The global Automotive Collision Repair Market is estimated to be valued at US$ 192.59 Bn in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The automotive collision repair market involves repairing automobiles after accidental damages such as collisions, overturning, and flood or fire damage. It includes repairing the vehicle body, replacing damaged parts, painting, and other finishing works to restore vehicle appearance and safety. The collision repair services help to reduce insurance claims and downtime of vehicles involved in collisions.
Market key trends:
The growing automotive production is driving the growth of the Global Automotive Collision Repair Market Size. For instance, according to OICA, global motor vehicle production reached 95.8 million units in 2021, up from 69.5 million units in 2020. Additionally, rising road accidents are also fueling the demand for automotive collision repair. As per the WHO, around 1.35 million people die each year as a result of road traffic crashes. Other major trends include the growing adoption of advanced materials such as composites and aluminum for automotive manufacturing which make repairing more complex. This is boosting innovations in collision repair products. Furthermore, the development of autonomous vehicles will present opportunities for collision repair shops to provide advanced services in the coming years.
SWOT Analysis
Strength: The automotive collision repair market has presence of several established players with strong brand image and technical expertise in the field of automotive repairing. The market also benefits from availability of advanced repair tools and equipment that help in quick and efficient repairs.
Weakness: High initial investments required for setting up repair workshops and acquiring advanced tools and equipment. Repairing complex modern vehicles with advanced driver-assistance technologies also requires continuous training and skilling of technicians, adding to costs.
Opportunity: Steady rise in vehicle miles traveled and number of road accidents globally offer significant growth opportunities. Virtual reality/augmented reality based training of technicians can also open up new revenue streams.
Threats: Availability of low-cost imitation and recycled auto parts impacts margins for established players. Stringent environmental regulations around disposal of automobile waste pose challenges.
Key Takeaways
The global automotive collision repair market is expected to witness high growth, exhibiting CAGR of 2.3% over the forecast period, due to increasing motorization rates worldwide. Also, rising average vehicle age and miles traveled annually necessitate frequent repair and maintenance services.
Regional analysis: North America dominates currently with a market share of over 30%, led by the U.S. due to presence of an advanced automotive incident management infrastructure. However, Asia Pacific is expected to emerge as the fastest growing region, driven by China and India’s rising vehicle parc and burgeoning middle class.
Key players operating in the automotive collision repair market are 3M, Automotive Technology Products LLC, Caliber Collision Centers, Continental AG, Denso Corporation, DRiV Incorporated, Faurecia, Gerber Collision & Glass, Honeywell International, Inc., International Automotive Components Group, Johnson Controls Inc., Magna International, Inc., Mann+Hummel Group, Martinrea International, Inc., Mitsuba Corporation, Robert Bosch GmbH, and ZF Friedrichshafen AG. Players are focusing on expanding their global footprints and offering one-stop solutions for collision repairs.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
