While the Used Car market is expected to expand at least 5% in 2026, the Auto Service industry will see growth at more than 6%.
Several structural and market-driven factors are accelerating long-term demand for auto service, reinforcing the industry’s strong outlook in 2026 and beyond:
- Increasing Average Vehicle Age. The average age of vehicles on U.S. roads reached 13 years in 2025, reflecting longer ownership cycles and delayed replacements.
- Electrification and Complex Technology. EV repairs often require more labor time and higher costs, while ADAS systems add diagnostic, calibration, and sensor expenses. Repair orders involving these technologies typically generate 20-30% higher average revenue than traditional mechanical service.
- Commercial Fleet Expansion. The rapid growth in e-commerce and associated logistics sector is projected to result in fleet expansions at nearly 12% CAGR in 2026. Fleet growth requires additional investment in maintenance and operational uptime-focused services.
Shifting consumer priorities and evolving buying behaviors are positioning pre-owned vehicles as a preferred choice for consumers:
- Affordability & Value Prioritization. With the average price of new vehicles surpassing $50,000 in 2025, a growing number of consumers are choosing used vehicles to reduce monthly expenses. These value-focused shoppers can save nearly $200/month while still acquiring a reliable vehicle.
- Increasing Vehicle Longevity. As cars and trucks remain on the road longer, the demand for dependable pre‑owned cars grows, with Certified Pre‑Owned (CPO) sales up 6.6% YOY, reflecting strong consumer preference for reliable, quality vehicles.
- Expanding Digital Sales Channels. Digital tools are now central to the vehicle purchase journey, with 90–95% of shoppers researching online. Used vehicles represent nearly two-thirds of all online listings.
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Sources: Globel Market Insights, GlobeNewswire, SPG Global, Inside EVs, Business Research Insights, Deloitte, Ken Research.