The automotive collision repair market involves repairing vehicular damage caused in road accidents. It includes body and paint services, replacement and repair of vehicle parts like bumpers, doors, and fenders, and other mechanical and electrical repair works. With rising vehicle miles traveled globally every year, the number of road accidents and collision damages has increased significantly. This has boosted the demand for automotive collision repair services across the world.

Advanced collision repair technology solutions like laser scanning, measuring robots, and repair workflow management software are now commonly used at collision repair shops to improve efficiency, quality, and turnaround time. Body shops equipped with such technologies can repair vehicles faster at lower costs.

The global automotive collision repair market is estimated to be valued at US$ 221.87 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing adoption of advanced collision repair technologies is expected to be a key driver for market growth over the forecast period. Laser scanning and measuring robots help detect damages precisely and quickly. Repair process management software integrates operations to streamline workflows. They allow body shops to repair more vehicles in less time. This boosts shop revenues and becomes an important capability for shops to attract more customers. Moreover, increasing vehicle miles traveled every year globally raises collisions and damages, driving greater demand for repair services. While higher costs of advanced technologies may limit widespread adoption initially, declining technology prices over time are expected to remove this barrier.”

Segment Analysis
The automotive collision repair market is segmented by vehicle type, repair type, end use and region. Based on vehicle type, the passenger vehicles segment dominates the market and accounts for around 65% share owing to higher production volumes of passenger vehicles globally. The increased ownership of passenger vehicles subject them to higher chances of collisions resulting in demand for collision repair services.

PEST Analysis
Political: Stringent automotive safety regulations pertaining to collision repair across regions favor market growth. For example, the USEPA mandates use of certified technicians and facilities for collision repair involving refinishing.
Economic: Growing vehicle parc and rising disposable incomes increase vehicular collisions and drive aftermarket spending on collision repair services.
Social: Higher rates of road accidents and vehicle collisions raise the requirement of collision repairs. Improvement in living standards increases vehicle ownership.
Technological: Developments such as ADAS, sensor fusion, and connected vehicles could potentially reduce collision rates in future. However, the current vehicle fleet still requires collision repairs.

Key Takeaways
The global automotive collision repair market share is expected to witness high growth owing to rising vehicle ownership globally along with increasing road accidents. The global Automotive Collision Repair Market is estimated to be valued at US$ 221.87 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2031.

Regional analysis
The Asia Pacific region accounts for around 35% share of the global automotive collision repair market led by China and India. China being the largest vehicle manufacturer globally sees high collision repair requirements. Rising disposable incomes in the region boost individual vehicle ownership supporting aftermarket spending on repair services.

Key players
Key players operating in the automotive collision repair market are 3M, Denso, Continental AG, Robert Bosch GmbH, DuPont, Honeywell International Inc., Federal-Mogul Corporation, Mitsuba Corporation, and Automotive Technology Products LLC. 3M is a leading supplier of collision repair products including bonding adhesives and abrasives.

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