30-Apr-2021 | Facts and Factors
As per the Facts and Factors research study, the vehicle roadside assistance market in the United States and Canada was valued at around USD 5,300 million in 2020, and it is projected to register revenue of about USD 6,632 million by the end of 2026, expanding at a CAGR of around 3.66% between 2021 and 2026.
When your car breaks down and you're stranded, emergency roadside assistance is an add-on coverage that comes to your rescue. It comes in handy when you have a flat tire, need to jump your car's battery, or run out of gas. Most businesses have phone operators on call 24 hours a day, seven days a week. Regardless of when or where you're trapped, a phone call will get help sent quickly. Even the newest cars are susceptible to common roadside issues such as, flat tires, dead batteries and lost keys, but vehicles more than 10 years older are four times more likely to experience a problem severe enough to necessitate a tow to repair centers. Car insurance providers allow you to report an emergency incident via SMS or phone call. Once the insurer has been contacted, a mechanic/patrol vehicle will be sent to the vehicle's location as soon as possible. The car will receive the required maintenance and will either be restarted or towed to a reputable garage. Some auto insurance providers have this cover as a standard feature of their comprehensive policy. Others sell it as an optional add-on insurance policy that the vehicle owner may choose to purchase.
When comparing roadside assistance insurance, the two most important factors to remember are what's covered and how much you'll pay. The cost of coverage under your current car insurance policy could range from USD 15 to USD 60 a year. A year's membership in a roadside assistance plan will cost anywhere from USD 50 to USD 360.
Top Market Players
Major players operative in the US and Canada vehicle roadside assistance market are Allstate, Intact Financial Corporation, AXA Assistance Canada, Access Roadside Assistance, Canadian Automobile Association (CAA), Mopar Canada, AutoVantage, American Automobile Association (AAA), Hyundai Canada, Better World Club, Encore Protectio, National Motor Club (NMC), Hagerty, BCAA, Lexus, Blink, Good Sam, Abrams Towing Services, Canadian Tire, belairdirect, Assistance Services Group, a SYKES company, Desjardins Roadside Assistance, Paragom Motorclub, Best Roadside Service, Roadside Masters, Expedite Towing, Road America, Agero, HONK, NationSafeDrivers, and Quest amongst others
The growth of the US and Canada vehicle roadside assistance market was primarily driven by an increase in the number of aging vehicles in the region. The average age of light vehicles in service (VIO) in the United States has risen to 11.2 years in 2019, according to the Bureau of Labor Statistics. When looking back over the last 15 years, this acceleration of average age is readily visible. The average age of light vehicles in the United States rose by 3.7 percent between 2004 and 2009. However, between 2010 and 2016, the rise was 11.6 percent. The average age rise has returned to its more conventional pace in the last five years, rising by 4% during that period. Improved technology and overall vehicle quality continue to be major factors in the increasing average vehicle age, owing to the recession's 40% decline in new vehicle sales, the average age has accelerated to levels never seen before. However, in the last few years, the average age has increased at a more conventional pace.
In the year 2020, the towing service had the largest revenue share in the US and Canada vehicle roadside assistance industry. The most common causes of towing service demand are breakdowns and collisions. According to the US Department of Transportation and the National Highway Traffic Safety Administration, there were 6,734,000 motor vehicle accidents in 2018. When it comes to emergency roadside assistance, towing is the most popular service. Furthermore, advances in towbar technology such as retractable, electric, and detachable towbars are expected to boost towing services during the forecast era.
US Is expected to Lead the Vehicle Roadside Assistance Market in Analysis Period
The vehicle roadside assistance market can be divided into two regions: U.S. and Canada. The combination of a large number of on-road vehicles and an aging vehicle fleet and increased the number of vehicle accidents, which has increased demand for roadside assistance services in the United States and Canada. The involvement of premium vehicle manufacturers and the availability of roadside assistance service providers drive the demand for roadside assistance in the United States. The rise in per capita income, improved living standards, customer preference for pricing, and increased sales of luxury vehicles are all driving the vehicle assistance market in Canada.
The heart of North America's largest vehicle-producing area, the Great Lakes automotive manufacturing cluster, is home to Canada's automotive industry. Canada is one of the top ten light vehicle manufacturers in the world. FCA, Ford, GM, Honda, and Toyota are the five global OEMs that assemble more than 2 million vehicles in Canada each year. Their plants are fueled by a thriving ecosystem of nearly 700 component suppliers, including local Tier 1 firms including Magna, Linamar, and Martinrea. One of the five machine-tool-die-and-mould (MTDM) manufacturing clusters in the world is located in Canada.
Browse the full “Vehicle Roadside Assistance Market by Service (Towing, Fuel Delivery, Jump Start/Pull Start, Lockout/ Replacement Key Services, Battery Assistance, Trip Routing/ Navigational Assistance, Winch, Tire Replacement, and Other Mechanic Services), Providers (Motor Insurance, Independent Warranty, Auto Manufacturer, Automotive Clubs), and by Vehicle Type (Commercial Vehicle, Passenger Vehicle): U.S. and Canada Industry Perspective, Comprehensive Analysis, and Forecast, 2020 – 2026” report at https://www.fnfresearch.com/vehicle-roadside-assistance-market.
The US and Canada vehicle roadside assistance market is segmented as follows:
By Vehicle Type:
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