Industry Overview
The global car towing service market is expected to witness a CAGR of 4.8% during the forecast period. The growth of this market is attributed to the increasing manufacturing of automobiles across the globe, increasing disposable income of the people along with the improved standard of living.
Towing of the vehicle is a process in which there are two or more connected vehicles that are pulled by a power source. These vehicles can be joined by a chain, rope and hitch to keep them connected to each other while in motion. The disabled, impounded, indisposed or wrongly parked vehicles are moved by the tow truck. These tow trucks are of three categories, first the small trailers that are used to tow a vehicle of size up to an SUV and minivan. The towing capacity is a measure of the upper limit of the weight the towing vehicle can tow; this is measured in pounds or kilograms.
Additionally, people are feeling the need to travel in comfort, and thus with increased disposable income, there is an escalation in the use of personal vehicles rather than carpooling, or use of public transport. Furthermore, there is an increase in the rendering of rental car services for those who do not own a personal vehicle but rent one. This has led to an increase in the need for roadside assistance for individuals, towing vehicles are needed by the transport authorities to tow those cars that are wrongly parked and the vehicles that are in disposable conditions also need to be towed further escalating the growth of global car towing service market.
Market Segmentation
Insight by Tow Vehicle Type
Based on tow vehicle type, the car towing service market is subdivided into integrated tow trucks, wheel lift tow trucks, flatbed tow trucks, and hook and chain tow trucks. The flatbed tow truck segment is projected to witness the highest CAGR during the forecast period as among the service providers these are the most popular. These tow trucks provide the lowest risk of towing a vehicle as once the vehicle is secured on the flatbed the vehicle can be transported without any further damage.
Insight by Service Provider
On the basis of service providers, the global car towing service market is subdivided into motor insurers, automotive clubs, auto manufacturers, and independent warranty providers. Amongst these segments, the motor insurer segment is expected to witness the highest CAGR during the forecast period. Due to the requirement of insurance companies for towing vehicles and auto manufacturers who provide roadside assistance, they tend to grow during the forecast period. Furthermore, the involvement of the Internet of Things in this segment has allowed roadside assistance to respond faster, which makes the service more efficient.
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Report Metric
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Details
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Market Size Available for the Years in the Study
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2018–2030
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Historical Period
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2018–2022
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Base Year
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2022
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Forecast Period
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2023–2030
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Segments Covered in the Study
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Tow Vehicle Type, Service Provider, and Region
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Geographies Covered in the Study
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North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia), Asia-Pacific (China, Japan, India, South Korea), and Rest of the World (Brazil, Saudi Arabia, South Africa, U.A.E.)
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Companies Covered in the Study
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AA PLC, RAC Motoring Services, Falck Danmark A/S, Allianz Partners SAS, Access Roadside Assistance, Agero Inc, National General Insurance, SOS International, ARC EUROPE SA, Viking Assistance Group, and THE ALLSTATE CORPORATION
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Industry Dynamics
Growth Drivers
Technological advancements such as the Internet of Things, and improved lifestyles along with increasing emphasis by key players to upgrade new features in the car are the key factors driving the growth of the global car towing service market. The automotive industry is bringing in new features in the cars to provide more safety to customers. One such feature is the provision of the integrated telematics system that provides information about the vehicle such as vehicle movements, location, faults and failures to the manufacturer or to the third party such as the insurance providers. This is helping the roadside assistance to be more efficient and quick in responding which is further strengthening the growth of the global car towing service market throughout the forecast period.
Challenges
However, increasing dissemination of advanced driver-assistance systems (ADAS) and other upgraded features in passenger vehicles are the key factors anticipated to hamper the growth of the global car towing service market.
Geographic Overview
Geographically, the car towing service market in Europe is anticipated to generate the largest revenue by 2030. The growth of this market is attributed to the presence of key automobile manufacturers in the region that are rampantly emphasizing their efforts toward product development.
Moreover, Asia-Pacific is expected to witness the highest CAGR during the forecast period due to the large population and increasing disposable income of the population which provides a large market base to the automobile industry. Furthermore, the extensive utilization of commercial and personal vehicles enhances the chances of accidents and breakdowns. As a result to which these insurance service providers also provide roadside assistance thereby significantly contributing towards the growth of the car towing service market in Asia-Pacific.
Competitive Insight
Key players operating in the car towing service market are emphasizing their efforts upon strategic acquisitions in order to strengthen capabilities of research & development that support them in providing innovative solutions to the users and thus gain a competitive advantage.
Some of the major players operating in the global car towing service market include AA PLC, RAC Motoring Services, Falck Danmark A/S, Allianz Partners SAS, Access Roadside Assistance, Agero Inc, National General Insurance, SOS International, ARC EUROPE SA, Viking Assistance Group, and THE ALLSTATE CORPORATION.
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising consumers are also conducted to understand consumer behavior.
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Source: VynZ Research
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Source: VynZ Research
