The automotive collision repair market involves repairing automobiles that have been damaged in accidents, storms, vandalism or other incidents. It includes body and paint services as well as mechanical and electrical repair. Sophisticated tools and equipment are used to repair or replace damaged vehicle parts and restore its original form and function. With rising vehicle fleet on road, collisions have increased significantly over the years. Prolonged use of vehicles also demands timely repair and maintenance for safe driving.
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.
Key Takeaways
Key players operating in the automotive collision repair market include 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 dominate the market with vast service networks and solutions.
Growing vehicle population across the world has led to a parallel increase in road accidents and collisions. As per estimates, over 1.3 million people die each year on roads globally due to accidents. This growing accident rate is fueling demand for collision repairs and automotive body shops.
Increasing penetration of automotive collision repair chains and independent garages globally is helping expand market reach. While North America and Europe currently hold major shares, developing regions such as Asia Pacific and Latin America are emerging as high potential markets. Setting up localized supply chains and leveraging digital solutions will enable players tap into new regional demand.
Market drivers
The primary driver for the Automotive Collision Repair Market Growth is rising road accidents due to increase in vehicle fleet worldwide. Over the past decade, road accident injuries have become a major public health issue. As per World Health Organization (WHO), road traffic injuries are the eighth leading cause of death across all age groups globally. High population density in cities, reckless driving behaviours and lack of stringent safety rules have aggravated road collisions in developing nations. This increasing accident rate translates to higher repairs and replacement parts demand from collision shops.
Current Geopolitical situation impacting Automotive Collision Repair Market Growth:
The ongoing geopolitical tensions and conflicts between major countries are negatively impacting the global automotive collision repair market. Rising tensions between the US and China are disrupting supply chains and increasing costs for many auto part manufacturers. Similarly, the Russia-Ukraine war has led to a sharp rise in prices of crucial raw materials like steel and aluminum used in vehicle production. This is hampering the availability as well as affordability of new vehicles. With fewer new vehicles on roads due to supply constraints and higher costs, the demand for collision repair services has also been affected adversely. The automakers are facing challenges to meet their production targets in this scenario. To sustain growth, companies in the automotive collision repair market need to diversify their supply sources, establish redundant manufacturing capacities, and focus on developing repair technologies for electric vehicles which are expected to gain widespread adoption in future.
Geographical Regions with major Automotive Collision Repair Market value:
North America currently dominates the automotive collision repair market with the highest revenues, owing to factors like large vehicle fleet and high rate of road accidents in the US and Canada. Within North America, the US accounts for the major share backed by solid aftermarket infrastructure and presence of major OEMs and independent repair shops. Europe is the second largest regional market driven by stringent safety regulations mandating repairs through certified centers. Among countries, Germany and the UK contribute significantly to the European market value. Asia Pacific is emerging as animportant regional market and is expected to witness fastest gains through 2031. This can be attributed to rising vehicle ownership, improving road infrastructure and expanding multi-brand collision centers in China and India.
Fastest Growing Region in the Automotive Collision Repair Market:
Asia Pacific region is poised to exhibit fastest growth in the global automotive collision repair market during the forecast period from 2024 to 2031. This can be attributed to factors like rising disposable incomes, growing middle class population and expanding road network in developing Asian countries which are increasing vehicle ownership. Furthermore, governments in Asia Pacific nations like China and India are encouraging localization of auto part manufacturing which is strengthening the aftermarket landscape. Also, many global players are shifting their production bases to Asia in order to cater to the large auto sector and minimize logistical challenges. All these factors are contributing to accelerated growth of the collision repair services industry across Asia Pacific region compared to matured markets of North America and Europe. The fast pace of urbanization as well as improving lifestyles are also supporting the growth of automotive sector and aftermarket in Asia Pacific.
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