CLEVELAND — Revenues generated by U.S. automotive repair and maintenance service shops are expected to grow 2.2% annually in nominal dollars through 2023, according to Freedonia Group.
In its "Automotive Repair & Maintenance Services: United States" report, the Cleveland-based market analysis company said auto service providers will benefit from a variety of factors, including expansion of the light vehicle parc, an increase in miles driven, growing consumer preference for larger vehicles (such as SUVs and light trucks, which are more expensive to repair), increasing technology loadings and more customers shifting from do-it-yourself (DIY) repairs to do-it-for-me (DIFM) repairs.
However, competition among establishment segments — as well as more reliable cars entering the U.S. motor vehicle pool — will constrain revenue growth.
Revenue growth will be supported by expansion in disposable personal income levels and the light vehicle parc, the company said. In addition, rising average age of vehicles will lead to additional breakdowns, increasing repair revenues.
However, a decline in new car sales that began in 2017 will limit repair expenditures over the latter part of the forecast period, Freedonia said.