The automotive collision repair market is estimated to be valued at US$ 192.59 billion in 2023 and is expected to exhibit a CAGR of 2.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The automotive collision repair market involves products that repair damaged vehicles from accidents. It includes body parts, paints & coatings, spare parts, and other equipment. With growing vehicle fleet worldwide and rising road accidents, the need for collision repairing is increasing tremendously. It ensures vehicle safety and maintains the aesthetic appeal by restoring damaged parts.

Market key trends:

One of the key trends driving the growth of Global Automotive Collision Repair Market Size is increasing vehicle accidents. As per WHO, road traffic accidents cause around 1.35 million deaths annually across the globe. With rapid urbanization and rising vehicle usage, road accidents have increased substantially in recent years. According to the National Highway Traffic Safety Administration, in the United States, around 6 million vehicles get involved in road accidents every year requiring collision repair works. Moreover, availability of advanced paints & coating technology and development of multi-material vehicle body structures are also propelling the demand for specialized collision repair products and services. Market players are increasingly focusing on launching new products to repair complex vehicle structures using latest repair technologies.

Porter’s Analysis

Threat of new entrants: New entrants face high bargaining power of buyers and suppliers and threat of substitutes like do it yourself methods and online services. Bargaining power of buyers: Buyers have high bargaining power due to availability of repair specialists. Bargaining power of suppliers: Parts suppliers have moderate power due auto part manufacturers. Threat of new substitutes: Limited threat due to expertise required but online reviews and DIY methods pose competition. Competitive rivalry: Intense due to many regional and international repair chains.

SWOT Analysis

Strength: Extensive experience and technical expertise in automotive repairs. Weakness: High infrastructure and capital investment requirements. Opportunity: Growing automotive fleet and rising average vehicle age increases repair needs. Threats: DIY repair methods and availability of used parts reduce demand.

Key Takeaways

The global Automotive Collision Repair Market is expected to witness high growth, exhibiting CAGR of 2.3% over the forecast period, due to increasing motorization rates worldwide. Regionally, North America dominated the market in 2023 with a share of over 35%, followed by Europe and Asia Pacific, on account of high vehicle density and stringent safety regulations in the US and Canada.

Key players operating in the automotive collision repair market incorporate 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. The industry is competitive in nature with organised multi-shop chains capturing major share.

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