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

The Automobile Towing industry is chugging along. The economy continued to improve over the five years to 2017, 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. Harsh weather conditions have also boosted industry demand over the past five years. Over the five years to 2022, revenue will continue to trend higher...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
3.1%
Forecast Growth 17-22
Profit
Employment
96,579
Businesses
44,489
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Harsh weather conditions have boosted industry demand over the past five years
  • Severe storms often lead to stranded motorists, heavy accident volume and various other problems
  • Demand will likely fall as more people purchase vehicles with crash-avoidance technologies
  • Industry Report - Industry Products Chapter

    Automobile towingAutomobile towing is the predominant service that this industry offers. This market can be further segmented by the type of car towed: passenger cars and light-duty trucks. Light duty trucks, which are sports utility vehicles and trucks that can carry cargo, account for the largest share of revenue, at 43.3%. Passenger cars, which are vehicles that do not carry cargo and are mainly used for transport, are expected to generate 35.6% of revenue. Combined, both of these segments are expected to remain relatively steady as a share of overall revenue over the five years to 2017.Demand for automobile towing comes from automobile dealers, repair shops and fleet operators, law enforcement agencies, municipalities and individual motorists. The...purchase to read more.

    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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    What is the Automobile Towing Industry?

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

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

  • 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
  • Passenger car towing
  • Roadside assistance
  • 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
    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
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Automobile Towing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of motor vehicle registrations (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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’s industry research report on Automobile Towing can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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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