What are the recent trends in market size and growth for the auto repair software market?
The auto repair software market size has grown rapidly in recent years. It will grow from $26.49 billion in 2024 to $30.30 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to increasing digitalization of auto repair services, growth in vehicle ownership, increasing complexity of modern vehicles, increasing demand for cost-effective repair solutions, expansion of automotive aftermarket services.
The auto repair software market size is expected to see rapid growth in the next few years. It will grow to $51.36 billion in 2029 at a compound annual growth rate (CAGR) of 14.1%. The growth in the forecast period can be attributed to increasing vehicle ownership and aging vehicle fleet, rising demand for cloud-based auto repair software, expansion of mobile auto repair services, increasing compliance and regulatory requirements, growing popularity of electric and hybrid vehicles. Major trends in the forecast period include technological advancements, adoption of advanced technologies, integration with advanced vehicle technologies, adoption of artificial intelligence (AI) and machine learning (ML), adoption of advanced driver assistance systems (ADAS).
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How have varous drivers impacted the growth of the auto repair software market?
The increasing demand for passenger vehicles is expected to drive the auto repair software market going forward. Passenger vehicles are motor vehicles designed for personal transportation (cars, SUVs) or business use (trucks, buses, vans) to transport goods or passengers. The increasing demand for passengers is driven by factors such as rising urbanization, growing disposable income, expanding e-commerce and logistics industries, improved road infrastructure, technological advancements, and increasing ride-hailing and leasing services. Auto repair software in passenger vehicles streamlines diagnostics, maintenance scheduling, and repair management, enhancing efficiency and accuracy for technicians and vehicle owners. For instance, in December 2024, according to the report published by the European Commission, a Belgium-based governmental agency, between late 2022 and late 2023, the number of battery-only electric passenger cars grew by 47%, nearing 4.5 million vehicles. Luxembourg had the highest proportion of the newest passenger cars in 2023, with 18.9% of its passenger vehicles being less than two years old. Therefore, the increasing demand for passenger vehicles will drive the auto repair software market.
What are the primary segments of the auto repair software market?
The auto repair software market covered in this report is segmented –
1) By Software: Safety And Security Software, Autonomus Driving Software, Vehicle Magement Software, Infotainment Software, Other Software
2) By Deployment Mode: On-Premise, Cloud-Based
3) By Vehicle Type: Passenger Vehicle, Commercial Vehicle
4) By Application: Residential, Commercial, Others Applications
5) By End-User: Independent Auto Repair Shops, Franchise Auto Repair Chains, Dealership Service Centers
Subsegments:
1) By Safety and Security Software: Collision Detection and Prevention Software, Anti-Theft and Vehicle Tracking Software, Airbag and Safety System Diagnostics Software, Emergency Assistance and SOS Software
2) By Autonomous Driving Software: Advanced Driver Assistance Systems (ADAS) Software, Lane-Keeping and Adaptive Cruise Control Software, AI-Based Self-Driving Diagnostics Software, Sensor Calibration and Integration Software
3) By Vehicle Management Software: Fleet Management Software, Maintenance Scheduling and Service Reminder Software, Fuel Efficiency and Telematics Software, Remote Vehicle Health Monitoring Software
4) By Infotainment Software: Navigation and GPS Software, Multimedia and Entertainment System Software, Voice-Controlled and AI-Assisted Interface Software, Smartphone Connectivity and App Integration Software
5) By Other Software: Electric Vehicle (EV) Battery Management Software, Emissions Testing and Compliance Software, Workshop and Garage Management Software, Cloud-Based Auto Diagnostics Software
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Which firms are leading the auto repair software market?
Major companies operating in the auto repair software market are CCC Intelligent Solutions Inc., Vehlo, Mitchell Repair Information Company, LLC (Mitchell 1), AutoLeap Inc., PartsTech Inc., ALLDATA LLC, Nextar POS Software, Bolt On Technology LLC, Shopmonkey Inc., Tekmetric Inc., Fullbay Inc., Web-Est LLC, Shop Boss Pro LLC, RAMP Software Solutions, Mobile Tech RX, ARI Auto Repair Inc., Torque360 Inc., EZnet Scheduler Inc., Predii Inc., Garage Partner Software, AutoTraker Software, GaragePlug Inc., Scott Systems Inc., Orderry, RepairQ.
How will industry trends affect the trajectory of the auto repair software market?
Major companies operating in the auto repair software market are focusing on technologically advanced products, such as artificial intelligence (AI) applications, to enhance diagnostics, automate repair recommendations, and streamline workflow efficiency. AI applications are software solutions that leverage artificial intelligence technologies, such as machine learning, natural language processing, and computer vision, to automate tasks, enhance decision-making, and improve efficiency across various industries. For instance, in October 2023, Predii Inc., a US-based technology company, launched Predii 360, an AI co-pilot for the automotive service and repair industry. It uses generative AI to provide actionable intelligence, enhancing efficiency for service writers, technicians, and parts counter staff. Predii 360 integrates with custom service and repair data, hosted in an isolated environment to protect intellectual property. The system uses Predii’s AI pipeline, intelligent intent response network (IIRN), and a fine-tuned large language model (Predii LLM).
Which geographic trends are shaping the auto repair software market, and which region has the highest market share?
North America was the largest region in the auto repair software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the auto repair software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Does The Auto Repair Software Market Report 2025 Offer?
The auto repair software market research report from The Business Research Company offers global market size, growth rate, regional shares, competitor analysis, detailed segments, trends, and opportunities.
Auto repair software is a digital solution designed to streamline and automate various operations in automotive repair shops, dealerships, and service centers. By improving workflow efficiency, enhancing customer communication, and optimizing resource allocation, auto repair software helps businesses increase productivity, reduce errors, and improve profitability. Many modern solutions also offer cloud-based access, mobile compatibility, and integration with accounting or payment processing systems for seamless operations.
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