Dealerships Lose Service Market Share Despite Record Revenue Growth
Event summary
- Dealerships' average service and parts revenue reached $9.23M in 2025, up 33% in eight years, but market share fell from 33% to 29%.
- 80% of new-car buyers intend to service at the selling dealership, but only 25% schedule their first service appointment at purchase.
- High-performing dealerships utilize service bays at 90%+ capacity and integrate digital-first experiences with cross-department collaboration.
- EV owners are most reliant on dealers for service (67% share of visits) and spend an average of $417 per visit.
The big picture
The automotive service landscape is shifting as consumers hold onto vehicles longer and seek more affordable repair options. Dealerships face intensifying competition from independent repair shops and mobile services, while high-performing dealerships leverage digital tools and operational discipline to maintain service revenue growth. The study highlights the strategic importance of service departments in driving future vehicle sales and customer retention.
What we're watching
- Competitive Pressure
- How the growing number of auto repair businesses (299,000 in the U.S.) and mobile services will affect dealership market share.
- Digital Transformation
- Whether dealerships can sustain higher service revenue through digital-first experiences and cross-department integration.
- EV Service Dynamics
- The pace at which EV service reliance on dealerships will evolve as more used EVs enter the market post-2028.
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