The automotive collision repair market involves repairing damaged vehicles that
have been involved in an accident, vandalism, fire or natural disasters. It
includes body and paint services, replacement/repair of bike parts, windshield repair
and replacement and other fix works. The demand is fueled by increasing road
accidents across the globe coupled with rising vehicle parc. Currently, over
1.3 million people die each year as a result of road traffic crashes.
The Global
automotive collision repair market is estimated to be valued at US$ 300 Billion
in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2024
to 2031.
Key Takeaways
Key players operating in the automotive collision repair market are 3M,
Continental AG, Denso Corporation, Faurecia, Honeywell International, Inc.,
International Automotive Components Group, Johnson Controls, Inc., Magna
International Inc., Mann+Hummel Group, Robert Bosch GmbH, Tenneco Inc., amongst
others. The market players are investing heavily in advanced repair
technologies such as ADAS calibration services, predictive analytics and 3D
printing solutions to meet evolving industry needs.
The key opportunities in the Automotive
Collision Repair Market Size include growing consumer preference for
certified pre-owned vehicles and Insurance-paid repairs. As pre-owned vehicle
sales increase globally, the post-repair certification business is projected to
gain traction. Additionally, the mandatory need for insurance coverage in
several countries will propel the insurance-paid collision repairs segment.
The automotive collision repair market is expected to witness high growth in
the Asia Pacific region over the forecast period. Factors such as rising income
levels, rapid urbanization and growing vehicle parc in China and India will
drive the regional market. Europe and North America currently have a
well-established collision repair infrastructure. However, these regions will
continue to provide growth opportunities backed by stringent vehicle safety
regulations and initiatives to improve aftermarket services.
Market Driver
One of the key drivers for automotive collision repair market is rising road
accidents globally. As per WHO, around 1.35 million people die each year as a
result of road traffic crashes. Further, road traffic injuries are the leading
cause of death among young people aged 15-29 years. With growing motorization
and unsafe road infrastructure in developing nations, the number of road crash
victims is projected to increase over the coming years, thereby propelling the
post-crash repair services demand.
PEST Analysis
Political: Regulations regarding vehicle safety and emissions standards
directly impact the automotive collision repair industry. Changes to laws and
policies could influence the demand for collision repair services.
Economic: Economic growth, disposable incomes, and vehicle ownership rates
influence the number of accidents and repairs. During economic downturns,
consumers may defer non-essential repairs, thereby impacting industry revenue.
Social: Drivers today pay more attention to vehicle aesthetics and prioritize
timely repairs. technology additions have also increased repair complexities
and costs. Moreover, social norms like carpooling could impact accident rates.
Technological: Adoption of advanced driver-assistance systems and automated
features may lower accident rates over time but also introduce new complexities
for repairs. Meanwhile, alignment with evolving vehicular technologies ensures
repairs are performed to higher quality standards.
Geographical Concentration
Currently, the North American region accounts for the lion’s share of the
global automotive collision repair market in terms of value. This is owing to
factors like high vehicle density, frequent accidents, and widespread insurance
coverage supporting repairs in the US and Canada.
Fastest Growing Region
However, the Asia Pacific region is poised to witness the fastest growth over
the forecast period attributed to rising motorization in developing economies
like China and India coupled with improvements in regional infrastructure and
economic expansion. Alongside a rapidly expanding middle class, these
macroeconomic factors are driving the need for collision services across APAC.
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Collision Repair Market
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About
Author:
Ravina
Pandya, Content
Writer, has a strong foothold in the market research industry. She specializes
in writing well-researched articles from different industries, including food
and beverages, information and technology, healthcare, chemical and materials,
etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
