by The global Automotive Collision Repair Market is estimated to be valued at US$ 192.59 Bn in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The automotive collision repair market involves repairs to vehicles that have been damaged in an accident. Some of the key products and services in this market include paints and coatings, replacement parts, repair services, and diagnostics tools. Modern vehicles come equipped with advanced electronics and connectivity features which make repairs more complex. The increasing use of lightweight materials such as composites and high-strength steel also requires specialized repair techniques. Having well-trained technicians and access to latest Original Equipment Manufacturer (OEM) approved tools and parts is important for providing quality collision repairs.
Market key trends:
One of the major trends in the automotive collision repair market is the growing emphasis on vehicle connectivity and driver-assistance technologies. As cars become more autonomous, repairs require re-calibration of various sensors and ensuring proper functioning of connectivity features. Collision repair shops now need to invest in diagnostics tools that can interface with advanced vehicle systems. There is also a trend towards modular vehicle designs which make damaged components easier to remove and replace. This reduces repair times and costs. With the rise in the use of electric vehicles, collision technicians also need training on high-voltage safety protocols for repairs. Overall, technological advancements continue to transform the collision repair industry.
Porter’s Analysis
Threat of new entrants: The Global Automotive Collision Repair Market Size requires high initial investments in specialized facilities, tools, and equipment which acts as a barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of a large number of collision repair shops to choose from.
Bargaining power of suppliers: Major raw material suppliers like paints, coatings, and spare parts providers have low to moderate bargaining power due to availability of alternative suppliers.
Threat of new substitutes: There exist no close substitutes for collision repair services limiting the threat from substitutes.
Competitive rivalry: The market is highly fragmented with the presence of several regional and international repair shops.
Key Takeaways
The global automotive collision repair market is expected to witness high growth, exhibiting a CAGR of 2.3% over the forecast period, due to increasing vehicle accidents and mileage.
Regional analysis: North America dominates the global automotive collision repair market followed by Europe and Asia Pacific. The U.S. accounts for the largest share in the North America region due to higher collision rates coupled with robust infrastructure for collision repairs. Asia Pacific region is expected to witness the fastest growth over the forecast period with China and India emerging as highly lucrative markets.
Key players: Key players operating in the automotive collision repair market are 3M, Automotive Technology Products LLC, Caliber Collision Centers, Continental AG, Denso Corporation, DRiV Incorporated, Faurecia, Gerber Collision & Glass, Honeywell International, Inc., International Automotive Components Group, Johnson Controls Inc., Magna International, Inc., Mann+Hummel Group, Martinrea International, Inc., Mitsuba Corporation, Robert Bosch GmbH, and ZF Friedrichshafen AG. These players are focusing on new product developments and partnerships to gain a competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
