Automotive Wheel Alignment Service Market

Automotive Wheel Alignment Service Market: Overview

• The global automotive wheel alignment service market is anticipated to expand at a CAGR of ~4% during the forecast period, owing to rise in sale and production of vehicles across the globe, which has led to increase in consumption. Surge in the per capita income indicates an increase in purchasing capacity of the population in the respective region, which offers lucrative opportunities for investors in the supply chain of the wheel alignment service market to expand their business in the respective region.
• Economic development accompanied by government investments toward increasing employment, reducing inflation rates, and increasing foreign direct investments are expected to enhance the economic status of the population. Therefore, an increase in per capita income, owing to economic development across the globe is fueling the demand for luxury services and products, including household appliances, electronic accessories, and vehicles. A rise in purchasing power is anticipated to increase the preference for buying vehicles among the population, thereby boosting the demand for vehicles, which subsequently boosts the wheel alignment service market across the globe.

Drivers of Automotive Wheel Alignment Service Market

• Rise in demand for vehicles across the globe is likely to boost the automotive wheel alignment market. Rapid urbanization, owing to increase in population seeking employment, development of road and infrastructure, and expansion of the construction industry are expected to fuel the demand for transportation. Furthermore, the expansion of the e-Commerce industry coupled with rapid expansion of the logistics industry across the globe, along with rise in the demand for heavy duty vehicles for cargo transport and shipment is anticipated to increase the demand for heavy commercial vehicles, which, in turn, is anticipated to boost the automotive wheel alignment service market across the globe.
• Rise in demand for maintenance, repairing, and overhaul activities in the automotive aftermarket is likely to enhance the automotive wheel alignment service market across the globe. Major original equipment manufacturers are adopting portable and wireless wheel alignment machines to enhance fuel-efficiency in vehicles, which is anticipated to boost the automotive wheel alignment service market. Rising demand for used vehicles where major consumers adopt wheel alignment service drives the automotive wheel alignment service market across the globe.

Challenges for Automotive Wheel Alignment Service Market

• Major vehicle manufacturers shutdown their plants due to the COVID-19 pandemic, which led to a decline in vehicle production and sale. Prominent automakers, including GM, Ford, and FCA under pressure from unions to protect employees and to follow government advisories decided to idle their plants across the globe. Majority of businesses in every industry are codependent and are a part of major supply chain in the market. Disruption in supply chain attributing to stoppage of transportation and shipping services and reduced demand for vehicles across the globe are likely to pose a challenge for the global automotive industry. Furthermore, enforced lockdown worldwide has led people to stay at home, resulting in reduced use of vehicles. The shutdown of shops, service centers, and companies has hampered the global wheel alignment service market.
• Lack of skilled labor and human error may lead to improper wheel alignment, which can cause the vehicle to function improperly and consequently, pose a major challenge to the wheel alignment service

Segmentation of Automotive Wheel Alignment Service Market

• Based on Vehicle, the passenger vehicle segment dominated the global automotive wheel alignment service market due to the rise in production of passenger vehicles across the globe. Demand for luxury or premium passenger vehicles is increasing due to the rise in disposable income of people and an increase in living standards of people across the globe.
• Based on service provider, the OEM segment dominated the market, owing to increase in in-house testing facility where all vehicle tests are carried out, including wheel alignment, crash test, and NVH to improve the vehicle performance. This is likely to boost the automotive wheel alignment service market across the globe.

Automotive Wheel Alignment Service Market: Regional Analysis

• Based on region, the global automotive wheel alignment service market has been segregated into North America, Asia Pacific, Western Europe, Eastern Europe Latin America, and Middle East & Africa
• Asia Pacific and Europe are projected to be highly lucrative markets during the forecast period. This is primarily due to the presence of prominent automotive industry in China, Germany, Japan, and India. Major presence of original equipment manufacturers and tier-1 suppliers across Europe who have advanced testing facilities for wheel alignment, is anticipated to drive the automotive wheel alignment service market in the region during the forecast period.

Automotive Wheel Alignment Service Market: Competition Landscape

• Key players operating in the global automotive wheel alignment service market include
  • 3M
  • BMW AG
  • Bridgestone Corporation
  • Continental AG
  • DRiV Incorporated
  • Ford Motor Company
  • General Motors
  • Mahindra & Mahindra Ltd.
  • Mercedes Benz
  • MRF
  • Robert Bosch GmbH
  • TBC Corporation
  • The Goodyear Tire and Rubber Company
  • Tire Prose Francorp
  • Toyota Motor Corporation
  • Volkswagen AG
• Key players at the global level are expanding their footprint by engaging in mergers & acquisitions with several players in the industry. In 2015, MRF inaugurated the MRF Tyredrome to provide services to customers in Kochi, India. This provides car care service, fully automated diagnostic wheel balancing, and robotic wheel alignment.