Right now, the global automotive maintenance industry looks set to grow to a whopping $828billion by 2023.
Those figures should reassure anyone within the industry that profitability will continue. But there are still several trends that anyone involved in the sector must account for.
We’ve outlined the following core automotive maintenance trends for 2021. That way, you’ll be as prepared as you possibly can be for how our great industry looks to shift in the future.
Automotive Maintenance Technology: Automation, 3D Printing, and Big Data
Automation and technology have disrupted almost every business sector there is in 2021. Of course, automotive maintenance is no different.
When it comes to automotive repair, businesses need to keep up-to-date with as many new technologies as possible. In terms of automation, this comes in the form of inspection and monitoring tools.
This form of automation can be used to streamline the process of repairing a vehicle. These tools can automate initial phases in the repair process. Tech such as sensors and diagnosis software will also grow in importance in the future.
Another recent advancement comes in the form of 3D-printed car parts. These can be used to replace certain manufactured parts in certain areas of vehicles.
It can prove to be an affordable way to create parts and repair vehicles, within reason. Continued advancements in 3D printing will ensure that more versatile parts can be created in the future.
But in 2021, these 3D printed parts are usually reserved for lightweight parts of a vehicle. Either way, if you operate a repair company today you should consider looking into 3D printed solutions.
Finally, big data will continue to play a crucial role in the future of the sector at large. Advanced data analytics play an increased role in vehicle creation at the manufacture and design level.
This role will feed into the repair industry to a greater extent as the years pass by. On a business level in 2021, it’s also vital to keep on top of your own company’s analytics.
Adapting to data is one of the most reliable ways to stay ahead within the industry in 2021.
Car Leasing Increases and Vehicle Ownership Considerations
Statistics have shown that car leasing has become an increasingly popular option throughout the US and globally. This is combined with the fact that vehicle ownership itself has also increased year on year.
These facts show vehicles remain an essential part of everyday life for most people. This will necessitate the growth of motor repairs, as shown by the statistics above.
It is however worth noting that car leasing vehicles play no significant role in automotive repair. This is therefore a trend that bears keeping an eye on for the future. Though car ownership hasn’t decreased, the increase in car leasing figures has been larger when compared.
It is unlikely that car leasing will ever surpass ownership. With that being said, the more people there are leasing vehicles, the less need there is for automotive repair.
Automotive Repair Application Solutions and Customer Communication Improvements
We’ve seen the impact that mobile applications have had on the courier industry. This is as well as sectors relating to holiday rentals and food delivery.
These applications are designed by businesses often to link repair companies with those in need of their services. They occupy what is known as software as service solutions.
These applications help provide an additional revenue stream to rely on for providers. They then also create an easier system of access for customers in need of repair.
One such application is our own here at Kickback. To find out more about how Kickback works, please read the information provided here.
A core benefit of these services is in the improved way in which repairers are able to communicate with customers. This is a trend that can be found in business at large, where customer service has taken a heightened precedent globally.
Many automotive repair companies may find themselves needing to leverage more communication channels. This can include a sophisticated website as well as accounts on social media platforms. Ideally, a company will have a strong online presence in general.
These are reliable ways to keep connected with a target market as well as to stand out from competitors. In an increasingly competitive market, customer service efforts like these may become more important than ever in the future.
Ongoing COVID-19 Impacts and Rebound Plans
As mentioned in our introduction, the COVID-19 pandemic is an unfortunate trend of every industry in 2021. The automotive repair industry is unfortunately no different.
In some countries across the world, companies may have had to temporarily close to meet with coronavirus restrictions. However as far as the sector as a whole is concerned, the automotive industry has performed remarkably well.
The unfortunate truth here is that the future remains uncertain in terms of COVID-19. As a result, it is hard to predict exactly how the virus will impact the automotive repair industry in the near future.
What is certain is that the industry as a whole has proven its resiliency. All those working within the sector will need to keep restrictions in mind when trading, regardless of location.
Meanwhile, many are already preparing to rebound from the impact of the virus once it’s no longer with us. These rebound strategies will become particularly important near the end of the year as vaccine figures take hold.
Car Insurance Fluctuations in Rates
Car insurance is an intrinsic part of the automotive repair industry. In 2021, likely as a result of COVID, we’ve seen insurance rates fluctuate in different areas. This is true in Canada as well as elsewhere.
This is important to consider in relation to repairs, as insurance can provide custom. Insurance statistics can also show how popular car ownership currently is in an area.
If you’re looking into car insurance providers at the moment, make sure to find the best ones available.
As with insurance in any sector, the impact of this will continue to fluctuate and will depend on your current area. All providers should remain informed on current car insurance information wherever possible.
Continued Electrification in Vehicles Demands Change in Repair Understanding
Electric cars, provided by companies like Tesla, continue to be provided to the market. These vehicles have become popular alternatives in countries like the U.S., the UK, and Canada.
With these new vehicles comes a demand for a new understanding of how electric vehicles work. These are very different vehicles, which demand different parts and approaches to repair.
In 2021 and beyond, it’s vital that you or your employees understand what makes electric vehicles tick.
This is a trend that will in particular likely grow in importance in the coming years. As more and more electric vehicles are manufactured and purchased, the demand for this niche form of repair will grow.
That’s why it can be beneficial if you begin to learn how to repair electric vehicles today. This can be an attractive service offering for any automotive repair company. This is particularly true if nobody in your local area is yet emphasizing the ability to repair electric cars.
In terms of automotive maintenance tips, another to be aware of is the rise in hybrid vehicles. These are cars that are a combination of electric and regular. Like fully electric vehicles, they’re also becoming popular in recent years.
The Ever-Present Importance of Suitable Automotive Maintenance Service Training
One of the new auto repair trends that aren’t quite as new at all is the continued importance of proper training. All automotive repairers are still in need of appropriate training.
Jobs within the industry remain present privately as well as within branch repair shops. The ability to train new employees within this sector will continue to be vital to its growth in the future.
This training forms the backbone of the automotive repair industry. Without the right training, there won’t be enough employees in the sector in the future.
If you’re working within the industry, it’s a good idea to keep abreast of new training measures. It can be particularly helpful if you’re able to take on an intern or train someone up yourself.
This can fill a gap in your workforce, whilst also providing the necessary skills to another individual within the sector.
As with any industry, the automotive repair industry must work towards preparing for the future. Whether that’s electric vehicles, automatic driving cars, or otherwise, we will all be ready for it.
Where Can I Find Out More About the Automotive Maintenance Industry?
You should now know some of the current trends impacting the automotive maintenance industry in 2021 and beyond. Some of these might be familiar to you, whereas others have only developed in recent years.
If you’re looking for an additional revenue stream for your repair company, make sure to sign up with Kickback today.
Right now, this option is available for any registered Ontario business.
