Market analysis of towing services in India
The relevance of research
A tow truck is a specialized vehicle designed for loading, unloading and transporting other vehicles. Heavy traffic on the roads is often an additional factor that has a significant impact on the number of road accidents. The lack of parking spaces provokes drivers to leave cars in places that are not allowed for parking. In all these cases: in case of an accident, when the car cannot move independently, in case of improper parking of the car in the wrong place, they use the services of a tow truck.
Purpose of the study
Analysis of the state of the market for towing services, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market for towing services
Content
Part 1. Overview of the Indian Tow Truck Market
1.1. Definition and Characteristics of Indian Tow Truck Services Market
1.2. Dynamics of the volume of the Indian tow truck market, 2015-2019
1.3. Market structure by type of service provided in India
1.4. The structure of the market for towing services in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2. Competitive Analysis in the Tow Truck Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of tow truck services
3.1. Estimation of consumption of tow truck services per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for towing services until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. Overview of the Indian Tow Truck Market
1.1. Definition and Characteristics of Indian Tow Truck Services Market
A tow truck is a specialized vehicle designed for loading, unloading and transporting other vehicles if:
- transportation of a car is required, which, due to a breakdown, cannot continue driving on its own;
- the evacuation of the car involved in an accident is required;
- the car is parked in the wrong place and is taken out by the traffic police to the impound lot (forced evacuation).
...
1.2. Dynamics of the volume of the Indian tow truck market, 2015-2019
Consider the dynamics of the volume of the market for towing services in India. GidMarket calculations are given for the commercial sector of the evacuation services market based on data from the main market participants.
Diagram 1. Dynamics of the volume of the tow truck services market, 2015-2019, billion Rs.
The volume of the Indian evacuation market for the period 2015-2019. has a growing character. In 2019, the market volume amounted to ... billion Rs., which is ...% higher than in 2018. The increase in market volume is due to several factors: rising prices for towing services, the annual increase in the fleet of cars and trucks in India, and the aging of the vehicle fleet.
It is also worth noting that today tow trucks are used not only to transport emergency or faulty vehicles, their services are often in demand among owners of ATVs, snowmobiles and all kinds of watercraft to deliver equipment to the place of use. Also, tow trucks are often used to transport real estate - garages and stalls.
...
1.3. Market structure by type of service provided in India
The ratio of types of services is calculated by GidMarket based on the data of the fleet of vehicles in India, as well as accident statistics by type of transport. In this case, only the commercial segment was considered, without taking into account forced evacuation.
Diagram 2. Market structure of tow truck services by types, 2019, %
In the general structure of the tow truck services market, the most common type is light evacuation with a share of ..%. In turn, passenger-type evacuation can be conditionally divided into urban (services within one city) and intercity (departure services in the region).
...
1.4. The structure of the market for towing services in the Union Territories
The structure of the service market by union territories is calculated by GidMarket in physical terms according to the concentration of consumers in India.
Diagram 3. The structure of the provision of towing services in India by Union Territories, 2014-2019, %
During the period under review, the leaders in the provision of towing services in India are the Central Union Territories and the Volga Union Territories, the share of which in 2019 amounted to ...% and ...%, respectively. The market shares occupied by these districts in the overall structure are explained by ...
1.5. Assessment of current trends and development prospects of the studied market
Currently, the tow truck services market is at the stage of maturity, the growth rates are insignificant (at the level of ...%-...%), the offer on the market is represented by both large companies offering a range of services, and many small companies....
1.6. Assessment of factors affecting the market
Macroeconomic factors affect the dynamics of all sectors of the Indian economy, including the market for towing services. The main groups of factors are: economic, political, social and technological.
Economic forces
GDP dynamics
Gross domestic product (GDP) is a macroeconomic indicator that reflects the market value of all final goods and services produced per year in all sectors of the economy in India for consumption, export and accumulation, regardless of the nationality of the factors of production used.
Gross domestic product is the main indicator on the basis of which the level and pace of economic development are determined.
Chart 4 shows India's GDP growth rate from 2012 to 2020 at comparable prices (at 2016 prices).
Diagram 4. Dynamics of India's GDP, 2012-2019, Q1-2 2020, % to the previous year
Chart 5. Monthly dynamics of the US dollar against the rupee, 2015-2020, Rs. for 1 US dollar
Chart 6. Dynamics of the consumer price index (CPI) for fuel, 2012-2020 (Jan-Oct), %
Diagram 7. Dynamics of the population of India, as of January 1, 2012-2020, million people, %
Diagram 8. Dynamics of real incomes of the population of India, 2012-2019, % of the previous period
Diagram 9. Availability of vehicles in India at the end of the year, 2010-2019, million units
Chart 10. TOP-10 regions by car fleet, 2019, %
Diagram 11. Age structure of passenger cars at the end of the year, 2019, in % of the total
Diagram 12. Expenditures of the consolidated budget of India for the development of transport, 2015-2019, billion Rs.
Diagram 13. Profitability before tax (profit of the reporting period) in the tow truck industry in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 14. Current liquidity (total coverage) in the tow truck service sector for 2015-2019, times
Diagram 15. Business activity (average term of receivables turnover) in the tow truck services sector, for 2015-2019, days days
Diagram 16. Financial stability (security of own working capital) in the towing service sector, in comparison with all sectors of the Indian economy, 2015-2019, %
Chart 17. Shares of the largest competitors in the tow truck services market in 2019, %
Diagram 18. Dynamics of the total revenue of the largest operators of the tow truck services market (TOP-5) in India, 2015-2019, billion Rs.
Diagram 19. Consumption of tow truck services per capita, 2015-2019, Rs./person
Diagram 20. The importance of criteria for choosing an evacuation service by consumers, points
Diagram 21. Forecast of the volume of the tow truck services market in 2020-2024, billion Rs.
Tables
Table 1. Types of tow trucks
Table 2. Forecasts of various sources for real GDP in India in 2020-2023 (base scenario), %
Table 3. Number of road traffic accidents by causes, 2017-2019, units rev.
Table 4. STEP-analysis of factors influencing the tow truck market
Table 5. Tow Truck Industry Gross Margin vs. All Industries in India, 2015-2019, %
Table 6. Absolute liquidity in the tow truck industry compared to all sectors of the Indian economy, 2015-2019, times
Table 7. Main companies participating in the tow truck services market in 2019
Table 8. Basic information about participant No. 1 of the tow truck services market
Table 9. Basic information about participant No. 2 of the tow truck services market
Table 10. Basic information about participant No. 3 of the tow truck services market
Table 11. Basic information about participant No. 4 of the tow truck services market
Table 12. Basic information about participant No. 5 of the tow truck services market
Table 13. Consumer price indices in the tow truck market in India in 2015-2020 (Jan.-Oct.), %
Table 14. Average prices in the tow truck market across the Union Territories in 2019, Rs.
Table 15. Assessment of factors of investment attractiveness of the tow truck services market
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