2023
9
UK Vehicle Assistance and Recovery Market Report 2023
2023-08-15T04:03:35+01:00
OX1155255
2600
165766
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“After seeing recovery in 2022, the pressures of the cost of living crisis are expected to slow revenue growth during 2023. While such a development is likely to raise the…

UK Vehicle Assistance and Recovery Market Report 2023

 2,600 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Vehicle Assistance and Recovery Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest vehicle recovery market research, trends and consumer behaviours affecting your business. Get a 360° view of the vehicle recovery market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • The impact of the current cost of living crisis on demand for vehicle assistance and recovery services.
  • Recent developments in premiums and memberships.
  • Specific developments by average price, type of policy and channel used.
  • Key drivers impacting the future development of the vehicle recovery market.
  • Consumer preferences; by company and how policies are purchased.

Vehicle Recovery Market: Overview

The current cost of living crisis is exerting significant pressure on the vehicle recovery market. Despite moves by key players in the UK recovery services market to move away from price and add value to their services, the issue of competing on price remains and potentially may re-assert itself.

  • Vehicle recovery market size: The market value is forecasted to slow to 3.3% in 2023 compared to 4.9% in 2022.

Vehicle Recovery Market: Trends and Opportunities

Diversification of portfolios

There is an opportunity for retailers in the vehicle recovery market to add value through diversification of their portfolio. Mintel’s vehicle recovery market research suggests a consumer appetite for areas such as repair cost cover, discounts for SMR (servicing, maintenance and repair) and discounts for fast fit.

  • Vehicle recovery market research: RAC is increasing its involvement in SMR.

Importance of fully comprehensive

Fully comprehensive policy styles are by far the largest part of the vehicle recovery market. Mintel believes the popularity of these products reflects the importance of holding car insurance coverage for a variety of needs.

  • Breakdown recovery market share: Comprehensive policies have an 83% market share.

Purchase our UK Vehicle Assistance and Recovery Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities.  Readers of this report may also be interested in UK Car Finance Market Report 2023.

Leading Brands in the Vehicle Recovery Market

RAC, AA, Direct Line Group, Green Flag.

Additional Features Included with Your Purchase

  • Interactive Databook: Each Databook is provided as an interactive website where you can deep dive into our consumer research data on your chosen topic so you can draw your own conclusions.
  • Consumer Confidence Tracker: Our Trackers paint the picture of the economic confidence and major concerns of up to 40 different demographics, tracking changes in attitudes over time.
  • Custom PowerPoints: Incorporate our consumer research data into your own work so you can win over your clients and stakeholders. Select insights from your report to create a custom presentation that is ready to download in minutes.
  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentations.
  • Mintel’s Clients Portal: Our portal provides instant access to actionable analysis, podcasts, and trend pieces relevant to your industry that are published almost daily, as well as our annual Global Consumer Trends. You can also browse our extensive catalogue of market research reports.

Expert Insights from a Retail Analyst

This report, written by Neil Mason, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in the vehicle recovery market and add expert context to the numbers.

The pressures of the cost of living crisis are expected to slow revenue growth during 2023. While such a development is likely to raise the importance of price amongst some consumers, Mintel’s research suggests this is not the most important factor when purchasing. Non-price factors are equally significant and illustrate the importance of the service package offered by those serving the vehicle assistance and recovery market.”

Neil Mason

Neil Mason
Retail Category Director

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • Products covered in this Report
        • Executive Summary

            • The five year outlook for vehicle assistance and recovery services
              • Figure 1: Vehicle assistance and recovery services outlook, 2023-28
            • The market
              • Revenue growth set to strengthen as cost of living pressures ease
                • Figure 2: Market forecast for the vehicle assistance and recovery market, 2018-28
              • Stagnating membership numbers illustrate challenges for the market
                • Figure 3: Vehicle recovery services market, membership, 2018-23
              • Average premiums show a steady rise hinting that more will be sought from service providers
                • Figure 4: Average premium paid, 2018-23
              • Importance attached to fully comprehensive policies illustrates potential for service expansion
                • Figure 5: Segmentation of the vehicle recovery market (value), by policy type, 2022
              • Buying direct illustrates importance of how a company presents itself to the market
                • Figure 6: Segmentation of the vehicle recovery market (value), by direct/indirect channels, 2022
              • Growing profile for older cars reinforces need to address issues specific to this group
                • Figure 7: Age structure of the UK car parc in years, 2018-22
              • Companies and brands
                • AA and RAC are tightening their hold over the market
                  • Figure 8: Company shares of the vehicle assistance and recovery market, by premium and membership, 2023 (est)
                • Product and market development typify strategies being pursued by the big two
                  • Sizeable investment in advertising support illustrates confidence of service providers
                    • Figure 9: Total above-the-line, online display and direct mail advertising expenditure on breakdown recovery, 2019-23
                  • Faced with a battle between price and quality, smaller brands need to position themselves differently
                    • Figure 10: Attitudes, by brand, 2023
                  • The consumer
                    • Top three brands are the main choice for consumers
                      • Figure 11: Ownership of breakdown cover, by recovery organisation, 2023
                    • Traditional methods of sale continue to hold niche appeal
                      • Figure 12: Key means by which current breakdown cover for your main vehicle was acquired, 2023
                    • Searching for a provider is about more than just price
                      • Figure 13: Importance of price and non-price factors, 2023
                    • Cost-of-living crisis raises interest in added value services
                      • Figure 14: Role of additional services when choosing a breakdown recovery provider, 2023
                    • Families offer good opportunities for policy upgrades
                      • Figure 15: Future plans for holding breakdown cover, 2023
                  • Issues and Insights

                    • Cost-of-living crisis threatens to usher in a return to price competition
                      • Strong B2B performance from AA and RAC threatens to marginalise DLG
                        • Growth in online purchasing illustrates necessity for digital immersion by service providers
                        • Market Size and Performance

                          • Revenue growth slows as the cost of living crisis impacts
                            • Figure 16: UK vehicle assistance and recovery market, membership revenues including IPT, 2018-23
                          • Memberships expected to flatline in 2023 after recent good growth
                            • Figure 17: UK vehicle assistance and recovery services market, membership, 2018-23
                        • Market Forecast

                          • The trend towards service diversification within the market is set to continue
                            • Figure 18: Vehicle assistance and recovery services outlook, 2023-28
                          • Inflation and moves by providers to add value will both stimulate revenue growth
                            • Figure 19: Market forecast for vehicle assistance and recovery market, 2018-28
                          • Learnings from the last economic slowdown
                            • Figure 20: The vehicle recovery market, by value, 2007-12
                          • Forecast methodology
                          • Market Segmentation

                            • Cost-of-living crisis benefits ad hoc segment of the market…
                              • Figure 21: Segmentation of the vehicle assistance and recovery market, by value at current prices, 2018-23
                            • …as well as overall average premiums
                              • Figure 22: Vehicle assistance and recovery market, average premium paid including IPT, 2018-23
                            • Comprehensive policies maintain market dominance
                              • Figure 23: Segmentation of the vehicle assistance and recovery market (value), by policy type, 2022
                            • Policies purchased indirectly account for over a third of revenues
                              • Figure 24: Segmentation of the vehicle assistance and recovery market (value), by direct/indirect channels, 2022
                          • Channels to Market

                            • While over a third of policies are now being acquired online…
                              • …traditional sales channels remain popular with some
                                • Figure 25: Key channels used for purchasing vehicle assistance and recovery insurance, 2019, 2021 and 2023
                            • Market Drivers

                              • Inflation will continue to eat into consumer spending power over the course of 2023
                                • Figure 26: Unleaded and Diesel fuel prices (including duty and VAT), 2020-23
                              • Further interest rate increases will hit mortgage-holders
                                • High inflation and rising interest rates will compound the impact of the slowing recovery
                                  • Consumer spending power will be curbed
                                    • Low unemployment is helping underpin
                                      • Consumers’ financial wellbeing has fallen from the highs of 2021…
                                        • Figure 27: Household financial wellbeing index, 2016-23
                                      • …and most people are feeling the effects of price rises
                                        • Expansion of the UK car parc has slowed recently…
                                          • Figure 28: Number of licensed cars (Great Britain), million units, 2000-22
                                        • …with number of cars on the road expected to fall in the next decade
                                          • Figure 29: Car parc (UK) forecast, central scenario, 2020-35
                                        • Stronger new and used car sales during 2023 signal market recovery
                                          • Figure 30: New and used car market volumes (United Kingdom), million units, 2018-23
                                        • Growing profile for older cars provides a major boost for market
                                          • Figure 31: Age structure of the UK car parc in years, 2018-22
                                        • Demand for hybrid vehicles is shifting market into new directions
                                          • Figure 32: Number of licensed cars (United Kingdom), million units, 2018-23
                                      • Market Share

                                        • AA boosted by consumer and business growth
                                          • Figure 33: Company shares of the vehicle assistance and recovery market, by membership, 2017-23
                                        • Call Assist increasingly leads amongst smaller players
                                          • Figure 34: Share of those outside of the big three (RAC, AA, Direct Line Group), by membership, 2017-23
                                        • Moves to add value benefit both AA and RAC
                                          • Figure 35: Company shares of the vehicle assistance and recovery market, by value, 2017-23
                                      • Competitive Strategies

                                        • Service differentiation is the main strategic approach to the market
                                          • Core and periphery approach by the AA to market and service development
                                            • RAC investing in SMR and digital support
                                              • How you pay offers further differentiation
                                                • Use of recommendations to raise quality
                                                  • Figure 36: Use of independent recommendations (leading seven providers by membership), 2023
                                                • Continuing use of price at PoS
                                                  • Links with partners are essential for members
                                                    • Demands from automotive manufacturers benefit AA and RAC…
                                                      • …with financial partners having similar broad needs
                                                        • Stripped down demands in the retail sector benefit those offering more basic services
                                                        • Launch Activity and Innovation

                                                          • RAC launch service to assist motorists with maintenance…
                                                            • Figure 37: RAC Service and MOT Plan, 2023
                                                          • …as well as broadening support with a mobile mechanic service
                                                            • Figure 38: RAC Mobile Mechanics, 2023
                                                          • Green Flag trials own fleet of support vehicles
                                                            • Figure 39: Green Flag trials own fleet, 2023
                                                          • Green Flag partners with Chargepoint to champion EV adoption
                                                            • Figure 40: Green Flag partnership with Rightcharge, 2023
                                                        • Advertising and Marketing Activity

                                                          • Buoyant expenditure as sector recovers post pandemic
                                                            • Figure 41: Total above-the-line, online display and direct mail advertising expenditure on breakdown recovery, 2019-23
                                                          • AA dominates as the main spender in the market
                                                            • Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on breakdown recovery, by advertiser, 2019-23
                                                          • Over half of investment is directed towards television
                                                            • Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on breakdown recovery, by media type, 2019 and 2022
                                                          • Nielsen Ad Intel coverage
                                                          • Brand Research

                                                              • AA leads from others on trust and differentiation
                                                                  • Figure 44: Attitudes towards and usage of selected brands, 2023
                                                                • Awareness and past use make the AA the brand most would recommend
                                                                  • Figure 45: Key metrics for selected brands, 2023
                                                                • Brand attitudes: Price, quality and individuality distinguish five leading brands
                                                                  • Figure 46: Attitudes, by brand, 2023
                                                                • Brand personality: Big three viewed as having similar macro personalities
                                                                  • Figure 47: Brand personality – Macro image, 2023
                                                                • Brand personality: Smaller brands can build presence by developing their micro personalities
                                                                  • Figure 48: Brand personality – Micro image, 2023
                                                              • Presence of Breakdown Recovery Organisations

                                                                • AA dominates the market
                                                                  • Figure 49: Ownership of breakdown cover, by recovery organisation, 2023
                                                                • Older women fail to see the appeal of the AA
                                                                  • Smaller brands rival the AA when it comes to young adults
                                                                    • Green Flag lacks city appeal
                                                                      • RAC registers broad appeal amongst different income groups
                                                                        • Larger service providers under perform in attracting hybrid car owners
                                                                          • Green Flag suffers fall in share as others register small gains
                                                                            • Figure 50: Ownership of breakdown cover, by recovery organisation, 2019-23
                                                                        • How Cover is Acquired

                                                                          • Online and bundled with vehicle insurance dominate
                                                                            • Figure 51: Key means by which current breakdown cover for your main vehicle was acquired, 2023
                                                                          • Links with car insurance providers shouldn’t be underestimated
                                                                            • Freebies don’t just appeal to the less wealthy
                                                                              • Traditional sales methods still retain interest
                                                                                • Getting cover for free popular with hybrid car owners
                                                                                  • Lack of partner presence evident for Green Flag
                                                                                    • Buyers of new cars are more likely to acquire cover for free or have it included with vehicle insurance
                                                                                      • Bundling with vehicle insurance is proving increasingly popular
                                                                                        • Figure 52: Key means by which current breakdown cover for your main vehicle was acquired, 2021-23
                                                                                    • Importance of Price and Non-Price factors

                                                                                      • Reliability, speed of response and competence lead over price
                                                                                        • Figure 53: Importance of price and non-price factors, 2023
                                                                                      • Ethnic minorities want more from suppliers
                                                                                        • Rural worries about reliability
                                                                                          • Physical evidence is important for hybrid car owners
                                                                                            • Green Flag poorly positioned to take on AA
                                                                                              • Physical evidence is important for new car buyers
                                                                                                • Online purchasers show lack of interest in physical evidence
                                                                                                • Importance of Additional Services when Choosing a Provider of Services

                                                                                                  • Cover for replacement parts is the clear winner when it comes to additional services
                                                                                                    • Figure 54: Role of additional services when choosing a breakdown recovery provider, 2023
                                                                                                  • Additional services and discounts appeal to young women
                                                                                                    • Older men want to keep things simple
                                                                                                      • Specialist assistance and diagnostic technology of interest to new car owners
                                                                                                        • Charging support of interest to hybrid owners
                                                                                                          • Development of technology to take on the AA
                                                                                                            • More can be done to raise interest with telephone buyers
                                                                                                            • Future Plans for Holding Breakdown Cover

                                                                                                              • A quarter of those with policies are unsure what will happen at renewal
                                                                                                                • Figure 55: Future plans for holding breakdown cover, 2023
                                                                                                              • Young adults are more likely to change their current level of cover
                                                                                                                • Welcoming those who want to pay less
                                                                                                                  • Appealing to families offers good opportunities
                                                                                                                    • Changing demands evident amongst hybrid owners
                                                                                                                      • Smaller service providers are likely to see more volatile customer decision making
                                                                                                                        • More can be done by insurance partners to encourage upgrading
                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                            • Abbreviations
                                                                                                                              • Consumer research methodology
                                                                                                                              • Appendix – Forecast Methodology

                                                                                                                                • Market forecast and prediction intervals
                                                                                                                                  • Figure 56: Market forecast and prediction intervals for the vehicle recovery market, 2023-28
                                                                                                                                • Market drivers and assumptions
                                                                                                                                  • Forecast methodology

                                                                                                                                  About the report

                                                                                                                                  This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                                                  Market

                                                                                                                                  Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                                                  Consumer

                                                                                                                                  Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                                                  Brand/Company

                                                                                                                                  Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                                                  Data

                                                                                                                                  Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                                                  *databooks not available with UK B2B Industry reports.

                                                                                                                                  Below is a sample report, understand what you are buying.

                                                                                                                                  Click to show report
                                                                                                                                  2024 Sample Consumer Cover

                                                                                                                                  Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

                                                                                                                                  Trusted by companies. Big and small.

                                                                                                                                  Want to speak to us directly?

                                                                                                                                  Contact us with your enquiry and our expert global team can help.

                                                                                                                                  Get in touch