Global Automotive Collision Repair Market Grows Steadily at a CAGR of 1.9%

Introduction

Automotive collision repair is the term used to describe the restoration and replacement processes performed on accident-damaged vehicles. The process is complicated because the repaired vehicle must adhere to the manufacturer's stringent safety specifications and tolerances. Using a variety of instruments, the damaged sections are either replaced or, if the damage is minimal, eliminated. It involves denting, painting, repairing, restoring, replacing, and refinishing structural or cosmetic vehicle parts such as fenders, glass windows, and car doors.

Market Dynamics

Advanced Technology Usage in Auto Parts Fabrication Drives the Global Market

In order to reduce automobile production costs in price-complex markets, automotive market players have adapted by optimizing their techniques and incorporating advanced technology and innovation into their products in response to stringent production regulations targeted at reducing vehicle production costs. Modern production technologies, such as the 3D printing of automobile components, are extensively utilized by industry leaders to optimize their production costs, with 3D printing facilitating efficient fabrication performance and emission toxicity reduction. Due to technological advancements and rising R&D expenditures by manufacturers and trade associations, the market for automotive collision repair is anticipated to grow.

Digitalization of Automotive Repair and Maintenance Services Creates Tremendous Opportunities

With the convergence of digitization and auto repair and maintenance service delivery techniques, the automotive collision repair market is undergoing a dynamic phase change in traditional repair service delivery paradigms. Due to the unique maintenance needs of the new generation of vehicles, OEMs and dealerships must concentrate on software, sensors, and high-voltage components rather than mechanical repairs. Several start-ups have emerged, providing a convenient auto repair service during routine maintenance and accidents.

Digitization has enabled various stakeholders, such as car owners and insurance agents, to observe the repair and part replacement costs charged by auto repair businesses. Most consumers avoid having their vehicles repaired due to warranty concerns, schedule constraints, and doubts about the authenticity of the used parts. Few of these issues will likely be resolved through transparency provided by the digitalization of auto repair and maintenance services, creating opportunities for the automotive collision repair industry.

Regional Analysis

Europe is the most significant global automotive collision repair market shareholder and is anticipated to exhibit a CAGR of 0.81% during the forecast period. Due to the increasing penetration of vehicles with enhanced safety features and stagnant sales, the region is anticipated to experience a constant CAGR over the forecast period. In addition, rising metal part replacements and deteriorated plastics are anticipated to contribute to the expansion of the European market. The European market is predicted to witness significant expansion due to the implementation of rigorous road and vehicle safety rules and the increasing demand for high-end vehicles.

Key Highlights

• The global automotive collision repair market size was valued at USD 228.56 billion in 2022. It is estimated to reach USD 270.74 billion by 2031, growing at a CAGR of 1.9% during the forecast period (2023–2031).
• Based on vehicle type, the global automotive collision repair market is segmented into light-duty and heavy-duty vehicles. The light-duty vehicles segment owns the highest market share and is estimated to exhibit a CAGR of 1.9% during the forecast period.
• Based on product, the global automotive collision repair market is bifurcated into coatings and paints, consumables, and spare parts. The spare parts segment dominates the global market and is projected to exhibit a CAGR of 1.7% over the forecast period.
• Based on the service channel, the global automotive collision repair market is divided into DIY, DIFM, and OE. The OE segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 1.5% over the forecast period.
• Europe is the most significant global automotive collision repair market shareholder and is anticipated to exhibit a CAGR of 0.81% during the forecast period.

Competitive Players

1. 3M
2. Automotive Technology Products LLC
3. Continental AG
4. Denso Corporation
5. Faurecia
6. Federal-Mogul LLC
7. Honeywell International, Inc.
8. International Automotive Components Group
9. Johnson Controls, Inc.
10. Magna International Inc.
11. Mann+Hummel Group
12. Martinrea International Inc.
13. Mitsuba Corporation
14. Robert Bosch GmbH
15. Takata Corporation ODU GmbH & Co.KG.

Recent Developments

• March 2024- Crash Champions, a rapidly expanding company managed by its founders that operates top-notch car collision repair shops in the United States, officially declared the purchase of Performance Collision shops. This acquisition includes all nine of its establishments situated in Virginia, South Carolina, and Georgia.
• January 2024- CenterOak Partners LLC, a private equity firm headquartered in Dallas, announced the sale of CollisionRight, Inc., a prominent company in the auto body restoration services industry, to Summit Partners. CenterOak has now exited the auto aftermarket for the third time.

Analyst’s Perspective

As per our research analyst, the future of the automotive collision repair market is promising, driven by technological advancements and evolving vehicle trends. Autonomous vehicles (AVs) and electric vehicles (EVs) will introduce new repair complexities, requiring specialized skills and tools. The industry's shift towards digital transformation, eco-friendly practices, and consolidation will enhance efficiency and service quality. Despite challenges like skilled labor shortages and stringent environmental regulations, opportunities for innovation and growth abound. As vehicle technology advances, the collision repair sector will continue to adapt, ensuring it remains a vital component of the automotive ecosystem.

Segmentation

1. By Vehicle Type
   1. Light-Duty Vehicle 
   2. Heavy-Duty Vehicle
2. By Product
   1. Paint and Coatings 
   2. Consumable 
   3. Spare Parts
3. By Service Channels
   1. Do-It-Yourself (DIY) 
   2. Do-It-For-Me (DIFM)
   3. Handling to OEMs (OE)