The Automotive Collision Repair Market is set to grow from its current market value of more than $236 billion to over $275 billion by 2024; as reported in the latest study by Global Market Insights, Inc. Increasing traffic congestion leading to road accidents and vehicle damage will drive industry share over the forecast timeframe. Rising vehicle demand across the globe owing to shifting preference towards personal mobility will further escalate automotive collision repair market share.
Proliferation of automobile repair service centers focusing on enhancing efficiency and operational productivity with the introduction of innovative materials will drive the automotive collision repair market. Growing multi-branded service centers offering maintenance at lower costs and warranties will support the industry growth.
Technological advancements such as spectrophotometer and automotive sanding systems ensure premium color finish. It minimises the need of trail and error and enhances process efficiency. Emergence of innovative technologies to increase process efficiency will drive automotive collision repair market in next six years.
Growing organised multi-brand car service centers offering economical vehicle repair will support the industry growth till 2024. Industry participants are engaged in offering quality servicing and repair alternatives along with extended warranty services, thereby supporting the revenue generation. Further, industry is witnessing shifting trend from OEMs to more affordable aftermarket and recycled products similar branded and private label products.
Increasing technical complexities in vehicles with the incorporation of innovative technologies such as lane departure warning systems, automatic emergency braking, forward collision systems, and night vision, may pose a threat to the industry players. The technologies require highly skilled technicians along with the high-end tools and equipment for car repairs. High acquisition cost of skilled workers and fluctuating raw material cost will restrict industry growth over the projected timeframe.
The paints and coatings segment accounts for significant share in the automotive collision repair market owing to the increasing requirement to maintain vehicles aesthetics for longer time period. Further, dents and scratches owing to vehicle accidents will support the segment share. Adhesives and sealant will witness steady growth with its application for lightweight composite materials.
PCV leads automotive collision repair market owing to the increasing vehicle production across the globe. Rising preference towards SUVs and crossovers along with availability of multiple vehicle models at lower costs will ensure its dominance over study timeframe. Moreover, automobile manufacturers are focusing on improving the car servicing experience by introducing premium lounge and other services for enhancing the overall customer experience.
OEMs hold major share in automotive collision repair market with consumer preference for complicated component servicing in electrical and transmission systems. Aftermarket segment will showcase substantial growth rate owing to the availability of services, parts, and labor at lower costs compared to the OEMs. Customers with vehicles over the age of three years prefer to opt for aftermarket solutions owing to similar performance and expiration of the vehicle's warranty.
Dealer-owned shop will generate major revenue share in the automotive collision repair market. This can be attributed to the continued focus of the automobile manufacturers to offer customized servicing and repair solutions to its customers. Industry participants are focused on improving customer experience by introducing transparent pricing schemes and policies to prevent over charging by the service centers and support in revenue generation.
Europe leads automotive collision repair market owing to presence of major automobile industry players. According to European Automobile Manufacturers Association, passenger car and commercial vehicle owners rely heavily on OEMs. Asia Pacific will witness strong growth with increasing automotive production across the region. Further the presence of major automobile manufacturers engaged in offering multiple variants including SUVs, sedans, hatchbacks, and crossovers are further supporting the industry growth till 2024.
Major industry participants operating in the automotive collision repair market place include 3M, Honeywell International Inc., Federal Mogul Holdings Corporation, Bosch, Faurecia, and Continental Corporation. Industry players are engaged in long term partnerships and agreements with automobile OEMs to strengthen their foothold.