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Roadside Assistance: 337 million revenue generating units in 2033 driven by the rising prevalence of OEM-offered solutions

  • Internet of Things
  • IoT
  • Hyperconnectivity
  • Connected Vehicles
  • Automotive
  • Brake Failure
  • Connected Car
  • Flat Tyre
  • Fuel Shortage
  • Roadside Assistance Aftermarket
  • Roadside Assistance Vehicle Head Unit
  • Towing
  • Warning Beacon
  • Matt Arnott
  • Nikita Singh
This report provides Transforma Insights’ view on the Roadside Assistance market. This segment comprises two sub-applications: Roadside Assistance Head Unit and Roadside Assistance Aftermarket. Car breakdowns are a common occurrence on the roads disrupting the traffic flow and causing frustration and inconvenience amongst drivers. There are about 69 million vehicle breakdowns every year in the US, affecting approximately one in every three Americans. Roadside assistance may be required for reasons such as flat tyres, discharged batteries, electrical issues, overheating, mechanical failures related to engine and brakes, and vehicles running out of fuel. One of the significant advantages of IoT in roadside assistance is the capability to deliver diagnostic information (such as engine status, error codes, tyre pressure, fuel level, and others) in near-real time, enabling technicians to arrive at the location with the necessary tools and replacement parts. A significant barrier to the Roadside Assistance market is the increasing popularity of on-demand smartphone applications. They have become a popular mode of summoning roadside assistance for drivers because these do not require any additional hardware installation or integration with the vehicle head unit and can be carried between vehicles. Moreover, smartphones are a cost-effective solution compared to dedicated devices or OEM-provided software for roadside assistance. However, both of these solutions typically provide richer features for roadside assistance as they have access to detailed vehicle diagnostics data that can provide service providers with crucial information before reaching the location. The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used (including splits by 2G, 3G, 4G, 5G, LPWA, short range, satellite and others), as well as the revenue split between module, value-added connectivity and services. A full set of forecast data, including country-level forecasts, sector break-downs and public/private network splits, is available through the IoT Forecast tool.

Report summary

This report provides Transforma Insights’ view on the Roadside Assistance market. This segment comprises two sub-applications: Roadside Assistance Head Unit and Roadside Assistance Aftermarket.

Car breakdowns are a common occurrence on the roads disrupting the traffic flow and causing frustration and inconvenience amongst drivers. There are about 69 million vehicle breakdowns every year in the US, affecting approximately one in every three Americans. Roadside assistance may be required for reasons such as flat tyres, discharged batteries, electrical issues, overheating, mechanical failures related to engine and brakes, and vehicles running out of fuel. One of the significant advantages of IoT in roadside assistance is the capability to deliver diagnostic information (such as engine status, error codes, tyre pressure, fuel level, and others) in near-real time, enabling technicians to arrive at the location with the necessary tools and replacement parts.

A significant barrier to the Roadside Assistance market is the increasing popularity of on-demand smartphone applications. They have become a popular mode of summoning roadside assistance for drivers because these do not require any additional hardware installation or integration with the vehicle head unit and can be carried between vehicles. Moreover, smartphones are a cost-effective solution compared to dedicated devices or OEM-provided software for roadside assistance. However, both of these solutions typically provide richer features for roadside assistance as they have access to detailed vehicle diagnostics data that can provide service providers with crucial information before reaching the location.

The report provides a detailed definition of the sector, analysis of market development and profiles of the key vendors in the space. It also provides a summary of the current status of adoption and Transforma Insights’ ten-year forecasts for the market. The forecasts include analysis of the number of IoT connections by geography, the technologies used and revenue.

A full set of forecast data, including country-level forecasts, sector breakdowns and public/private network splits, is available through the IoT Forecast tool.

roadside assistance landing page .jpg

Key market developments in the Roadside Assistance Application Group

The report examines key factors that are influencing the development of the market, including:

Vehicle breakdown and the need for roadside assistance

This section first talks about the impacts of car breakdowns and their aftereffects (like disruption of traffic flow and wasting of drivers’ time), which justifies the need for roadside assistance solutions, since these solutions can instantly notify the service teams to instantly address vehicle emergencies. It then discusses some significant advantages of IoT in roadside assistance, including its ability to deliver diagnostic information (like engine status and tyre pressure) in near-real time.

Types of Roadside Assistance solutions

This section highlights multiple ways of using roadside assistance services, including roadside assistance applications hosted on vehicle head units, aftermarket devices, and smartphone apps. It also explains how enabling roadside assistance through an application hosted on the vehicle head unit is another source of revenue for automotive manufacturers and why it has become important to provide these services to customers as well. It also explains how recovery companies and communication service providers are getting increasingly involved in the market.

Roadside Assistance Head Unit

This subsection first defines roadside assistance head unit and then discusses how roadside assistance can help OEMs improve customer experience and generate additional revenues. For example, OEMs can charge a subscription fee to give access to the services and they can sell the opportunity to third-party recovery firms as well. In a tabular format, it then lists some OEMs (including BMW, General Motors, Audi, Kia, Volvo, Lexus, and Hyundai), their features, and their subscription prices. For instance, Hyundai’s Bluelink (which includes stolen vehicle recovery, eCall, in-vehicle navigation, in-vehicle infotainment, and roadside assistance) is priced at USD9.99 per month or USD99 per year.

It also provides a few examples of relevant IoT deployments in this application, such as Honda selecting Bosch to provide roadside assistance capability.

Roadside Assistance Aftermarket

This subsection explains why the roadside assistance aftermarket faces stiff competition from smartphone applications. For instance, smartphone apps that are provided by insurers and roadside assistance services connect users to nearby towing and assistance providers, and mostly, these apps rely on the host device’s GPS for location. It also explains the advantages of roadside assistance aftermarket devices over smartphones. For instance, these devices can offer more functionality as they can be connected to a vehicle’s diagnostics port.

It also discusses how upcoming regulations can add impetus to the adoption of aftermarket devices. To cite an instance, a regulation is coming up in Spain that requires all passenger vehicles to have connected roadside assistance beacons instead of emergency triangles from January 1, 2026. Lastly, it introduces two IoT deployments in this application (including T-Mobile SyncUp Drive devices) and discusses their features, variants, and costs.

Market Barriers

This section of the report focuses on the existing barriers that may hinder the prospect of the roadside assistance market. For instance, many consumers prefer using smartphones to summon roadside assistance since they don’t require any external hardware, don’t have to be integrated with the vehicle head unit, and can be carried from one vehicle to another. Besides, smartphones are more cost-effective solutions, when compared to roadside assistance applications that are hosted on vehicle head units or aftermarket devices, although smartphones lack access to detailed vehicle diagnostics data.

Key vendors for Roadside Assistance Application Group

The key vendors section lists some of the main providers of products and services related to the market such as Bosch, Audi, Mercedes Benz, Ford, General Motors, and Hyundai. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.

Market forecasts for Roadside Assistance Application Group

In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:

Devices

The report charts the growth in the number of devices, which will grow from 6.8 million in 2023 to 48.3 million in 2033. Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.

Technologies

Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other.

This section discusses which technologies will be used in the Roadside Assistance Application Group.

Revenue

This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Roadside Assistance Application Group will grow at a CAGR of 13%.

  • AA
  • AAA
  • Agero
  • AT&T
  • BMW
  • Ford
  • General Motors
  • Harman
  • Kia
  • Lexus
  • Mercedes Benz
  • RAC
  • Rolls-Royce
  • Tantalum
  • Telefonica
  • Telenor Connexion
  • Tesla
  • T-Mobile
  • Verizon
  • Volkswagen
  • Volvo
  • Internet of Things
  • Hyperconnectivity
    • Transportation & Storage