Increasing Number, Age of Vehicles and Automotive Services Growth

Increasing Number, Age Of US Vehicles Drives Growth In Automotive Services, Report Shows

According to a report by The Freedonia Group, the number of light vehicles in use is expected to exceed 263 million in 2020, and many of these vehicles are approaching an age where costly repairs become more likely.

Revenues generated by U.S. automotive repair and maintenance service establishments are forecast to grow 2.2 percent annually to 2020, according to a report by Freedonia Focus Reports, a division of The Freedonia Group. The number of light vehicles in use is expected to exceed 263 million in 2020, and many of these vehicles are approaching an age where costly repairs become more likely.

Automotive repair and maintenance providers also stand to benefit from an ongoing consumer shift away from DIY services as technology loads in light vehicle systems become more complex. Demographic changes also contribute to this shift. The graying Baby Boom cohort is increasingly unable to repair their own vehicles, while younger generations tend to be less interested in doing so, despite a wealth of free repair instructions available through the internet.

These and other insights are featured in “Automotive Repair & Maintenance Services: United States,” available here. The report forecasts U.S. revenues of automotive repair and maintenance service establishments in U.S. dollars to 2020. Total revenues are segmented by establishment in terms of:

• General repair
• Body, paint and interior
• Car wash and detail
• Oil change and lubrication
• Glass
• Transmission
• Exhaust
• Other establishments such as brake, diagnostic and electrical repair providers

The report also forecasts employer establishments for automotive repair and maintenance services in unit terms.

To illustrate historical trends, total revenues and the various revenue and employer establishment segments are provided in an annual series from 2005 to 2015.

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