Procurement Market Intelligence Report
Towing Services
Sourcing Guide & Market Intelligence
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Towing Services Global Overview
Definition
Summary
Towing services are used to haul vehicles that are parked illegally, involved in an accident, or otherwise disabled. This report focuses on contractual buyers of towing services, rather than one-time consent towing by consumers. Major buyers of towing services include municipalities, transportation authorities, private property managers, and parking lot managers.
This Report Includes:
- Fleet Vehicle Towing Services
- Light and Medium Duty Towing Services
- Heavy Duty Towing Services
Not in this Report:
- Auto Repair Services
- Roadside Assistance Services
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Global Towing Services Procurement Trends
Discover the top international trends affecting procurement in the global Towing Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Towing Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 47,020 |
| #2 Oceania & Southeast Asia | 32,850 |
| #3 Africa & Middle East | 22,330 |
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Geography Drilldown - US
Average Cost of Towing Services
United States
2026 Market Pricing$50.00 to $XXX.XX
per vehicle towedAverage Price
Prices in the Towing Services market range from $50.00 to $XXX.XX, depending on Type of vehicle towed, Towing distance, Time of service and Geographic location. For example, lower prices are associated with Light vehicle ($50.00 to $150 per vehicle towed), whereas higher prices are associated with Medium vehicle ($200 to $400 per vehicle towed) and Heavy vehicle ($300 to $700 per vehicle towed).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Towing Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Towing Services market, prices in the US have grown 3.7% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for Towing Services
Total cost of ownership is Low in the Towing Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Fuel
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -2.0 in the United States. Buyer power is most positively impacted by Recent Price Trend. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
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- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Truck & Bus Manufacturers
- Fuel Dealers
- Communication Equipment Manufacturers
2nd
Tier Suppliers
- Iron & Steel Manufacturers
- Gasoline & Petroleum Bulk Station Operators
- Semiconductor & Circuit Manufacturers
Biggest Towing Services Suppliers in the US by Revenue
The largest Towing Services vendors by revenue in the US are Arrow Wrecker Service Inc., Lance Wrecker Service LLC and McDonald's Towing & Rescue Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Icahn Enterprises LP | National | SUNNY ISLES BEACH | 25-50 | < 5 | ||||
| All City Tow Service | Local | Culver City, CA | <25 | < 5 | ||||
| United Road Towing, Inc. | National | Mokena, IL | 501-1,000 | < 5 | ||||
| Arrow Wrecker Service Inc. | Local | Oklahoma City, OK | 25-50 | < 5 | ||||
| Lance Wrecker Service LLC | Local | Lawrenceville, GA | 25-50 | < 5 | ||||
| McDonald's Towing & Rescue Inc. | Local | Kalamazoo, MI | 25-50 | < 5 | ||||
| Reynolds Towing Service Inc. | Regional | Urbana, IL | 101-250 | < 5 | ||||
| Roadone West, Inc. | Local | San Diego, CA | 251-500 | < 5 | ||||
| Shamrock Towing Inc. | Regional | Westerville, OH | 51-100 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Towing Services market is 9.4% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Vendor risk in the towing services market is moderate, as vendors tend to have relatively narrow profit margins but fairly consistent demand for their services.
Low market share concertation and strong competition between local suppliers aids buyer power. Buyers should leverage the level of competition within the market to secure lower prices.
The towing service market contends with a moderate level of supply chain risk. As a result, buyers face some risk of price changes or limited capacity from a vendor due to upstream supply issues.
The United States is a net exporter of trailers and semi-trailers, indicating that domestic suppliers may have a greater ability to meet demands.
Supplier Information
All City Tow Service
All City Tow Service is a private company operating locally. The company's offerings include towing services. Founded in 1996, the company is currently headquartered in Culver City, California, United States of America with an estimated 19 employees. Subscribe to learn more
Arrow Wrecker Service Inc.
Arrow Wrecker Service Inc. is a private company operating locally. The company's offerings include towing services. Founded in 1962, the company is currently headquartered in Oklahoma City, Oklahoma, United States of America with an estimated 25 employees. Subscribe to learn more
Icahn Enterprises LP
Icahn Enterprises LP is a diversified holding company engaged in investment, energy, automotive, food packaging, real estate, home fashion, and pharmaceutical businesses. It organizes its portfolio of subsidiaries into seven reporting segments: the Investment segment, which provides investment advisory and... Subscribe to learn more
Lance Wrecker Service LLC
Lance Wrecker Service LLC is a private company operating locally. The company's offerings include towing services. Founded in 1996, the company is currently headquartered in Lawrenceville, Georgia, United States of America with an estimated 37 employees. Subscribe to learn more
McDonald's Towing & Rescue Inc.
McDonald's Towing & Rescue Inc. is a private company operating locally. The company's offerings include towing services. Founded in 1994, the company is currently headquartered in Kalamazoo, Michigan, United States of America with an estimated 26 employees. Subscribe to learn more
Reynolds Towing Service Inc.
Reynolds Towing Service Inc. is a private company operating regionally. The company's offerings include towing services. Founded in 1980, the company is currently headquartered in Urbana, Illinois, United States of America with an estimated 117 employees. Subscribe to learn more
Roadone West, Inc.
Roadone West, Inc. is a private company operating locally. The company's offerings include towing services. Founded in 1980, the company is currently headquartered in San Diego, California, United States of America with an estimated 337 employees. Subscribe to learn more
Shamrock Towing Inc.
Shamrock Towing Inc. is a private company operating regionally. The company's offerings include towing services. Founded in 1952, the company is currently headquartered in Westerville, Ohio, United States of America with an estimated 75 employees. Subscribe to learn more
Suburban Towing, Inc.
Suburban Towing, Inc. is a private company operating locally. The company's offerings include towing services. Founded in 1969, the company is currently headquartered in Louisville, Kentucky, United States of America with an estimated 75 employees. Subscribe to learn more
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Procurement Management KPIs for the Towing Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Response Time Agreement and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to tow a vehicle. The average resolution time can be used to determine a company’s support responsiveness. |
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of customer responses |
Customer satisfaction represents customers’ overall satisfaction with a company. Customer satisfaction can be used to determine whether customer improvements are required. Customer satisfaction can be used to evaluate a company’s reputation. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Price
Do you charge buyers a base fee or a per-mile rate? If you charge both, please explain the circumstances for using each method.
What additional charges do you impose on buyers?
Customer Service
How many years have you been in business? Explain any supply interruptions or management changes that have occurred in the past three years.
Do you employ dedicated customer service personnel? If so, how many?
Timeliness
What is your average response time after an initial request from a customer? Has this changed due to the pandemic?
Do you employ a communication system between your drivers and your dispatcher? What kind of communication system do you use?
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Towing Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their organization and the industry in which they operate.
Buyers should indicate why they need towing services.
Statement Of Need
Buyers should state the types of vehicles they require towing services to tow.
Buyers should detail the hours they may need towing services.
Project Budget
Buyers should request a detailed breakdown of the rates applied to the buyer for the tow services.
Buyers should indicate their expectations for payment schedules and methods.
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Our Reports include:
- Opportunity assessment
- Market dynamics
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- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
