U.S. Automotive Collision Repair Market Size, Share & Trends Analysis Report By Vehicle Type (Light-duty Vehicle, Heavy-duty Vehicle), By Product Type, By Service Channel, And Segment Forecasts, 2019 - 2025

Report Overview

The U.S. automotive collision repair market size was valued at USD 33.75 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 1.5% from 2019 to 2025. Transport authorities and local governments in the U.S. have made it mandatory for car owners to carry an active car insurance policy. The primary reason for this is to enable car owners to cover expenses that they are legally liable to pay in case of any bodily injuries or damages caused to vehicles during accidents. This is one of the key factors driving the market growth of automotive collision repair in the U.S.

Moreover, the growing telematics industry is also expected to boost the market for automotive collision repair in the U.S. Advanced telematics and intelligent diagnostics modules record real-time data for vehicles in operation and sync it with the servers. The logs of telematics devices are decoded through specific systems that are available at company-certified automotive collision repair shops. This gives company-owned repair centers an edge over other repair centers due to their easy accessibility and adequate knowledge of the vehicles’ history. In addition, modern driver assistance programs such as forward collision prevention help drivers avoid major accidents.

Advancements in automotive collision repair technologies and modifications in insurance policies have been influential in the strategic reorganization of the way automobile accidents and damage claims are handled. Shared and standard guidelines for automotive collision repair parts along with electronic appraisal reviews provide adequate information to businesses to carry out work in a compliant, transparent, and efficient manner. Automotive collision repair technologies help companies in streamlining their appraisal & repair processes, thereby enabling them to reduce the repair cycle time through faster problem identification and solution discovery. Insurers and auto body centers manage the cycle time right from the beginning, i.e. from the date the loss is reported, through the assessment process and till the vehicle is dropped off. Nowadays, customers are also notified of the repair status in real-time on their smartphones.

High employment rates in the U.S. have contributed to continued economic growth and, in turn, high automobile sales. Subsequently, the average miles driven per vehicle has also increased, thereby driving the need for repairs and replacement of parts. Stringent mileage regulations set up by the U.S. government have compelled vehicle manufacturers to shift to carbon-based and aluminum-based products. These products offer an environmentally friendly and cost-effective way to increase vehicle performance and reduce emissions.

Numerous key players operating in the U.S. automotive collision repair industry are observed adopting growth strategies such as partnerships and collaborations with domestic players. This enables them to meet the growing demands for carbon- and aluminum-based products and strengthen their position in the U.S. market. In 2019, companies including Hyundai Motor Group, Infiniti Global, Kia Motors, and Nissan Motor Corporation, which handle the U.S. certification for Fiat Chrysler Automobiles (FCA), witnessed a 20% growth in their sales and opened nearly 3,600 shops.

Vehicle Type Insights

Based on vehicle type, the U.S. market for automotive collision repair has been segmented into light-duty vehicle and heavy-duty vehicle. In 2018, the light-duty vehicle segment accounted for maximum share in the market. Moreover, the segment is estimated to register a high CAGR over the forecast period. The increased demand for higher-priced items such as advanced glass products and performance tires, along with electrochromic mirrors and solar control windows, is likely to boost the sales of automotive spare parts for light-duty vehicles.

In the past few years, the light-duty vehicle segment has gained high traction in the market due to strict regulations pertaining to the use of heavyweight components for manufacturing passenger vehicles. Heavy-duty vehicle collision repair depends on factors such as truck repair maintenance, troubleshooting, and comprehensive repairs. Automotive collision repairs performed on rolled trucks include sandblasting and painting, heavy collision, animal hits, light collision, and collision-related mechanical repairs. These processes are mainly performed at workshops. Collision repair centers in the U.S. need to comply with the newly established Clean Air Act (CAA) regulations that focus on reducing air pollution around workshops.

Product Type Insights

Based on product type, the U.S. market for automotive collision repair has been segmented into paints and coatings, consumables, and spare parts. In 2018, the spare parts segment accounted for maximum share in the market. Meanwhile, the paints and coatings segment is expected to register a high growth rate over the forecast period. The rising growth of paints and coatings segment can be attributed to advancements in the painting and coating methods used for collision repairs, which mainly include colored paints & scratch-resistant coatings, coatings for plastic parts, vehicle top coatings, electrodeposition coatings, and glass coatings. However, paints contain high amounts of hazardous volatile organic compounds, which cause air pollution and lead to regulatory challenges. This is anticipated to hamper the segment growth over the forecast period.

The spare parts segment includes crash parts, repair materials, supplementary mechanical parts, and automotive tools. The increasing sales of electric and hybrid vehicles have resulted in favorable growth opportunities for the spare parts segment as these vehicles require specialized spare parts. Moreover, the U.S. has several car repair shops that specifically cater to electric and hybrid electric vehicles. Meanwhile, the growing sales of light-duty automobiles are anticipated to directly affect the demand for consumables as they wear out over time. This is expected to boost the growth of the consumables segment.

Service Channel Insights

Based on service channel, the U.S. automotive collision repair market has been segmented into DIY, DIFM, and OE. In 2018, the OE segment accounted for the largest share in the market. Automotive OEMs have developed several channels of their own to distribute their branded parts to DIFM service providers. Moreover, the growing demand for warranty among car owners is one of the major factors supporting the growth of the OE segment. Thus, the demand for OEM parts is expected to increase over the forecast period as well.

The DIY segment also captured a significant market share owing to the changing preference of car owners from OE and DIFM to DIY for the replacement of parts such as headlights and tires. Companies such as Federal-Mogul Holdings have generated a major part of their revenue from DIY kits in the past few years. Meanwhile, the DIFM segment is expected to register the highest CAGR over the forecast period. This can be attributed to the increasing demand of DIFM for the replacement of heavier or bigger parts such as transmission components, clutch components, and suspension systems.

Key Companies & Market Share Insights

Companies have started offering online services for regular maintenance as well as for repairing of cars. For instance, Federal-Mogul Motorparts’ Garage Gurus, an all-inclusive technical education platform, provides on-demand, online, and on-site support and training to several shop owners, service writers, and technicians. Moreover, Continental Collision covers all main insurance types and is a Factory Certified Auto Body Collision Center for several leading automobile manufacturers such as Honda, Infiniti, Mercedes-Benz, Nissan, and Subaru.

Companies are also adopting strategies such as mergers and acquisitions to strengthen their position in the market. For instance, in May 2016, Mann+Hummel Group acquired Affinia Group, a manufacturer of aftermarket filters based in the U.S. This initiative enabled the company to enhance its filter product offering for automotive repairs and services by adding two brands of Affinia Group, namely Wix Filter and Filtron. On the other hand, Affinia Group was able to reach diverse market segments. Some of the prominent players in the U.S. automotive collision repair market include:

• ZF Friedrichshafen AG

• Valeo

• Federal-Mogul Corporation

• Faurecia

• Continental Corporation

• 3M

U.S. Automotive Collision Repair Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the U.S. automotive collision repair market report based on product type, vehicle type, and service channel.

• Product Type Outlook (Revenue, USD Billion, 2014 - 2025)

  • Paints & Coatings

  • Consumables

  • Spare Parts

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

  • Light-duty vehicles

  • Heavy-duty vehicles

• Service Channel Outlook (Revenue, USD Billion, 2014 - 2025)

  • DIY (Do it Yourself)

  • DIFM (Do it for Me)

  • OE (Handled by OEMs)