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Commercial Vehicle Roadside Assistance Market Projected to Grow at a CAGR of 3.96% Through 2027

  • December 29, 2020
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Commercial Vehicle Roadside Assistance Market Projected to Grow at a CAGR of 3.96% Through 2027

Global Commercial Vehicle Roadside Assistance Market

A new report titled Global Commercial Vehicle Roadside Assistance Market 2019 by Company, Regions, Type and Application, Forecast to 2024 provides insight into the commercial roadside assistance market. The aim of the report is to help key players strengthen their growth and position in the commercial truck roadside assistance industry.

The report includes analyses in key areas, including competition, segmentation, trends, sales, revenue, production and more, the current landscape and future predictions. Market insights are also included, such as market share, growth factors, fundamental statistics and market size. Readers also learn about potential factors that may hinder growth and possible growth scopes.

An additional report on the vehicle roadside assistance market, between 2020 and 2027, suggests that the CAGR will increase at a rate of 3.96%.

The report supports the thesis that increased vehicle sales will eventually lead to increased commercial truck services, parts delivery and more.

Demand for commercial roadside assistance service is partly driven by the fact that truck drivers frequently experience breakdown events. The roadside repair benchmarking program from FleetNet and the American Trucking Associations’ Technology & Maintenance Council found that truckers covered 10,000 miles before experiencing a breakdown event.

Research from that program found the average cost for a roadside event (not including tires) was $334 in 2018. Tire repair costs are higher. Vehicle systems that experienced the most unscheduled repairs included brakes, cooling, wheels, hubs and bearings, liners, valves, tubes and rims.

Rising cost of roadside assistance for each breakdown event

A growing concern among fleet owners in this report was the rising cost of roadside assistance for each breakdown event.

Multiple studies are being conducted on the commercial trucking industry that project future growth in the roadside assistance industry.  Growth in overall freight tonnage leads to ancillary growth in the industry’s markets, including the commercial roadside assistance industry.

Fleets are projected to begin using more forms of automation in the next ten years that will reduce overhead, while demanding upfront capital for advanced vehicles. Self-driving vehicles, like those from Otto, may reduce the need for some industry services.

Growth in the electric vehicles (EV) market may also hinder growth in the U.S. commercial roadside assistance market. EVs have fewer mechanical components, and the addition of “connected” services means that truckers can attend to maintenance needs before requiring roadside assistance.

That being said, connected roadside assistance is expected to continue expanding into 2025, as more trucks and big rigs have the IoT integrated into their vehicles. Real-time notifications and alerts are expected to help simplify the industry, with software, apps and hardware working together to offer rapid diagnostics and alerts of in-vehicle issues.

The connected roadside assistance market will struggle due to a lack of industry standards leading to proprietary solutions available in some trucks and not others. North America is expected to maintain the largest market share in the connected roadside assistance market through 2025 as the market matures and, hopefully, standards are created to make EV roadside assistance faster and more streamlined.