1. Global Roadside Rescue Market Revenue and Future Growth
The global Roadside Rescue market is projected to reach a revenue of $23,738.36 million in 2024. This market is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 4.18% from 2024 to 2033.
Roadside Rescue services are essential for motorists and cyclists whose vehicles have suffered mechanical failures, leaving them stranded. These services can range from towing and tire replacement to fuel delivery and jump starts. In some regions, such as Europe, these services are often funded by government-recognized car membership associations or offered as part of a vehicle insurance policy. For instance, in the United States, organizations like AAA provide roadside assistance, while in the UK, the Automobile Association (AA) offers similar services.
The evolution of these services has been marked by technological advancements, with the advent of mobile technology leading to the development of free applications that enhance the efficiency and accessibility of roadside rescue services.
Figure Global Roadside Rescue Market Size (M USD) and CAGR (2024-2033)
2. Driving Factors and Limiting Factors of Roadside Rescue Market
The growth of the Roadside Rescue market is driven by several key factors. The increasing number of traffic accidents is a primary driver, with statistics from the U.S. Department of Transportation indicating over 6.45 million car accidents in 2017, resulting in 37,133 deaths and approximately 2.74 million injuries. The global demand for such services is also supported by the rising number of vehicles on the road and the increasing complexity of modern vehicles, which are more prone to breakdowns.
Additionally, the development of emerging markets and the growth of the automotive industry in regions like Asia are significant contributors to the market’s expansion. However, the market also faces challenges. The high costs associated with labor, fuel, and commercial insurance can strain service providers. The market also faces competition from new entrants and the need to adapt to changing consumer expectations and technological advancements.
3. Technology Innovation in the Roadside Rescue Market
Technological innovation is a critical aspect of the Roadside Rescue market’s evolution. Companies are increasingly leveraging big data and artificial intelligence to improve service delivery and customer experience. For example, Green Flag has created a serverless cloud-native platform to build a rapid, modern rescue service, supported by internal engineering functions to maintain and iterate digital systems. This enables the company to provide quick digital innovation to meet business challenges.
Corporate mergers and acquisitions are also shaping the market landscape. For instance, Agero, Inc., a leading driver assistance services provider, expanded its market share by purchasing Road America from Mapfre Asistencia. This acquisition allowed Agero to take over roadside and accident support for Road America’s diverse client programs.
Furthermore, the market is seeing a trend towards the integration of new electronic functions in vehicles, such as real-time highway alerts and telematics systems, which, while enhancing the driving experience, also increase the potential for malfunctions and the need for rescue services.
4. Global Roadside Rescue Market by Types
The roadside rescue market is primarily segmented into several product types, each with its unique definition and revenue contribution. The main product types include towing, tire replacement, fuel delivery, jump start/pull start, lockout/replacement key service, battery assistance, and others.
Towing services involve the transportation of a vehicle from the location of breakdown or accident to a repair facility or a safe location. In 2024, towing is projected to generate a revenue of $8553.07 million, maintaining its position as the product type with the largest market share.
Tire replacement services are crucial for vehicles with flat tires or damaged wheels. With a projected revenue of $5930.55 million in 2024, tire replacement holds a significant market share.
Fuel delivery services cater to vehicles that have run out of fuel. In 2024, this service is expected to bring in $5670.50 million in revenue, with a growth rate of 1.71%.
Jump start/pull start services are provided to vehicles with dead batteries or those that need a quick restart. The revenue for this service in 2024 is projected at $901.71 million, with a growth rate of 1.84%.
Lockout/replacement key services assist drivers who have locked themselves out of their vehicles or lost their keys. With a revenue of $749.56 million in 2024 and a growth rate of 2.20%.
Battery assistance services involve the diagnosis and repair of battery-related issues. In 2024, this service is expected to generate $759.56 million in revenue, with a growth rate of 1.95%.
Table Global Roadside Rescue Market Size by Type in 2024
Type | Market Size (M USD) 2024 | Market Share |
Towing | 8553.07 | 36.03% |
Tire Replacement | 5930.55 | 24.98% |
Fuel Delivery | 5670.50 | 23.89% |
Jump Start/Pull Start | 901.71 | 3.80% |
Lockout/ Replacement Key Service | 749.56 | 3.16% |
Battery Assistance | 759.56 | 3.20% |
Others | 1173.40 | 4.94% |
5. Global Roadside Rescue Market by Applications
Auto manufacturers play a significant role in the roadside rescue market by offering rescue services as part of their after-sales support. In 2024, auto manufacturers are expected to generate $7852.25 million in revenue from roadside rescue services, with a growth rate of 1.66%.
Motor insurance companies offer roadside rescue services as part of their insurance packages. With a projected revenue of $4397.82 million in 2024 and a growth rate of 1.87%, motor insurance companies are a significant contributor to the market.
Independent warranty providers offer extended warranties and roadside rescue services to vehicle owners. In 2024, they are expected to generate $5302.20 million in revenue, with a growth rate of 1.76%.
Automotive clubs are membership-based organizations that provide a range of services, including roadside rescue. In 2024, automotive clubs are expected to generate $6186.09 million in revenue, with a growth rate of 1.12%. The demand for automotive club services is influenced by the number of members and the frequency of service utilization. These clubs often offer additional benefits such as travel discounts and member-only events, enhancing their appeal to vehicle owners.
Table Global Roadside Rescue Market Size by Application in 2024
Application | Market Size (M USD) 2024 | Market Share |
Auto Manufacturers | 7852.25 | 33.08% |
Motor Insurance Companies | 4397.82 | 18.53% |
Independent Warranty | 5302.20 | 22.34% |
Automotive Clubs | 6186.09 | 26.06% |
6. Global Roadside Rescue Market Size by Region
In 2024, the global Roadside Rescue market is expected to exhibit a diverse landscape across different regions, each contributing uniquely to the overall market revenue. The analysis reveals that Europe will remain the largest regional market by revenue, with a projected figure of $9,189.17 million.
Following Europe, the Asia-Pacific region is anticipated to be the fastest-growing region in the market. With a forecasted revenue of $5,326.28 million in 2024, the Asia-Pacific region is poised for significant expansion. This growth is driven by the rapid economic development, increasing vehicle ownership, and the growing awareness of road safety in countries like China and India.
North America, with a projected revenue of $7,789.55 million, holds a substantial share of the market. The United States, in particular, has a long history of roadside rescue services, with organizations like AAA providing comprehensive assistance to motorists.
South America and the Middle East & Africa regions are also part of the global market, with projected revenues of $766.95 million and $666.41 million respectively in 2024.
Figure Global Roadside Rescue Market Share by Region in 2024
7. Global Roadside Rescue Market Analysis by Major Players
7.1 AA (The Automobile Association Ltd.)
Introduction and Business Overview: AA, established in 1905, is a prominent player in the UK market, offering a wide range of services including breakdown coverage, home emergency response, automobile hire, driving lessons, vehicle inspections, insurance, and financial products.
Products Offered: AA provides Smart Breakdown, a service that can read over 5,000 different fault codes from vehicles, helping to identify issues before they become critical. This service includes notifications to the user’s smartphone, a summary of the problem, and advice on the implications of the fault.
7.2 RAC (Royal Automobile Club)
Introduction and Business Overview: RAC, founded in 1897, is a leading automotive services provider in Europe, offering roadside assistance, breakdown coverage, vehicle repair and recovery, insurance, and legal cover and claims management services.
Products Offered: RAC’s Complete Breakdown Cover provides comprehensive assistance, including roadside and home rescue, garage support, and alternative transport. The Standard Breakdown Cover includes roadside and home rescue, a 10-mile tow, and a 20-mile taxi ride from the garage.
7.3 Agero, Inc.
Introduction and Business Overview: Agero, Inc., established in 1972, is a North American company that specializes in connected vehicle, roadside assistance, and claims management services. It offers safety and security, data and diagnostics, location-based content, navigation, lifestyle solutions, and accident scene management.
Products Offered: Agero’s Digital Dispatch Platform provides real-time visibility and mobile app or website experiences, with one-touch in-vehicle dashboard capabilities. The company also operates a nationwide service provider network, ensuring efficient and compliant service delivery.