Automotive Collision Repair Market Analysis

Automotive Collision Repair Market Analysis

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 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.

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 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.

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.