The automotive collision repair market involves repairing damaged vehicles from accidents. It includes body and paint repair, replacement and repair of bumpers, headlights, mirrors and other external accessories. Automotive collisions are increasing rapidly owing to growing traffic and density of vehicles on roads globally. Timely repairs are necessary to restore vehicle safety and performance.
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 Opportunity:
ADAS sensors repairs present a major opportunity in the automotive collision repair market. Advanced driver assistance systems (ADAS) use sensors like radars, cameras and ultrasonic sensors to aid safety. However, collisions can damage these expensive components requiring specialized repair expertise. With ADAS projected to become standard in all new vehicles by 2025, the need for trained technicians in ADAS component-level repairs will rise rapidly. This offers auto body shops an avenue to expand service offerings, capture more insurance claims work and boost revenues. Investing in ADAS calibration equipment and training programs can positioning collision repair companies to leverage the growth opportunity emerging from increasing need for repairs of sophisticated driver assistance technologies.
Porter's Analysis
Threat of new entrants: The automotive collision repair market requires large investments and facilities to enter. Established brands have greater economies of scale and customer loyalty, making entry difficult.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of numerous repair shops. However, specialized repairs and OEM certifications increase switching costs for buyers.
Bargaining power of suppliers: Parts suppliers have low to moderate bargaining power as OEMs and repair shops can source parts from multiple component makers.
Threat of new substitutes: No close substitutes exist for automotive collision repair services. However, new vehicle sales and non-collision repairs pose a potential threat.
Competitive rivalry: The market has numerous regional and international repair shops. Players compete on capability, service quality, certification, and insurance network.
SWOT Analysis
Strengths: Established infrastructure, technical expertise, insurance partnerships, and brand recognition help major players.
Weaknesses: Independent shops may lack resources for advanced repairs and certification. Higher debts can affect margins for some companies.
Opportunities: Growing vehicle parc, rising accidents, automated technologies, and integrated vehicle services offer opportunities.
Threats: Economic slowdowns, changing mobility trends, and regulatory risks pose challenges.
Key Takeaways
The global automotive collision repair market size is expected to grow at a CAGR of 4.5% from 2023 to 2031 to reach a value of US$ 321.56 Mn by 2031.
North America currently dominates the market owing to high vehicle ownership and frequency of road accidents in the US and Canada. The regional market is forecast to grow at a CAGR of 3% during the forecast period.
Key players in the market are Automotive Technology Products LLC, Robert Bosch GmbH, Continental AG, Denso Corporation, 3M, Honeywell International, Federal-Mogul LLC, and Mitsuba Corporation. Automotive Technology Products LLC specializes in collision repair services and holds a leading share. Regional leaders include Auto Repair Services in Europe and NEXEN Corporation in Asia Pacific.
Get more insights on this topic: https://www.trendingwebwire.com/automotive-collision-repair-market-industry-insights-trends-automotive-collision-repair-market/
