The global automotive collision repair market size was estimated at USD 167.76 billion in 2016 and is expected to sustain its growth streak over the forecast period. Increase in number of subscriptions of automobile insurance in addition to technological advancements in the automobile sector are expected to propel market growth.
There has been an increase in vehicular damage caused by accidents, which directly influences the revenue generated in the global market for automotive collision repair. 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 Latin America and Asia Pacific. In 2016, the average number of repairs reached its peak in U.S. and China. Average repair cost related to automotive collision repair reached a maximum in U.K. in the same year.
OEMs have developed several channels to distribute their branded parts to different service departments. Rising demand for hybrid and electric cars is expected to further increase demand for specific tools and spare parts used in such vehicles. This is anticipated to improve the demand for automotive collision repair solutions.
Based on product, the automotive collision repair market is segmented into paints and coatings, consumables, and spare parts. Paints and coatings and consumables include colored paints, scratch-resistant coatings, refinishing materials, engine motor oil, and resin materials. Spare parts used in automobile service delivery include crash parts, repair materials, supplementary mechanical parts, restoration materials, and tools.
Rapidly evolving paints and coatings technology, which meets latest protective automobile materials and aesthetic demands, is the key factor for growth of this segment in the automotive industry. Paints and coatings are anticipated to witness higher adoption in high-volume markets over the forecast period, owing to surging environmental concerns pertaining to use of detrimental synthetic coatings and refinishing materials.
By service channel, the market has been categorized into Do-It-Yourself (DIY), Do-it-for-Me (DIFM), and Delegating-to-OEM (OE). 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 longer product lifecycle, reliability, and better performance. These factors are expected to strengthen the position of OEMs in the market for automotive collision repair over the forecast period.
The DIY segment is expected to expand at the highest CAGR in Asia Pacific over the forecast period, followed by South America. In 2016, this segment acquired the largest market share in North America, owing to increased growth in countries such as U.S. and Canada. Several companies have initiated production of complete kits that provide DIY solutions to users. The DIY segment of Federal-Mogul Holdings generated the highest revenue in 2016.
Based on vehicle type, the market for automotive collision repair has been segmented into light-duty vehicles and heavy-duty vehicles. The light-duty vehicles segment comprises hatchbacks, sedans, SUVs, and crossover cars. The heavy-duty vehicles segment, on the other hand, comprises commercial and multi-axle vehicles such as trucks and buses.
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 driven by adoption of vehicles that require alternative fuels and vehicles with several levels of drivetrain electrification.
Increasing vehicle sales is leading to significant growth of the Asia Pacific market for automotive collision repair. An upsurge in vehicular damage due to lack of stringent driving regulations in the region is further driving market growth. Asia Pacific is perceived to be a source of auto components for local companies and multinationals, who aim to supply these low-cost components to prominent vehicle manufacturers.
The European market accounted for majority of the revenue in 2016. This region is expected to witness a steady growth rate over the forecast period, owing to penetration of vehicles with enhanced safety features and stagnated sales. North America is expected to witness a similar growth pattern. Furthermore, growing penetration of hybrid and electric vehicles is anticipated to improve overall market demand during the forecast period.
Key players offering exclusive automotive aftermarket products and supplies to 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 March 2016, 3M Automotive Aftermarket Division launched a new series of commercial truck Standard Operating Procedure (SOP) for collision repair. This standard operating procedure provides guidance for operating a wide range of products and corroborates reparations.
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Attribute |
Details |
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Base year for estimation |
2016 |
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Actual estimates/Historical data |
2014 - 2015 |
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Forecast period |
2017 - 2025 |
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Market representation |
Revenue in USD Billion and CAGR from 2017 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, South America, and MEA |
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Country scope |
U.S., Canada, Mexico, U.K., Germany, France, China, Japan, India, and Brazil |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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15% free customization scope (equivalent to 5 analysts working days) |
If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of 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, 2014 - 2025)
Paints & coatings
Consumables
Spare parts
Vehicle Type Outlook (Revenue, USD Billion, 2014 - 2025)
Light-duty vehicle
Heavy-duty vehicle
Service Channel Outlook (Revenue, USD Billion, 2014 - 2025)
Do-It-Yourself (DIY)
Do-It-For-Me (DIFM)
Original Equipment (OE)
Regional Outlook (Revenue, USD Billion, 2014 - 2025)
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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