The automotive collision repair market comprises products and services associated with repairing automotive vehicles after accidental damages. Collision repairs involveBody repair which includes panel beating, welding, and painting services to restore the automobile’s structure and appearance. Mechanical repair services fix mechanical and electrical issues arising due to collision. Increasing road accidents and average age of vehiclesand stringent safety norms for automotive structural integrity are major drivers for the collision repair industry.

The Global Automotive Collision Repair Market is estimated to be valued at US$ 221.87 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the automotive collision repair market are Zebra Technologies Corporation, TSC Auto ID Technology Co., Ltd., Toshiba TEC Corporation, Honeywell International, Inc., Bixolon Co., Ltd., Citizen Holdings Co., Ltd., Star Micronics Co., Ltd., Seiko Epson Corporation, SATO Holdings Corporation, HP India Sales Private Limited and Brother International Corporation. These players are focusing on development of digital technologies like RFID and barcoding for efficient workflow management in collision centers.

The rising number of road accidents globally is driving demand for collision repair services. As per World Health Organization, around 1.35 million people die each year as a result of road traffic crashes. This growing accident rate is creating sustained demand for repair facilities.

Major collision repair chains are expanding globally through partnerships and acquisitions to cater to the growing demand. For example, ABRA Auto Body & Glass expanded to Canada and Mexico in 2021 through strategic partnerships to leverage North American repair opportunities.

Market Key Trends

Increasing adoption of predictive analytics by Automotive Collision Repair Market Demand chains is a key trend. Analytics tools integrated with IoT sensors in vehicles capture collision and repair data that help predict types of damages, estimate repair costs and duration more accurately. This facilitates improved insurance claims processing and customer experience. Analytics also helps optimize spare part inventory management and resource allocation at collision centers.

Porter’s Analysis

Threat of new entrants: The automotive collision repair market requires huge capital investments and established supplier relationships which make it difficult for new companies to enter.

Bargaining power of buyers: Buyers have moderate bargaining power in this market as there are numerous repair shops to choose from and they can negotiate on service quality and pricing.

Bargaining power of suppliers: Parts suppliers have moderate power due to the presence of several parts providers and repair shops’ need for supply reliability.

Threat of new substitutes: There is no close substitute for collision repair services as vehicle damages must be fixed for safety and resale value.

Competitive rivalry: The market is fragmented with many small and mid-sized firms competing on service, technology and turnaround times.

Geographical Regions

In terms of value, North America accounts for the largest share of the global automotive collision repair market owing to countries like the US having the world’s highest number of annual vehicle collisions and stringent safety & insurance regulations.

The automotive collision repair market in Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising motorization rates, growing middle class consumers and increasing stringency of vehicle repair standards in emerging countries like China and India.

Geographical Regions

In terms of value, North America accounts for the largest share of the global automotive collision repair market owing to countries like the US having the world’s highest number of annual vehicle collisions and stringent safety & insurance regulations.

The automotive collision repair market in Asia Pacific region is expected to witness the fastest growth during the forecast period due to rising motorization rates, growing middle class consumers and increasing stringency of vehicle repair standards in emerging countries like China and India.

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it