April 12, 2024
Automotive Collision Repair Market

Automotive Collision Repair Market Poised for High Growth Amid Rising Road Accidents

The automotive collision repair market is a multi-billion dollar industry globally. Collision repair involves repairing vehicles that have been damaged in accidental cases such as road accidents, mishaps etc. Such services help in restoring the vehicle and making it roadworthy. The process includes body and paint services, replacement of parts and electrical work. Carbon fiber and composite materials are increasingly being used in vehicle manufacturing which allows for lightweight construction. This has accelerated the need for specialized skills and tools for repair work.

The Global Automotive Collision Repair Market is estimated to be valued at US$ 221.87 Bn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players: Key players operating in the automotive collision repair market are Zebra Technologies Corporation, TSC Auto ID Technology Co., Ltd., Toshiba TEC Corporation, Honeywell International, Inc., Bixolon Co., Ltd., Citizen Holdings Co., Ltd., Star Micronics Co., Ltd., Seiko Epson Corporation, SATO Holdings Corporation, HP India Sales Private Limited and Brother International Corporation. These companies offer advanced repair management software, barcode printers and RFID products that enhance repair workflows.

Key opportunities: Growing motorization especially in developing countries, rising complexities in vehicle architecture and the need for skilled technicians offer opportunities for market growth. Adoption of digital technologies such as 3D scanning, AI and IoT can help streamline processes.

Global expansion: North America dominates currently due to high motorization and stringent safety norms. However, Asia Pacific is witnessing rapid expansion led by China and India. Companies are focusing on partnerships, mergers, acquisitions to expand into new regions and markets.

Market drivers

Rising road accidents owing to factors such as increased vehicle density, growing infringement of traffic rules have led to the growth of the Automotive Collision Repair Market Size. As per estimates over 1.3 million people die each year on roads globally. This has accelerated the need for vehicle repair services. Stringent safety and insurance regulations also mandate expert repairs depending on damage severity.

PEST Analysis

Political: The automotive collision repair market is affected by regulations related to vehicle safety and emissions standards. Stricter regulations often require improvements in collision repair techniques and use of enhanced materials.

Economic: GDP growth rate, disposable income levels and insurance penetration impact the automotive collision repair business. Higher economic activity leads to more vehicles on road and thus more accidents requiring repair work.

Social: Changing consumer preference towards vehicle appearance and safety boost demand for professional repairs using OEM-approved techniques and parts. Also, increased awareness about vehicle maintenance services helps the market.

Technological: Advancements in repair methods using technologies like 3D scanning, AI and robotics have improved repair efficiency and quality. Adoption of such technologies is enhanced by collision repair shop owners and insurers to streamline operations.

The geographical regions where the automotive collision repair market has high value concentration are North America and Europe. North America accounts for over 30% share due to high vehicle fleet and insurance penetration in the US and Canada. Europe follows next on account of stringent safety norms and presence of major automakers in the region.

The Asia Pacific region is the fastest growing for the automotive collision repair market supported by increasing passenger vehicle ownership and rising disposable incomes in developing countries. Countries like China and India are witnessing double digit annual growth rates due to expanding middle class population with greater ability and preference to repair damaged vehicles.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it