AUTOMOTIVE COLLISION REPAIR MARKET ANALYSIS

Automotive Collision Repair Market Size and Trends

The automotive collision repair market is estimated to be valued at US$ 203.85 billion in 2024 and is expected to reach US$ 270.74 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 4.1% from 2024 to 2031.

To learn more about this report, request sample copy

The market is expected to face growth opportunities such as increased adoption of advanced materials in automotive manufacturing and development of advanced repair technologies. However, economic slowdowns affecting automotive sales and stringent vehicle repair regulations threatening the use of non-OE parts could hamper the market growth. To address such challenges, collision repair centers are focusing on partnerships, certifications, and investments in the latest tools and equipment to ensure quality and compliance. This will help them efficiently cater to growing needs whilst adhering to industry standards.

Growing Number of Crashes and Accidents

With the expanding number of vehicles on the roads, traffic has increased dramatically across most nations over the past decade. This has led to a proportional rise in the number of collisions and accidents. As per estimates by transportation authorities, road crashes have gone up by over 25% globally since 2010. The reasons for more accidents range from distracted and reckless driving to poor road infrastructure in developing markets. Regardless of the causes, the end result is more vehicles sustaining damages that require collision repair work. Even minor dents and scuffs that do not impact the drive-ability often get addressed at body shops for aesthetic and resale value purposes. Furthermore, insurers actively promote repair over replacements for the economic viability of premiums. All of these factors contribute to greater workload and opportunities for collision repair centers. If road safety initiatives do not catch up with traffic growth rates, this driver of increased damage incidents is expected to stay strong sustaining the collision repair industry expansion.

Increased Vehicle Ownership

The rising affluence of populations across the world has translated to more households being able to own personal vehicles. In established automobile markets, ownership levels were already high but emerging economies are witnessing phenomenal growth in private vehicle penetration over the last decade. Countries like China, India, Brazil, and numerous Southeast Asian nations have seen 2-4x jumps in per capita car ownership. While in the initial years, these new owners focused more on purchase and maintenance, as vehicles age the need for collision repairs becomes more prominent. Even minor repairs are more regularly undertaken compared to past times. The sheer scale of new vehicles on the roads ensures there will be plenty of repair opportunities to come. With personal mobility and vehicles being viewed as a symbol of status still on the rise in developing markets, the customer base supporting collision repair needs will keep expanding rapidly into the foreseeable future. Sustained economic development world over alongside urbanization trends and easing financing options all contribute to make increased ownership a reliable driver for the collision industry.

For instance, in July 2022, China witnessed a significant surge in auto sales, with numbers reaching 2.42 million units, marking a notable 29.7% increase compared to the previous year, according to data from the China Association of Automobile Manufacturers (CAAM). Notably, sales of new energy vehicles, encompassing pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, saw a remarkable 120% rise compared to the previous year.