Market Overview
Vehicle roadside assistance provides on-site assistance to stranded drivers in case of an automotive breakdown or accident. These services include but are not limited to tire changing, fuel delivery, jumpstarts, lockout services, and towing. The rising number of vehicles on the road coupled with lengthening commutes has increased the requirement for reliable roadside assistance.

The vehicle roadside assistance market is estimated to be valued at US$ 25.76 Bn in 2024 and is expected to reach US$ 36.82 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

Key Takeaways

Key players operating in the Vehicle Roadside Assistance Market Growth are Agero Inc., ALD SA, Allianz SE, American Automobile Association Inc., ARC Europe SA, AutoVantage, Best Roadside Service, Camping World Holdings Inc., Falck Danmark AS, Assicurazioni Generali S.p.A., Honk Technologies Inc., Paragon Motor Club Inc., Prime Assistance Inc., RAC Group Holdings Ltd., Roda Assistance Pvt. Ltd., Sompo Holdings Inc., SOS International AS, The Allstate Corp., and Uber Technologies Inc. The increasing motorization worldwide along with growing middle-class population with high disposable income has increased the requirement for roadside assistance, driving the market growth. Major players in the market are focusing on expanding their geographical presence by opening new service centers or acquiring regional players to leverage the opportunities posed by emerging economies.

Growing demand and increased spending power has propelled the global vehicle roadside assistance market. According to various studies and statistics, over the last decade, the number of vehicles on road has doubled across developing nations. This, coupled with rising road accidents and breakdowns has augmented the need for professional roadside assistance services. Furthermore, increasing consumer awareness about benefits of vehicle roadside assistance plans is also driving their adoption rates.

The proliferation of connected cars technologies providing new opportunities for roadside assistance providers to offer advanced features through partnerships with automakers. Major players are focusing on strengthening their digital presence by launching mobile applications, implementing AI, big data and IoT for improving response times and services. For example, new car telematics allow direct communication between customers and roadside assistance response teams, enabling immediate dispatch at the push of a button by stranded drivers.

Market drivers
The rising motorization is one of the key drivers of vehicle roadside assistance market. According to various reports, the number of vehicles on road globally is anticipated to surpass 2 billion units by 2035 from the current level of ~1.4 billion units. Developing regions in Asia Pacific and Latin America are witnessing massive increase in passenger vehicle sales which is propelling the requirement for vehicle roadside assistance services. Other major drivers include rising road infrastructure which is increasing average commuting distances and time spent on road, thereby elevating chances of breakdowns and accidents.

Geopolitical environment is having a complex impact on the growth of vehicle roadside assistance market across regions. The ongoing Russia-Ukraine conflict has severely disrupted supply chains in Europe due to sanctions imposed by Western nations. Rising fuel costs and shortage of spare parts is affecting roadside service providers in delivering timely assistance to customers. However, increased instances of vehicle breakdowns due to aging fleets presents new opportunities.

North America represents the largest market for vehicle roadside assistance in terms of value currently. This is due to high vehicle ownership and usage in countries like the United States. Europe is another major region concentrated with market players serving a large customer base. However, disruptions caused by the ongoing war may slow down growth temporarily in Eastern European nations.

Asia Pacific is projected to emerge as the fastest growing regional market during the forecast period from 2024 to 2031. Countries like China, India and Indonesia are witnessing rapid motorization alongside rising per capita incomes. This is prompting more consumers to opt for roadside coverage alongside new vehicle purchases and insurance policies. Penetration rates remain relatively lower currently compared to developed markets, indicating substantial headroom for expansion.

The United States accounts for the bulk of the North American vehicle roadside assistance market in terms of revenue currently. This can be attributed to extensive road networks spanning millions of miles and high levels of personal vehicle usage nationwide. Most Americans rely on personal vehicles for daily commute and work needs. This makes reliable roadside coverage critical.

China has been one of the fastest growing markets for vehicle roadside assistance in Asia Pacific in recent years. Factors such as sustained economic growth, urbanization, expansion of road infrastructure and rising private vehicle ownership have boosted demand. Government initiatives to modernize transportation systems also augur well for market players targeting the Chinese market.

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