1.1 Definition and scope of study

In case of vehicle breakdown or accidents In the case of a breakdown, immobilized users need to call a convenience store. In the vast majority of cases, these users go through their automotive assistance who in turn contact the tow truck and trailer . The assistance companies thus become the first customers of the towing companies The study will therefore address breakdown assistance from the point of view of both the assistance companies and the towing companies

Breakdown assistance includes different services depending on the breakdown or accident, and can go as far as towing if the problem cannot be managed at the point of intervention. However, most of the time, only basic assistance - at the point of intervention or in a nearby secure area - is required ( mechanical or electronic repairs, fuel delivery, unlocking the vehicle in case of loss or theft of keys, ...)

Main sub-segment of the assistance market, breakdown assistance has experienced strong growth in recent years in France but also throughout the world. On a global scale, the sector is booming as cars age and digitalization facilitates the implementation of the service. The increasingly systematic use of assistance companies should thus allow for continued growth

In France, the he market for assistance companies is concentrated in the hands of a small number of players. L he French leaders are Mondial Assistance (Allianz), Inter Mutuelles Assistance, AXA Assistance, Fidelia Assistance, Europ Assistance, Mutuaide Assistance, Opteven, Mapfre Asistensia France, ACTA, Groupe Asuristance, Ressources Mutuelles Assistance. They concentrate 97% of the assistance market and have large networks of breakdown service providers in France. These are mainly companies from specialized troubleshooting, which are often small actors located in highly urbanized areas . Between 2007 and 2019, the fleet of recovery vehicles has increased by 50%, a sign of the growth of the sector.

In 2020 the FNA (Fédération Nationale de l'Artisanat Automobile) denounced in a letter to the Prime Minister the stranglehold of assistance companies on convenience stores - which suffer from untenable discount contracts - hoping for an contractual rebalancing between the actors

Finally, today, assistance and breakdown service companies are facing an major shift in the transport sector (car sharing, connected or even autonomous vehicles, ...) which could well disrupt their activities

1.2 A growing global breakdown assistance market

Size of the automotive assistance market World, ****-****, in US$ billions Source: ****

In ****, the global market for automotive assistance was estimated at **.* billion This value is expected to grow at an average annual rate of *.*% to reach $** billion in ****. These estimates were made before the covid-** crisis, which is expected to ...

1.3 The French automotive assistance market is growing steadily

The assistance market in France

Breakdown assistance - also known as vehicle assistance - represents almost of **% of the assistance market. The evolution of the assistance market in France is therefore analysed below

According to the NAHS (***), the turnover generated in France by French assistance companies increased by *.*% between **** and **** to ...

1.4 Estimation of the breakdown and towing market in France

The assistants being the main customers of the towing companies In the case of a company that has a large number of assistants, an attempt can be made to assess part of their market through the cases handled by the assistants

Below is the evolution of the number of cases handled ...

1.5 The impact of the Covid-19 crisis on the sector

It's been a tough year for convenience stores:

With containment, the decline in car use has been very negative for convenience stores, with a significant drop in the number of motor claims . The MAIF estimates that the eight-week containment has resulted in an estimated saving of approximately *** million euros compared to ...

2.1 Demand Drivers for Assistants

The demand for assistance contracts depends on

the number of vehicles registered in France, and those passing through France each year the number of users subscribing to automobile assistance contracts, which are often offered as an extension of cover.

The graph below shows the evolution of the number of registrations in ...

2.2 A constantly increasing average age of the park

According to the CCFA, the average age of the French car fleet has been rising steadily for several years, reaching an average of **.* years in ****. This high figure reflects, according to the s inability to change cars more frequently ", despite features such as the conversion premium

However, the fact that households ...

2.3 The most frequent causes of car accidents by type of parts affected

For used cars, fuel systems, electronics and the engine are the three main causes of damage. These three causes account for almost half of all claims

Claim frequency by part groups for used cars France, ****, in % Source: ****

For new cars, the two main causes are the power system and the electrical ...

2.4 A drop in road accidents in France

The graph below highlights the trend in the number of accidents in France, which has been falling over the last ten years. This should have a negative impact on the activity of convenience stores

Trends in road accidents France, ****-****, in thousands Source: ****

2.5 Seasonal demand, which also depends on climatic variations

The most intense period for those involved in assistance - both assistants and convenience stores - is the summer period with the departures on holiday. The car remains a preferred means of travel for holidays.

Peak activity for the sector is therefore closely linked to periods of peak traffic. The densest ...

3.1 Segmentation and stakeholder dynamics

Classic" value chain:

While it is logical that users of accident-damaged vehicles can call breakdown and towing companies directly, they most often use assistance companies because most users include breakdown assistance in their car insurance

Analysis of support companies:

There are two types of automobile breakdown assistance companies:

generalist assistance providers ...

3.2 Convenience stores in France: analysis of the vehicle fleet and distribution of businesses

Fleet analysis :

According to nAFA (***), there are more than **,*** recovery vehicles in **** . The graph below highlights an average increase of nearly *% per year since **** of the park.

In total, since ****, the park has increased by almost **%

Evolution of the breakdown vehicle fleet in France France, ****-****, in thousands of vehicles Source: ...

3.3 Analysis of the distribution of breakdown assistance contracts

Breakdown assistance is most often an option in car insurance contracts. [***]

Traditionally, the automobile assistance coverage is an extension of a car insurance contract.

The manufacturer may also offer assistance when purchasing the vehicle.

The increase in the number of contracts can be partly attributed to the law Hamon (***) which provides ...

4.1 The breakdown and towing service: analysis of the services provided

There is a distinction between towing and troubleshooting

The troubleshooting (***) consists of repairing the vehicle at the intervention site or at a secure area nearby, most often when the intervention is simple. According to MC Dépannage, between ** and **% of their repairs are resolved on the spot [***] The towing is to ...

4.2 Average prices of breakdown assistance contracts according to the services covered

Evolution of prices

The graph below highlights the rise in consumer prices for motor vehicle insurance - which includes breakdown assistance. This gives an idea of the upward trend in subscription prices

Change in the consumer price index for motor vehicle insurance France, ****, in % Source: ****

Evolution of the price of the ...

4.3 Price of the breakdown service itself

The cost of claims

The average cost of a car breakdown in **** was €***, up €** from ****. This increase is linked in particular to the increasingly complex functionalities of vehicles

The graph below analyses the breakdown costs - according to the type of breakdown - for new vehicles with extended warranty. It gives ...

4.4 Technology at the heart of the changes in the breakdown assistance offer

New troubleshooting solutions are emerging thanks to technological advances and the rise of connected vehicles - while distribution is becoming digital.

The rise of connected vehicles

The connected vehicles allow information to be transmitted using geolocation techniques, and problems to be reported in order to avoid breakdowns upstream: for example, by ...

4.5 The future of breakdown assistance is linked to that of the transport sector

Europ Assistance points out that " troubleshooting assistance "is gradually evolving into a" mobility assistance "given the diversification of means of transport

Euro Assurance offers assistance for the following types of vehicles

Assistance providers will have to develop their offer according to the evolution of the transport market and its practices A ...

5.1 A clear regulatory framework

As stated by the AFNA As a result, automotive breakdown assistance professionals are subject to a number of very specific regulations. To be able to carry out their activity, they must be able to justify several elements

The B*XL towing and recovery authorization for electric or hybrid vehicles. B*XL ...