Global Automotive Collision Repair Market - Industry Trends and Forecast to 2031

Global Automotive Collision Repair Market, By Product Type (Paint and Coatings, Consumables and Spare Parts), Service Channel (Do-It-Yourself, Do-It-For-Me and Original Equipment), Vehicle Type (Light- Duty Vehicle, Heavy Duty Vehicle and Two Wheelers), End- User (New OEM, Aftermarket, Recycled and Remanufactured), Auto Body Shops (Dealer Owned Shops and Independent Repair Shops) - Industry Trends and Forecast to 2031.

Automotive Collision Repair Market Analysis and Size

The automotive collision repair market helps to address the aftermath of road accidents, ensuring vehicles damaged in collisions are restored to safe and operational conditions. This involves repairing structural damage, fixing body panels, and refinishing exteriors to meet safety and aesthetic standards. Additionally, collision repair plays a crucial role in maintaining the value of vehicles by preserving their integrity and appearance. Moreover, as vehicles become more complex with advanced technology, collision repair specialists are increasingly tasked with repairing intricate systems, such as sensors and ADAS (Advanced Driver Assistance Systems), highlighting the market's role in automotive safety and innovation.

Global automotive collision repair market size was valued at USD 199.56 billion in 2023 and is projected to reach USD 248.90 billion by 2031, with a CAGR of 2.80% during the forecast period of 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Report Scope and Market Segmentation

Market Definition

Automotive collision repair involves restoring vehicles damaged in accidents to their pre-accident condition. This process typically includes repairing structural damage, replacing or repairing body panels, refinishing the exterior, and ensuring mechanical systems are functioning correctly for safety and performance.

Automotive Collision Repair Market Dynamics

Drivers

• Rising Technological Advancements Streamline the Collision Repair Process

Advanced materials used in vehicle construction, such as high-strength steel and aluminum alloys, require specialized repair techniques and equipment. Additionally, the integration of sophisticated safety systems such as ADAS (Advanced Driver Assistance Systems) and sensors necessitates skilled technicians and specialized training for accurate diagnosis and repair. Furthermore, advancements in digitalization and diagnostics streamline the repair process, enhancing efficiency and reducing downtime. As vehicle technology continues to advance, collision repair services must innovate to meet the evolving needs, driving sustained growth in the market.

For instance, the acquisition of NAP San Diego, National Auto Parts, U.S., and National Auto Parts-Oakland by Palladium Equity Partners reflects the industry's response to technological advancements driving the automotive collision repair market. Consolidating these entities under the collision auto parts platform, Palladium aims to leverage non-organic growth strategies, enhancing product offerings and distribution capabilities to meet the demand for specialized repair parts and services required for modern vehicle technologies.

• Rising Stringent Safety Regulations Boosts the Demand for Collision Repair Services

Stringent safety regulations imposed by governments mandate that vehicles adhere to specific safety standards to ensure occupant protection and minimize the risk of accidents. In cases where vehicles are involved in collisions, compliance with these regulations often necessitates professional repair services to restore structural integrity and safety features to their original condition. Consequently, vehicle owners are compelled to seek out collision repair specialists to ensure their vehicles meet regulatory requirements, thereby boosting demand for collision repair services. This dynamic underscores the integral role of safety regulations in driving the sustained growth of the automotive collision repair market. The collision industry relies heavily on these regulations to ensure the safety and integrity of repaired vehicles, highlighting the interdependence between regulatory compliance and market demand.

Opportunities

• Growing Insurance Coverage Results in Facilitating Repairs for Damaged Vehicles

Comprehensive insurance policies often include coverage for collision damage, providing vehicle owners with financial protection against repair costs. This coverage incentivizes individuals to seek professional collision repair services rather than attempting repairs themselves or neglecting damage altogether. Furthermore, insurance companies typically work with accredited repair shops, directing customers towards reputable providers and ensuring high-quality repairs. This partnership between insurers and repair facilities fosters a steady stream of business for the collision repair industry and contributes to its sustained growth.

• Growing Focus on Vehicle Aesthetics Promotes the Demand for Collision Repair Services

With consumers placing increasing importance on the appearance of their vehicles, even minor dents, scratches, or paint imperfections are seen as undesirable. As a result, there is a heightened demand for collision repair services to address cosmetic damage and maintain the visual appeal of vehicles. This trend is particularly pronounced in markets where vehicles are viewed as status symbols or extensions of personal style. Thus, collision repair shops are relied upon to restore vehicles to their pristine condition, driving growth in the market.

For instance, the introduction of Bosch's DAS 3000 and DCU 120 tools at Automechanika 2022 reflects the automotive industry's focus on advanced safety features and vehicle aesthetics, driving demand for precise collision repair solutions. These products enable accurate calibration of sensors and diagnostic control for modern driver assistance systems, ensuring post-accident repairs meet safety and aesthetic standards.

Restraints/Challenges

• Scarcity of Skilled Technicians Limits the Adoption of Collision Repair

The demand for qualified professionals to perform intricate repairs on modern vehicles exceeds the available workforce, leading to challenges in meeting customer needs promptly and effectively. This shortage can result in longer repair times, increased labor costs, and potential compromises in quality. Moreover, recruiting and retaining skilled talent becomes increasingly competitive, impacting the operational efficiency and profitability of repair shops.

• Supply Chain Disruptions Hamper the Ability of Collision Repair Businesses

The industry relies heavily on a complex network of suppliers for replacement parts, materials, and equipment. Disruptions in this supply chain, whether due to natural disasters, geopolitical tensions, or pandemics, can lead to shortages, delays, and increased costs for repair shops. Such disruptions can hamper the ability of collision repair businesses to promptly and efficiently restore vehicles damaged in accidents, resulting in customer dissatisfaction, loss of revenue, and potential reputational damage. Moreover, the reliance on just-in-time inventory management exacerbates the impact of supply chain disruptions, leaving repair shops vulnerable to sudden fluctuations in availability and pricing of essential components.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In July 2023, BMW North America joined the Sustaining Partner Program by I-CAR, aiming to reduce training redundancies in collision repair education. This initiative supports industry-wide efforts by providing funding for advocacy and support initiatives, aligning with BMW's commitment to advancing collision repair standards
• In July 2023, Classic Collision expanded its operations by acquiring the Dayton Collision Center in Tennessee, adding to its successful expansion across multiple states in 2023. This strategic move enhances the company's footprint in the state, following its growth trajectory across Minnesota, Georgia, Texas, Colorado, and Florida
• In March 2023, DENSO Products and Services Americas, Inc. broadened its aftermarket ignition coils range with nine new part numbers, catering to over 9 million vehicles in operation. This expansion enriches DENSO's offerings of high-quality replacement ignition coils, serving various models from brands such as Buick, BMW, Cadillac, GMC, and others, addressing the evolving needs of vehicle owners
• In April 2022, 3M acquired the technology assets of LeanTec, specializing in digital inventory management solutions for the automotive aftermarket in the U.S. and Canada. This acquisition bolsters 3M's "connected bodyshop” platform, enhancing its '3M RepairStack Performance Solutions', ensuring reliable and safe repairs through efficient material availability management

Automotive Collision Repair Market Scope

The market is segmented of the basis of product type, service channel, vehicle type, end- user and auto body shops. The growth amongst the different segments helps you in attaining the knowledge related to the different growth factors expected to be prevalent throughout the market and formulate different strategies to help identify core application areas and the difference in your target markets.

Product Type

• Paint and Coatings
• Consumables
• Spare Parts

Service Channel

• Do-It-Yourself
• Do-It-For-Me
• Original Equipment

Vehicle Type

• Light- Duty Vehicle
• Heavy Duty Vehicle
• Two Wheelers

End- User

• New OEM
• Aftermarket
• Recycled
• Remanufactured

Auto Body Shops

• Dealer Owned Shops
• Independent Repair Shops

Automotive Collision Repair Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, product type, service channel, vehicle type, end- user and auto body shops as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Brazil, Argentina and Rest of South America as part of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), South Africa, Saudi Arabia, U.A.E, Israel, Egypt, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

Asia-Pacific will dominate the market primarily due to increasing vehicle damages stemming from a lack of stringent driving regulations. With a surge in vehicle ownership and inadequate enforcement of traffic rules, accidents are on the rise, driving up the demand for collision repair services. This trend positions the Asia-Pacific market as a significant hub for automotive repair and maintenance, reflecting the region's growing automotive industry and need for efficient repair solutions.

Europe is expected to grow in the market due to growing demand for advanced safety features. With a proactive approach towards vehicular safety regulations and consumer preferences, the region is driving innovation in safety technology adoption. This momentum reflects a concerted effort by European automakers to integrate cutting-edge safety systems, bolstering market growth and solidifying Europe's prominence in the automotive safety solutions sector.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Automotive Collision Repair Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to market.

Some of the major players operating in the market are

• BASF SE (Germany)
• Jetex Exhausts Ltd. (U.K.)
• Futaba Industrial CO. Ltd. (Japan)
• Tenneco Inc. (U.S.)
• Eberspaecher (Germany)
• Marelli Corporation (Japan)
• HJS Emission Technology GmbH and Co. KG (Germany)
• FORVIA Faurecia (France)
• Benteler International AG (Germany)
• Standard Motor Products Inc. (U.K.)
• MANN+HUMMEL(Germany)
• Martinrea International Inc. (Canada)
• Mitsuba Corp. (Japan)
• Robert Bosch GmbH (Germany)
• Marelli Holdings CO. Ltd. (Italy)