Car service center is a place where vehicle owners bring their vehicles for regular maintenance and repair. A car service center holds certification to service cars from its manufacturer; therefore, it is known as an authorized car service center. Authorized car service centers either provide services for vehicles of a particular brand and have tie-ups with OEM car dealers or are a part of a franchisee. Authorized car service centers are large scale workshops with all diagnostic and servicing equipment available in-house.
The global authorized car service center market is projected to expand at a moderate pace during the forecast period owing to high trust of customers on authorized servicing centers and rise in the number of on-road vehicles globally. Most of the authorized service centers have well organized system to deal with customers, thus people prefer authorized car service centers over unauthorized service centers. However, low servicing and repair charges of unauthorized service centers are hampering the authorized service center market. Rise in emphasis on the adoption of electric vehicles globally by governments is anticipated to restrain the authorized car service centers market, as electric vehicles require lesser maintenance as compared to vehicles with internal combustion engines.
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The authorized car service center market can be segregated based on authorization, service, service provider, and region. In terms of authorization, the original equipment manufacturer (OEM) authorized service centers segment is anticipated to hold a major share of the global market. Most of the car dealers have their own authorized service centers along with independent OEM authorized service centers which do not have any tie-ups with car dealers; however, they provide services to vehicles of a particular brand.
Based on service, running repair service generates higher revenue than other services provided by service centers. Running repair services are costlier as compare to the other service, thus these generate higher revenue. Parts replacement and repair of powertrain and braking systems are major contributors to the repair services segment.
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Based on region, North America is a leading region, followed by Europe. However, the authorized car service center market in Asia Pacific is anticipated to expand at a rapid pace due to rise in the number of on-road vehicles, primarily in developing economies such as India. The authorized car service center market in China is anticipated to decline owing to restriction on vehicle production to reduce high traffic situations in the country.
Key players in the global authorized car service center market include Volkswagen AG, Robert Bosch GmbH, BMW AG, 3M CAR CARE, and Tilden International, Inc.
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