The automotive collision repair market involves repairing automobiles that have been damaged in accidental collisions. Such repairs include repairs to the vehicle's body, replacing glass parts, and painting the repaired sections. The collision repair industry offers refinishing, collision repair services, mechanical & electrical repair services, window replacement/repair, and other automotive repair solutions through independently owned collision repair shops or dealerships. Recently, growth in automobiles sales and rising road accidents have resulted in an increase in automotive collision repair demand.

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:

One of the key drivers for the growth of the automotive collision repair market is the increasing road accidents globally. With rising urbanization and increasing automobiles on roads, the number of road accidents have significantly increased in recent years. For instance, according to the World Health Organization (WHO), around 1.3 million people die each year as a result of road traffic crashes. Road accidents often result in damaged vehicles that require collision repair services. Moreover, the repair and maintenance of damaged vehicles are also boosting the demand for automotive collision repair services. Furthermore, availability of both independent collision repair shops and dealership collision centers also contribute to the growth of this market.

SWOT Analysis

Strengths: The automotive collision repair industry benefits from consistent demand as accidents are unavoidable. Established repair shops have expertise and name recognition.

Weaknesses: The repair process can be time-consuming and expensive. New technologies may require additional training and equipment investments.

Opportunities: Advanced driver-assistance systems could reduce accidents over time, while electric vehicles may drive new service opportunities. International growth remains feasible.

Threats: Intense price competition exists amongst repair centers. Disruptive new entrants or substitution effects may impact certain services.

Key Takeaways

The global automotive collision repair market growth 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.

The North American collision repair market enjoys maturity but consolidating landscape. Rapid expansion is expected across Asian countries correlating with rising vehicle counts and consumer spending. While recessionary pressures remain a risk, the overall outlook is positive underpinned by miles driven and technological evolution.

Leading industry players are investing to build scale and integrated solutions. Mergers and partnerships aim to bolster service breadth and geographic coverage. Over time, advanced services such as telematics-linked diagnostics, predictive analytics and digital workflow management may raise productivity and customer experience standards sector-wide.

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