PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397131
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397131
Automotive Collision Repair Market size was valued at USD 198,812.1 Million in 2022, expanding at a CAGR of 2.4% from 2023 to 2030.
Automotive collision repair involves the restoration of vehicles that have sustained damage from accidents, weather-related incidents, or other unforeseen events. This comprehensive process encompasses the repair and replacement of various vehicle components, including paint and coatings, collision parts, adhesives, sealants, abrasives, finishing compounds, and more. The automotive collision repair industry relies on four primary sources for these components: new original equipment manufacturer (OEM) parts, aftermarket parts, recycled parts, and remanufactured parts.
The growth of the automotive collision repair industry is expected to be driven by factors such as the increasing number of automobile insurance subscriptions and ongoing technological advancements within the automotive sector. Additionally, the global rise in road accidents and related fatalities contributes to the market's expansion. Notably, a growing trend observed in many South American and Asia Pacific suburban areas is the availability of Do-It-Yourself (DIY) kits in automobile retail, catering to consumers who prefer to repair their vehicles independently at home. The advancement of technology has brought several advantages to automotive repair organizations, including enhanced efficiency and customer experience. The digitalization of processes allows consumers to access more personalized services, faster delivery, and immediate customer support. Collision repair specialists offer numerous benefits through their inspection and repair services, as they analyze vehicle issues and provide optimal solutions using new and thoroughly researched parts. For instance, in July 2019, Scope Technology, a U.S.-based tech firm, joined forces with Microsoft Azure, a cloud computing platform, to create an automated car inspection system with AI assistance. This collaboration is aimed at expanding their customer base and improving the industry further.
The Global Automotive Collision Repair Market is segmented on the basis of Vehicle Type, Type, Service Channel, and Region.
The market is divided into two categories based on Vehicle Type: Light duty and heavy duty vehicles. The market in 2022 was primarily led by the light-duty segment, which includes hatchbacks, sedans, SUVs, and crossover cars. The surge in demand for alternative transportation options, government initiatives intended at refining fuel budget, along with the availability of alternative fuel vehicles are expected to boost the sales of light-duty vehicles in the foreseeable future.
The market is divided into three categories based on type: Paints & coating, consumables and spare parts. In 2022, the dominant segment within the market is the spare parts segment, encompassing components used in automobile servicing, such as crash parts, repair materials, supplementary mechanical parts, restoration materials, and tools. The demand for replacement spare parts is being propelled by the significant number of road accidents resulting in damage to crucial vehicle elements like bumpers, grilles, fenders, and the need for repairing dents and scratches. Additionally, the growing awareness among consumers regarding the importance of maintenance and repair in enhancing vehicle performance and extending its lifespan is contributing to the growth of the spare parts segment.
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Companies in the automotive collision repair market are implementing various strategies to stay competitive and meet evolving industry demands. Many are focusing on technological advancements, such as integrating AI and automation for more efficient repair processes and improved customer experiences. Additionally, they're expanding their service portfolios to include a broader range of repair and maintenance options, aligning with the growing awareness of vehicle performance and safety. These companies are also targeting sustainability by promoting the use of recycled and remanufactured parts to reduce environmental impact. Furthermore, strategic acquisitions and partnerships are enabling market players to broaden their geographic reach and enhance their offerings, ensuring a strong presence in this evolving industry.
In July 2023, Classic Collision announced its acquisition of the Dayton Collision Center in Dayton, Tennessee, marking a strategic move to expand its operations in the state. This expansion follows the company's successful growth in other states, including Minnesota, Georgia, Texas, Colorado, and Florida, in 2023.
In March 2023, DENSO Products and Services Americas, Inc. unveiled an extension of its aftermarket ignition coils range with the introduction of nine new part numbers covering a range of over 9 million vehicles currently in operation. This expansion signifies DENSO's commitment to providing high-quality replacement ignition coils for various BMW, Buick, Cadillac, Infiniti, GMC, Ford, Lincoln, Chevrolet, Nissan, and Volvo models.