The automotive collision repair market comprises products and services used for repairing automobiles that have been damaged in accidental collisions. Collision repair involves bodywork, repairing or replacing damaged vehicle parts, and painting or coating repaired areas. With the growing popularity of technologies like autonomous vehicles, Internet of Things (IoT), and connectivity features in modern cars, the need for advanced collision repair services and technology has increased. Proper collision repair helps restore vehicle safety and performance to the pre-accident level.
The global automotive collision repair market is estimated to be valued at US$ 221.87 BN in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031 owing to the increasing adoption of advanced auto repair technology.
Key Takeaways
Key players operating in the automotive collision repair market are Zebra Technologies Corporation, TSC Auto ID Technology Co., Ltd., Toshiba TEC Corporation, Honeywell International, Inc., Bixolon Co., Ltd., Citizen Holdings Co., Ltd., Star Micronics Co., Ltd., Seiko Epson Corporation, SATO Holdings Corporation, HP India Sales Private Limited and Brother International Corporation. These players are focusing on partnerships, new product launches, and mergers and acquisitions to gain a competitive advantage in the market.
The global automotive collision repair market is witnessing high growth owing to the rising motorization rate and increasing road accidents worldwide. According to the World Health Organization, road accidents cause around 1.3 million deaths annually. This is propelling the demand for automotive collision repair services globally. Additionally, new technologies like autonomous vehicles and advanced driver assistance systems will also boost the need for high-tech collision repairs.
Technological advancements are a major trend in the Automotive Collision Repair Market Size. The integration of IoT, 3D printing, and artificial intelligence is helping improve the efficiency and precision of repair processes. For instance, 3D printing is being used to replicate small damaged parts, reducing repair times and costs. AR and VR are also enhancing training programs for technicians.
Market Trends
Increased Adoption of Non-OEM Certified Repair Services: To reduce costs, many vehicle owners are opt opt for certified non-OEM collision repair services. This is expected to drive aftermarket sales of repair products over the forecast period.
Integration of Advanced Technologies: Major companies are investing in R&D to develop innovative repair solutions like automatic body measuring systems, improved paints and coatings, and AI-assisted damage assessment tools. This is positively impacting the modernization of collision repair services.
Market Opportunities
Growth in Electric Vehicles: As EVs see higher sales, the demand for specialized repair equipment and trained technicians capable of working with high-voltage components will increase substantially over the coming years.
Multi-shop Partnerships: Collision repair businesses are forming networks and partnerships to better utilize resources, achieve economies of scale, and offer customers enhanced services across wider geographic regions. This presents new avenues for growth.
Impact of COVID-19 on the Automotive Collision Repair Market:
The COVID-19 pandemic has significantly impacted the automotive collision repair market. During the initial stages of the pandemic in 2020, lockdown measures imposed across various countries led to a steep decline in vehicle sales and traffic on roads. As a result, the number of accidents and collision repairs dropped sharply. Operations at body shops were also disrupted due to restrictions and supply chain issues.
However, as lockdowns eased gradually during 2021, the automotive collision repair market saw signs of recovery. Rising vehicle demand and increasing miles driven helped boost the number of collision cases. Body shops resumed full-fledged operations by implementing safety protocols. Despite supply constraints persisting for certain components, the availability of spare parts and technicians improved over the year. Going forward, strategies to optimize operations through technology upgrades and networking with insurance providers will be crucial for body shops to handle future fluctuations effectively.
North America holds the highest concentration of value in the automotive collision repair market currently, led by the large vehicle parc and insurance penetration in the United States. The region accounted for over 40% of the global market value in 2024 prior to the pandemic. However, the Asia Pacific region is projected to emerge as the fastest growing market during the forecast period from 2024 to 2031 with annual growth rates exceeding 5%. China, India and Southeast Asian countries will drive this expansion on the back of rising vehicle ownership, urbanization and economic development.
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