The 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 repair and refurbishment of vehicles that have been damaged in accidental collisions. The services range from repair of minor dents and scratches to major repairs involving replacement of vehicle parts. The increasing number of road accidents and vehicle collisions has boosted the demand for collision repair services. Furthermore, increasing vehicle ownership especially in emerging economies is positively impacting market growth.
Market Dynamics:
The Global Automotive Collision Repair Market Size is expected to witness significant growth owing to rising demand for automotive repairs. According to a report by WHO, road traffic injuries claim around 1.35 million lives each year. This is expected to translate into growth opportunities for collision repair services. Furthermore, the average age of vehicles on road is increasing which is leading to higher wear and tear and accidental damage rate, thereby boosting market demand. Additionally, technological advancements in collision repair tools and equipment such as 3D scanning technology, laser guided measuring systems, and better paints and coatings are improving repair efficiency and quality, thus supporting market growth over the forecast period.
SWOT Analysis
Strength: The automotive collision repair market benefits from strong growth in vehicle repair and maintenance services. Rising vehicle sales and accidents has increased the demand for repair services. Additionally, development of advanced repair technologies has improved efficiency and quality of repairs.
Weakness: High cost of equipment upgrades puts financial pressure on small and medium repair shops. Skilled labor shortages also affect the productivity and turnaround time of repair facilities.
Opportunity: Integration of autonomous technologies in vehicles will raise the complexity of repairs, opening new revenue streams for specialized service providers. Further, growth of electric vehicles will drive the need for training programs and certification on high-voltage component repairs.
Threats: Increase in new vehicle warranty periods reduces the scope for third-party repairs. Moreover, economic slowdowns may decrease the number of repair-inducing accidents.
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 vehicle miles travelled. Rising road infrastructure development in developing nations is augmenting the vehicle fleet size and accident rates.
Regional analysis The North America region currently dominates the global market, holding over 30% share in 2023. U.S accounts for the major share due to large number of registered vehicles. Moreover, frequent traffic accidents have catalyzed the demand. Asia Pacific is anticipated to exhibit fastest growth, growing at a CAGR of around 3% during 2023-2030. Burgeoning middle class population and escalating vehicle ownership in China and India is fuelling the regional market.
Key players operating in the automotive collision repair (incorporate given market name) 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.
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