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There are many reasons to upgrade the Electrical panel or electrical service:
Old an outdated panels can be dangerous as the connections , bus bar and breakers may not be ready to run the rated current through them. That can cause ever heating and is a fire hazard.
You may run out of room in your existing panel. As per 2015 Electrical code, installation of AFCI ( Arc Fault Circuit Interceptors ) Are mandatory almost on all of the circuits feeding the receptacles in the house. These breakers take a full one space in the electrical panel therefore usually during the renovations where these requirements are being enforced, panel upgrade or sub-panel become an additional prerequisite of the project.
Code violation. For example : Low hanging overhead electrical cable, broken conduit or meter base.