Automotive Collision Repair Market Size, Share & Trends Analysis Report By Product (Paints & Coatings, Consumables, Spare parts), By Vehicle Type (Light-duty Vehicle, Heavy-duty Vehicle), By Service Channel (DIY, DIFM, OE)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global automotive collision repair market size was exhibited at USD 199.58 billion in 2023 and is projected to hit around USD 243.29 billion by 2033, growing at a CAGR of 2.0% during the forecast period of 2024 to 2033.

Key Takeaways:

• In Europe, automotive collision repair dominated the global market with a market share of 43.0% in 2023.
• The spare parts segment dominates the market, with a revenue share of 64.2% in 2023.
• The light-duty segment dominates the market, with a revenue share of 71.6% in 2023. 
• The OE (handled by OEM's) segment dominates the market, with a revenue share of 58.0% in 2023. 

Automotive Collision Repair Market: Overview 

In the intricate ecosystem of the automotive industry, collision repair stands out as a critical segment, playing a pivotal role in restoring vehicles to their former glory after accidents. This overview delves into the dynamics, trends, and key factors shaping the automotive collision repair market.

Automotive Collision Repair Market Growth

The automotive collision repair market is experiencing robust growth, driven by several key factors. Firstly, the increasing number of vehicles on the road contributes to a steady demand for collision repair services, fueled by both minor accidents and major collisions. Additionally, technological advancements in repair techniques and tools are enhancing efficiency and quality, attracting customers seeking modern solutions. Moreover, stringent safety and environmental regulations are driving the adoption of compliant repair practices, ensuring both customer satisfaction and environmental responsibility. Furthermore, evolving consumer preferences, including a demand for convenience, transparency, and warranty assurances, are shaping the market landscape. Overall, these growth factors underscore a promising trajectory for the automotive collision repair market, highlighting opportunities for stakeholders to capitalize on emerging trends and meet evolving consumer needs.

Automotive Collision Repair Market Report Scope

Automotive Collision Repair Market Dynamics

• Technological Advancements:

The collision repair industry is witnessing a significant transformation driven by technological advancements. Innovations such as computerized estimating systems, paintless dent repair, and laser measuring devices are revolutionizing repair processes, leading to faster turnaround times and higher quality outcomes. These technological developments not only improve efficiency but also enable repair professionals to tackle complex repairs with greater precision, ultimately enhancing customer satisfaction.

• Regulatory Compliance and Environmental Sustainability:

Compliance with stringent safety and environmental regulations is a key dynamic shaping the automotive collision repair market. Regulatory frameworks govern various aspects of repair practices, including repair standards, waste management, and emissions control. Collision repair facilities must adhere to these regulations to ensure the safety of repaired vehicles and minimize environmental impact. Additionally, there is a growing emphasis on environmental sustainability within the industry, with increasing adoption of eco-friendly repair methods and materials. This includes initiatives such as recycling of damaged parts and utilization of water-based paints, reflecting a broader commitment to sustainable business practices.

Automotive Collision Repair Market Restraint

• Skilled Labor Shortages:

One of the primary restraints facing the automotive collision repair market is the shortage of skilled labor. The industry requires highly trained technicians proficient in the latest repair techniques and technologies to deliver quality repairs efficiently. However, there is a growing scarcity of skilled professionals entering the field, exacerbated by factors such as an aging workforce, lack of vocational training opportunities, and competition from other industries. The shortage of skilled labor not only hampers the capacity of collision repair facilities to meet increasing demand but also leads to challenges in maintaining quality standards and turnaround times. 

• Supply Chain Disruptions:

Another significant restraint impacting the automotive collision repair market is supply chain disruptions. The industry relies on a complex network of suppliers for various repair materials, parts, and equipment. However, disruptions in the supply chain, such as natural disasters, geopolitical tensions, or global pandemics, can lead to shortages, delays, and price fluctuations. These disruptions not only hinder the timely completion of repairs but also increase operational costs and erode profit margins for collision repair facilities. Additionally, the increasing complexity of vehicle designs and the proliferation of advanced materials pose challenges in sourcing compatible replacement parts, further exacerbating supply chain vulnerabilities. 

Automotive Collision Repair Market Opportunity

• Rising Demand for Advanced Repair Technologies:

One key opportunity in the automotive collision repair market lies in the rising demand for advanced repair technologies. As vehicles become increasingly complex and incorporate advanced materials and technologies, such as aluminum bodies and ADAS (Advanced Driver Assistance Systems), there is a growing need for collision repair facilities equipped with specialized tools and expertise to handle these repairs. This presents an opportunity for collision repair businesses to invest in training and equipment for advanced repair techniques, positioning themselves as leaders in the field.

• Expansion of Value-Added Services:

Another significant opportunity within the automotive collision repair market lies in the expansion of value-added services. Beyond traditional repair services, there is a growing demand for additional offerings that enhance customer experience and convenience. This includes services such as mobile estimating, pickup and delivery, rental car coordination, and digital communication platforms for real-time updates on repair progress. By diversifying their service offerings and providing a seamless, customer-centric experience, collision repair businesses can not only attract and retain customers but also increase revenue streams and differentiate themselves from competitors. Additionally, value-added services contribute to higher customer satisfaction and loyalty, fostering long-term relationships and referrals within the community. 

Automotive Collision Repair Market Challenges

• Rapid Technological Advancements:

One of the primary challenges confronting the automotive collision repair market is the rapid pace of technological advancements in vehicle design and repair techniques. Modern vehicles incorporate advanced materials, such as aluminum and carbon fiber, as well as sophisticated technologies like ADAS (Advanced Driver Assistance Systems) and autonomous driving features. Repairing these vehicles requires specialized knowledge, tools, and training, posing challenges for collision repair facilities to stay updated with evolving repair methodologies and equipment. Additionally, the complexity of modern vehicle systems increases the risk of errors during repairs, necessitating thorough training and quality control measures to ensure safety and compliance. 

• Increasing Cost Pressures:

Another significant challenge facing the automotive collision repair market is the increasing cost pressures on repair facilities. Factors such as rising labor costs, inflation, and fluctuations in the price of repair materials and parts contribute to escalating operational expenses for collision repair businesses. Additionally, insurance companies exert pressure on repair facilities to minimize repair costs and cycle times, often leading to negotiations over pricing and reimbursement rates. Moreover, the introduction of advanced repair technologies and techniques, while beneficial in enhancing efficiency and quality, requires significant upfront investment, further adding to the financial burden on collision repair facilities.   

Segments Insights:

Product Insights

The spare parts segment dominates the market, with a revenue share of 64.2% in 2023. The spare parts used in the automobile service delivery include crash parts, repair materials, supplementary mechanical parts, restoration materials, and tools. The high number of road accidents that leads to the damage of integral elements such as grilles, bumpers, fenders, dents, and scratches are fueling the demand for replacement spare parts. The increasing consumer awareness of the importance of maintenance and repair in improving vehicle performance and lifecycle is driving the growth of the spare parts segment.

Paints & coatings segment is expected to grow at the fastest rate with CAGR of 2.7% over the forecast period. The rapidly evolving paints & coatings technology, which meets the latest protective automobile materials and aesthetic demands, is the key reason for the growth of the segment in the automotive industry. Paints & coatings are anticipated to witness a higher adoption in high-volume markets over the forecast period, owing to the surging environmental concerns pertaining to the use of detrimental synthetic coatings and refinishing materials. The paints and coatings segment is projected to grow steadily during the forecast period because of the environmental and health risks associated with automotive body paint materials.

Vehicle Type Insights

The Light-duty segment dominates the market, with a revenue share of 71.6% in 2023. The light-duty vehicles segment comprises hatchbacks, sedans, SUVs, and crossover cars. The demand for alternative transportation options, government initiatives for improving fuel economy, and availability of alternative fuel vehicles are expected to increase the sales of light-duty vehicles over the forecast period. Furthermore, the vehicle sales in the industry are anticipated to be primarily driven by the adoption of vehicles that require alternative fuels and vehicles with several levels of drivetrain electrification.

Heavy-duty vehicles segment is expected to grow at the rate of 1.5% over the forecast period. The heavy-duty vehicles segment includes commercial and multi-axle vehicles such as trucks and buses. Heavy duty vehicles are anticipated to be used for transportation of bulk products within any country or region. Increasing trade activities is expected to augment the demand for heavy-duty vehicle equipped with the latest technologies for hauling and loading.

Service Channel Insights

The OE (handled by OEM's) segment dominates the market, with a revenue share of 58.0% in 2023. DIY (Do It Yourself) segment is expected to grow at the fastest rate of 2.5% over the forecast period. Globally, people have been retaining their car usage for longer periods, which has supported the demand for replacement parts. The automotive collision repair industry will continue to significantly grow, which is attributed to its robust demand from the emerging economies. The DIY segment is expected to grow at the highest CAGR in the Asia Pacific region over the forecast period, followed by South America. Manufacturers in the automotive industry are gradually shifting their focus to vehicle modification, where they can customize the vehicle to meet the needs of the customer rather than purchasing new vehicles.

The future of the collision repair industry is with DIY kits. Thus, several companies have initiated the production of complete kits that provide DIY solutions to users. The DIY segment of Federal-Mogul Holdings generated the highest revenue in 2020. The increased preference of customers for warranty is one of the major factors that support the dominance of OE in the market. OEMs offer products with benefits such as longer product lifecycle, reliability, and better performance. The abovementioned factors are expected to strengthen the position of OEMs in the market over the forecast period.

Region Insights

Europe automotive collision repair dominated the global market with a market share of 43.0% in 2023.The region is expected to witness a steady growth rate over the forecast period, owing to the penetration of vehicles with enhanced safety features and stagnated sales. Moreover, rising metal part replacements and damaged plastics are expected to boost European market growth. North American automotive collision repair is expected to witness a similar growth pattern. Furthermore, the growing penetration of hybrid and electric vehicles is anticipated to improve the overall demand of the U.S. automotive collision repair market over the forecast period.

Asia Pacific automotive collision repair market is expected to grow at the fastest rate of 3.6% over the forecast period.The increasing number of vehicle sales is leading to significant growth of the automotive collision repair industry in the Asia Pacific region. An upsurge in vehicular damage due to lack of stringent driving regulations in the Asia Pacific region is further driving the regional market growth. The Asia Pacific region is perceived to be a source of components for local companies and multinationals, who aim to supply low-cost components to prominent vehicle manufacturers.

Recent Developments

• In July 2023- BMW North America joined Sustaining Partner Program by I-CAR. The program helps fund support initiatives and collision repair education that reduce training redundancies. It is also designed for partners to demonstrate advocacy and provide funding for industry-wide efforts by I-CAR.
• In July 2023, Classic Collision announced the acquisition of the Dayton Collision Center in Dayton, Tennessee, enabling the company to expand its operations in the state. This follows the company’s successful operational expansion in other states, including Minnesota, Georgia, Texas, Colorado, and Florida, in 2023
• In March 2023, DENSO Products and Services Americas, Inc. announced the expansion of its aftermarket ignition coils range with the addition of nine new part numbers covering over 9 million vehicles in operation. With this launch, DENSO has expanded its offering of high-quality replacement ignition coils for various Buick, BMW, Cadillac, GMC, Infiniti, Lincoln, Ford, Nissan, Chevrolet, and Volvo models
• In September 2023, the Bosch Automotive Aftermarket division introduced several products for the workshop industry at the Automechanika trade fair. Notable ones included the DAS 3000 for precise calibration and adjustment of vehicle sensors & camera systems that support modern driver assistance systems; the DCU 120 diagnostic control unit for reliable and convenient mobile workshop usage; and the availability of ‘Bosch Automotive Training Solutions’ platform for planning and administering technical training courses, among others
• In April 2023, 3M announced the acquisition of the technology assets of LeanTec, which provides digital inventory management solutions for the automotive aftermarket sector in the U.S. and Canada. The development showcases 3M’s commitment to its "connected bodyshop” platform, with LeanTec’s technology complementing ‘3M RepairStack Performance Solutions’, a hardware and software system that ensures on-hand material availability for reliable and safe repairs

Some of the prominent players in the automotive collision repair market include:

• 3M
• Automotive Technology Products LLC (subsidiary of Lodi Group of Monterrey)
• Continental AG
• Denso Corporation
• Faurecia
• Federal-Mogul LLC
• Honeywell International, Inc.
• International Automotive Components Group
• Johnson Controls, Inc.
• Magna International Inc.
• Mann+Hummel Group
• Martinrea International Inc.
• Mitsuba Corporation
• Robert Bosch GmbH
• Takata Corporation ODU GmbH & Co.KG

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global automotive collision repair market.

Product

• Paints & coatings
• Consumables
• Spare parts

Vehicle Type

• Light-duty vehicle
• Heavy-duty vehicle

Service channel

• DIY
• DIFM
• OE

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)