Automotive Collision Repair Market Size, Share & Trends Report

Automotive Collision Repair Market Size, Share & Trends Analysis Report By Product (Paints & Coatings, Consumables, Spare Parts), By Vehicle Type (Light-duty, Heavy-duty), By Service Channel (DIY, DIFM, OE), And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-444-4
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 100

Report Overview

The global automotive collision repair market size was USD 185.98 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 2.1% from 2021 to 2028. The rise in the number of subscriptions of automobile insurance and technological advancements in the automobile sector are the factors expected to propel market growth. There has been an increase in vehicular damage caused by accidents, which is directly influencing the revenue generated in the global market. Many automobile retailers sell do-it-yourself (DIY) kits to consumers who prefer to repair their cars at home without any assistance. This trend is observed in many suburban parts of South America and Asia Pacific.

Asia Pacific automotive collision repair market size, by product, 2017 - 2028 (USD Billion)

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 a 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.

The companies support customers from repairing and diagnosing issues on vehicles to provide and service preventative maintenance. Moreover, the customers are often concerned about the vehicles after the collision and unable to get specialist services at a low cost. Additionally, auto collision repair shops are equipped with modern repair equipment and staffed by collision repair experts. The automotive collision repair services have some disadvantages such as boost the safety of the car, maintain the value of the vehicle, lower the company’s cost, and others.

Technological advancements have brought numerous benefits to organizations. Furthermore, digitalization has allowed all of us to experience a more personalized service, quicker delivery, and instant access to support. Unsurprisingly, it is easy to get used to comfort. There are various advantages associated with inspection and repairing by a collision repair specialist. The collision repair specialist finds a way of reducing the cost of damages. 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.

COVID-19 Impact Insights

The automotive and transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive industry. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for aftermarket repair products. The demand for commercial vehicle parts is expected to plummet with the shutdown of all non-essential services.

Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the market players, and this shortfall is further expected to widen over the next few months. Further, in the aftermath of the pandemic, the consumers are expected to prefer private conveyance. However, the financial disparities will be expected to hamper the purchase of new parts; due to budget constraints, commuters are expected to opt for the repaired parts. Increasing sales of repaired parts are expected to surge the demand for cost-effective parts for vehicle maintenance. On a bigger scale, in developing countries, the pandemic is expected to be a reason for the comeback of some entry-level automotive collision repair players. The market will also be expected to vary with the demand from different segments of customers as every class segment has its own preferences regarding car repair and maintenance.

Product Insights

In terms of market size, the spare parts segment dominated the automotive collision repair market with a revenue share of 64.3% in 2020. The paints and coatings segment is expected to expand at the fastest CAGR of 2.6% over the forecast period. The spare parts used in the automobile service delivery include crash parts, repair materials, supplementary mechanical parts, restoration materials, and tools. The paints & coatings segment includes colored paints & scratch-resistant coatings, coatings for plastic parts, vehicle topcoats, electrodeposition coatings, and glass coatings.

Environmental coatings are increasingly being adopted, owing to the surging environmental concerns ascribed to the use of detrimental synthetic coatings and refinishing materials. Thus, the paints & coatings segment is anticipated to witness higher adoption in high-volume markets over the forecast period. The rapidly changing coatings and paints technology, which meets aesthetic demands and acts as a protective material, is the key reason for the growth of the paints & coatings segment in the automotive industry.

Service Channel Insights

In terms of market size, OE (handled by OEM's) segment held the dominant revenue share of 56.8% in 2020. The do-it-yourself (DIY) segment is expected to expand at the fastest CAGR of 2.8% over the forecast period. Globally, people have been retaining their car usage for longer periods, which has supported the demand for replacement parts. The market will continue to significantly grow, which is attributed to its robust demand from the emerging economies. The DIY segment is expected to register the highest CAGR in the Asia Pacific region over the forecast period, followed by South America.

Furthermore, in 2020, the segment acquired the highest market share in North America, owing to increased growth in countries such as the U.S. and Canada. Several companies have initiated the production of complete kits that provide DIY solutions to the users. The DIY segment of Federal-Mogul Holdings generated the highest revenue in 2020. The increased preference of customers for warranty is one of the major factors that support the dominance of OE in the market. OEMs offer products with benefits such as a longer product lifecycle, reliability, and better performance. The abovementioned factors are expected to strengthen the position of OEMs in the market over the forecast period.

Vehicle Type Insights

In terms of market size, the light-duty vehicle segment dominated the market with a share of 71.5% in 2020. The segment is expected to expand at the fastest CAGR of 2.1% over the forecast period. The light-duty vehicles segment comprises hatchbacks, sedans, SUVs, and crossover cars. The heavy-duty vehicles segment includes commercial and multi-axle vehicles such as trucks and buses. Heavy-duty vehicles are anticipated to be used for the transportation of bulk products within any country or region. Increasing trade activities is expected to augment the demand for heavy-duty vehicles equipped with the latest technologies for hauling and loading.

Global automotive collision repair market share, by vehicle type, 2020(%)

The demand for alternative transportation options, government initiatives for improving fuel economy, and availability of alternative fuel vehicles are expected to increase the sales of light-duty vehicles over the forecast period. Furthermore, vehicle sales in the industry are anticipated to be primarily driven by the adoption of vehicles that require alternative fuels and vehicles with several levels of drive train electrification.

Regional Insights

In terms of market size, Europe dominated the market with a revenue share of 43.5% in 2020. The Asia Pacific region is expected to expand at the fastest CAGR of 3.8% over the forecast period. The increasing number of vehicle sales is leading to significant growth of the automotive collision repair industry in the said region. An upsurge in vehicular damage due to the lack of stringent driving regulations in the Asia Pacific region is further driving the regional market growth. The region is perceived to be a source of components for local companies and multinationals, who aim to supply low-cost components to prominent vehicle manufacturers.

Europe accounted for the largest revenue share in 2020. The region is expected to witness a steady CAGR over the forecast period, owing to the penetration of vehicles with enhanced safety features and stagnated sales. North America is expected to witness a similar growth pattern. Furthermore, the growing penetration of hybrid and electric vehicles is anticipated to improve the overall market demand over the forecast period.

Key Companies & Market Share Insights

The key players offering exclusive automotive aftermarket products and supplies for automotive collision repair service centers include 3M; Automotive Technology Products LLC; Continental AG; Denso Corporation; Faurecia; Federal-Mogul LLC; Honeywell International, Inc.; International Automotive Components Group; Johnson Controls, Inc.; Magna International, Inc.; Mann+Hummel Group; Martinrea International, Inc.; Mitsuba Corporation; Robert Bosch GmbH; and Takata Corporation.

In July 2018, the 3M Automotive Aftermarket Division launched a cost-free collision repair app. This collision repair app was aimed at supporting the technicians and distributors to get all the information they need regarding the collision repair. Furthermore, Digitization has enabled various stakeholders including car owners and insurance agents to spectate the repair and part replacement costs they are been charged by auto repair shops. Digitization has thereby enabled transparency in auto repair and maintenance service delivery. Some prominent players operating in the global automotive collision repair market are:

  • 3M

  • Automotive Technology Products LLC (ATP.) (a subsidiary of Lodi Group of Monterrey)

  • Continental AG

  • Denso Corporation

  • Faurecia

  • Federal-Mogul LLC

  • Honeywell International, Inc.

  • International Automotive Components Group

  • Johnson Controls, Inc.

  • Magna International Inc.

  • Mann+Hummel Group

  • Martinrea International Inc.

  • Mitsuba Corporation

  • Robert Bosch GmbH

  • Takata Corporation

Automotive Collision Repair Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 190.80 billion

Revenue forecast in 2028

USD 220.12 billion

Growth Rate

CAGR of 2.1% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, vehicle type, service channel, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

3M; Automotive Technology Products LLC; Continental AG; Denso Corporation; Faurecia; Federal-Mogul LLC; Honeywell International, Inc.; International Automotive Components Group; Johnson Controls, Inc.; Magna International, Inc.; Mann+Hummel Group; Martinrea International, Inc.; Mitsuba Corporation; Robert Bosch GmbH; Takata Corporation

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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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 and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global automotive collision repair market report based on product, vehicle type, service channel, and region:

  • Product Outlook (Revenue, USD Billion, 2017 - 2028)

    • Paints & Coatings

    • Consumables

    • Spare Parts

  • Service Channel Outlook (Revenue, USD Billion, 2017 - 2028)

    • DIY

    • DIFM

    • OE

  • Vehicle Type Outlook (Revenue, USD Billion, 2017 - 2028)

    • Light-duty Vehicle

    • Heavy-duty Vehicle

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

    • South America

      • Brazil

    • Middle East & Africa

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