PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1737397
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1737397
Global Road Assistance Insurance Market to Reach US$11.5 Billion by 2030
The global market for Road Assistance Insurance estimated at US$7.2 Billion in the year 2024, is expected to reach US$11.5 Billion by 2030, growing at a CAGR of 8.1% over the analysis period 2024-2030. Towing Coverage, one of the segments analyzed in the report, is expected to record a 6.3% CAGR and reach US$2.4 Billion by the end of the analysis period. Growth in the Jump Start / Pull Start Coverage segment is estimated at 9.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$2.0 Billion While China is Forecast to Grow at 12.2% CAGR
The Road Assistance Insurance market in the U.S. is estimated at US$2.0 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$2.4 Billion by the year 2030 trailing a CAGR of 12.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.2% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.3% CAGR.
Global “Road Assistance Insurance” Market - Key Trends & Drivers Summarized
Why Is Road Assistance Insurance Becoming Essential in Modern Mobility Ecosystems?
Road assistance insurance is increasingly recognized as a vital service within personal and commercial mobility frameworks, offering immediate support during vehicle breakdowns, accidents, and emergencies. As vehicle ownership rises and long-distance road travel becomes more common, especially across developing regions, the demand for quick, reliable assistance has surged. This form of insurance typically covers services such as towing, on-site repairs, battery jumps, fuel delivery, and locksmith support. The emergence of electric vehicles (EVs) and the growing complexity of automotive electronics have added urgency to professional roadside support. Furthermore, ride-hailing drivers, logistics fleets, and daily commuters all benefit from reduced downtime and enhanced road safety through these policies. Technological integration with mobile apps has made accessing assistance more seamless, providing real-time tracking and 24/7 support. Insurers and OEMs alike are bundling road assistance with standard auto policies or warranty packages, turning it into a key differentiator in customer acquisition and retention. As consumers demand more comprehensive driving protection, the relevance and uptake of road assistance insurance continues to grow.
How Are Digital Platforms and Vehicle Telematics Reshaping Service Delivery?
Digital transformation is playing a central role in reshaping how road assistance services are delivered and monetized. Mobile apps now allow users to initiate a claim, track service vehicles, and communicate with support personnel in real time. Telematics and in-vehicle diagnostic systems are enabling predictive maintenance alerts, allowing insurers to offer proactive roadside assistance even before a breakdown occurs. These systems not only improve the customer experience but also reduce claim costs by addressing issues early. Integration with navigation platforms allows dispatchers to locate vehicles precisely, reducing response times. Subscription models are becoming increasingly common, offering tiered services such as priority response, extended geographic coverage, and inclusion of alternate transportation or hotel stay reimbursements. API integration with OEM dashboards and fleet management systems has led to fully embedded assistance offerings in connected vehicles. AI-based routing, driver profiling, and automated dispatch systems are optimizing operations for assistance providers. These innovations are helping insurers differentiate their products, reduce operational overheads, and align more closely with digital consumer behavior.
Which Segments and Regions Are Fueling Market Expansion?
The road assistance insurance market is seeing growth across diverse customer segments and geographies. In developed markets like North America and Western Europe, mature vehicle fleets and a focus on customer experience are driving upgrades to premium assistance packages. In contrast, emerging economies in Asia-Pacific, Latin America, and Africa are witnessing first-time adoption, driven by expanding vehicle ownership, infrastructure development, and increased insurance penetration. Urban consumers, rideshare drivers, logistics operators, and EV users are key sub-segments with unique service expectations. B2B partnerships between insurers and automotive dealers, rental agencies, or fleet owners are opening new distribution channels. Younger, tech-savvy drivers are showing a preference for digitally accessible, usage-based assistance plans, particularly when bundled with telematics-driven insurance. Meanwhile, government-led road safety campaigns and regulatory mandates in countries like India, Brazil, and China are encouraging insurers to offer standardized roadside coverage. Tourist-centric regions are also promoting temporary road assistance plans for rental vehicles, enhancing traveler safety. These diverse growth vectors are making the market more dynamic and competitive.
The Growth in the Road Assistance Insurance Market Is Driven by Several Factors...
The road assistance insurance market is expanding rapidly due to evolving consumer expectations, vehicle technology, and insurance innovation. The proliferation of vehicles worldwide, especially in emerging economies, is creating a broad base of potential subscribers. Increased dependence on personal mobility and long-distance commuting has heightened demand for reliable roadside support. The rise of EVs, which require specialized assistance services like portable charging, is fostering new insurance models. Digital platforms and telematics are enabling on-demand, real-time assistance services that enhance convenience and trust. Integration with OEM warranty programs and fleet telematics systems is also boosting adoption across B2B and B2C segments. Regulatory frameworks promoting comprehensive auto insurance coverage, including mandatory assistance services in several countries, are supporting consistent market expansion. Additionally, consumer expectations for seamless service, transparency, and app-based experiences are pushing insurers to innovate in delivery and engagement. Competitive differentiation through value-added services like trip continuation support and cross-border assistance is also a key growth lever. These trends collectively ensure that road assistance insurance will remain a core offering within the evolving global auto insurance ecosystem.
SCOPE OF STUDY:
The report analyzes the Road Assistance Insurance market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Coverage (Towing, Jump Start / Pull Start, Lockout / Replacement Key Service, Flat Tire, Fuel Delivery, Other Coverage); Distribution Channel (Independent Agents / Brokers, Direct Response, Other Distribution Channels); End-Use (Passenger Cars, Commercial Vehicles)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
Select Competitors (Total 41 Featured) -
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