III. Industry Analysis
No matter how much technology improves, vehicles will never be perfect. Even the best models break down at some point. Therefore, as long as vehicles are prominent throughout society, there will be a need for tow truck services. Towing is an essential service, which means there will be a great demand for the industry for the foreseeable future.
The only challenge to the towing industry is the enormous changes made to modern vehicles (such as the transition to electric vehicles). However, no vehicle is indestructible. Tow truck drivers and mechanics may need to make changes to their services or skills, but they will not become irrelevant.
According to IBISWorld, the industry grew at a compound annual growth rate (CAGR) of 2.6% over the past five years, despite the pandemic affecting much of the economy. Furthermore, according to Market Watch, the CAGR for the industry is expected to be about 3.83% over the next five years. So even with all the major changes in the automotive industry, the tow truck industry is expected to thrive for the foreseeable future.