Auto Repair Industry Statistics: 4,200 Businesses Data (2024)
When it comes to understanding the auto repair industry, most reports online present broad, generalized statistics. But in this post, we’re doing something different. We’ve gathered real, verified data from over 4,200 auto repair shops across the U.S., providing a detailed look into key metrics like industry size, turnover, profitability, customer spending, and more.
This isn’t just another list of industry averages—it’s an in-depth analysis of actual results from auto repair businesses nationwide. Whether you’re an investor, entrepreneur, or auto repair shop owner, this post offers actionable insights drawn from real-world data to help guide your decisions.
We’ll dive into the following sub topics:
- Key Industry Stats
- Industry Size & Growth
- Auto Repair: Data from 4,200 businesses
- Customers
- Latest Industry Trends
Key Auto Repair Industry Stats
- The US auto repair market is projected to reach $75 billion in 2023, growing at +3.2% over 2024-28
- There were over 165,000 auto repair businesses in the US in 2023
- The average auto repair shop in the US made $1,150,000 in yearly revenue
- The average auto repair in the US required a startup capital of $702,000
- The average auto repair in the US made 25.4% in operating profit
- Over 75% of Americans use an auto repair service at least once per year
- The average American spends $397 per year on auto repair and maintenance services
Auto Repair Industry Size
The global auto repair and maintenance market is expected to reach $810 billion by 2026
The global market is expanding rapidly, fueled by the rising number of vehicles worldwide and the growing demand for repair and maintenance services. (Source)
The U.S. auto repair industry was valued at $75 billion in 2023
The auto repair industry in the U.S. continues to grow steadily, driven by an increasing number of vehicles on the road and the need for regular maintenance services. (Source)
The U.S. auto repair industry is expected to grow at a 3.2% CAGR through 2024-2028
The industry is projected to experience steady growth over the coming years, driven by increased vehicle usage, aging vehicles, and the demand for maintenance services. (Source)
Auto Repair Shops: Data from 4,200 businesses
There are over 165,000 auto repair businesses in the US
The U.S. auto repair industry is highly fragmented, with more than 165,000 businesses operating nationwide. These shops range from small independent garages to large franchise chains, providing essential services to maintain the over 280 million vehicles on U.S. roads. (Source)
The average auto repair made $1,150,000 in yearly revenue in 2023
Auto repair franchises demonstrated strong financial performance, with an average annual revenue of $1,150,000.
This figure puts auto repair ahead of oil change franchises but behind auto parts franchises, which earned an average of $1,258,000 annually.
This data is based on about 4,200 franchised auto repair financial stats, part of some of the largest franchises in the US. Whilst franchises are somewhat different than independent auto repairs, these metrics serve as a good proxy for all auto repairs, independent and franchised.
Below is a comparison of revenues across various automotive sub-industries:
| Sub Industry | Franchises | Revenue (AUV) |
|---|---|---|
| Oil Change | 12 | $1,010,000 |
| Auto Repair | 21 | $1,150,000 |
| Car Wash | 5 | $1,047,000 |
| Auto Parts | 7 | $1,258,000 |
It costs on average $702,000 to start a auto repair shop in 2023
The automotive industry presents a wide range of investment requirements depending on the sub-industry.
While starting an auto repair shop averages $702,000 in startup costs, oil change businesses require slightly more at $768,000. On the higher end, car wash businesses demand a larger investment, averaging $1,867,000, while auto parts franchises are relatively more affordable, with an average cost of $410,000.
| Sub Industry | Investment (Average) |
|---|---|
| Oil Change | $768,000 |
| Auto Repair | $702,000 |
| Car Wash | $1,867,000 |
| Auto Parts | $410,000 |
The average auto repair had a 25.4% operating profit margin in 2023
Auto repair businesses have an average gross profit margin of 63.5% (as a percentage of revenue) and an EBITDA margin of 25.4%.
This performance is comparable to other automotive service sectors, such as oil change businesses with a 19.4% EBITDA, and car washes, which showed the highest gross profit at 82.8%.
| Sub Industry | Gross Profit | EBITDA |
|---|---|---|
| Oil Change | 73.2% | 19.4% |
| Auto Repair | 63.5% | 25.4% |
| Car Wash | 82.8% | 19.9% |
| Auto Parts | 53.9% | 8.7% |
Customers
Over 75% of Americans use an auto repair service at least once per year
A significant majority of U.S. vehicle owners visit an auto repair shop annually for routine maintenance and repairs. (Source)
The average American spends $397 per year on auto repair and maintenance services
Vehicle owners in the U.S. allocate nearly $400 annually for auto repair services, including both routine maintenance and unexpected repairs. (Source)
On average, Americans require auto repair services 2.7 times per year
From routine oil changes to unexpected repairs, vehicle owners make nearly three visits annually to auto repair shops. (Source)
Latest Industry Trends
By 2030, electric vehicles are expected to make up 30% of all vehicles on U.S. roads
This shift is creating a significant need for specialized repair services to handle the complexities of EVs, including high-voltage systems and battery management. (Source)
Over 70% of auto repair shops in the U.S. now use advanced diagnostic tools to address the growing complexity of modern vehicles
The integration of advanced diagnostic tools is essential for troubleshooting the increasingly electronic and computer-driven nature of today’s vehicles. (Source)
Nearly 50% of auto repair shops have adopted eco-friendly practices such as recycling automotive fluids and parts
As consumers become more environmentally conscious, repair shops are implementing green practices to reduce environmental impact. (Source)
The mobile auto repair industry has grown by 10% annually as more customers prefer the convenience of at-home repairs
Mobile services allow customers to get repairs done at home or work, creating a rapidly growing market for mobile mechanics. (Source)
Predictive maintenance solutions are being used by 20% of repair shops to prevent breakdowns before they happen
Using vehicle data, predictive maintenance allows auto shops to forecast problems and reduce unexpected repairs, improving customer satisfaction. (Source)
Over 15% of repair shops are preparing to offer services tailored to autonomous vehicles by 2025
With autonomous vehicle adoption on the rise, repair shops are beginning to specialize in the unique maintenance and repair needs of AVs. (Source)
