The global automotive collision repair market size was estimated at 165.60 billion in 2016 and is expected to grow on account of increasing sale of automobiles worldwide, digitalization in auto repair companies, need for improved repair quality in collision repair centers and technology advancements in auto parts fabrication. Growing number of accidents is expected to augment the growth of the market over the forecast period.
Global automotive collision repair market revenue, by end-use, 2014 – 2025 (USD Billion)
Need for replacement of old spare parts with the latest models is likely to drive growth. Although the number of accidents in North America and Europe has been decreasing, need for vehicle styling, and upgrading is expected to drive the growth of the market in next few years. The introduction of new cost efficient materials and chemicals is expected to propel the growth of the market.
High dependence on insurance is projected to hinder the growth of the industry. Repair shops may sell low-quality spare parts or aftermarket parts as insurance companies try to get the concession from these shops. The increase of the market is expected to be hampered on account of regulations imposed by governments in North America and Europe in terms of hazardous emissions from paints and coatings.
Segmentation by product
• Paints & Coatings
• Fine Abrasives
• Coarse Abrasives
• Paint Spray Equipment
• Paint cups
• Cleaners and Removers
• Buffing pads
Paints and coatings are anticipated to witness the fastest growth over the next eight years at a CAGR of 3.6%. Rapidly evolving paint and coating technology in the auto industry will drive the growth for the segment.
Consumables accounted for 32.7% market share in 2016 and are expected to witness above average growth over the forecast period. In the consumable segment, cleanser and remover accounted for the largest market share.
Segmentation by type of vehicle
• Light Duty Vehicle
• Heavy Duty Vehicle
Light duty vehicles market was valued at USD 118.01 billion in 2016 and is anticipated to witness growth over the projected period on account of increasing alternate transportation option and government initiatives to improve fuel economy and Alternate Fuel Vehicles (AFVs). The adoption of alternate fuel car will further increase the necessity to deliver vehicle make specific automotive collision repair centers.
Heavy duty vehicles accounted for 28.7% of the global share in 2016 and are expected to decrease over forecast period on account of rising fuel costs and environmental concern. However, the market is anticipated to witness steady growth on account of rising trading activities.
Segmentation by end use
• OEM Manufactures
• Recycled OEM
• Refurbished Products
OEM manufactures accounted for largest market share 61.5% in 2016. Consumer preference toward brand loyalty and warranty given by OEM Manufactures are some of the key drivers of the industry.
Increasing average age of vehicles is expected to drive the demand for recycled OEM parts. Insurance companies often prefer recycled OEM products owing to their low cost. Thus, repair shops stock up on recycled OEMs owing to the substantial requirement from consumers. Moreover, these parts are usually environment-friendly, thus, preferred by consumer and insurance companies. The segment is projected to grow at a CAGR of 2.1% over the forecast period.
Segmentation by region
• North America
• Asia Pacific
• Central and South America
• Middle East and Africa
• Saudi Arabia
Asia Pacific accounted for 23.9% of the global market in 2016 and is expected to gain share over the forecast period. Developing living standards of people, and increasing production and sales of automobiles. With the growing penetration and acceptance of gas and hybrid electric cars, the specialized repair centers dedicated to the repair of particular vehicles is expected to increase.
Europe accounted for 44.9% of the global market in 2016 and is predicted to lose its share over the forecast period on account of trade barriers arisen post ‘Brexit'. Maintenance parts, such as automotive electronic parts, vehicle tires, and automotive lighting, are the main product types in the automotive collision repair segment across Europe. The future growth across the region is expected to be driven by the growing automobile ownership across the Eastern Europe, followed by Poland and Russia.
The global industry consists of companies such as 3M, BASF, DuPont, Bosch, Honeywell, and DENSO. The market is also characterized by the presence of numerous small and medium scale repair shops catering services to local consumers in a city or regional level. This trend is present in Asia Pacific, Central &a South America and MEA. In addition to this, there are a number of local garages where consumers repair their vehicles.
Research Support Specialist, USA