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Car Towing Service Market Overview
The global car towing service market is projected to witness considerable growth during the forecast period (2020–2030) on account of the rising number of aging vehicles on the roads. In addition, the surging demand for roadside assistance services, is expected to contribute to the market advance.
On the basis of tow vehicle type, the car towing service market has been categorized into flatbed tow truck, integrated tow truck, hook-and-chain tow truck, and wheel-lift tow truck. During the forecast period, the market is expected to witness the fastest growth in the category of flatbed tow trucks, as these are the most popular type of tow trucks among service providers. When secured on the flatbed of a specialist towing vehicle, the car can then be transported safely, without further risk of damage. However, hook-and-chain tow vehicles use a crane (with attached hook and chain) to lift the front or rear of a vehicle off the ground, therefore, posing high risk of damage to the vehicle being towed. This has resulted in a reduced use of hook-and-chain two vehicles.
Based on service provider, the car towing service market has been categorized into motor insurer, auto manufacturer, automotive club, and independent warranty provider. During the forecast period, the motor insurer and auto manufacturer categories are expected to witness significant growth. This can be mainly attributed to the increasing demand for roadside assistance services such as car towing, provided by insurance companies and auto manufacturers, as an add-on feature or if the vehicle is under guarantee. Moreover, with the rising internet and smartphone penetration, car towing service providers are using smartphone applications, which enable them respond to service requests faster and more efficiently.
Geographically, the car towing service market has been categorized into Europe, North America, Asia-Pacific (APAC), and Latin America, Middle East, and Africa (LAMEA). Among these, Europe and APAC held the majority share in the market during the historical period (2014–2019) due to the rise in vehicle parc, growing average age of vehicles, and increase in the number of road accidents. In addition to this, the presence of major auto manufacturers, which provide car towing services to their customers, such as SAIC Motor Corporation Limited, Maruti Suzuki India Limited, and Toyota Motor Corporation, is further supporting the market growth in these regions.
Car Towing Service Market Dynamics
The car towing service market is expected to witness significant growth during the forecast period, mainly due to the integration of vehicle connectivity solutions by manufacturers. There has been a significant increase in the number of cars with integrated telematics systems, which provide information such as vehicle location, movement, or any kind of fault and failure, directly to auto manufacturers or third-party firms, for roadside assistance. This also enables vehicle owners and drivers to send real-time information to car towing service providers. Therefore, convenient features like these are expected to fuel the growth of the market in the coming years.
The most basic request for emergency route assistance involves collision or breakdown towing. However, with the rising penetration of advanced driver-assistance systems (ADAS) and other integrated features in passenger vehicles, the growth of the car towing service market might get hindered during the forecast period. ADAS provides features such as adaptive cruise control (ACC), automatic emergency braking (AEB), blind spot detection (BSD), and lane keeping assistance (LKA), which make the drive a lot safer. This will reduce the probability of car breakdowns and road accidents, which, in turn, could pose a challenge to the market.
Car Towing Service Market Competitive Landscape
The global car towing service market is quite fragmented, with the presence of several global and regional players. Some of the major companies offering this service are AA PLC, Falck Danmark A/S, RAC Motoring Services, THE ALLSTATE CORPORATION, Viking Assistance Group, SOS International, ARC EUROPE SA, Roadside Transportation LLC, Access Roadside Assistance, National General Insurance, Agero Inc., and Allianz Partners SAS. Key players in the market are focusing on expanding and entering new countries and regions through collaborations and acquisitions. For instance, in February 2019, AA PLC completed the acquisition of Prestige Fleet Servicing (Prestige), a provider of service, maintenance, and repair (SMR) to fleet and leasing companies.
The report also includes a country-wise market analysis. Some of the major countries covered in the report are the U.S., Canada, Germany, the U.K., France, Japan, China, India, South Korea, Brazil, Mexico, and the U.A.E.
Car Towing Service Market Size Breakdown by Segment
The car towing service market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Tow Vehicle Type
Based on Service Provider