Oil Change Services in the US Industry Market Research Report from IBISWorld Has Been Updated

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Industry revenue growth over the past five years can be attributed to the rise in the number of vehicle registrations, total vehicle miles driven and the average age of vehicle fleets; however, industry growth is forecast to be slower during the next five-year period. For these reasons, industry research firm IBISWorld has updated a report on the Oil Change Services industry in its growing industry report collection.

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Rising disposable incomes will encourage consumers to make preventive repairs, driving demand.

The Oil Change Services industry provides oil changes and other automotive maintenance, including tire rotations, air filter changes and transmission flushes. Resilient during the recent economic downturn, the industry is expected to grow at an annualized rate of 3.7% to $7.0 billion over the five years to 2013. Although the recession led to a drop in per capita disposable income, a major industry determinant, industry revenue growth over the five-year period can be attributed to the rise in the number of vehicle registrations, total vehicle miles driven and the average age of vehicle fleets. “Nevertheless, the fall in disposable income caused consumers to delay vehicle maintenance to save money, inhibiting further industry growth,” says IBISWorld Industry Analyst Brandon Ruiz. Additionally, fewer cars were on the road as unemployment surged and fewer people commuted to work. However, the recession also caused pent-up demand because vehicle maintenance cannot be delayed indefinitely. As such, industry revenue is expected to grow 2.7% in 2013, as consumers bring cars in for necessary maintenance that was put off.

In response to the recession, industry operators have added new offerings to their service mix, aside from oil changes, to increase revenue amid declining disposable income and rising unemployment. A higher volume of cars coming in for service is now up-sold on other services to generate more revenue, as the industry responds to a decline in car volumes and a shift in consumer demand toward preventive repairs. Despite the industry's shift in strategy, external competitors still pose a threat as major retailers and warehouse clubs undercut traditional operators on price and speed of service. To compete effectively, the Oil Change Services industry must focus on quality customer service to keep their businesses afloat.

Industry growth is forecast for the next five years, albeit at a slower rate. According to Ruiz, “Disposable income is set to rise and, in turn, consumers will visit industry providers at accelerating rates for vehicle maintenance.” However, external competition will remain a concern for the industry, as larger entities continue pressuring industry operators on price. Nonetheless, operators that build solid customer relationships have a chance at success.

Market share concentration for the Oil Change Services industry is low. The industry is characterized by a large number of small-scale operators, with the majority of companies operating on a local basis and owning just one establishment. There is only one industry major player, Royal Dutch Shell PLC (Shell), which is defined as a company that holds over 5.0% of industry revenue.

For more information, visit IBISWorld’s Oil Change Services in the US industry report page.

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IBISWorld industry Report Key Topics

Industry operators change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Unlike auto mechanics, companies in this industry do not provide mechanical and electrical repair and maintenance. Industry operators are also not involved in body, paint, interior and glass repair. Companies that provide car wash services are also not included.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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