$28 Billion Automotive Maintenance Industry on the Brink of Change as Consumer Priorities Shift

DUBLIN, Ireland--Research and Markets has announced the addition of Frost & Sullivan's new report: Customer Perception and Behavior in the US Automotive Maintenance Service Market to their offering.

This Frost & Sullivan research service titled Customer Perceptions and Behavior in the US Automotive Maintenance Service Market provides a comprehensive insight into consumer attitudes, behaviors, and outside forces affecting demand for maintenance service-providers. Providers are classified into original equipment (OE) dealer and aftermarket dealers, as well as separated by level of service. Appropriate demographic segmentation is used for deepest possible analysis of data. In this research service, Frost & Sullivan's expert analysts thoroughly examine the demand side dynamics from a behavioral standpoint.

Growing Vehicle Parc and New Technologies Influence Customer Perceptions and Behavior

With new automotive technologies, changing demographics, a wide spectrum of delivery solutions, and unstable oil prices having altered consumer behavior in vehicle maintenance, the $28 billion maintenance industry is on the brink of change. As a result of the rapidly growing vehicle parc in North America, vehicles have become transportation commodities. Consumers appear to be oriented toward doing what is necessary to maximize vehicle performance and lifespan . Those with a vehicle that is under warranty are more likely to consider regular maintenance to help maximize the resale value of their vehicle.

The automotive service industry is rapidly expanding with over 352,000 service locations that represent an estimated 1.7 million bays due to revitalization of franchising within the sector. "Between 2003 and 2005, automotive franchise systems grew by 10 percent according to the International Franchise Association, and drive close to 9 percent of total industry retail revenues resulting in lower cost services, lower cost parts, expanded access, faster service, and commoditization of maintenance services," observes the analyst. "Providers with coherent strategies are emerging as winners in this competitive market, while static vendors are lagging behind."

Complex Components and Repairs Increase Demand for Maintenance Service Providers

The frequency of component repair and replacement continues to decline as vehicle manufacturers increase warranty coverage, and install more durable components. However, the increased complexity of the vehicle operating system, the tight tolerances between engine components, and the compact nature of engine compartment, limit the amount and scope of do-it-yourself (DIY) work, forcing consumers into the do-it-for-me (DIFM) channel. Most consumers consider the technicians at their dealers to be the most knowledgeable and complete more advanced maintenance services and repairs at these locations, but seem to prefer aftermarket service providers for routine maintenance because the latter are perceived to offer more convenient service and better overall value for money.

It was found that over half the female respondents are the sole decision-makers for their vehicle maintenance. "Easy booking of service appointment and best value for money seem to be the more important service selection criteria to female drivers than to their male counterparts, with respect to minor maintenance," cites the analyst. "Therefore it is crucial to understand the unique needs and priorities of female drivers to market a highly specialized, convenient, trustworthy, and competitively priced maintenance service package to female drivers that build upon traditional offerings."