In North America, the popularity of businesses focused on car repair and vehicle service is rising. This growth runs parallel with a growing preference for independent auto service centers, with more customers choosing them, including policyholders from insurers who value speed and convenience.
Since the start of the year, demand for building out car service and repair shops has surged, while the supply of these facilities has expanded even more quickly in many markets.
Analysts note that profits in this sector are tied to steady demand for repair services and the relative ease of sourcing spare parts, including those obtained through parallel import channels. A turnkey operation can begin generating revenue quickly, which is a strong driver of buyer interest. In addition, multi-brand service centers are increasingly favored by corporate entities and insurers due to the speed and breadth of repair capabilities they offer.
In 2022, owners of under-warranty vehicles in North America consulted official dealerships less often than before: a shift from traditional dealer reliance toward independent repair shops has become more evident. Independent service centers are being tapped more frequently, as customers seek cost efficiency and faster turnaround times. This shift reflects a broader market trend toward alternative service networks and diversified sourcing strategies.
How do official channels fit in?
With many customers reluctant to trade in vehicles when possible, there remains steady demand for keeping existing cars in good condition. Official dealerships are unlikely to see a dramatic drop in customer visits, but the balance is shifting toward independent shops that offer quicker service, broader parts availability, and flexible pricing in 2023 and beyond, according to market observers.
Citation: Market analytics discussions and industry reports continue to highlight the evolving landscape of auto service in North America, underscoring how independent centers and insurers increasingly influence consumer choices and business strategies.