The global automotive collision repair market is expected to grow at a CAGR of around 5.5% from 2021 to 2028 and expected to reach the market value of around US$ 175 Bn by 2028.
|Market||Automotive Collision Repair Market|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Product, By Service Channel, By Vehicle Type and By Geography|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||3M, Continental AG, Denso Corporation, Faurecia SE, Federal-Mogul Corporation, Honeywell International Inc., MANN+HUMMEL, and among others|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
|Customization Scope||10 hrs of free customization and expert consultation|
Repairing collision-damaged vehicles is a skill that not only restores the vehicle's original appearance but also repairs its complex mechanical components to strict safety and manufacturing standards. According to WorldSkills International, automotive collision repair is defined as a vehicle being involved in a collision; automobile repairers restore the parts to factory standards and specifications. The automobile repairer requires professional experience to diagnose vehicle damage and repair it using a variety of machines and tools, including welding skills.
Automotive aftermarket has positive influence on the global automotive collision repair market
According to a SEMA report, advances in original equipment design and manufacturing technologies have impacted all segments of the automotive aftermarket in the twenty-first century. In any case, improved build quality and enhanced safety technologies have helped the vehicle manufacturers to build safer and durable vehicles as compared to the past; however the accidents and collisions will still take place due to human error. Because of this, the collision repair and refinish industry continues to grow in the automotive aftermarket industry, with annual revenue of US$ 28.5 bn in 2020.
Technological advancements in automotive collision repair touch every aspect of business
New collision technology is constantly evolving, which proves costly but useless if repairers do not use it. As cars evolve, each new model incorporates new technology that improves safety, increases sustainability, boosts efficiency, automates driving tasks, and integrates better with mobile technology. These objectives must be prioritized in automotive collision repair. As per the AutoInc. Report, the automotive industry is pushing for modernization with the future of the collision repair industry. For example, consistent development and incorporation of ADAS technology is expected to reduce overall collisions, reducing the number of repairs required. Innovation is combining technology with industry needs. Furthermore, LIDAR technology is required for the future self-driving car. With the addition of LIDAR, additional specifications in OEM procedures and repair materials will be required.
COVID-19 impact on the automotive collision repair market
COVID-19 has a negative impact on the global automotive collision repair market due to an unfortunate pandemic within the automotive industry caused by auto part delays. Because auto-repair shops are an essential service in the automotive industry, businesses have been severely impacted as a result of the pandemic. The vast majority of auto repair shops is independently owned and operated that rely on the surrounding communities. However, due to a financial crisis or a lack of financial security, many shop owners have been forced to lay off employees and, in extreme cases, permanently close their doors.
The global automotive collision repair market is segmented as product, service, and vehicle type. By product, the market is segmented as paints & coatings, consumables, and spare parts. By service, the market is segregated as DIY, DIFM, and OE. Furthermore, vehicle type is classified into light-duty vehicles and heavy-duty vehicles.
The spare parts segment dominates the global automotive collision repair market in terms of product segmentation. Spare parts are essential in equipment maintenance because without them, no equipment can be restored to its original condition for proper operation. Furthermore, the availability of spare parts and materials is critical in reducing the time required to repair accident-damaged vehicles. Such factors have a positive impact on the automotive collision market's exponential growth.
Based on service, the OE segment has held the largest share in the past and is expected to do so again during the forecast period. The original equipment manufacturer (OE) collision parts are sold exclusively through new vehicle dealers and are designed to fit properly, providing consistency and uniform space between the body panels. Furthermore, OE collision parts are of the same quality that was used in the initial stages of building the car. Using collision replacement parts will help the car look new and maintain its value during the trade-in or re-sale process. OE for collision repair also plays an active role in terms of safety, durability, appearance, and performance.
Light-duty vehicles have dominated the automotive collision repair market in the past and are expected to continue this trend during the forecast period. The demand for light-duty vehicles has grown exponentially over the years due to the utility of light-duty vehicles as an alternative mode of transportation, a surge in government initiatives to improve fuel economy, and the high availability of alternative fuel vehicles are the factors that have positively impacted segmental growth, ultimately contributing to automotive collision repair market. This is one the impactful factors that have raised demand for light-duty vehicles contributing for the growth of overall market.
Europe dominates the automotive collision market by recording highest market share
Europe has dominated the automotive collision repair market in the past and is expected to do so again during the forecast period. According to a European Union report, the automotive industry is critical to Europe's prosperity. Automobile industry grants employments to around 13.8 million European population directly and indirectly, accounting for 6.1% of total employment in the EU. Currently, 2.6 million people European work in direct manufacturing of vehicles, accounting for 8.5% of manufacturing employment in the European Union. Because the EU is the world's largest producer of motor vehicles, the sector identifies a significant private investor in R&D.
In the forecast period, Asia Pacific will have the fastest growing CAGR in the automotive collision repair market. As the sale of commercial vehicles increases in APAC, the region is experiencing rapid expansion and an increase in industrial output. This causes commercial vehicles to be driven on roads, increasing the demand for collision repair parts in the APAC regional market. Such factors contribute to the expansion of the global automotive collision repair market.
The prominent players of the global automotive collision repair market involve 3M, Continental AG, Denso Corporation, Faurecia SE, Federal-Mogul Corporation, Honeywell International Inc., MANN+HUMMEL, and among others
Market By Product
Paints & Coatings
Market By Service Channel
Market By Vehicle Type
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Automotive collision repair market is expected to reach a market value of around US$ 175 Bn by 2028.
The automotive collision repair market is expected to grow at a CAGR of around 5.5% from 2021-2028.
Based on product, spare parts segment is the leading segment in the overall market.
Technological advancement is one of the prominent factors that drive the demand for automotive collision repair market.
3M, Continental AG, Denso Corporation, Faurecia SE, Federal-Mogul Corporation, Honeywell International Inc., MANN+HUMMEL, and among others.
Europe is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years