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Automotive Collision Repair Market Size By Product (Crash Parts, Paints & Coatings, Adhesives & Sealants, Abrasives, Finishing Compounds), By Vehicle (Passenger Cars, LCV, HCV, Two Wheelers), By Source (New OEM, Aftermarket, Recycled, Remanufactured), By Auto Body Shops (Dealer Owned Shops, Independent Repair Shops), COVID-19 Impact Analysis, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI108
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

Automotive Collision Repair Market size exceeded USD 250 billion in 2020 and is projected to register over 2.5% CAGR between 2021 and 2027. Rising sales of light duty vehicles will bolster the industry growth.
 

Automotive Collision Repair Market

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Rising consumer spending on luxury and comfort goods is shifting customer preferences towards personally-owned vehicles. Automobile manufacturers are engaged in product differentiation and collaborations with international players to serve a larger number of consumers. The increasing fleet of commercial vehicles owing to rising trade activities has augmented the number of vehicles in use. The availability of state-of-the-art automotive repair & service garages with advanced repair techniques for painting, denting and body repair will drive the market demand.
 

Ongoing initiatives by automotive industry participants to reduce the probability of accidents and lower the number of on-road fatalities will limit automotive collision repair industry. For instance, the incorporation of technologies such as Advanced Driver Assistance Systems (ADAS), collision avoidance sensors, and radar technology, enables automated protection & braking of such vehicles, thereby reducing the probability of damages.
 

Automotive manufacturers are integrating general collision avoidance systems to mass-market models for avoiding collisions. Additionally, stringent government regulations and policies have led to industry players incorporating advanced safety technologies to improve vehicle safety significantly. Automobile manufacturers are also implementing safety technologies as a basic safety standard features in their vehicles to attract customers.
 

High quality surface finishing requirements will propel paints & coatings demand

The paints & coatings product demand is set to capture around 20% of the automotive collision repair market share by 2027. The growing traffic congestions in urban areas, leading to minor vehicle dents & scratch marks will further the demand for minor paint touchups. Automotive refinish coatings used by body repair centers and shops offer numerous benefits including surface protection and excellent resistance against corrosion. Growing customer preferences to restore vehicles such that they look authentic and aesthetic will create growth opportunities for the paints & coatings. Companies are setting standards and channels for the distribution of refinish coatings to the auto body repair industry.
 

Passenger vehicles will gain significant traction led by rising ownership rates

Passenger vehicles segment is poised to witness above 2.5% CAGR through 2027. Increasing passenger vehicle accidents due to rising road traffic density are among the chief drivers for market statistics. Moreover, easier availability of car services and repair centers providing high quality restoration, refurbishment and maintenance will escalate the market penetration. Rising population, increasing spending power and demographic shifts will boost automotive sales, thereby augmenting market growth.
 

Superior quality & excellent performance characteristics to foster new OEMs’ growth

In 2020, new OEM segment generated more than USD 170 billion in automotive collision repair market. Easier replacements, warranty, and insurance policies offered by manufacturers is escalating the market demand. Enhanced reliability and durability of these products in conjunction with easy installation with help of qualified technicians will support the industry growth. However, continuous improvements in the quality of products offering an extended life cycle along with advanced manufacturing capabilities to spur the revenue generation.
 

Independent repair shops is likely to dominate the market

Automotive Collision Repair Market Size, By Auto Body Shops

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Independent repair shops are anticipated to account for over USD 250 billion by 2027. These outfits typically incorporate numerous service bays to provide repair services for a wide range of vehicles. Lower overhead costs significantly contribute to lowering the overall price of service repairs. Effective communication and independent mechanics enable improved customer relationship and foster goodwill among customers. The ability to service vehicles of multiple brands and the easier availability of spares are further supporting the market growth.
 

Increasing incidents of accidents to contribute in Asia Pacific market revenue

Automotive Collision Repair Market Size, By Region

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Asia Pacific automotive collision repair market size is forecast to observe approximately 3% CAGR through 2027 on account of increasing cases of accidents and crashes in the region. For instance, in 2018, Japan and India registered second and third highest road accidents after the U.S. In addition, improper road infrastructure in some of the emerging nations is escalating the number of accidents and crashes.
 

Improved quality of life and spending power combined with ease of imports and manufacturing of previously regional brands has enabled higher number of premium vehicle purchases. Key players in the repair industry are setting up additional auto repair shops within this region propelled by rising consumer demand.
 

Strategic investments will aid in market expansion

The industry participants are diversifying product portfolio, expanding sales & distribution network and investing in disruptive technologies to improve profitability. In February 2021, 3M announced to invest in Repairfy, a portfolio company of Kinderhook Industries to develop tools & technology for Americas & Europe. The technology will aid in improving the service offering for automotive collision repair market ecosystem.
 

3M, Caliber Collision, ATP Automotive, Denso Corporation, Eastman Chemical Company, Honeywell International Inc. and Huntsman Corporation are few key players in the market.
 

This market research report on automotive collision repair includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD billion from 2017 to 2027, for the following segments:

Market, By Product

  • Crash Parts 
  • Paints & Coatings
  • Adhesives & Sealants
  • Abrasives
  • Finishing Compounds
  • Others

Market, By Vehicle

  • Passenger Cars
  • LCV
  • HCV
  • Two-wheelers

Market, By Source

  • New OEM
  • Aftermarket
  • Recycled
  • Remanufactured

Market, By Auto Body Shops

  • Dealer-owned shops 
  • Independent repair shops

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Russia
    • Spain
    • Netherlands
    • Belgium
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
  • LATAM
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • Saudi Arabia
    • United Arab Emirates
    • South Africa

 

Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

Automotive collision repair market size had surpassed USD 250 billion in 2020 and will observe a CAGR of over 2.5% through 2027.

Paints & coatings segment will capture around 20% share by 2027 due to increased product demand for touchups driven by growing traffic congestions leading to minor vehicle dents & scratch marks.

Passenger vehicles segment will witness CAGR of above 2.5% through 2027 with increasing passenger vehicle accidents due to growing road traffic density.

Asia Pacific automotive collision repair market will register a CAGR of around 3% through 2027 owing to increasing cases of accidents and crashes in the region.

OEM segment had recorded a valuation of over USD 170 billion in 2020 owing to the availability of easier replacements, insurance and warranty policies.

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Premium Report Details

  • Published Date: Jul 2021
  • Companies covered: 32
  • Tables & Figures: 177
  • Countries covered: 21
  • Pages: 220

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