With the growing number of on-road vehicles and road accidents, the demand for automotive collision repair services has increased significantly over the past few years. The automotive collision repair market offers repair services such as body, paint, and repair services for vehicles damaged in accidents. Automotive collision repair helps restore vehicle structures and aesthetics at a reasonable cost.
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.
Market key trends:
The rising number of road accidents has been a key factor fueling the growth of the automotive collision repair market. According to the World Health Organization, over 1.35 million people die each year as a result of road traffic crashes. With the growing traffic and congestion levels on roads coupled with reckless driving, the number of road accidents has witnessed a considerable rise in recent years. This has resulted in substantial damage to vehicles involved in accidents, thereby driving the demand for automotive collision repair services. The growth in road accidents is expected to continue during the forecast period, thereby propelling the automotive collision repair market.
Strength: Automotive collision repair demand is driven by rising road accidents and average vehicle age. Increased vehicle usage leads to more wear-and-tear and chances of collision.
Weakness: High initial investment requirement for equipment, tools and technology upgrades. Skilled labor shortage is also a challenge faced.
Opportunity: Growing demand for electric vehicles opens up opportunities for specialized repair shops. Insurers partnering with repair centers provide a steady customer base.
Threats: DIY repair methods and used vehicle parts reduce dependency on professional repair services. Stringent vehicle regulations raise compliance costs.
The global automotive collision repair market demand is expected to witness high growth. 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.
Regional analysis comprises The North America region currently dominates the market and is expected to continue its dominance through the forecast period. This can be attributed to factors such as high vehicle usage and presence of major OEMs and insurers in the region.
Key players operating in the automotive collision repair industry are 3M, ContinuousNet, Denso Corporation, Eplus Corporation, Home Depot, Independent Garages Association, Magna International, Midas International Corporation, PPG Industries Inc, Service King Collision Repair Centers.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it