Why Roadside Assistance is in Demand
With the increased usage of cars and trucks, there is a greater demand for roadside assistance services. This is especially true for drivers and passengers, who will need to take the help of professionals if they face a breakdown or accident on the roads. Luckily, many companies have started offering this service.
Passenger vehicles are the largest segment of the global roadside assistance market. They are primarily used for transportation and are comparatively cheaper than commercial vehicles. Besides, flatbed towing Prattville AL is also equipped with a variety of warranty coverage and motor insurance add-ons.
The rising disposable income of people across the world is increasing the number of passenger vehicle owners, which in turn is increasing the demand for vehicle roadside assistance. This demand for roadside assistance services is driven by the rise in the miles traveled by vehicles. In addition, increasing the use of smartphones and e-commerce has also contributed to the growth of this industry.
Different vendors provide various roadside assistance solutions to meet the needs of the drivers in case of any unforeseen event. For instance, Hyundai Motor India offers free service to customers and provides 24/7 roadside assistance.
Increased number of on-road vehicles
The vehicle roadside assistance market has become a major driving factor for many auto manufacturers. This is mainly due to the rise in transportation activities and demand for automotive connectivity solutions.
The roadside assistance market is fragmented and includes different vehicle types, services, and region segments. However, the passenger vehicles segment will remain the most significant contributor until 2026. As a result, passenger cars are expected to grow at a CAGR of 3.9% from 2021 to 2028.
Increasing sales of new-generation connected automobiles will positively influence the segment’s growth. Moreover, the rising number of road crashes will further boost the market in years to come.
Innovations in service features will also drive the market. For instance, the vehicle roadside assistance market has been bolstered by innovations like the roadside assistance mobile app, Firestone Direct, and other solutions.
The COVID-19 pandemic has impacted the roadside assistance industry. It is no secret that towing and roadside service providers are essential in our daily routines. However, a significant challenge is to maintain a level of hygiene while dealing with such a novel virus.
While a new coronavirus is not the end of the world, it can cause a spike in commercial insurance premiums. In addition, it can lead to more complex rescue calls. Fortunately, there are a few things that can be done to limit the spread of the virus. These include leveraging vehicle data, cleaning up before every job, and keeping a reasonable distance between the vehicle and the stranded motorist.
This is a tricky proposition, as it is only sometimes feasible to remain on the road when a breakdown occurs. However, the good news is that roadside assistance providers are taking extra precautions to protect themselves and the customer.
Upgradation of existing roadside assistance services
The global vehicle roadside assistance industry is expected to grow at a modest CAGR of five percent over the next five years. This is due to the rising number of technological innovations aimed at enhancing the functionality of vehicles. These include autonomous systems, electric and hybrid cars, and telematics devices.
The advent of the internet also aids the market. Many leading players are innovating daily. Among the many new technologies being rolled out, the introduction of mobile device-based services paves the way for customers to connect with service representatives without the need to go to a garage or office.
The upgradation of the existing roadside assistance services is another factor expected to bolster the market. This is mainly attributed to the fact that automobile companies are increasingly focusing on developing autonomous cars. In addition, the market is witnessing an increasing number of accidents, which in turn is generating the need for better emergency and towing services.
Drivers of the global vehicle roadside assistance market
The global vehicle roadside assistance market is anticipated to grow at a CAGR of nearly four percent from 2021 to 2028. The increase in the demand for vehicles and auto warranties mainly drives this ore; consumers are now looking out for roadside assistance options to ensure that their vehicles are in safe hands.
In addition, the rise in the per capita income is also expected to propel the market. As a result, passenger vehicles are expected to account for a significant share of the overall market and are projected to grow significantly over the next five years.
However, the economic crisis has slowed down the market. Moreover, infrastructural issues in remote areas significantly restrain the growth of the global vehicle roadside assistance market.