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What Is Driving Global Auto Repair Software Market Growth in 2025: The Role of Growing Demand For Passenger Vehicles Fuels Expansion Of The Market With Rising Adoption Of Digital Solutions
Auto Repair Software
What Will the Auto Repair Software Industry Market Size Be by 2025?
The market size for auto repair software has seen substantial growth in recent years. From a value of $26.49 billion in 2024, it is projected to rise to $30.12 billion in 2025, representing a Compound Annual Growth Rate (CAGR) of 13.7%. Factors such as the digitalization of auto repair services, rise in vehicle ownership, complex nature of contemporary vehicles, growing demand for economical repair alternatives and the widening scope of automotive aftermarket services have driven this growth in the historical period.
What's the Long-Term Growth Forecast for the Auto Repair Software Market Size Through 2029?
The market for auto repair software is forecasted to experience substantial expansion in the coming years, reaching $50.49 billion by 2029 with a CAGR of 13.8%. This predicted growth during the forecast period can be linked to factors such as the rise in vehicle ownership and the number of older vehicles, growing recognition of cloud-based auto repair software, spread of mobile auto repair services, increased compliance and regulatory obligations and the rising trend of electric and hybrid vehicles. Notable trends for the given period include technology enhancements, the adoption of state-of-the-art technologies, collaborations with advanced vehicle technologies, the increasing use of AI and ML, and the adoption of advanced driver assistance systems (ADAS).
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What Are the Key Growth Drivers Fueling the Auto Repair Software Market Expansion?
The growth in the auto repair software market is predicted to be fueled by an increased demand for passenger vehicles. These vehicles are usually manufactured for personal use, like cars and SUVs, or for business purposes like cargo transportation in trucks, buses and vans. The surge in demand for these vehicles is influenced by factors such as growing urbanization, increased disposable income, expansion of e-commerce and logistics industries, improved road infrastructures, technological progression, and a rise in ride-hailing and leasing services. Auto repair software makes diagnosing issues, scheduling maintenance, and managing repair in passenger vehicles more efficient and accurate for both technicians and vehicle owners. For example, a report from the European Commission released in December 2024 showed that between late 2022 and late 2023, the number of solely battery-operated passenger cars jumped by 47%, nearing 4.5 million. In 2023, Luxembourg recorded the highest number of new passenger cars with 18.9% being less than two years old. Hence, the heightened demand for passenger vehicles is going to propel the auto repair software market.
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What Are the Key Trends Driving Auto Repair Software Market Growth?
Top businesses in the auto repair software market are concentrating on developing products with advanced technology, including applications powered by artificial intelligence (AI), designed to improve diagnostics, automate repair suggestions, and maximize workflow efficiency. AI applications use AI technology such as machine learning, natural language processing, and computer vision to help automate tasks, ameliorate decision-making processes, and augment efficiency in a wide range of industries. For example, in October 2023, US-based tech firm Predii Inc., introduced Predii 360, an AI assistant for the car servicing and repair industry. It employs generative AI to deliver applicable intelligence, thus improving efficiency for service writers, technicians, and those handling the parts counter. Predii 360 pairs with custom service and repair data, secured in a separate environment to safeguard intellectual property. The system also utilizes Predii's AI pipeline, an intelligent intent response network (IIRN), and a refined large language model (Predii LLM).
How Is the Auto Repair Software Market Segmented?
The auto repair softwaremarket 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 Companies Are Leading the Charge in Auto Repair Software Market Innovation?
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.
Which Regions Are Leading the Global Auto Repair Software Market in Revenue?
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.
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