Automotive Collision Repair Market Analysis Report By Product Type, By Vehicle Type, By Service Channel And Segment Forecasts From 2019 To 2025

Industry Insights

The global automotive collision repair market size was worth USD 176.3 billion in 2018. The market is estimated to register a 2.3% CAGR over the forecast duration, 2019 to 2025. Technical advancements in automotive repair technology are driving the growth of the market. Further, manufacturers are incorporating 3D production technology. This technology allows manufacturers to produce complex parts with ease. 

Additionally, the trend of Do-It-Yourself (DIY) is gaining traction among consumers. This factor is estimated to propel the DIY segment over the forecast duration. The rise in sales of electric and hybrid cars is projected to supplement the demand for repairing services, thereby, augmenting the market growth. Further, various OEMs are offering branded and complex parts through various distribution channels like distributors and resellers.  

The average cost to repair cars has reached a maximum in the U.S, in 2018.  Moreover, the average cost of repair in the U.S has registered growth in the last few years, while comprehensive losses have reduced considerably. Additionally, unpredictable weather patterns like floods, hail, and strong wind have resulted in a rise in collision losses as vehicles owners get little or no time to move their vehicles to a safer place to avert collision accidents.

However, the rise in the number of users dependent on insurance and government regulation regarding repair of automotive collision are adversely affecting the market growth.  In the U.S, the Department of Insurance has outlined regulations regarding the repair of automotive collisions. In addition, from the California Department of Insurance, beneficiaries of insurance for collision repair have claimed over USD 310.0 billion in 2018. Almost every state in the U.S has made a regulation that mandates the insurance cover for vehicles.

Product Type Insights

Depending on products, the automotive collision repair market is categorized into spare parts, consumables, and paints & coatings. Consumables and paints & coatings include scratch-resistance coating, resin materials, colored paints, refreshing materials, and engine motor oil. Spare parts are used as repair materials, tools, and restoration materials. 

Rapid growth in paints & coating technology to meet the aesthetic demand of automobiles is a major factor attributing to the growth of the segment. The adoption of paints & coatings is projected to gain traction in high-volume markets due to the increasing environmental concern over the adverse effect of synthetic coatings.

Service Channel Insights

Based on the service channel, the market is segmented into Delegating-to-OEM (OE), Do-it-for-Me (DIFM), and Do-It-Yourself (DIY). Of them, the DIY category is anticipated to witness the highest growth in the Asia Pacific over the forecast duration. This segment accounted for the highest revenue in 2018 in North America owing to increasing demand from Canada and the U.S.  In 2018, the DIY category of Federal-Mogul Holdings accounted for the maximum revenue. Several other companies are also offering DIY kits to help users to repair their vehicles themselves. 

On the other hand, the OE segment is gaining traction owing to customers’ preferences for warranties. OEMs provide products with several benefits such as reliability, better performance, and product lifecycle, thus, supporting the market growth.

Vehicle Type Insights 

Based on vehicles types, the market is segmented into light-duty and heavy-duty vehicles. The light-duty vehicles include a Gross Vehicle Weight Ratio of less than 8,500 lbs. These vehicles include SUVs, sedans, light-duty trucks, and hatchbacks. On the other hand, heavy-duty vehicles have GVWR over 26,000 lbs. Such vehicles include tank trucks, tractors, buses, and heavy-duty trucks. 

The light-duty vehicles dominated the market in 2018 largely because of stringent regulations aimed at reducing the overall vehicles weight, which requires the replacement of heavy vehicles parts such as steel and iron with light materials such as aluminum and carbon fiber. Further, governments are emphasizing increasing the efficiency of alternate fuel vehicles by reducing their overall weight. Thus, these aforementioned factors are anticipated to proliferate the market growth over the forecast period.   

Regional Insights

The Asia Pacific is expected to register significant growth largely because of the rise in the number of on-road vehicles. Lack of stringent regulation regarding driving and improper road infrastructures has resulted in a rise in the number of collisions on the road in the region. The region is the home of various local and international companies supplying cost-effective components to the leading vehicle manufacturers. 

In 2018, Europe held the largest market share, and the region is projected to grow at a steady rate over the forecast duration. The growing number of vehicles in the region and rising demand for advanced safety features are driving regional growth. North America, on the other hand, is anticipated to register a similar growth. The growing adoption of electric and hybrid vehicles is likely to supplement the market growth in the next few years.

COVID-19 Impact Insights

The automotive collision repair market has witnessed a considerable decline owing to the COVID-19 outbreak. Lockdown imposed by governments across the globe has resulted in people staying at their homes. Also, work from home has become a mandatory norm and it is further encouraged to prevent the spread of the pandemic. These factors have resulted in low traffic on the roads, consequently affected the market growth. Moreover, automotive repair shops were allowed to operate with a limited workforce. In addition, sales of new automobiles have witnessed a rapid decline in the second quarter of 2020.

However, with the increasing economic activities and re-opening of various operations, the automotive repair market is estimated to regain its share. Companies can focus on providing home-based services integrated with online platforms to consolidate their market position.

Automotive Collision Repair Market Share Insights

The leading players operating in the market are Continental AG, Faurecia, Honeywell International, Inc., Magna International, Inc., Martinrea International, Inc., Takata Corporation, 3M, Federal-Mogul LLC, and Mitsuba Corporation among others. These players are emphasizing introducing new and advanced solutions to cater to the growing demand for collision repair. For instance, 3M introduced a new Standard Operating Procedure (SOP) for commercial trucks in its automotive aftermarket segment. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global automotive collision repair market report based on vehicle type, product type, service channel, and region:

• Product Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Paints & Coatings
    • Consumables
    • Spare Parts

• Service Channel Outlook (Revenue, USD Billion, 2014 - 2025)
    • Do-It-Yourself (DIY)
    • Do-It-For-Me (DIFM)
    • Original Equipment (OE)

• Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)
    • Light-duty Vehicle
    • Heavy-duty Vehicle

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
        • Mexico
    • Europe
        • Germany
        • U.K.
        • France
    • The Asia Pacific
        • China
        • Japan
        • India
    • South America
        • Brazil
    • Middle East and Africa