The automotive collision repair market was valued at US$ 185.9 billion in 2020 and is projected to hit around US$ 220.1 billion by 2030, growing at a CAGR of 2.5% between 2021 and 2030.
Increasing number of subscriptions in automobile insurance along with technological advancement in the automotive industry are some of the key factors that are likely to propel the market growth for automotive collision repair market.
Further, rising number of road accidents across the globe is another major factor that triggers the need for automotive collision repair products and services. As per the data revealed by the World Health Organization on June 21, 2021, approximately 1.3 million people die every year because of road traffic crashes. Additionally, these road traffic crashes cost more than 3% of the Gross Domestic Product (GDP) to most of the nations across the world. These rising incidents road fatalities cause severe damage to vehicles as well. In order to make repair task easier most of the automotive retailers also sell do-it-yourself (DIY) kits to their customers to repair their vehicles at home.
In addition, several Original Equipment Manufacturers (OEMs) have started supplying original spare parts of the vehicles to different service stations whether company-owned or independent to make vehicle repair services easier for their customers. This initiative from the OEMs has prominently boosted the market growth for automotive collision repair over the coming years.
However, the global pandemic across the globe in the early 2020 has interrupted the sales and operations of various industries including automotive. Because of the same, the global sales of vehicles have experienced a significant decline, yet likely to recover at a slower rate over the upcoming years. Hence, the automotive collision repair market growth was also hampered because of the lockdown condition and social distancing norms across various regions in order to control the spread of corona virus disease.
|Market Size||USD 220.1 Billion by 2030|
|Growth Rate||CAGR of 2.5% between 2021 and 2030|
|Historic Data||2017 to 2020|
|Forecast Period||2021 to 2030|
|Segments Covered||Product, Vehicle, Service Channel|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)|
|Companies Mentioned||Automotive Technology Products LLC (ATP), 3M, Continental AG, Denso Corporation, Federal-Mogul LLC, Faurecia, Honeywell International Inc., Johnson Controls Inc., International Automotive Components Group|
Based on product, spare parts segment led the global automotive collision repair market with a revenue share of nearly 65% in the year 2020 and anticipated to maintain its dominance during the analysis time frame. The prominent growth of the segment is mainly attributed to rising number of automotive crashes across the world that is causing significant harm to the automobile parts.
The paints & coatings product segment expected to register the fastest growth over the forecast period owing to rising environmental concern for the use of synthetic coating materials and other refinishing products used in the automobiles.
Service Channel Analysis
By service channel, OE segment that are handled by the OEMs held the majority of the revenue share of approximately 57% in the year 2020 and expected to witness a stagnant growth during the forthcoming years. This is mainly because the Original Equipment Manufacturers (OEMs) provide long term guarantee and warrantee for the product that increases the customer loyalty towards the company and product.
The vehicle type segment is classified in to heavy-duty vehicle and light-duty vehicle. Heavy-duty vehicles accounted the revenue share of 28% in 2020.
Light-duty vehicles capture the maximum market revenue share of 72% in the year 2020 and estimated to grow at a significant rate owing to large share of sales percentage for the vehicle type. Light-duty vehicles include sedans, hatchbacks, crossover cars, and SUVs. Light-duty vehicles capture nearly 75% of the total vehicle sales across the globe because of it significant demand for transporting light weight cargos and passengers. Further, the introduction of electric vehicles and other environment-friendly vehicles are supposed to spur the sale of light-duty vehicles in the coming years.
In terms of geography, Europe emerged as the market leader in the global automotive collision repair market and accounted to hold more than 40% of revenue share in the year 2020 and exhibit significant growth over the upcoming years. The prominent growth of the region is primarily attributed to the penetration of large automobile manufacturers in the region. In addition to being an automotive hub, the region witnesses prominent demand for luxury and smart vehicles every year that in turn also triggers the need for the repair equipment and parts. Further, the rate of road fatalities has also been increasing every year in the region that again anticipated thriving the demand for automotive collision repair products and services in the region.
The Asia Pacific region predicted to witness the highest CAGR of about 4% during the analysis period due to higher rate of road traffic crashes along with high sale of passenger cars in the region.
The global automotive collision repair market is highly fragmented and competitive in nature owing to the presence of large number of global players operating in the market. The prominent market players are largely focused towards strengthening their position in the market and expanding their global reach by adopting various inorganic growth strategies such as merger & acquisition, partnership, collaboration, new service launch, regional expansion, and other types of investment. For instance, in February 2021, 3M announced its plan to invest in Repairfy, a company of Kinderhook Industries dedicated for developing tools & technology for Europe & Americas.
Some of the prominent market players profiled in the global automotive collision repair market include Automotive Technology Products LLC (ATP), 3M, Continental AG, Denso Corporation, Federal-Mogul LLC, Faurecia, Honeywell International Inc., Johnson Controls Inc., International Automotive Components Group, Magna International Inc., Martinrea International Inc., Mann+Hummel Group, Mitsuba Corporation, Takata Corporation, and Robert Bosch GmbH among others.
By Service Channel
By Vehicle Type
By Regional Outlook
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