Automotive Repair Service Market Set to Reach US$ 1,666.39 Billion By 2033 | Astute Analytica
Automotive repair service market in 2025 is characterized by a growing demand for services for an aging vehicle population. This is coupled with the challenge of adapting to increasingly complex vehicle technologies and the burgeoning electric vehicle sector.
Chicago, Nov. 17, 2025 (GLOBE NEWSWIRE) — The global automotive repair service market was valued at US$ 890.82 billion in 2024 and is expected to reach US$ 1,666.39 billion by 2033, growing at a CAGR of 6% between 2025 and 2033.
The automotive repair service market is undergoing a seismic shift, driven by the exponential growth of the Electric Vehicle (EV) sector. This transformation is creating a landscape ripe with opportunity and challenges. Factors such as the increasing complexity of EV systems, the aging of the initial wave of electric cars, and the expanding number of EVs exiting warranty periods are fueling a surge in demand for specialized repair and maintenance. This analysis delves into the critical high-growth EV segment, presenting meticulously researched quantitative insights from 2024 and 2025 that are invaluable for all industry stakeholders. The findings clearly indicate a robust and expanding market poised for significant economic activity.
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A primary indicator of this expansion is the remarkable job creation within the automotive repair service market. Current projections show that the EV repair and maintenance industry is projected to create over 30,000 new jobs in the United States in 2024 alone. Furthermore, this number is expected to accelerate, reaching an impressive 50,000 new jobs in 2025. For every 1,000 EVs sold, an estimated three new, long-term technician jobs are created, underscoring the direct correlation between vehicle sales and service employment. The nature of these roles is also evolving, with a forecasted demand for over 5,000 service advisors with specialized EV knowledge in 2025.
Key Findings in Automotive Repair Service Market
| Market Forecast (2033) | US$ 1,666.39 billion |
| CAGR | 6% |
| Largest Region (2024) | North America (35.20%) |
| By Vehicle Type | Passenger Vehicles (48.14%) |
| By Service Type | Mechanical Repair Services (44.96%) |
| By Service Provider | Independent Garages (38.02%) |
| By Propulsion Type | ICE vehicles (57.08%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Specialized Technician Training Surges to Meet Unprecedented Electric Vehicle Demand
The rapid influx of EVs is creating an urgent need for a highly skilled workforce in the automotive repair service market. In response, training and certification programs are expanding dramatically. The National Institute for Automotive Service Excellence (ASE) is projected to administer over 15,000 EV-specific certification tests in 2024. Following this trend, it is anticipated that by 2025, the number of technicians holding an L3 (Electric Vehicle Safety) certification will surpass 25,000 across the nation. This push for qualifications is essential to safely and effectively service high-voltage systems. The current technician-to-EV ratio in several metropolitan areas, which exceeded 1 technician for every 150 registered EVs in 2024, highlights a significant service gap that the industry is racing to close.
Investment in education within the automotive repair service market is substantial. In 2024, leading vocational schools introduced 500 new EV-focused modules into their automotive technology programs. Simultaneously, major automotive repair franchises plan to collectively invest over US$ 10 million to upskill 20,000 technicians with EV competencies by the end of 2025. The intensity of this training is notable; the average number of training hours required for a technician to become proficient in EV battery diagnostics is estimated at 120 hours in 2024. To support this educational drive, projections for 2025 indicate a need for an additional 100 specialized instructors for advanced EV repair courses nationwide.
Massive Capital Injection in EV Diagnostic and Repair Technology is Underway
Servicing EVs requires a completely new toolkit, prompting a wave of capital investment from service centers. Independent repair shops are expected to spend an average of US$ 50,000 on new EV diagnostic tools and equipment in 2024. A significant portion of this investment is aimed at enhancing diagnostic capabilities. Consequently, it is forecasted that by 2025, over 30,000 service centers will be equipped with Level 3 DC fast-charging capabilities, not just for customers, but for crucial testing purposes. The pace of innovation in this space is rapid and essential for the evolving automotive repair service market.
Leading tool manufacturers like Bosch and Snap-on are slated to release at least 20 new EV-specific diagnostic tools in 2024. The projected investment in thermal imaging cameras for battery health analysis is set to exceed US$ 5 million across the top 100 repair chains in 2025. Beyond diagnostics, on average, a full suite of EV battery lifting and handling equipment costs repair shops approximately US$ 15,000 in 2024. Additionally, the number of software updates and recalibrations for Advanced Driver-Assistance Systems (ADAS) in EVs is expected to surpass 1 million individual service actions in 2025, while 2024 saw the launch of more than 10 new cloud-based platforms for remote EV diagnostics.
High-Voltage Battery Servicing Emerges as a Critical and Lucrative Sub-Sector
The high-voltage battery is the heart of an EV and represents the most significant new revenue stream for the automotive repair service market. The average cost for a full EV battery replacement in 2024 hovers around US$ 12,000, a figure that varies by make and model. This high cost is driving the growth of a specialized sub-sector. Projections for 2025 suggest that over 5,000 specialized battery repair and remanufacturing facilities will be operational across North America. To meet rising demand, it is anticipated that the industry will see a need for over 50,000 replacement EV battery packs by 2025.
The complexity of these components necessitates specialized labor and logistics in the automotive repair service market. In 2024, the average time for diagnosing a complex battery management system (BMS) fault is approximately four workshop hours. As the typical eight-year warranty period for EV batteries begins to expire, an estimated 200,000 EVs will require out-of-pocket service in 2024. A more cost-effective repair strategy is also gaining traction; the number of individual battery modules replaced, as opposed to entire packs, is expected to exceed 100,000 units in 2025. However, logistical challenges remain, as the shipping of a single high-voltage battery pack adds an average of US$ 1,500 to the total repair cost in 2024.
Collision Repair Infrastructure Rapidly Evolves for Unique EV Structural Needs
Collisions involving EVs present unique challenges in the automotive repair service market that demand significant infrastructural upgrades. It is estimated that in 2024, fewer than 10,000 collision repair shops in the U.S. are certified for the structural repairs these vehicles require. As the industry adapts, this number is expected to grow to 15,000 by 2025. The financial commitment is substantial; the average investment for a collision shop to become EV-ready is approximately US$ 75,000 in 2024. This investment is critical as the volume of work increases, with the number of insurance claims related to EV collisions projected to surpass 250,000 in 2025.
The specific requirements for EV collision work extend to facility design and specialized equipment. The cost of a dedicated, electrically insulated “clean room” for battery work within a collision center is around US$ 40,000 in 2024. The repair process itself is more time-intensive. For instance, the number of hours required for post-repair ADAS recalibration on an EV is, on average, three hours longer than for an internal combustion engine (ICE) vehicle in 2024. To handle the unique materials used in EV construction, it is forecasted that in 2025, over 1,000 new aluminum welding stations will be installed in collision centers across the country.
Mobile EV Repair Fleets Revolutionize Customer Service and Accessibility
A significant trend reshaping the automotive repair service market is the rise of mobile service. To enhance customer convenience, key players are investing heavily in mobile repair fleets. These companies aim to operate a collective fleet of over 2,000 EV service vans by the end of 2024. The growth trajectory is steep, with this number projected to increase to 3,500 vans by the close of 2025. The average cost to upfit a standard van for mobile EV service is approximately US$ 25,000 in 2024, an investment that enables technicians to perform a wide range of services remotely.
These mobile units are becoming a vital part of the service ecosystem. In 2025, it is expected that mobile service units will handle over 500,000 minor EV repair and maintenance jobs, from tire rotations to software diagnostics. These vans are remarkably capable, with the ability to perform around 150 different types of repairs and diagnostics on-site in 2024. To manage this growing network, companies are aiming for a target response time for a mobile EV service call in major urban areas to be under 90 minutes in 2025. Underpinning this logistical operation is a significant investment in scheduling and dispatching software, estimated to be over US$ 3 million in 2024.
Competitive Landscape of the Automotive Repair Service Market Intensifies Between OEM and Independent Service Networks
A fierce competition is brewing between OEM-authorized service centers and the independent aftermarket. OEMs are aggressively expanding their service footprint. Tesla, a key market player, plans to open 50 new service centers in North America in 2024. Similarly, by 2025, Rivian aims to have over 60 dedicated service locations operational. Legacy automakers are also in the race; in 2024, Ford and GM have a combined network of over 3,000 EV-certified dealership service centers. These networks represent a formidable force in the current automotive repair service market.
The independent sector is responding strategically. The number of independent repair shops joining EV-focused networks like a NAPA AutoCare Center with EV capabilities is expected to surpass 2,000 in 2025. Independents are competing on price and accessibility. The average labor rate at an OEM dealership for EV repair is approximately US$ 175 per hour in 2024. In contrast, the average labor rate at an independent EV-certified shop is around US$ 140 per hour in the same year. This competitive dynamic is further shaped by the ongoing debate over repair information, and it is projected that in 2025, over 100 legal and advocacy actions will be filed concerning the “Right to Repair” for EVs.
Advanced Telematics and Tooling Create a New Predictive Maintenance Paradigm in the Automotive Repair Service Market
The connected nature of EVs is ushering in an era of predictive maintenance. In 2024, it is estimated that new EVs generate over 25 gigabytes of data per hour, a rich source of diagnostic information. By 2025, it is projected that over 5 million EVs on the road will be capable of receiving over-the-air (OTA) software updates for system repairs, often eliminating the need for a shop visit. The complexity of these systems is reflected in the fact that the number of distinct fault codes specific to EV powertrains has surpassed 1,000 in 2024, requiring advanced diagnostic tools to interpret.
This data-rich environment is transforming the automotive repair service market from a reactive to a proactive model. In 2025, telematics systems are expected to proactively alert drivers to over 2 million potential maintenance issues before they become critical failures. The average cost for a repair shop to subscribe to an OEM’s diagnostic data stream is around US$ 2,000 annually in 2024, a necessary expense to stay competitive. A typical EV battery management system monitors over 500 data points in real-time in 2024. By 2025, third-party diagnostic tool providers aim to have access to at least 80 different live data parameters from the most common EV models, leveling the playing field.
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Regulatory Frameworks Shape the Future of Data Access and Repair Rights
The legislative landscape is a critical factor shaping the future of the independent automotive repair service market. In 2024, at least 10 states, including automotive hubs like California and technology centers like Massachusetts, along with New York, Colorado, and Washington, have pending “Right to Repair” legislation with specific clauses for EVs. Looking ahead, it is anticipated that a federal framework for secure vehicle data access will be proposed in 2025, a landmark regulation impacting over 10 million connected vehicles. These laws are designed to ensure fair competition and consumer choice.
These regulations have direct financial and operational implications for repair shops. The cost for an independent shop to comply with OEM cybersecurity protocols for data access is estimated to be around US$ 1,500 per year in 2024. The struggle for access is real; in 2025, the number of formal complaints filed by independent repair shops regarding restricted access to EV repair information is expected to exceed 500. In response, automakers are projected to collectively spend over US$ 20 million in 2024 on developing secure data access platforms. By 2025, it is expected that at least five major automakers will offer a standardized, subscription-based service for independent shops, signaling a potential path toward industry-wide resolution.
Automotive Repair Service Market Major Players:
- LKQ Corporation
- Asbury Automotive Group Inc.
- MEKO
- 3M Car Care Store
- Jiffy Lube International Inc
- CarMax Autocare Center
- Inter Cars S.A.
- USA automotive
- EUROPART
- M&M Automotive
- TVS Accessories
- Mobivia Groupe
- Sun Auto Service
- Hance’s European
- Safelite Group
- Other Prominent Players
Key Market Segmentation:
By Service Type
- Mechanical Repairs
- Engine
- Transmission
- Suspension
- Others
- Electrical & Electronic Repairs
- Battery
- Wiring
- ADAS diagnostics
- Others
- Exterior & Structural Repairs
- Bodywork
- Paint
- Glass replacement
- Maintenance Services
- Oil Changes
- Fluid Checks
- Preventive Maintenance
By Vehicle Type
- Passenger Cars
- Hatchbacks
- Sedans
- SUVs
- MPVs
- Commercial Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Two-Wheelers / Motorcycles
- Three- Wheeler
By Service Provider
- Authorized dealerships
- Independent garages
- OEM-affiliated workshops
- Franchise General Repair
- Tire Shops & Repair Chains
- Others
By Propulsion Type
- Internal Combustion Engine (ICE)
- Petrol
- Diesel
- Electric
- Hybrid
By End Users
- Individuals
- Commercial Fleet Owners
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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