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MARKET SUMMARY

1.1 Introduction and definition

Car breakdown assistance consists of repairing a vehicle at the place of intervention (or in a secure area nearby); most often it involves a simple mechanical intervention (fuel supply, modification of electronics, or tyre replacement). 

Globally, the industry is booming as cars are ageing and roadside assistance connectivity increases, which subsequently makes it easier to implement the service. 

In Belgium, towing and recovery is mainly carried out by specialised recovery companies, which are few in number and concentrated in highly urbanised areas. However, SMEs are facing competition to insurance companies who offer fixed prices per year for towing services. 

Finally, the car breakdown service industry has suffered severly in the last months in light of COVID-19 due to diminished car activity.

1.2 The global market is growing

Source: ****

In ****, the global vehicle assistance market was valued at $**.* billion; this value is expected to increase by a CAGR of *.*% until **** to reach $** billion. 

Amongst the key drivers of this market growth we find the fact that more cars are purchased in Europe in particular. Also, there is a rise ...

1.3 Steady growth in the domestic market

For this section we use the code NACE G*** "Maintenance and Repair of Motor Vehicles" to obtain Belgium's market size. Although this is not entirely dedicated to vehicle assistance per se, it still serves as a credible proxy for the market in general.

Source: ****

Since ****, the Belgian car maintenance and repair ...

DEMAND ANALYSIS

2.1 Demand drivers

In this section we aim to analyse why consumers request vehicle assistance in Belgium. Overall, the vehicle assistance industry is almost entirely dependant on events in the automotive industry, hence this is where we place emphasis when highlighting demand drivers below. 

Source: ****

The graph above depicts the claim frequencies of new ...

2.2 Accidents

Source: ****

An important metric to consider when valuing the evolution of the car assistance industry is the number of accidents that occur. Indeed, this correlates directly to the need of such services.

From the graph above we see a clear decrease in the number of accidents in Belgium in the last ...

2.3 Cars, trucks and traffic trends

Source: ****

The graph above depicts the evolution of car ownership in Belgium measured through % of households. There is a decrease, albeit small, of around *.*% between **** and ****. Nevertheless, the penetration rate remains high, and this development shouldn't worry car assistance companies. In other words, the decrease in % of household owning cars won't ...

2.4 COVID-19's impact on the industry

The global pandemic at its peak heavily diminished traffic. As of today in July, traffic is still not on par with levels before the pandemic. Consequently, the revenue of breakdown assistance has decreased accordingly. Below we dig deeper into what the potential consequences for the industry have been and what we ...

MARKET STRUCTURE

3.1 Organisation of companies on the territory

In general, car assistance services can be divided into three segments:

Government and regional services Belgium is part of the EU. Thus, the citizens can benefit from the homogenous eCall system where dialing into this number will connect individuals to the closest breakdown service for no cost.  Flemish authorities have introduced ...

3.2 Company activity

Source: ****

The Belgian market for vehicle assistance is highly fragmented; in **** there were around *,*** companies. Indeed, since **** the number of firms in Belgium has hoovered around *,***-*,***.

Most players are SMEs and local players who hosts garages and repair services.

In particular, GoldenPages lists *** companies in Belgium which offer towing at ...

ANALYSIS OF THE OFFER

4.1 Road assistance services in Belgium

Vehicle assistance consists of repairing at the place of intervention (***)

Towing consists of evacuate the vehicle and transfer it from the place of intervention to another site .

The towing and breakdown service is mainly carried out by specialized breakdown service companies in highly urbanized areas. These professionals carry out the breakdown ...

4.2 Price Analysis

Below is a price overview for companies in the car assistance insurance industry. Average price for accident/damage was €*,*** in ****. [***] To call towing services in case of breakdown on the street or highway, rtbf reports that the price is €*** (***) and €*** during the night. 

Source: ****

*prices as of July ****.

4.3 The motor is driving costs

The cost of repairing a car involves costs that depend on the intervention performed:

Towing costs: depending on the distance covered to the garage; Additional services; Depending on the place of detention: road, expressway, motorway; The possible supply of automotive parts; The time spent at the place of detention as well ...

RULES AND REGULATIONS

5.1 Regulation

Belgium regulation around towing services can be found under code-de-la-route. 

Finally, Belgium answers under EU law as well. All guidelines can be found here.

POSITIONING OF THE ACTORS

6.1 Segmentation

  • AXA Insurance (Belgium)
  • AG Insurance
  • Europ-assistance
  • Touring

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Method

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Analysts 1 sector analyzed
in 40 pages
Method
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Analysts

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  • Expert opinion

Data

  • Databases
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Method

  • Synthetic structure
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Analysts

Hugo S.

chargé d'études économiques, Xerfi

Hugo S.

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Mathieu Luinaud

Associate Consultant

Mathieu Luinaud

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Education Formation
Robin C.

PhD Industrial transformations

Robin C.

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Pierre D.

Analyst

Pierre D.

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Ross Alumni Club France

Arnaud W.

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Analyste de marché chez Businesscoot

Amaury de Balincourt

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Pierrick C.

Consultant

Pierrick C.

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Maelle V.

Project Finance Analyst, Consulting

Maelle V.

Héloise Fruchard

Etudiante en Double-Diplôme Ingénieur-Manager Centrale

Héloise Fruchard

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Imane E.

EDHEC

Imane E.

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Vincent D.

Auditeur

Vincent D.

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Eva-Garance T.

Eva-Garance T.

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Michela G.

Market Research Analyst

Michela G.

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Azelie P.

Market Research Analyst @Businesscoot

Azelie P.

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Cantiane G.

Market Research Analyst @Businesscoot

Cantiane G.

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Jules D.

Consultant

Jules D.

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Alexia V.

Alexia V.

Emil Ohlsson

Emil Ohlsson

Anna O.

Anna O.

Gabriel S.

Gabriel S.