Automotive Collision Repair Market Size By Vehicle Type (Heavy-duty, Light-duty), By Product (Paints & Coatings, Adhesives & Sealants, Abrasives, Finishing Compounds), By End-Use (New OEM, Aftermarket, Recycled, Remanufactured), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, Netherlands, Belgium, China, India, Japan, Australia, Brazil, KSA, UAE, south Africa), Application Potential, Competitive Market Share & Forecast, 2017 – 2024
Published Date: September 2017 | 300 Pages | Report ID: GMI108 Report Format: PDF
Automotive Collision Repair Market size was valued over USD 179 billion and is forecast to cross USD 220 billion in 2024.
U.S. Automotive Collision Repair Market, By End Use, 2012-2024, (USD Billion)
Presence of various automotive repair centres focusing on efficiency and productivity along with introduction and innovation of new materials such as UV paint, carbon aluminium is likely to boost automotive collision repair market demand. Many auto restoration shops operate through their own efficient distribution channel and are engaged in distributing branded auto parts and materials which is likely to favour automotive collision repair market growth.
Increasing demand to enhance service quality, efficiency and profitability in various workshops will drive automotive collision repair market size. Rapid urbanization along with rise in disposable income in emerging economies in APAC will stimulate industry growth.
The lack of emerging technical staff entering restoration works is one of the utmost challenges faced by the service providers. Technology is disrupting the auto industry drastically and OEMs are increasingly focusing on a strategy of selling personalized vehicles coupled with the customized high price options. However, in case of any crash/accident it requires superior technical expertise to repair a vehicle and correctly assess complete damage. With several retiring shop technicians, there are not many taking their place, thereby challenging the automotive collision repair market growth. Several institutions are working to curb this challenge and encourage new entrants in the automotive collision repair market with blooming career opportunities.
Automotive Collision Repair Market, By Product
Paints & coatings market share accounted for 21 % of the overall automotive collision repair market share in 2016 and will exhibit growth over 2.7% CAGR from 2017 to 2024. The rapidly growing coatings and paints technology in the auto business to meet the latest protective automobile materials demand can be accredited as the key reason for this growth. Moreover, mounting traffic in urban areas leads to high risk of minor dents and smaller crashes thereby leading to minor touch-ups for restoring the vehicle to the original appearance offering growth potential to the segment.
Adhesives & sealants segment was valued over USD 15.5 billion in 2016. Sealers are used in both interior and exterior auto body applications in joints and seams. Fast curing, quick drying and rapid skinning properties of the sealants are among the major factors influencing the overall product penetration. These are widely used in rear body panels, floor pans, trunk seams, and door skins. Fast drying time and paintable application is among the key factor influencing the adhesives & sealants segment growth.
Automotive Collision Repair Market, By Vehicle
Light-duty vehicle market was valued over 125 billion in 2016 and is anticipated to continue its dominance during forecast timeframe. Increasing government initiatives to improve industrial demand for transportation are contributing to the sales of light-duty vehicle. In addition, increasing support to enhance fuel economy and growing demand for Alternative Fuel Vehicles (AFVs) such as electric and gas will add an advantage. The adoption of such AFVs will further increase demand.
Growth in heavy duty vehicle is attributed to escalating inter-city and intra-city transport of vehicles & goods and increasing international trading. Advancement in technology such as 3-D stereo photogrammetry for accurate measuring and documenting collision damage will contribute immensely to the automotive collision repair market growth.
Automotive Collision Repair Market, By End Use
New OEM dominated the overall automotive collision repair market share accounting for more than 65% in 2016 and segment is expected to exhibit 2.6% growth rate over the forecast period. Warranty issues by the manufacturers along with the increased reliability of the customers on the product offered by the OEM are among the major factors boosting the overall market growth. Moreover, continuously improvement of the quality of the products will further support the overall a market growth. The performance of the overall vehicle is dependent on the product used after collision and matches the original performance of the vehicle.
Aftermarket is projected to show highest CAGR from 2017 to 2024. Automotive collision repair promotes the use of aftermarket components owing to higher profit margins available by the products. Parts offering minimum tolerance difference along with priced based alternative are the key benefits offered by the aftermarket suppliers. Alternative terms used for these products are competitive parts or quality replacement parts. Moreover, the products providing extended warranty and superior performance are among the key properties influencing the product usage among the customers.
Automotive Collision Repair Market, By Region
Asia Pacific automotive collision repair market share accounted for nearly 24% in 2016 and is expected to exhibit highest CAGR from 2017 to 2024. Infrastructure development in India and increasing accidental rate due to more number of vehicles running on-road have instigated the demand for more number of organized body shops in the region. The increasing demand of vehicles and emphasis on personal mobility will have positive impacts.
North America automotive collision repair market was valued over USD 42 billion in 2016, and is anticipated to show comparatively slow growth during the forecast timeframe. The U.S. demand for repair shops will witness low adoption owing to low sales for automotive impacting the regional growth. Implementation of latest technologies such as Lane Departure Warning System (LDWS), night vision & pedestrian control, and autonomous emergency braking will reduce the collision rate thereby leading to decrease in adoption. Improved highway and roadway infrastructure are expected to negatively impact the market.
Latin America is estimated to reach USD 12 billion in 2024. The scarcity of automotive repair and replacement shops are expected to improve the implementation rate. Rising demand for improved quality along with aftermarket services are expected to enhance the adoption in this untapped region.
Competitive Market Share
Companies operating in the automotive collision repair market includes 3M company, ZF Friedrichshafen AG, Honeywell International Inc., Federal-Mogul Holdings Corporation, Denso Corporation, Continental Corporation and Bosch and Faurecia, among others. Product enhancement, after sales service and new product development are the major strategies implemented by the competitors. Industry is undergoing consolidation to increase the market share of the company. For instance, in January 2017, 3M announced the launch of advanced line of pneumatic tools for grinding and cutting. The tools feature a smooth composite body and exclusive quality designed for increased performance with the 3M Cubitron II line of grinding and cutting abrasives.
Automotive collision repair services include auto body parts refurbishment and reprocessing of the vehicle components damaged due to collision. The auto body repair shops operate to ensure the safety & performance of the vehicle even after the collision. Here in the industry, revenue is primarily dependent upon the car crash and accidents. Rising technical complications of new vehicles supports the expertise and investments that are required for handling the repairs, therefore limiting the reach of small & independent businesses.
The industry comprises of various sales-valuation models. For instance, numerous automotive retailers sell Do-It Yourself (DIY) packages to the consumers that prefer self-repairing for their own vehicles. Few retailers specifically sell to restoration shops and professional auto service. Continuous advancements in these technologies for ancillary products along with other services that include painting, denting, and body repairs will further augment the industry demand.
Auto shop operators in the market are focused to increase efficiency and productivity of their workshops by using state of art support equipment and products. Managing entire repairing process while keeping the profit share is the major challenge faced by these shop owners. Also, fulfilling quality checks by inspection insurance providers and the customers are critical success factors for the industry participants.
What Information does this report contain?
Why Global Market Insights?Comprehensive Research
- All-inclusive coverage
- In-depth and granular data (ex: information for 8 to 15 countries, with clients open to add to this list, in each report)
- Penetrative insights & latest trends
- Offers holistic understanding of the market
- Unique methodology
- Iterative in nature to eliminate errors
- Detailed methodology, scope, assumptions and data sources available for reference
- Committed to making a positive difference for our clients
- Given the nature of this industry, we are committed to ensure that our clients get maximum return on their investment in our services
- Every purchase comes with an option to obtain additional information:
- up to 10% of the original cost
- 45-minute analyst tele-call to obtain further clarity on the market.
- Global Market Insights, Inc. strictly adheres to PCI-DSS security norms.
- Only PCI-DSS compliant payment methods used for highest level of client data security