Countries covered: United States
The $124 billion automobile maintenance and repair market has grown 26% from 1998-2003 (11% at constant prices). The market has seen steady increases over the period due to strong car sales, longer commute times (and miles driven) and a growing preference for services through dealerships, who typically charge higher prices.
In 2003, excluding independent garages and gas stations, there are 43,000 car service outlets in the U.S., more than half of which are automobile dealerships. Specialty chains account for nearly one in three outlets, and general service chains nearly one in six. Of the three-dealerships, specialty chains and general service shops-specialty chains have shown the strongest growth in terms of number of outlets, increasing some 10% from 2001-2003, compared to a 2% increase in number of dealer outlets and 6% decrease in general service outlets. Growth is attributed to convenience of service, with the bulk of specialty chains focused on quick turnaround of vehicle maintenance.
As the number of cars on the road and miles driven in the U.S. continues to grow, understandably so will the market for maintenance and repair services, but the speed with which it grows and which outlet types will prosper will shift. A trend towards purchasing luxury cars will lead more vehicle owners to the dealership for service, inflating sales at a faster rate, while the speed of service and competitive prices of specialty chains will raise the volume of lower priced services rendered. Additionally, with the engines and systems of automobiles becoming more complex, fewer vehicle owners will be willing or able to handle more advanced maintenance and repair themselves.
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