Shifting gears: Operators will rely more on add-on serves as competition grows

Despite the economic recovery, the industry remained subdued over the five years to 2017, due to volatile oil prices. The world price of crude oil increased significantly prior to the five-year period and continued to decline in 2012, which discouraged many consumers from driving their vehicles. Fewer vehicle miles driven equated to less demand for oil change and other maintenance services, causing industry revenue to decline in 2012 and 2013. However, the industry turned a corner in 2014, in line with dropping oil prices. Additionally, an increase in per capita disposable income has encouraged consumers to release pent-up demand for big-ticket items, which has led to a rise in the number of motor vehicle registrations...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
1.5%
Forecast Growth 17-22
Profit
Employment
89,550
Businesses
33,372
Market Share of Companies

Industry Threats & Opportunities

  • Rising incomes will encourage consumers to make preventive repairs, driving demand
  • Sales of preventive maintenance services protected the industry from more severe demand drops
  • The average age of vehicles is forecast to rise over the next five years
  • Industry Report - Industry Products Chapter

    Oil changesOil change services generate the majority of industry revenue, accounting for an estimated 47.6% in 2017. Oil change services are often the most price-competitive service offered to lure customers to buy other services and products with higher profit margins. During times of economic distress, prices for industry services decline. This is due to price pressures and the need for industry operators to remain competitive. However, in light of economic improvements, prices for oil changes have started to trend upward. This segment's share of revenue is expected to increase over the five years to 2017, as demand for oil change services is expected to rise.Cabin air filtersCabin air filters are expected to account for 20.2% o...purchase to read more.

    Additional Insights for the Oil Change Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Oil Change Services Industry are

  • Quality Service
  • Flexibility with price
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Per capita disposable income in the Oil Change Services industry impact industry performance..

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    What's in this report

    What is the Oil Change Services Industry?

    Industry operators change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Unlike auto mechanics, companies in this industry do not provide mechanical and electrical repair and maintenance. Industry operators are also not involved in body, paint, interior and glass repair. Companies that provide car wash services are also not included.

    Industry Products
  • Oil changes
  • Tire rotations
  • Cabin air filters
  • Transmission flush services
  • Industry Activities
  • Providing automotive oil change and lubrication services
  • Providing automotive emissions testing services
  • Providing automotive rustproofing and undercoating services
  • Providing automotive safety inspection services
  • Providing automotive tire repair services (except retreading)
  • Providing diagnostic testing without repair services
  • Providing emissions testing with repair services
  • Spray-on bed liner installation for trucks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicle registrations
  • Per capita disposable income
  • Total vehicle miles
  • Average age of vehicle fleet
  • World price of crude oil

  • Current Performance
  • Pent-up demand
  • Volatile profit
  • Foundation for growth
  • External competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Stable revenue growth
  • Preventive repairs
  • New types of services
  • Table: Oil Change Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Oil Change Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Long-Distance Freight Trucking
  • Scheduled and Charter Bus Services
  • Car Rental

  • Key Selling Industries
  • Auto Parts Wholesaling
  • Gasoline & Petroleum Wholesaling
  • Tire Manufacturing

  • Products & Services
  • Oil changes
  • Cabin air filters
  • Tire rotations
  • Transmission flush services
  • Other
  • Chart: Oil Change Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 45 to 64
  • Consumers aged 25 to 44
  • Consumers aged 65 and older
  • Consumers aged 18 to 24
  • Chart: Major Market Segmentation for the Oil Change Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Oil Change Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Oil Change Services Industry

  • Industry Globalization
    Royal Dutch/Shell Group,
  • Table: Royal Dutch/Shell Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Oil Change Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Oil Change Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Average age of vehicle fleet (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Average Ticket Price
  • The average price charged for a service, which usually includes service, parts and labor charges.
  • Oil Change Shop
  • A shop that changes motor oil, lubricates the chassis of automotive vehicles and provides other automotive repair and maintenance services, such as tire rotations and liquid flushes.
  • Preventive Maintenance
  • Maintenance that is not immediately necessary but could prevent future problems and extend the life of the vehicle.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Oil Change Services Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Oil Change Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Oil Change Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Oil Change Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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