With the booming population, which is witnessing an increase in its purchasing power, the sale of automobiles is rising rapidly. Between 2015 and 2018, the number of vehicles in operation around the world rose sharply to 1.57 billion from 1.28 billion. Along with just the number of vehicles, even their quality is rising, as automakers are competing for a larger share in the market. As a result, people are using their automobiles for longer than before, which is leading to brisk business for vehicle repair and servicing entities.
Moreover, with the changing customer demands, vehicles are becoming more complex and more dependent on advanced technology. P&S Intelligence says that all these factors will together propel the automotive repair software market from $1,264.2 million in 2019 at a healthy 10.3% CAGR between 2020 and 2030. This is because with automobiles becoming more complex, auto repair and maintenance are moving beyond mechanical and electrical maintenance, to encompass software updates and cybersecurity as well.
Moreover, software also allows repair and maintenance entities to save time, which is crucial for answering customers’ demand for quick service. Apart from servicing and overhauling, such software helps repair personnel in inventory tracking, back-office operations, parts management, and appointment scheduling. Further, software enables garages to keep a track on their employees, drive productivity, and focus on areas that need improvement, in terms of the service quality or task duration. Similarly, companies that have garages in multiple places can integrate data from several locations at one place and share real-time information for smoother communication.
With time, as sales of connected, autonomous, and electric vehicles burgeon, so will the demand for automotive repair software. Compared to conventional automobiles, they have more electronic systems, including an electric powertrain, various sensors and cameras, and digital instrument clusters, which cannot be repaired without adequate technical know-how and advanced software. In 2019, 2.1 million electric cars were sold around the world, which brought the number of all such vehicles in operation to more than 7.2 million, says the International Energy Agency (IEA), thereby reflecting a rising demand for automotive repair software.
Such software can be installed on mobile phones, tablets, and computer systems. Currently, computers are the most-preferred interface for such programs because they offer larger storage, which is important for the heavy software. However, the usage of mobile phones for deploying automotive repair software is rising rapidly, as such devices offer convenience to repair personnel, who no longer have to shunt between their computer and working area to check technical service bulletins (TSBs), colored wiring diagrams, and commonly replaced parts data. This quickens up the process and makes it more efficient and allows repair entities to service more vehicles in a given time, thereby letting them boost their earnings.
Since such software is a result of modernization, North America has been the most-productive automotive repair software market till date. Many regional garages possess the technical know-how regarding advanced vehicles and the software required for their repair and maintenance. Moreover, people are using their vehicles for longer than before, and they also want more mileage out of them, for which a stronger focus is mandated on repair and servicing. In the coming years, such software is expected to find widespread adoption in other parts of the world too, especially Asia-Pacific (APAC), which is the largest auto market anywhere and witnessing rapid technological advancements.
Hence, as vehicles become more complex with the integration of electric propulsion and numerous connected technologies, repair shops will become more dependent on advanced software for their day-to-day operations.