Download Sample, Rising Road Accidents and Global Car Sales Are Boosting the Automotive Collision Repair Market
The demand for the automotive collision repair market is expected to rise due to the rising number of road accidents. According to a Census report, car accidents increase due to distractions like smartphone use, rising traffic from population growth, speeding, and impaired driving. According to the data of the World Economic Forum, the sale of cars in 2040 is expected to reach the mark of 2 billion; thus, with the rising number of cars, road accidents are expected to increase at the same pace. According to the data of the World Health Organization, there are around 1.19 million deaths each year as a result of road traffic crashes, also between 20 and 50 million more people suffer non-fatal injuries, with many incurring a disability.
As global vehicle ownership increases, driven by rising incomes and economic growth, the demand for automotive collision repair services is also growing. More vehicles on the road lead to more accidents, which result in repair needs. Per U.S. Department of Transportation forecasts a 1% annual increase in car ownership, driven by economic growth. Additionally, advanced vehicle technology and longer vehicle lifespans add major repairs, while insurance trends further stimulate demand for collision repair services.
As global vehicle ownership increases, driven by rising incomes and economic growth, the demand for automotive collision repair services is also growing. More vehicles on the road lead to more accidents, which result in repair needs. Per U.S. Department of Transportation forecasts a 1% annual increase in car ownership, driven by economic growth. Additionally, advanced vehicle technology and longer vehicle lifespans add major repairs, while insurance trends further stimulate demand for collision repair services.
Major Driver for Automotive Collision Repair Market Are Eco-Friendly Products and Insurance Partnership
Partnerships with insurance companies offer significant growth opportunities for automotive collision repair businesses. These collaborations provide a steady stream of referrals, increase business volume, streamline claims processing, and enhance credibility. Being a preferred repair shop for insurers can lead to consistent customer flow, improved operational efficiency, and stronger market trust. Also use of sustainable and eco-friendly products in collision repair, like water-based paints, energy-efficient equipment, and recycling, benefits the environment and business.
Water-based paints reduce VOC emissions, energy-efficient equipment cuts costs and carbon footprint, and waste management enhances stewardship. Green building practices and products attract environmentally friendly customers and boost the shop's reputation and appeal. Focusing on electric and autonomous vehicles in collision repair shops creates lucrative opportunities. Offering specialized services like EV repairs and high-voltage system training attracts customers, and boosts market growth.
Water-based paints reduce VOC emissions, energy-efficient equipment cuts costs and carbon footprint, and waste management enhances stewardship. Green building practices and products attract environmentally friendly customers and boost the shop's reputation and appeal. Focusing on electric and autonomous vehicles in collision repair shops creates lucrative opportunities. Offering specialized services like EV repairs and high-voltage system training attracts customers, and boosts market growth.
Recent Trends in the Automotive Collision Repair Industry
- Growing adoption of eco-friendly practices, including water-based paints and energy-efficient equipment
- Use of connected repair management systems for streamlined workflows and improved customer service.
- Rise in the use of advanced repair technologies like 3D scanning and robotic systems for accuracy and efficiency.
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Insurance Claims and Antique Cars Repair Hamper the Automotive Collision Repair Market
Insurance challenges in the automotive collision repair market create various types of obstacles by causing disputes over cost estimates, and imposing coverage limitations, which results in poor servicing, and approval delays that extend repair times. These issues can also reduce profit margins for repair shops, affecting their financial stability and expansion. Additionally, repair shops often must comply with specific insurer requirements that may not align with best practices, possibly impacting repair quality. Also, insurance and valuation of antique cars are complex due to rarity and historical significance, making accurate valuation challenging.
Factors like historical importance and market demand lead to disagreements with insurers over coverage amounts. Coverage limitations and high repair costs can lead to disputes, while insurance considerations can impact restoration decisions and vehicle quality and value. Sourcing parts for antique cars is difficult because many are discontinued and expensive to find, with limited production runs and the challenge of reproducing them without original blueprints. Maintaining quality and authenticity is important, but reproductions may not meet standards. Custom fabrication may be needed, adding cost and complexity, while supply chain issues can increase costs.
Factors like historical importance and market demand lead to disagreements with insurers over coverage amounts. Coverage limitations and high repair costs can lead to disputes, while insurance considerations can impact restoration decisions and vehicle quality and value. Sourcing parts for antique cars is difficult because many are discontinued and expensive to find, with limited production runs and the challenge of reproducing them without original blueprints. Maintaining quality and authenticity is important, but reproductions may not meet standards. Custom fabrication may be needed, adding cost and complexity, while supply chain issues can increase costs.
Product Inaugurations Drive Market Demand
In April 2022, 3M announced that it had acquired the technology assets of LeanTec, a provider of digital inventory management solutions for the automotive aftermarket segment in the United States and Canada. The acquisition demonstrated 3M's commitment to its "connected Bodyshop," one of 3M's active digital platforms that integrated data capture and analysis with material product platforms, capitalizing on emerging needs and trends. Businesses across industries looked for innovative ways to harness the power of digital transformation – and body shop owners were no exception.
In November 2020, Bosch announced a new system designed for repairing current and future advanced driver assistance systems (ADAS). Bosch said the system’s recalibration tools worked with a range of different OEM ADAS technologies including cameras and radar. With the DAS 3000, technicians were able to calibrate ADAS technology from the most popular OEMs like General Motors, Ford, Toyota, and Volkswagen, the company said. The DAS 3000 for precise calibration and adjustment of vehicle sensors and camera systems supported modern driver assistance systems. Additionally, the DCU 120 diagnostic control unit was launched for reliable and convenient mobile workshop usage, and the 'Bosch Automotive Training Solutions platform was used for planning and administering technical training courses, among others.
In November 2020, Bosch announced a new system designed for repairing current and future advanced driver assistance systems (ADAS). Bosch said the system’s recalibration tools worked with a range of different OEM ADAS technologies including cameras and radar. With the DAS 3000, technicians were able to calibrate ADAS technology from the most popular OEMs like General Motors, Ford, Toyota, and Volkswagen, the company said. The DAS 3000 for precise calibration and adjustment of vehicle sensors and camera systems supported modern driver assistance systems. Additionally, the DCU 120 diagnostic control unit was launched for reliable and convenient mobile workshop usage, and the 'Bosch Automotive Training Solutions platform was used for planning and administering technical training courses, among others.
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Europe And Asia Pacific Can Be Considered Lucrative Markets
Europe can also be considered a promising market due to the rising sale of passenger cars. European passenger car sales increase due to government incentives, technological advancements, increased availability, and favorable financing options. According to the data from Eurostat, the average number of passenger cars for the year 2022 was 560 passenger cars per 1,000 people in the EU. The number in 2022 has risen by 14.3% compared to 2012. Also, Italy was ranked as highest with 684 passenger cars per 1,000 people. Asia Pacific can also be considered a lucrative market due to the rise in auto sales. China can be considered a valuable market, as according to the data of the China Association of Automobile Manufacturers in 2022, China has experienced a sharp growth in auto sales, reaching 2.42 million units, which showed a growth of 29.7% compared to 2021.
The automotive collision repair market in North America is expected to experience steady growth due to the lowering number of vehicle traffic crashes. According to the statistics of the U.S. Department of Transportation, only 716 people were killed in motor vehicle traffic crashes on U.S. roadways in 2022. Compared to 2021, North America has experienced a decline of 1.7 percent. The fatality rate per 100 million vehicle miles traveled decreased by 3.6 percent from 1.38 in 2021 to 1.33 in 2022.
The automotive collision repair market in North America is expected to experience steady growth due to the lowering number of vehicle traffic crashes. According to the statistics of the U.S. Department of Transportation, only 716 people were killed in motor vehicle traffic crashes on U.S. roadways in 2022. Compared to 2021, North America has experienced a decline of 1.7 percent. The fatality rate per 100 million vehicle miles traveled decreased by 3.6 percent from 1.38 in 2021 to 1.33 in 2022.
The report provides a detailed overview of the automotive collision repair market insights in regions including North America, Latin America, Europe, Asia-Pacific and the Middle East and Africa. The country-specific assessment for the automotive collision repair market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the automotive collision repair market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the automotive collision repair market. Some key countries and regions included in the automotive collision repair market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Belgium, Sweden, Austria, Slovakia, Hungary, Romania, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Egypt, Turkey, Morocco, Nigeria, Iran, Rest of MEA |
Automotive Collision Repair Market Research Report Covers In-depth Analysis on:
- Automotive collision repair market detailed segments and segment-wise market breakdown
- Automotive collision repair market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in automotive collision repair industry)
- Current, historical, and forthcoming 10 years market valuation in terms of automotive collision repair market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Automotive collision repair market demand analysis
- Automotive collision repair market pricing analysis over the forecast period (by key segment and by region)
- Automotive collision repair market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the automotive collision repair market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in automotive collision repair market
- Automotive collision repair market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the automotive collision repair market forecast by countries
- Mergers and acquisitions in the automotive collision repair market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What is the scope of the automotive collision repair market?
The automotive collision repair market includes services, materials, and technologies used to repair damaged vehicles, catering to both minor and major vehicle accidents, and spans multiple repair methods such as traditional and advanced repairs.
What factors are driving the growth of the automotive collision repair market?
The growth is driven by factors like higher vehicle production, an increase in vehicle accidents, advancements in vehicle repair technologies, and growing consumer preference for efficient, cost-effective repair solutions.
What is the future outlook for the automotive collision repair market?
The future of the automotive collision repair market looks promising, with anticipated growth due to trends like electric vehicle repairs, sustainable repair practices, and the increasing importance of AI and automation in the repair process.
