Overview

Speed bump: Demand for towing will rise, though safer cars will partly offset growth

The Automobile Towing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$6bn
Annual Growth
11-16
2.5%
Annual Growth
16-21
Profit
Employment
86,829
Business
38,376

Industry Threats & Opportunities

  • New and reliable cars will offset growth, but revenue will rise as more people hit the road
  • Operators located in areas prone to storms typically generate higher profit margins
  • As a result of more cars on the road, industry demand is anticipated to expand

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    Industry Analysis & Industry Trends

    The Automobile Towing industry is chugging along. The economy continued to improve over the five years to 2016, leading to a decline in the unemployment rate and an increase in total vehicle miles. As individuals returned to work and disposable income started to rise, more consumers felt comfortable driving on their own as opposed to carpooling or taking public transportation. When more cars are on the road, the chances of an accident or need for roadside assistance rises, increasing demand for industry services. Over the five years to 2021, revenue will continue to trend higher. Newer vehicles are often equipped with accident avoidance technologies that reduce the need for automobile towing...

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    Industry Report - Industry Investment Chapter

    The Automobile Towing industry has a medium level of capital intensity. Industry operators spend about $0.17 on capital for every dollar spent on labor. Efficient communications equipment, newer vehicles, computer-assisted booking and route-planning facilities can reduce the need for labor. However, many labor functions in the industry, such as driving and maintenance, cannot be made less labor intensive. Over the longer term, capital investment within the industry will likely grow as competition becomes more intense. Companies will gain an advantage in the market by increasing investment in technologically advanced vehicles and communication equipment that improves routing and scheduling. Add..

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    Additional Insights for the Automobile Towing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automobile Towing Industry are

  • Ability to manage external (outsourcing) contracts
  • Ability to franchise operations
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Number of vehicle accidents and Number of motor vehicle registrations in the Automobile Towing industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Automobile Towing Industry?

    This industry tows light or heavy motor vehicles over short and long distances. Establishments may provide incidental services, such as storage and emergency road repair services.

    Industry Products
    Passenger car towing services
    Light duty truck towing services
    Roadside assistance services
    Industry Activities
    Emergency road repair services
    Motor vehicle towing services
    Tow truck services
    Wrecking services for motor vehicles

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of vehicle accidents
  • Number of motor vehicle registrations
  • Total vehicle miles
  • Average age of vehicle fleet

  • Current Performance
  • Roadside assistance
  • Demand rains down
  • Volatile fuel prices
  • Chart: Revenue Growth

  • Industry Outlook
  • New cars likely to reduce accidents
  • Higher fuel prices
  • Table: Automobile Towing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automobile Towing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Automobile Wholesaling
  • New Car Dealers
  • Parking Lots & Garages
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Truck & Bus Manufacturing
  • Truck, Trailer & Motor Home Manufacturing

  • Products & Services
  • Light duty truck towing services
  • Roadside assistance services
  • Passenger car towing services
  • Chart: Automobile Towing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • State and local government
  • Commercial customers
  • Chart: Major Market Segmentation for the Automobile Towing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Automobile Towing

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automobile Towing Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Automobile Towing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Automobile Towing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of motor vehicle registrations (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    American Automobile Association (Aaa)
  • An association of auto owners that provides services such as car insurance.
  • Electronic Stability Control Systems
  • Sophisticated balancing systems that control the stability of a car.
  • Miles Per Gallon (Mpg)
  • The average miles driven and gallons used. This measurement is used to approximate fuel efficiency.
  • Why buy this report?

    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 Automobile Towing:
    • 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 Automobile Towing 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 Automobile Towing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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