Automotive Collision Repair Market

According to Stratistics MRC, the Global Automotive Collision Repair Market is accounted for $205.2 billion in 2024 and is expected to reach $243.6 billion by 2030, growing at a CAGR of 2.9% during the forecast period. Automotive collision repair involves restoring damaged vehicles to their pre-accident condition following collisions. This process includes a range of services such as dent and scratch repair, body and paint restoration, glass replacement, and mechanical and electrical repairs. It also involves replacing damaged parts with either OEM or aftermarket components. Collision repair is essential for ensuring vehicle safety, aesthetics, and functionality and is carried out by authorized service centers, independent garages, or franchise repair chain.  

According to Censuswide, Over 25% of millennials and around 23% of Gen Z drivers are willing to repair their own cars to save money, compared to lower percentages for older generations.

Market Dynamics:

Driver: 

Growing vehicle sales globally

The increasing global vehicle sales contribute significantly to the Automotive Collision Repair Market growth. As more vehicles are on the road, the probability of accidents and collisions rises, leading to a higher demand for repair services. This trend is particularly strong in emerging markets where rapid urbanization and growing middle-class populations are driving vehicle ownership. The expansion of the automotive fleet globally ensures a steady stream of repair work, supporting the growth of repair shops, parts suppliers, and related services in the collision repair ecosystem.

Restraint:

Increase in labor Costs

Skilled technicians become scarcer and labor regulations evolve; repair shops face increasing wage pressures. These higher costs can lead to increased repair prices, potentially deterring some customers from seeking professional repairs. Additionally, the complexity of modern vehicles requires more specialized training, further driving up labor costs. This trend may force some smaller repair shops out of business or lead to consolidation in the industry, potentially affecting market dynamics and competition.

Opportunity:

Growth in electric and autonomous vehicles

The rapid growth of electric and autonomous vehicles presents a significant opportunity for the automotive collision repair market. These vehicles require specialized repair techniques and equipment, creating a new niche for repair shops. The integration of advanced sensors, batteries, and software systems in EVs and autonomous vehicles demands new skills and technologies in collision repair. This shift offers opportunities for repair shops to differentiate themselves by developing expertise in these areas. Additionally, the potential for new types of collisions and damage specific to these vehicles could create novel repair needs.

Threat:

Technological complexity of modern vehicles

Advanced driver assistance systems (ADAS), complex electronics, and new materials used in vehicle construction require more sophisticated repair techniques and equipment. This complexity can lead to higher repair costs and longer repair times. Many independent repair shops may struggle to keep up with the necessary investments in training and equipment, potentially leading to market consolidation. Additionally, the complexity may push more repairs towards manufacturer-authorized service centers, challenging independent repair shops.

Covid-19 Impact: 

The COVID-19 pandemic initially reduced collision repair demand due to decreased vehicle usage during lockdowns. However, as restrictions eased, there was a surge in repair needs, partly due to neglected maintenance during lockdowns. The pandemic accelerated trends towards digitalization in repair processes and customer interactions. Supply chain disruptions affected parts availability and prices, impacting repair costs and timelines. Overall, the industry demonstrated resilience and adapted to new safety protocols and customer expectations.

The spare parts/crash parts segment is expected to be the largest during the forecast period

The spare parts/crash parts segment is anticipated to be the largest during the forecast period due to its essential role in vehicle restoration. This segment includes a wide range of components, from body panels to mechanical parts, which are necessary for most collision repairs. The increasing complexity of vehicles and the trend towards modular design in modern cars contribute to the segment's growth. Additionally, the rising average age of vehicles globally increases the demand for replacement parts. The segment's size is further supported by the variety of parts needed across different vehicle makes and models.

The electric vehicles (EVs) segment is expected to have the highest CAGR during the forecast period

The electric vehicles (EVs) segment is projected to have the highest CAGR in the automotive collision repair market during the forecast period due to the rapid adoption of EVs globally. As EV sales increase, so does the demand for specialized repair services. EVs require unique repair techniques, particularly for battery systems and electric powertrains. The complexity of EV repairs often results in higher repair costs, contributing to segment growth. Additionally, the ongoing development of EV technology creates continuous opportunities for new repair methodologies and equipment, driving innovation in the collision repair industry.

Region with largest share:

The Europe region is anticipated to be the largest during the forecast period. The region's dominance in the automotive collision repair market is driven by several factors. The region has a large, mature automotive market with a high concentration of premium vehicles that often require more expensive repairs. Strict safety and environmental regulations in Europe necessitate regular vehicle maintenance and prompt collision repairs. The presence of major automotive manufacturers and a well-established network of repair shops contribute to market strength. Additionally, Europe's focus on advanced automotive technologies and early adoption of electric vehicles creates demand for specialized repair services, further solidifying its market leadership.

Region with highest CAGR:

The Asia Pacific region is anticipated to witness lucrative growth during the forecast period due to rapid urbanization, increasing vehicle ownership, and growing disposable incomes. Countries like China and India are experiencing significant growth in their automotive markets, leading to a higher demand for collision repair services. The region's expanding middle class is more likely to invest in vehicle maintenance and repairs. The increasing adoption of advanced vehicles, including EVs, in countries like China and Japan is driving the need for specialized repair services. Additionally, government initiatives to improve road safety and vehicle standards also contribute to market growth in the region.

Key players in the market

Some of the key players in Automotive Collision Repair Market include DENSO CORPORATION, Robert Bosch GmbH, Continental AG, 3M, AISIN CORPORATION, VALEO S.A., Honeywell International Inc., PPG Industries Inc., Automotive Technology Products LLC, Federal-Mogul LLC, Faurecia, Magna International Inc., Hyundai Mobis, Axalta, Johnson Controls Inc., International Automotive Components Group, Mann+Hummel Group, and Martinrea International Inc.

Key Developments:

In April 2024, DENSO, a leading mobility supplier, will exhibit at ITS America Conference & Expo, April 22-25, in Phoenix, where it will showcase how the company's innovative vehicle-to-everything (V2X) technologies can contribute to greener, safer and more seamless transportation systems.

In February 2023, The 3 M™ Finesse-it™ Robotic Paint Repair Systems, developed by robotics experts in the 3M Abrasive Systems Division, has been recognized once again for its groundbreaking innovation. The team behind the automated paint repair system was awarded ""The Award for Technique"" at the 2022 SURCAR Shanghai Congress. SURCAR is the world's leading automotive body finishing community, leveraging the experience of its members to provide insights, share ideas and best practices on surface finishing.

Product Types Covered:
• Paints and Coatings
• Spare Parts
• Consumables
• Tools and Equipment

Vehicle Types Covered:
• Passenger Cars
• Commercial Vehicles
• Electric Vehicles (EVs)

Service Types Covered:
• Mechanical Repair
• Electrical Repair
• Body and Paint Repair
• Glass Replacement and Repair

Workshop Types Covered:
• Authorized Service Centers
• Independent Garages
• Franchise Repair Chains

Distribution Channels Covered:
• Original Equipment Manufacturer (OEM)
• Aftermarket

End Users Covered:
• Individual Vehicle Owners
• Fleet Owners
• Insurance Companies

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances