Automotive Collision Repair Market Size was valued at USD 177.2 Billion in 2023. The Automotive Collision Repair Market industry is projected to grow from USD 204.1 Billion in 2024 to USD 242.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.50% during the forecast period (2024 - 2032). Increased automobile insurance subscriptions and technological improvements in the automotive sector are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising demand for automobiles is likely to drive market CAGR for the automotive collision repair market over the forecast period. Motor vehicles are any motorized or automotive vehicle powered by internal combustion engines, electricity, or steam. With the increased number of cars on the road, the likelihood of accidents and collisions rises, creating a greater demand for automobile collision repair services. As a result, the market for materials used in automotive accident repair, such as crash components, paints and varnishes, adhesives and sealants, abrasives, and finishing compounds, is expanding. According to the European Automobile Manufacturers Association (ACEA), a Belgian-based lobbying and standards body for the European automobile industry, 85.4 million motor vehicles were produced globally in 2022, a 5.7% increase from 2021. As a result, the automotive collision repair market is likely to be driven by rising global vehicle demand.
Moreover, the incorporation of new technology into automobiles, such as advanced driver assistance systems (ADAS) and safety features, has been a significant driver of the automotive collision repair business. These technologies improve vehicle safety and decrease the likelihood of accidents. However, in the event of a collision, these systems must be repaired and calibrated. As a result, accident repair facilities must invest in specialized equipment and training to manage this modern technology. The expanding use of ADAS and safety features in vehicles, such as autonomous emergency braking (AEB) and lane departure warning systems, has increased demand for accident repair services.
The increase in automobile insurance subscriptions is predicted to drive the automotive collision repair market ahead. Automobile insurance is a type of motor insurance that covers loss or damage to the insured person's vehicle, which can include cars, two-wheelers, or other commercial vehicles. The increase in automobile insurance subscriptions encourages automotive collision repair companies to provide better services and goods to their consumers. For instance, according to a post published by Policy Advice, an American website that gives insurance information in 2022, 87% of US drivers have auto insurance, and the market has risen by 2.7% on average over the last five years. Another report from Care, an Indian rating agency, in 2021 stated that car insurance premiums are expected to rise by 6% to 8% in 2022. As a result, an increase in automobile insurance subscriptions is predicted to improve demand for automotive accident repair over the forecast period. Thus driving the Automotive Collision Repair Market revenue.
The Automotive Collision Repair Market segmentation, based on Product, includes Paints & coatings, Consumables, and Spare parts. The spare parts category dominates the market, accounting for 64.0% of revenue in 2023. Spare parts used in car service delivery include accident components, repair materials, additional mechanical parts, restoration materials, and tools. The increased number of road accidents resulting in damage to integral features such as grilles, bumpers, fenders, dents, and scratches is driving up demand for replacement spare parts. The growing consumer awareness of the need for maintenance and repair to improve vehicle performance and lifecycle is driving the expansion of the spare parts market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Automotive Collision Repair Markethas two Vehicle Types: Light-duty vehicles And Heavy-duty vehicles. The light-duty vehicles segment dominated the market in 2023. Light-duty vehicles include hatchbacks, sedans, SUVs, and crossovers. The demand for alternate modes of transportation, government measures to improve fuel efficiency, and the availability of alternative fuel cars are all projected to drive up light-duty vehicle sales in the future years. Furthermore, vehicle sales in the industry are expected to be predominantly driven by the adoption of vehicles that require alternative fuels and vehicles with varying levels of drivetrain electrification.
The Automotive Collision Repair Marketsegmentation by Service channel includes DIY, DIFM, And OE. The OE segment is expected to have the largest share of service channel distribution because of OEMs' provision for quicker replacements, insurance policies, and guarantees, as well as improved durability and convenience of installation. People around the world are keeping their cars for longer periods, which has increased demand for replacement parts. The automotive collision repair business will continue to grow rapidly as a result of continuous demand from rising economies.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. In 2023, North America dominated the market, accounting for more than 45.80% of revenues. The region has a higher rate of technological adoption, which will result in faster and more widespread adoption of hybrid electric vehicles than in other regions. As a result of this trend, the region is expected to see a growing number of specialized automobile accident repair centers that are dedicated to servicing vehicles of a specific make, such as alternative fuel driven vehicles.
Further, the major countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automotive Collision Repair Market accounts for the second-largest market share. This is due to the stricter road and vehicle safety regulations, as well as the increased demand for luxury vehicles. Further, the German Automotive Collision Repair Market held the largest market share, and the UK Automotive Collision Repair Market was the fastest-growing market in the European region.
The Asia-Pacific Automotive Collision Repair Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the increased frequency of vehicular accidents on congested roads and the growing availability of low-cost replacement parts in nations such as China and India. Moreover, China’s Automotive Collision Repair Market held the largest market share, and the Indian Automotive Collision Repair Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Collision Repair Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Automotive Collision Repair industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Collision Repair industry to benefit clients and increase the market sector. In recent years, the Automotive Collision Repair industry has offered some of the most significant advantages to medicine. Major players in the Automotive Collision Repair Market, including 3M, Automotive Technology Products LLC, Continental AG, Denso Corporation, Faurecia; Federal-Mogul LLC; Honeywell International, Inc.; International Automotive Components Group; Johnson Controls, Inc. and others are attempting to increase market demand by investing in research and development operations.
3M Company is an American global conglomerate that operates in industries such as manufacturing, worker safety, healthcare, and consumer products. The company manufactures over 60,000 products under various brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental, orthodontic products, electrical, electronic connecting, insulating materials, medical products, car-care products, electronic circuits, healthcare software, and optical films. It is headquartered in Maplewood, a suburb of Saint Paul, Minnesota. In August 2021, 3M introduced the 3M Robotic Paint Repair System, a proprietary program. This software finds faults and instructs robots on how to fix them properly. The robots sand and polish the automobiles, using 3M abrasives for automation.
Robert Bosch GmbH is a global engineering and technology business based in Gerlingen, Germany. Robert Bosch founded the firm in Stuttgart in 1886. Bosch is 94% owned by the Robert Bosch Stiftung, a charity organization. Although the charity is supported by holding the vast majority of shares, it has no voting rights and works on health and social issues unrelated to Bosch's company. In September 2022, At the Automechanika trade show, the Bosch Automotive Aftermarket business unveiled various workshop sector innovations. Notable ones include the DAS 3000 for precise calibration and adjustment of vehicle sensors and camera systems that support modern driver assistance systems; the DCU 120 diagnostic control unit for reliable and convenient mobile workshop usage; and the availability of the 'Bosch Automotive Training Solutions' platform for planning and administering technical training courses, among others.
In July 2023, Classic Collision announced the acquisition of the Dayton Collision Center in Dayton, Tennessee, allowing the company to expand its operations in the state. In 2023, the corporation successfully expanded operations in several states, including Minnesota, Georgia, Texas, Colorado, and Florida.
In March 2023, DENSO Products and Services Americas, Inc. announced the addition of nine additional part numbers to its aftermarket ignition coils line, covering more than 9 million cars in service. This introduction expands DENSO's provision of high-quality replacement ignition coils for numerous Buick, BMW, Cadillac, GMC, Infiniti, Lincoln, Ford, Nissan, Chevrolet, and Volvo models.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 177.2 Billion |
| Market Size 2024 | USD 204.1 Billion |
| Market Size 2032 | USD 242.7 Billion |
| Compound Annual Growth Rate (CAGR) | 2.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Vehicle Type, Service Channel and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 3M; Automotive Technology Products LLC; Continental AG; Denso Corporation; Faurecia; Federal-Mogul LLC; Honeywell International, Inc.; International Automotive Components Group; Johnson Controls, Inc.; Magna International Inc.; Mann+Hummel Group; Martinrea International Inc.; Mitsuba Corporation; Robert Bosch GmbH and Takata Corporation ODU GmbH & Co.KG |
| Key Market Opportunities | Digitalization of Automotive Repair and Maintenance Services. |
| Key Market Dynamics | Increase in Consumer and Passenger Car Production |
Frequently Asked Questions (FAQ) :
The Automotive Collision Repair Marketsize was valued at USD 177.2 Billion in 2023.
The global market is projected to grow at a CAGR of 2.50% from 2024 to 2032.
North America had the largest share of the global market.
The key players in the market are 3M; Automotive Technology Products LLC; Continental AG; Denso Corporation; Faurecia; Federal-Mogul LLC; Honeywell International, Inc.; International Automotive Components Group; Johnson Controls, Inc. and others.
The light-duty vehicles category dominated the market in 2023.
The OE category had the largest share of the global market.
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