Global Vehicle Roadside Assistance Market is projected to witness a CAGR of 5.04% during the forecast period 2024-2032, growing from USD 30.11 billion in 2024 to USD 44.63 billion in 2032. The market has experienced growth in recent years and is expected to maintain a steady expansion in the coming years owing to rising vehicle ownership, increasing awareness regarding vehicle maintenance, and technological advancement.
Roadside assistance plays an important role in providing safety and convenience to drivers by ensuring timely help in case of vehicle breakdown, accident, or any other service. This service offers minimum downtime, enhances customer satisfaction, and improves vehicle longevity by addressing issues promptly, driving the global vehicle roadside assistance market growth in the forecast period.
The roadside assistance market is experiencing growth with the development of technology. The rise in artificial intelligence and telematics has transformed the industry, making service more efficient and responsive. AI-driven systems can predict potential vehicle issues, offer real-time diagnostics, and facilitate proactive service dispatch, which significantly minimizes response times and improves the quality of service. As awareness towards energy efficiency and sustainable practices is gaining importance, the industry is showing increasing focus on aspects of the same in operations. Companies are adopting eco-friendly vehicles for service dispatch, optimizing routes to reduce fuel consumption, and incorporating energy-saving technologies, thereby reducing their environmental footprint while cutting costs. Sustainable practices have become increasingly important due to stricter environmental regulations and consumer demand for green solutions.
In addition, the market attracts new entrants who want to seize on the increased demand for highly dependable and efficient services. New entrants use the latest technological developments to offer innovative competitive solutions with applications like AI-driven systems, real-time diagnostics, and connected vehicle technologies. Their entry into the market is driven by the increasing number of vehicles on the road, rising consumer expectations for swift and dependable assistance, and the potential for significant growth in this expanding industry.
For instance, in November 2024, Service Easy Technology Private Limited (GoMechanic) launched a new roadside assistance service called Top Assist, aimed at providing comprehensive support for vehicle owners across India. This service is designed to enhance the convenience and safety of drivers by helping in various situations.
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Technological Advancements Drive Roadside Assistance Market Demand
The emerging innovation in technology is pushing the efficacy of roadside assistance to become even more efficient and effective. It has changed industry in a very significant way by integrating AI and connected vehicle technologies. Predictive maintenance, real-time diagnostics, proactive service dispatch, limiting response time, and improving quality are made easy by AI-driven systems. Furthermore, connected vehicle technology provides seamless communication between vehicle and roadside assistance providers. Vehicle-to-everything (V2X) communication allows the sharing of important information between the roadside assistance provider and the vehicle. This ensures a faster resolution of any failure and increases the efficiency of the vehicle. The development in technology by the market players is expected to improve roadside assistance even more, and faster support is to be anticipated in case of an emergency. For example, in September 2023, the American Automobile Association, Inc. partnered with Apple Inc. to provide roadside assistance via satellite for iPhone 14 and iPhone 15 customers. It aids those customers who are left stranded without cell phone coverage.
Insurance and Warranty Bundles Fueling the Vehicle Roadside Assistance Market Growth
Roadside assistance services provided in the insurance and warranty packages have helped the market grow enormously. Many insurers and automobile manufacturers provide roadside assistance as an additional or free-of-charge add-on service for their policyholders and customers. This will give added value but also ensure that there will be no inconvenience to the car owner. This creates a comprehensive solution that addresses various aspects of vehicle ownership, proposing the demand for roadside assistance across the globe. Also, by integrating roadside assistance into insurance policies or warranty packages, providers enhance customer convenience and satisfaction, making these services more accessible and appealing. In addition, partnerships between roadside assistance providers and insurance companies have made it easier to develop service packages that cater to specific customer needs and preferences.
For instance, in May 2023, The Progressive Group of Insurance Companies introduced a new Heavy Truck Roadside Assistance (HT RSA) coverage option for its commercial auto policyholders, aimed at enhancing support for truckers on the road.
Towing Service Segment Shows Dominance in the Market
Towing services dominate the roadside assistance sector due to their significant role in a wide scale of vehicle disorders. Towing is inevitable in certain situations where on-the-spot repairs will not be feasible, such as major mechanical malfunctions, an accident, or when a car is stuck in inaccessible locations. This wide applicability makes towing often the first source of help for many drivers affected by emergencies. The growing complexity of modern vehicles further fuels the dominance of towing. Advanced automotive technologies and electric vehicles create many issues that require specialized equipment and expertise that can only be addressed at a repair facility. Towing ensures that vehicles are safely transported to these facilities, where comprehensive diagnostics and repairs can be performed. Companies are integrating advanced software to foster trust, streamline communication and improve customer experience in the industry.
For instance, in December 2024, Dispatch Wrecker Service launched VERT, an innovative software to offer real-time vehicle tracking, improved communication throughout the towing process and enhanced operational efficiency.
Europe Dominates Vehicle Roadside Assistance Market Share
Europe holds a dominant share of the vehicle roadside assistance market due to several reasons including well-developed infrastructure for roadside assistance, supported by a dense road network and highways. European customers also prefer premium and luxury vehicles that tend to be accompanied by roadside assistance packages, which boosts market growth. Moreover, Europe has a strong economy and a high per capita, with people readily adopting roadside assistance services. The region houses several major automobile manufacturers and insurance companies that provide wide-ranging roadside assistance as part of their service packages. This creates harmony between the automotive and insurance industries in ensuring that the customers are treated with an efficient and timely process. Telematics and connected vehicles are also critical factors, these innovations improve the efficiency of service dispatches and the general experience of customers. Furthermore, tight safety measures and a strong customer satisfaction culture also promote the higher use of roadside assistance services in Europe.
For example, in June 2023, Stellantis Europe S.p.A. awarded a five-year roadside assistance contract to RAC Limited, enhancing support for its customers across multiple brands in the United Kingdom and the Republic of Ireland.
Future Market Scenario (2025 – 2032F)
- The growing adoption of autonomous and connected cars is anticipated to create lucrative opportunities for vehicle roadside assistance market growth.
- The adoption of AI, GPS, telematics, and IoT enhances service efficiency and customer satisfaction, expected to lead to market expansion.
- Collaborations and new technologies are expected to foster competitive growth and expand the roadside assistance market.
- Rising vehicle ownership and growing awareness regarding comprehensive vehicle maintenance are expected to drive market growth during the forecasted period.
Report Scope
“Vehicle Roadside Assistance Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global vehicle roadside assistance market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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The testimonials included in the report by Esticast Research and Consulting involves a highly qualified team of experts who work rigorously to collect the data and reveal the real scenario of the Vehicle Roadside Assistance market.About Vehicle Roadside Assistance MarketThe Global Vehicle Roadside Assistance market is expected to attain a CAGR of 4.2% during the forecast period.
However, the higher cost of vehicle roadside assistance service during the pay per use service may act as a major hindrance for the market growth.
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The article below explains about the reasons for the growing popularity of a towing service app and goes on to explain the integrations available in a hit towing service app that makes it a hit among users as well as a must have for the roadside assistance industry.
