Get more insights on Automotive Collision Repair Market
The Automotive Collision Repair Market Growth Is Driven By Increasing Road Accidents
The automotive collision repair market involves repairing automobiles that have been damaged in accidents, storms, vandalism or other incidents. It includes body and paint services as well as mechanical and electrical repair. Sophisticated tools and equipment are used to repair or replace damaged vehicle parts and restore its original form and function. With rising vehicle fleet on road, collisions have increased significantly over the years. Prolonged use of vehicles also demands timely repair and maintenance for safe driving.
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.
The primary driver for the Automotive Collision Repair Market Growth is rising road accidents due to increase in vehicle fleet worldwide. Over the past decade, road accident injuries have become a major public health issue. As per World Health Organization (WHO), road traffic injuries are the eighth leading cause of death across all age groups globally. High population density in cities, reckless driving behaviours and lack of stringent safety rules have aggravated road collisions in developing nations. This increasing accident rate translates to higher repairs and replacement parts demand from collision shops.
Current Geopolitical situation impacting Automotive Collision Repair Market Growth:
The ongoing geopolitical tensions and conflicts between major countries are negatively impacting the global automotive collision repair market. Rising tensions between the US and China are disrupting supply chains and increasing costs for many auto part manufacturers. Similarly, the Russia-Ukraine war has led to a sharp rise in prices of crucial raw materials like steel and aluminum used in vehicle production. This is hampering the availability as well as affordability of new vehicles. With fewer new vehicles on roads due to supply constraints and higher costs, the demand for collision repair services has also been affected adversely. The automakers are facing challenges to meet their production targets in this scenario. To sustain growth, companies in the automotive collision repair market need to diversify their supply sources, establish redundant manufacturing capacities, and focus on developing repair technologies for electric vehicles which are expected to gain widespread adoption in future.
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