockdown.
Our-in depth analysis of the Connected Roadside Assistance Solution market includes the following segments:
By Mechanic Service
By Service Type
On the basis of regional analysis, the connected roadside assistance solution market is segmented into five major regions i.e. North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is panned to observe a substantial growth in the market on the back of high economy, high spending on technology upgrade. Various organizations of advanced roadside assistance are adopting artificial intelligence for the better results like increased efficiency, accuracy, system analysis, greater area coverage, auto detection and faster response, etc.
North America is expected to be followed by Asia pacific due to increase in population and rising spending by developing economies like China and India are resulting in advancements in various sectors and upgrading to latest technologies.
Europe is anticipated to have the hike in market because of cold weather, certain regulations from government as it was mandated for every vehicle to have road assistance insurance.
The connected roadside assistance solution market is further classified on the basis of region as follows:
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• Roadside Masters
• Allstate Insurance Company
• Best Roadside Service
• Roadside Masters
• Chubb Limited
• Auto Vantage
• Better World Club
• TVS Auto Assist India Limited
• Access Roadside Assistance
• National General Insurance
• Allianz Worldwide Partners
• Paragon Motor Club
• Good Sam Enterprise
• Arabian Automobile Association
• Other prominent players
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.