The automotive collision repair industry involves repairing damaged vehicles through body, paint and repair services. Collisions and accidents have become quite common on roads leading to an increased need for automotive repair and maintenance. Automotive collision repair services help restore vehicles to their previous functioning through repairs of components like bumpers, fenders, lights, cracks on windshields and other parts. This helps vehicles maintain safety standards and resale value. With growing automotive production worldwide, the number of vehicles on roads has surged exponentially increasing chances of collisions. As per recent reports, there are over 1.4 billion cars plying globally. This widespread automobilization has driven significant demand for collision repair services to fix damaged vehicles and get them back on roads.
The global Automotive Collision Repair Market is estimated to be valued at US$ 221.87 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights. Advancements in collision technologies like laser welding and structural bonding are allowing for improved repairs within short turnaround times helping boost the industry’s growth prospects.
Market key trends:
One of the key trends witnessed in the automotive collision repair market is the increasing adoption of advanced technologies like digital imaging technology and AI. Digital imaging technologies help produce high-resolution digital images of damaged vehicles, enabling collision specialists to precisely diagnose the problem areas, prepare accurate estimates and recommend suitable repair options. AI is also being leveraged to develop integrated software for tasks like predictive analytics, damage detection, and repair quotation & estimation. This helps streamline operations, reduce repair times and offer consumers a convenient repair experience.
Threat of new entrants: The threat of new entrants in the automotive collision repair market is moderate. The market requires high capital investment and skilled professionals.
Bargaining power of buyers: The bargaining power of buyers is high in this market as automotive collision repair services are commonly available. Buyers can easily compare service providers and rates.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major raw material suppliers for the automotive collision repair industry include paint and body fillers manufacturers.
Threat of new substitutes: There are no close substitutes for automotive collision repair services.
Competitive rivalry: The competition in the automotive collision repair market is high due to presence of numerous regional and international players.
The Global Automotive Collision Repair Market Size is expected to witness high growth over the forecast period of 2023 to 2031. The global Automotive Collision Repair Market is estimated to be valued at US$ 221.87 Mn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2031.
North America dominates the global automotive collision repair market currently. This is attributed to factors such as high number of registered vehicles and frequent accidents in the region. Asia Pacific is anticipated to grow at the fastest pace during the forecast period owing to increasing vehicle miles travelled and fleet in developing countries such as China and India.
Key players operating in the automotive collision repair market are 3M, Continental AG, Denso Corporation, DuPont, Faurecia, Federal-Mogul LLC, Honeywell International, Inc., International Automotive Components Group, Johnson Controls, Inc., Magna International Inc., Mann+Hummel, Martinrea International Inc., Mitsuba Corporation, Robert Bosch GmbH, Saint-Gobain, Takata Corporation, Tenneco, Valeo, and ZF Friedrichshafen.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it