The vehicle recovery services market is facing difficult times. Although worth £1.56 billion in 2007 and having risen in value by 7% since 2003, the market is currently seeing the effects of stagnation. A near stable customer base combined with falling vehicle sales and increased price competition has led to revenue growth slowing considerably since 2006. Those active in the largest segment, membership, are increasingly relying on cross-selling as a way of generating new business. However, it is clear that such an approach is in many cases cannibalising customers from rivals or at worst depressing revenues.

In looking forward what is needed is a new approach by all players as to the role that recovery services play in consumers’ lives. Adding value to existing offers is required with the exploitation of niches within the market deemed essential if the sector is to continue to develop. At present much attention is focused on those in the highest socio-economic groups and older drivers but it is clear that many more lucrative opportunities are likely to exist.

With this in mind, this report examines the hypothesis that: “focusing attention on sectors that are currently poorly served by the sector can help stimulate further growth to this market.”