USD 132.1 billion
Report ID:
SQMIG25A2115 |
Region:
Global |
Published Date: April, 2025
Pages:
223
|Tables:
62
|Figures:
75
Automotive Collision Repair Market size was valued at USD 132.1 billion in 2023 and is poised to grow from USD 139.23 billion in 2024 to USD 212.06 billion by 2032, growing at a CAGR of 5.4% during the forecast period (2025-2032).
The increase in the number of subscriptions of automobile insurance and technological advancements in the automobile sector are expected to further propel the automotive collision repair market growth. The growing number of road accidents and fatalities worldwide drives the market growth. Moreover, many automobile retailers sell do-it-yourself (DIY) kits to consumers who prefer to repair their cars at home without assistance. This trend is observed in many South American and Asia Pacific suburban parts. OEMs have developed several channels to distribute their branded parts to different service departments. The rising demand for hybrid and electric cars is expected to further increase the demand for specific tools and spare parts used in such vehicles. This is anticipated to improve the demand for automotive collision repair. In addition, the vehicle owner is obligated to get notice that the warranties that apply to the non-OEM and nonstandard parts will not be provided by the manufacturer of the vehicle but by the manufacturer or distributor of the parts.
Technological advancement has brought a number of benefits to the organizations. Furthermore, digitalization has allowed us to experience more personalized service, quicker delivery, and instant access to support, thus enhancing automotive collision repair technology. There are a number of advantages associated with inspection and repair by a collision repair specialist. Furthermore, the collision repair specialist’s service is used to analyze vehicles problems and find the best solution possible with new parts with significant research.
US Automotive Collision Repair Market is poised to grow at sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
USD 132.1 billion
Largest Segment
Light-Duty Vehicles
Fastest Growth
Passeger Cars
Growth Rate
5.4% CAGR
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Global Automotive Collision Repair Market is segmented by Product Type, Repair Type, Service Channel, Sales Channel, Shop Type, Vehicle Type and region. Based on Product Type, the market is segmented into Spare Parts, Replacement Parts, Paintings & Coatings and Consumables. Based on Repair Type, the market is segmented into Dent Removal, Auto Glass Replacement, Straightening Out Bent Metal, Replacing Doors or Panels, Paint Matching, Scratch Removal, Auto Detailing and Other. Based on Service Channel, the market is segmented into OE, DIFM (Do it for Me) and DIY (Do it Yourself). Based on Sales Channel, the market is segmented into New OEM, Aftermarket, Recycled, Remanufactured and Salvage. Based on Shop Type, the market is segmented into Auto Body Shops, Dealer Owned Shops and Independent Repair Shops. Based on Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicle and Two Wheelers. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Based on vehicle type, the light-duty vehicles segment is dominating the market with the largest automotive collision repair market share. Light-duty vehicles include vehicles with a maximum Gross Vehicle Weight Rating (GVWR) <8,500 lbs. Light-duty vehicles/passenger vehicles comprise hatchbacks, sedans, SUVs, and crossover cars. This segment is anticipated to be characterized by a high degree of dynamism, owing to the continual new product developments in the quest, to fabricate modern-age automobiles that would ensure optimal fuel utilization and would be technologically advanced. Moreover, the demand for alternative modes of transportation, government initiatives to enhance fuel economy, and the availability of alternative fuel vehicles are anticipated to increase sales of light-duty vehicles over the forecast period. In addition, adopting vehicles requiring alternative fuels and vehicles with multiple levels of powertrain electrification is anticipated to drive most vehicle sales in the industry.
The passenger car segment is expected to grow at a significant CAGR during the forecast period. Factors such as growing economic conditions, urbanization, and lifestyle transformations are playing vital roles in increasing the growth of passenger vehicle ownership globally. More passenger vehicles on the road increases the chances of accidents, which amplifies the requirement for collision repairs. In recent times, collision repair services have been witnessing a rise in demand due to advanced technologies and safety systems that are incorporated into passenger vehicles with the purpose of reducing the collision risk. However, in case of an accident these advanced systems might require specially formulated techniques and equipment for repairs, making the demand for collision repair services vehicles more apparent to passengers.
Based on product, the spare parts segment is dominating the automotive collision repair market. The spare parts used in automobile service delivery include crash parts, repair materials, supplementary mechanical parts, restoration materials, and tools. The high number of road accidents leading to the damage of integral elements such as grilles, bumpers, fenders, dents, and scratches are fueling the demand for replacement spare parts. The enthusiasm of consumers about the importance of maintenance and repair in enhancement of vehicle performance and lifecycle is strengthening the development of the spare parts segment. Increased demand for spare components results from the need to replace damaged parts to make the repaired vehicles fit to be operated and safe.
As per automotive collision repair market analysis, the paints & coatings segment is experiencing tremendous growth in recent years. The rapidly evolving paints & coatings technology, which meets the latest protective automobile materials and aesthetic demands, is the key reason for the growth of the segment in the automotive industry. Paints & coatings are anticipated to witness higher adoption in high-volume markets over the forecast period, owing to the surging environmental concerns about the use of detrimental synthetic coatings and refinishing materials. The paints and coatings segment are projected to grow steadily during the forecast period because of the environmental and health risks associated with materials used in the automotive body paint market.
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North America is dominating with the largest automotive collision repair market share. North America boasts one of the world's largest vehicle ownership per capita. The high number of cars on the roads is a result of the large population in the region and an active automotive culture. Therefore, the increasing usage of cars is also raising the prevalence of road accidents, contributing to the requirement of automotive collisions repair. The design, manufacture, and repair of vehicles in North America are controlled by strict safety regulations. The automobile industry in the region is marked by the penetration of modern technologies in vehicles. Advanced technologies require specific expertise and equipment for repair, such as advanced driver assistance systems (ADAS), collision avoidance systems, and high-strength materials. Such technologies increase the need for professional services in case of a collision and repair.
Over the course of the projected period, it is anticipated that the automotive collision repair market in Europe would expand with the highest growth rate. The automotive industry in Europe is characterized by high levels of technological sophistication. The region is witnessing a rapid integration of advanced safety features like autonomous emergency braking, lane-keeping assistance, and adaptive cruise control. With the increasing number of advanced technologies in vehicles, the intricacy of vehicle collision repairs has increased, thus creating a need for professional repair services. This means that collision repair shops in Europe need to follow strict standards and have qualified staff, which increases their need for professional repair services.
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Automotive Collision Repair Marketv Drivers
Increasing Prevalence of Car Accidents
The main factor boosting the automotive collision repair market is the growing prevalence of road accidents globally. The growth of urbanization, along with rising vehicle ownership has increased traffic congestion, resulting in the possibilities of accidents. Furthermore, factors like distracted driving, impaired driving, and poor weather conditions are contributing to incidences of collisions, leading to market growth.
Developments in Vehicle Safety Technologies
An important factor propelling the global automotive collision repair market is the growth of the technology about vehicle safety features. Today most of the vehicles are fitted with collision avoidance systems, lane departure warning systems as well as automatic emergency braking systems. The deployment of these systems improves the overall safety of the vehicle although it also affects the degree of complexity and type of repairs conducted after collation accidents. Sophisticated safety systems typically employ sensors and cameras, and calibration processes.
Automotive Collision Repair Market Restraints
Increasing Technological Complexity
For the automotive collision repair sector, the most significant threat is the ever-increasing technological sophistication of modern automobiles. The use of advanced materials in vehicle production like high strength steel, aluminium, and composite materials represents a major challenge to the repair facilities. Although these materials enhance the vehicles’ body structure and safety, they also require advanced repair methods and equipment. For instance, high strength steel and aluminium require unique welding processes, tools, and other protective measures to preserve the integrity of the material.
Rising Regulatory Compliance and Environmental Concerns
Automated collision repairs have to meet a variety of regulations that encompass environmental concerns. Regulations concerning safety and environmental protection have been a significant source of concern for such facilities since noncompliance can result in sanctions and affect the image of the repairing facilities. Concern for the environment is especially important during the use and disposal of hazardous materials that are used in the repairing process such as paints, solvents and chemicals. Regulations regarding the disposal of such materials need to be adhered to ensure that the impact on the environment is reduced.
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The automotive collision repair market's competitive environment is quite broad and consists of many players, starting from global firms to small independent businesses. These global firms can provide vehicle owners and insurance companies with an entire range of collision repair services by using their huge amount of resources. Independent repair shops, which fulfil the requirement of the local markets, are also critical as they provide customers with customized and cost-effective options. Furthermore, many technology providers are also competing in the market as that supply collision repair companies with high-end solutions to enhance the performance and standard of repair services.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the growth of the automotive collision repair industry is driven by technological innovations and changing vehicle trends. Furthermore, the emergence of autonomous vehicles and electric vehicles will come with new complexities that will require specialized skills and tools. The market is also rapidly moving towards digitalization, eco-friendly practices, and consolidation. This will improve efficiency and the quality of service. Even though there are difficulties like lack of skilled laborers and strict environmental rules, more opportunities for innovation and growth will come in the market. With the advancement of vehicle technology, the automotive collision repair market will continue to adapt and remain a crucial part of the automotive sector.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 132.1 billion |
Market size value in 2032 | USD 212.06 billion |
Growth Rate | 5.4% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Automotive Collision Repair Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Collision Repair Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Collision Repair Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Collision Repair Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Automotive Collision Repair Market size was valued at USD 198.91 Billion in 2023 and is poised to grow from USD 202.69 Billion in 2024 to USD 235.62 Billion by 2032, growing at a CAGR of 1.90% during the forecast period (2025-2032).
The automotive collision repair market's competitive environment is quite broad and consists of many players, starting from global firms to small independent businesses. These global firms can provide vehicle owners and insurance companies with an entire range of collision repair services by using their huge amount of resources. Independent repair shops, which fulfil the requirement of the local markets, are also critical as they provide customers with customized and cost-effective options. Furthermore, many technology providers are also competing in the market as that supply collision repair companies with high-end solutions to enhance the performance and standard of repair services. '3M (US) ', 'Akzo Nobel N.V. (Netherlands) ', 'Axalta Coating Systems (US) ', 'BASF SE (Germany) ', 'Continental AG (Germany) ', 'Denso Corporation (Japan) ', 'DuPont de Nemours, Inc. (US) ', 'Faurecia SA (France) ', 'Henkel AG & Co. KGaA (Germany) ', 'Honeywell International Inc. (US) ', 'Johnson Controls International plc (Ireland) ', 'Magna International Inc. (Canada) ', 'PPG Industries, Inc. (US) ', 'Robert Bosch GmbH (Germany) ', 'Saint-Gobain S.A. (France) ', 'Solera Holdings, Inc. (US) ', 'Valeo SA (France) ', 'ZF Friedrichshafen AG (Germany) ', 'Nexa Autocolor (PPG Industries) (US) ', 'Sikkens (Akzo Nobel) (Netherlands) ', 'Soudal (Belgium) ', 'Sharpline Converting, Inc. (US)'
The main factor boosting the automotive collision repair market is the growing prevalence of road accidents globally. The growth of urbanization, along with rising vehicle ownership has increased traffic congestion, resulting in the possibilities of accidents. Furthermore, factors like distracted driving, impaired driving, and poor weather conditions are contributing to incidences of collisions, leading to market growth.
Increasing Adoption of Advanced Repair Technologies: The incorporation of advanced cutting-edge technology is also one of the dominant trends that has been witnessed in the global automotive collision repair market. The increase in the technological advancement of vehicles has led most repair garages to modernize their facilities by acquiring modern tools and equipment to enhance both the quality and speed of the repairs. Moreover, there is an increased use of computer estimating systems, AR and VR, and 3D scanners that are intended to make the process of repair more efficient.
North America is dominating with the largest automotive collision repair market share. North America boasts one of the world's largest vehicle ownership per capita. The high number of cars on the roads is a result of the large population in the region and an active automotive culture. Therefore, the increasing usage of cars is also raising the prevalence of road accidents, contributing to the requirement of automotive collisions repair. The design, manufacture, and repair of vehicles in North America are controlled by strict safety regulations. The automobile industry in the region is marked by the penetration of modern technologies in vehicles. Advanced technologies require specific expertise and equipment for repair, such as advanced driver assistance systems (ADAS), collision avoidance systems, and high-strength materials. Such technologies increase the need for professional services in case of a collision and repair.
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