Automotive Collision Repair Market Size By Product (Paints & Coatings, Adhesives & Sealants, Abrasives, Finishing Compounds), By Vehicle (PCV, LCV, HCV, Two Wheelers), By End-Use (New OEM, Aftermarket, Recycled, Remanufactured) By Auto Body Shops (Dealer Owned Shops, Independent Repair Shops), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Russia, Spain, Netherlands, Belgium, China, India, Japan, Australia, Brazil, Mexico, Argentina, Saudi Arabia, UAE, South Africa), Application Potential, Competitive Market Share & Forecast, 2018 – 2024
Published Date: June 2018 | 200 Pages | Report ID: GMI108 Report Format: PDF
Automotive Collision Repair Market size was valued at over USD 230 billion in 2017 and is estimated to exhibit over 2.5% CAGR from 2018 to 2024.
U.S. Automotive Collision Repair Market, By End Use, 2013-2024, (USD Billion)
Presence of various automobile repair centres focusing on efficiency and productivity along with introduction of new materials such as UV paint and carbon aluminium is likely to boost auto collision repair services demand. Many auto restoration shops operate through their own efficient distribution channel and are engaged in distributing branded auto parts and materials, favouring automotive collision repair market size from 2018 to 2024.
Increasing demand to enhance service quality and profitability in various workshops will drive automotive collision repair market share. Moreover, rising disposable income in various emerging economies such as India, China, Brazil, Mexico, etc. are stimulating the industry growth over the projected time span.
Road traffic crashes are the primary cause of mortality primarily in middle and low-income group countries owing to increased motorization and high population. According to World Health Organization (WHO), more than 1.5 million people die each year with road traffic accidents with an average of 3,285 deaths per day. Rising economic standards along with rapid urbanization has led to increased number of vehicles on road that acts as major contributing factor in automotive collision repair market revenue generation.
Lack of strict driving rules in various countries across the globe has accounted for many road accidents, thereby enhancing automobile repairing segments. Companies are competing locally and internationally to supply low cost parts or components to various vehicle manufacturers. For example, in July 2015, BASF and Solera had announced to open training centres in China to support automotive collision repair 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 customized high-priced 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 marketplace.
Automotive Collision Repair Market, By Product
Paints & coatings market share accounted for over 21% of the overall automotive collision repair market share in 2017. 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, increasing traffic in urban areas leads to substantial 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 at over USD 19 billion in 2017. Sealants 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
The automotive collision repair market from PCVs is expected to dominate the industry revenue share till 2024 owing to the government initiatives for green mobility and domestic transportation demand. Shifting consumer preferences in shared mobility behaviour will positively influence the automobile demand. Shared mobility vehicles witness higher wear and tear degree than personal vehicle that is likely to favour segment growth over the forecast timeframe.
LCV automotive collision repair market size was valued at over USD 75 billion in 2017 owing to increasing government initiatives to improve industrial demand for transportation. 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 segment demand.
Automotive Collision Repair Market, By End Use
New OEMs dominated the overall automotive collision repair market share accounting for more than 65% in 2017. Warranty issued by the manufacturers along with the increased reliability of the customers on the OEM product are among the major factors boosting the overall industry growth. Moreover, continuous product quality improvement will further support the overall industry’s revenue generation. The performance of the overall vehicle is dependent on the product used after collision and matches the original vehicle performance.
Aftermarket segment from automotive collision repair market size is projected to show highest CAGR during the forecast period. Vehicle crash repairs promote the usage 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 the key features influencing the product usage among the customers.
Automotive Collision Repair Market, By Auto Body Shops
Dealer owned shops segment is predicted to be valued over USD 170 billion by 2024. This can be attributed to increasing dealership network and certified expert technicians’ availability. Quality of products coupled with warranty services are the major drivers contributing to the automotive collision repair market share. Rising technical complications of new vehicles supports the expertise and investments that are required for handling the repairs, thereby enhancing the reach of dealer owned shops businesses.
Automotive Collision Repair Market, By Region
Asia Pacific automotive collision repair industry will pose over 3% CAGR from 2018 to 2024. Infrastructure development in across various countries and increasing accidental rate due to rising number of vehicles running on-road have instigated the demand for additional organized automobile body shops in the region. The increasing demand of vehicles and emphasis on personal mobility will have positive impact on the industry growth rate.
North America automotive collision repair market size is anticipated to be valued at over USD 70 billion over the study period. 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 accident rate thereby leading to decreasing adoption. Improved highway and roadway infrastructure are expected to negatively impact the market growth.
Competitive Market Share
Automotive collision repair market players include 3M, ZF Friedrichshafen AG, Honeywell International Inc., Federal-Mogul Holdings Corporation, Denso Corporation, Continental Corporation, Bosch and Faurecia. Product enhancement, after sales service, and new product development are the major strategies implemented by these players. 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.
Motor vehicle collision services include auto body parts reprocessing and refinishing of the vehicle components damaged due to crash. The auto body repair shops operate to ensure the safety & performance of the vehicle even after accident. Industry’s revenue is primarily dependent upon the car accidents. Continuous advancements in technologies for ancillary products along with other services that include painting, denting, and auto 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 maintaining 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?
Our Market Research Reports Include:
- Market snapshot
- Market Segmentation
- Value Chain Analysis
- Growth Dynamics
- Potential Market Opportunities
- Regulatory Overview
- Technology Evolution
- Innovation & Sustainability
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
Connect with our sales team