Automotive Collision Repair Services Market

Market Size & Share

[235 Pages] According to Persistence Market Research, the Automotive Collision Repair Services Market revenue totalled US$ 123.9 Billion for 2022. The increasing development in the shop technology has servicing equipment has driven the market growth in year 2022. With increasing customer expectancy towards increasing vehicle life the market is expected to expand with higher growth rate during upcoming period and expected to reach US$ 230.4 Billion by 2033, growing at a CAGR of 6.4% from 2023 to 2033.

The key factor boosting the market growth includes increasing young and educated customers that have high towards the importance of the maintenance and repair in order to enhance performance and lifecycle of the vehicle. Apart from that increasing vehicle parc and lack of infrastructure development across the globe has resulted in increasing number of accidents and thus propelled vehicle repair activities across regions.

The increasing numbers of road accidents are the key factor creating lucrative growth opportunities for the collision repair service providers, increasing rate of vehicle insurances due to regulations by governments has supported the market growth, as vehicle owners having vehicle insurance are more keen to repair their vehicle post accidents. With increasing customers desire of enhancing their vehicle life the requirements of automotive collision repair services have also enhanced.

Automotive Collision Repair Services Market Analysis from 2017 to 2022 Vs Market Outlook for 2023 to 2033

Historically, the Automotive Collision Repair Services sales had experienced CAGR of 1.9% from 2017 to 2022, The Europe and East Asia region holds a significant share in the global market owing to increasing no. of vehicles on road in the region.

Due to the introduction of new technologies, the automobile service sector is expanding quickly, which is also attracting the aftermarket maintenance activities. In resent past the automotive repair, maintenance & service sector has experienced tragic transformation with introduction of new technologies. Therefore, key players also changing their strategies in order to keep up with the pace of highly dynamic competitive environment.

Increasing development for infrastructure development and rising sales of passenger vehicles and overall vehicle maintenance activities, increasing laws and regulations for repair & maintenance of the vehicle is a prime factor that is expected to drive the market for automotive collision repair services demand on a global scale. The global Automotive Collision Repair Services Market is expected to grow at a CAGR of roughly 6.4% over the Forecasting Period.

What are the drivers for Automotive Collision Repair Services Market?

The market for automotive collision repair services is primarily driven by various factors such as increasing population, rising per capita income, and significant demand generating for automotive vehicles that are supporting factors behind the growth of vehicular traffics on road which is fueling the growth of road accidents and vehicle collisions.

Rising growth in logistics and e-commerce sectors has made the availability of OEM parts and components very easy for the customers and service providers, apart from that vehicle insurance provided by various companies at a cheaper rate has also positively affected the market growth for the automotive collision repair services.

Country-wise Analysis

Where Does the U.S. Stand in the Aftermarket for Automotive Parts?

According to the PMR Analysis, the U.S. market holds prominent share in the global market and it holds around 85% of sales generated from the North American market, as the country has high rate of road accidents according to U.S. Bureau of labour statistics around 13 car accidents happens in every minute in U.S. as well as there are more than 40,000 collision repair shops that are generating significant sales for collision repair services in U.S.

Key players present in the market are highly focused on creating a thick network of collision repair services in the U.S. by increasing numbers of their authorised repair shops, which is also driving the market in in U.S.

Why China is Lucrative Market for Automotive Collision Repair Service Providers?

China is hub for automotive industry and highly popular and profitable market for automobile part manufacturers, suppliers and services. Sales of automotive collision repair service is expected to grow at a CAGR of 8.7% over the next year.

In past few years the new vehicle sales growth has slow down a bit but the collision repair services market in the china is continuously experiencing incremental growth rate owing to presence of larger and older vehicle fleet in the China.

Category-wise Insights

Why Passenger Vehicle Category Has High Growth Potential in the Market for Automotive Collision Repair Services?

Passenger vehicle segment holds the prominent share in the global market for the automotive collision repair services, with increasing per capita disposable income across the globe the sales of passenger vehicles has experienced high growth in demand. According to the Organisation Internationale des Constructeurs d'Automobiles the passenger vehicle category holds around 1/3rd of sales share across the globe, thus Rising parc of passenger vehicle and high rate of maintenance activities of passenger vehicles post any collision or accident is driving the overall market growth, Owners of passenger cars are more keen towards maintaining their vehicles and in various regions it is habitual for the people to keep their personal vehicle maintained which is the prime reason behind such excessive demand for the collision repair services from the passenger cars segment. The passenger car segment is expected to hold more than 70% of the market share in global automotive collision repair services market.

By Product Type Which Segment is Leading the Market for Automotive Collision Repair Services?

Parts and components segment is expected to dominate the market by product type segment during the forecasted period, The replacement rate for components such as condensers, bumpers, door handles, fenders, grilles, lights, mirrors, radiators, and radiator supports is higher in case of accidents or any kind of collision, apart from that various original components manufacturers have expanded their supply chains to avail original components in aftermarket which is creating lucrative growth opportunities for the parts & components segment in market. The segment is expected to hold more

Which Service Providers Drive Most Demand for Automotive Collision Services?

Services from authorized dealers are in high demand, representing around 37.8% of the total market in 2022. OEM parts and components from a particular manufacturer are being sold and repaired by authorised dealers. As consumers increasingly prefer original replacement parts for passenger cars, the manufactures are also expanding their dealer networks with authorised dealers. However, From the perspective of the consumer, authorised dealership shops are significantly more expensive than small, independent, locally owned stores. Authorized dealers must provide competitive pricing to customers. Most new car owners prefer authorised dealer shops because they have warranty protection; as a result, authorised dealers are preferred for vehicles that are under 4 years old.

Competitive Landscape

It has been analysed how unprecedented changes in the automotive sector may affect companies that offer auto collision repair services. The automotive collision repair services market exhibits a perfectly competitive environment in terms of market structure, with an excess supply from the global players. The market is thought to be highly fragmented with over 70% of the global market for automotive collision repair services being held by small- and medium-sized players.

In recent years, market participants have used a variety of expansion strategies, such as acquisitions, mergers, and collaborations, in the automotive collision repair services market. To increase their revenue share, industry participants are creating new growth strategies by offering subscription to maintenance services for their customers.

Automotive Collision Repair Services Industry Report Scope

Key Segments Covered in Automotive Collision Repair Services Industry

By Vehicle Type

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Service Provider

• Independent Repair Shops
• Franchised Repair Shops
• Authorized Repair Shops

By Product Type

• Parts and Components
• Paints and Coatings

By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

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