Research into the UK vehicle recovery services market found it to be a large and expanding market. A major driver for the sector has been the UK’s expanding car parc and, in particular, the growing number of older cars now on the road. Yet with the inclusion of recovery services alongside new car sales, it is a sector that has recently faced challenges as this market has suffered from falling sales since 2017.
A combination of interviews and desk research with those that make up the ‘big 3’, as well as others, illustrated the intense level of competition that the sector faces. While there is a degree of loyalty, many car owners seek out policies that are offered for free or those that are offered at a discount. A number of smaller service providers have made good progress, although rising costs increasingly mean that the market is only for those who are committed towards long-term investment. Here there is a focus on the use of new technology, both in engaging with potential customers as part of the sales process, as well as for those that may need assistance.