PUBLISHER: The Business Research Company | PRODUCT CODE: 1849610
PUBLISHER: The Business Research Company | PRODUCT CODE: 1849610
Auto repair software is a digital tool developed to simplify and automate the operations within automotive repair shops, dealerships, and service centers. By enhancing workflow efficiency, improving customer communication, and optimizing resource management, it aids businesses in boosting productivity, minimizing errors, and increasing profitability. Many contemporary solutions also provide cloud-based access, mobile compatibility, and integration with accounting or payment systems for smoother operations.
Key categories of auto repair software include safety and security software, autonomous driving software, vehicle management software, infotainment software, and others. Safety and security software improves vehicle safety by incorporating features such as collision detection, emergency braking, and theft prevention systems. It can be deployed either on-premise or in the cloud, and is used in both passenger and commercial vehicles. Various end-users, including independent repair shops, franchise auto repair chains, and dealership service centers, apply it for residential, commercial, and other purposes.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
The auto repair software market research report is one of a series of new reports from The Business Research Company that provides auto repair software market statistics, including auto repair software industry global market size, regional shares, competitors with a auto repair software market share, detailed auto repair software market segments, market trends and opportunities, and any further data you may need to thrive in the auto repair software industry. This auto repair software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The auto repair software market size has grown rapidly in recent years. It will grow from $26.49 billion in 2024 to $30.12 billion in 2025 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to increasing digitalization of auto repair services, growth in vehicle ownership, increasing complexity of modern vehicles, increasing demand for cost-effective repair solutions, expansion of automotive aftermarket services.
The auto repair software market size is expected to see rapid growth in the next few years. It will grow to $50.49 billion in 2029 at a compound annual growth rate (CAGR) of 13.8%. The growth in the forecast period can be attributed to increasing vehicle ownership and aging vehicle fleet, rising demand for cloud-based auto repair software, expansion of mobile auto repair services, increasing compliance and regulatory requirements, growing popularity of electric and hybrid vehicles. Major trends in the forecast period include technological advancements, adoption of advanced technologies, integration with advanced vehicle technologies, adoption of artificial intelligence (AI) and machine learning (ML), adoption of advanced driver assistance systems (ADAS).
The forecast of 13.8% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariffs on diagnostic plug-in tools and embedded systems often integrated with repair software could limit the functionality and market expansion of U.S. auto repair platforms. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing demand for passenger vehicles is anticipated to propel the auto repair software market in the coming years. Passenger vehicles, which include cars, SUVs, trucks, buses, and vans, are designed for personal or business transportation, either for passengers or goods. The rising demand for these vehicles is being fueled by factors such as increasing urbanization, higher disposable incomes, the growth of the e-commerce and logistics sectors, better road infrastructure, advancements in technology, and the expanding popularity of ride-hailing and leasing services. Auto repair software for passenger vehicles helps streamline diagnostics, maintenance scheduling, and repair management, improving efficiency and accuracy for both technicians and vehicle owners. For example, a report by the European Commission published in December 2024 revealed that between late 2022 and late 2023, the number of battery-only electric passenger cars increased by 47%, approaching 4.5 million vehicles. In 2023, Luxembourg had the highest percentage of new passenger vehicles, with 18.9% being less than two years old. Consequently, the growing demand for passenger vehicles is expected to drive the market for auto repair software.
Companies operating in the auto repair software industry are increasingly focusing on the development of advanced technologies such as artificial intelligence (AI) to improve diagnostics, automate repair recommendations, and enhance overall workflow efficiency. AI applications use machine learning, natural language processing, and computer vision to automate tasks, improve decision-making, and boost efficiency across various sectors. A prime example is Predii Inc., a technology company based in the US, which launched Predii 360 in October 2023. This AI-powered solution acts as a co-pilot for the automotive service and repair industry, using generative AI to provide actionable insights, thereby increasing efficiency for service writers, technicians, and parts counter staff. Predii 360 integrates with custom service and repair data stored in a secure environment to protect intellectual property. The system employs Predii's AI pipeline, intelligent intent response network (IIRN), and a refined large language model (Predii LLM).
In March 2024, Vehlo, a US-based provider of software and financial solutions for the automotive repair industry, acquired Shop-Ware Inc., a company specializing in auto shop management software for independent repair shops. The acquisition, for an undisclosed sum, aims to strengthen automotive service technology, enhance customer communication, and expand Vehlo's influence in the auto repair market.
Major players in the auto repair software market are CCC Intelligent Solutions Inc., Vehlo, Mitchell Repair Information Company, LLC (Mitchell 1), AutoLeap Inc., PartsTech Inc., ALLDATA LLC, Nextar POS Software, Bolt On Technology LLC, Shopmonkey Inc., Tekmetric Inc., Fullbay Inc., Web-Est LLC, Shop Boss Pro LLC, RAMP Software Solutions, Mobile Tech RX, ARI Auto Repair Inc., Torque360 Inc., EZnet Scheduler Inc., Predii Inc., Garage Partner Software, AutoTraker Software, GaragePlug Inc., Scott Systems Inc., Orderry, and RepairQ.
North America was the largest region in the auto repair software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in auto repair software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the auto repair software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The auto repair software market includes revenues earned by entities by providing services such as appointment scheduling and management, work order and job management, vehicle history and diagnostics tracking. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Auto Repair Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on auto repair software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for auto repair software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The auto repair software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.