Vehicle Services Market, By Vehicle, By Service Model, By Type, By Service Provider, By Engine, By Country, and By Region – Global Industry Analysis, Market Size, Market Share & Forecast from 2025-2032

REPORT HIGHLIGHT

The Vehicle Services Market size was valued at US$ 978.67 Million in 2024, expanding at a CAGR of 4.2% from 2025 to 2032.
The Vehicle Services Market includes a diverse range of digital, maintenance, repair, connectivity, and value-added services that aim to improve vehicle performance, safety, convenience, and overall lifecycle management. The growing adoption of connected vehicles drives demand for telematics, remote diagnostics, and OTA (over-the-air) updates. The market is being shaped by a shift toward software-defined vehicles (SDVs), which allow for continuous feature upgrades and personalized in-car services. However, the market faces constraints such as data security and privacy concerns, as increased connectivity exposes vehicles to cyber threats. Despite this, a significant opportunity exists in the growing ecosystem of AI- and IoT-enabled predictive maintenance, subscription-based mobility services, and digital aftermarket solutions, which enable automakers and service providers to build recurring revenue models while increasing customer engagement.

Vehicle Services Market- Market Dynamics

Surge in Connected Vehicles Driving Growth in the Vehicle Services Market
The increase in connected vehicles is a significant driver of growth in the Vehicle Services Market. As consumers demand advanced safety, convenience, navigation, entertainment, and remote connectivity features, automakers are incorporating sophisticated communication technologies into their vehicles. These connected capabilities increase the demand for digital services like remote diagnostics, predictive maintenance, telematics-based assistance, over-the-air updates, and personalized in-vehicle experiences. According to the Australian Computer Society (August 2021), Australia currently has approximately one million connected cars, with a projected increase to ten million by 2030. This rapid adoption of connected vehicles is significantly increasing the demand for comprehensive vehicle services, thereby facilitating ongoing engagement between automakers and drivers.

Vehicle Services Market- Segmentation Analysis:

The worldwide market is segmented on the basis of Vehicle, Service Model, Type, Service Provider, Engine, and Region.
Based on the Engine. By 2034, the EV segment is expected to grow significantly, indicating that electric mobility will expand effectively. EV-as-a-service is rapidly evolving, with over 17 million global EV sales projected for 2024 and fleet electrification growing at a 25% annual rate. VaaS providers absorb the high initial costs of EV ownership and spread them out through subscription and pay-per-drive models, making EV flexibility more accessible to consumers and lowering the financial barriers to entering the EV ecosystem.
Based on the Service Model, the subscription-based vehicle service segment controls the market due to its flexibility, bundling options, and commitment-free access to vehicles. Subscription-based Vehicle-as-a-Service (VaaS) models appeal to consumers looking for convenience, whereas pay-per-use services cater to occasional users through dynamic, demand-driven pricing. Mobility-as-a-Service (MaaS) platforms fortify this segment by combining VaaS with public transit and micromobility to enable unified payments and seamless multimodal travel. For instance, in November 2024, Zoomcar will launch long-term subscription services in major Indian cities, providing seven-day minimum access as well as insurance, maintenance, and 24/7 roadside assistance, reflecting rising consumer demand for flexible, ownership-free mobility solutions.

Vehicle Services Market- Geographical Insights

The North American Vehicle Services Market is significant, driven by a variety of factors including the region's robust aftermarket industry and technological advancements in automotive service solutions. The presence of major automotive manufacturers, service providers, and aftermarket suppliers in North America helps to maintain the region's market dominance. Furthermore, favorable economic conditions, high disposable incomes, and a strong automotive culture drive demand for automotive services in the region. North America's dominant position in automotive innovation and technology adoption makes it an important market for advanced automotive service offerings such as digitalization, connected vehicle solutions, and electric vehicle services.

United States Vehicle Services Market- Country Insights

The US Vehicle Services Market is steadily expanding, fueled by strong digital adoption, rising connected vehicle penetration, and rising consumer demand for flexible, tech-enabled mobility solutions. The country's mature automotive ecosystem, combined with rising acceptance of subscription-based mobility, online vehicle transactions, remote diagnostics, and predictive maintenance services, is driving market growth. Automakers and digital platforms are improving service delivery by utilizing advanced telematics, cloud analytics, and personalized vehicle solutions. For instance, in November 2024, Volkswagen’s launch of VW Flex in Atlanta, which will provide month-to-month vehicle access with insurance, maintenance, and roadside assistance, positioning the United States as a test bed for Vehicle-as-a-Service. Furthermore, TrueCar's acquisition of Digital Motors in June 2022 expanded the company's digital retailing capabilities, highlighting the U.S. market's shift toward integrated, seamless vehicle service and purchasing experiences.

Vehicle Services Market- Competitive Landscape:

The global automotive services market study will provide valuable insights, focusing on the industry's fragmentation. Major players are focusing on a few strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to broaden their product portfolio and increase market share in various regions. Companies in this sector have adopted major strategic initiatives such as expansion and investment. Industry players are making significant investments in research and development, new manufacturing facilities, and supply chain optimization. In January 2024, Safelite Group acquired Thompson Auto Glass to expand its geographical presence and customer base by offering customers vehicle glass repair services.

Recent Developments:

In May 2024, DigniFi announced collaborations with Encina Lender Finance (which provided a USD 150 million credit facility) and Brigade Capital Management. This combined USD 175 million investment will allow DigniFi to expand its automotive services and reach a larger customer base in the auto repair financing market.
In December 2023, MEKO implemented strategic operational enhancements in Norway to increase efficiency and improve service standards. This initiative aimed to streamline processes, increase productivity, and provide excellent customer service in all operational areas.

SCOPE OF THE REPORT

The scope of this report covers the market by its major segments, which include as follows:

GLOBAL VEHICLE SERVICES MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS

ADNOC
Belron International Ltd.
Bosch Car Service
com Inc
Toyota Motor Corporation
Bavarian Motor Work AG
Borrow
CarNext B.V.,
Hance’s European
M&M Auto Repair
Mekonomen Group
Safelite Group
Mobivia Groupe
My TVS
Nippon Express Co
Sun Auto Service
USA Automotive
Inter Cars
LKQ Corporation
Wrench, Inc.
Others

GLOBAL VEHICLE SERVICES MARKET, BY VEHICLE- MARKET ANALYSIS, 2019 - 2032

Two-wheelers
Specialty & utility vehicles
Passenger cars
Hatchback
Sedan
SUV
Commercial vehicles
LCV
MCV
HCV

GLOBAL VEHICLE SERVICES MARKET, BY SERVICE MODEL- MARKET ANALYSIS, 2019 - 2032

Subscription-based vehicle service
EV-as-a-service
Pay-per-use / usage-based vehicle service
Fleet-as-a-service (FaaS)
Integrated mobility-as-a-service (MaaS) add-ons

GLOBAL VEHICLE SERVICES MARKET, BY TYPE- MARKET ANALYSIS, 2019 - 2032

Maintenance Services
Exterior & Structural
Mechanical

GLOBAL VEHICLE SERVICES MARKET, BY SERVICE PROVIDER- MARKET ANALYSIS, 2019 - 2032

Automotive OEMs
Auto-tech startups & mobility companies
Car subscription software providers / platform providers
Auto dealerships / dealer groups
Leasing & financial services companies

GLOBAL VEHICLE SERVICES MARKET, BY ENGINE- MARKET ANALYSIS, 2019 - 2032

Electric vehicles (EVs)
Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Internal combustion engine (ICE) vehicles
Gasoline
Diesel

GLOBAL VEHICLE SERVICES MARKET, BY REGION- MARKET ANALYSIS, 2019 - 2032

North America
U.S.
Canada
Europe
Germany
UK
France
Italy
Spain
The Netherlands
Sweden
Russia
Poland
Rest of Europe
Asia Pacific
China
India
Japan
South Korea
Australia
Indonesia
Thailand
Philippines
Rest of APAC
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of LATAM
The Middle East and Africa
Saudi Arabia
UAE
Israel
Turkey
Algeria
Egypt
Rest of MEA Show more