Automotive Collision Repair Market (By Product: Paints & Coatings, Consumables, Spare Parts; By Vehicle Type; By Service Channel) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global automotive collision repair market size was estimated at USD 199.58 billion in 2032 and it is expected to surpass around USD 241.86 billion by 2033, poised to grow at a CAGR of 1.94% from 2024 to 2033.

Key Players

• North America dominated the market with the largest market share in 2023.
• Asia Pacific is expected to grow at the fastest CAGR of 3.53% from 2024 to 2033.
• By Product, the spare parts segment held the largest revenue share of 65% in 2023.
• By Product, the paints & coatings segment is expected to grow at the fastest CAGR of 2.72% from 2024 to 2033.
• By Service Channel, the OE (handled by OEM's) segment generated the maximum market share in 2023.
• By Vehicle Type, the light-duty segment dominated the market in 2023.
• By Vehicle Type, the heavy-duty vehicles segment is anticipated to grow at the noteworthy CAGR of 1.54% from 2024 to 2033.

Automotive Collision Repair Market Overview

The automotive collision repair market is a dynamic sector within the automotive industry, characterized by its crucial role in restoring vehicles to their pre-accident condition. This market encompasses a wide range of services and products aimed at repairing damage resulting from collisions, accidents, and other forms of vehicular incidents.

At its core, the automotive collision repair market revolves around providing solutions to restore damaged vehicles, including bodywork repairs, frame straightening, painting, and refinishing. Additionally, advancements in technology and materials have led to the integration of innovative repair techniques, such as paintless dent repair and advanced diagnostics systems, further enhancing the efficiency and quality of repairs.

Automotive Collision Repair Market Growth Factors

The growth of the automotive collision repair market is propelled by an increasing number of vehicles on the road contributes to a higher frequency of collisions and accidents, driving demand for repair services. Additionally, advancements in automotive technology have led to more complex vehicles with sophisticated safety features, necessitating specialized repair expertise and equipment. Furthermore, rising consumer awareness regarding vehicle safety and aesthetics fuels demand for high-quality collision repair services to restore vehicles to their pre-accident condition. Moreover, stringent government regulations regarding vehicle safety standards and environmental concerns drive the adoption of eco-friendly repair practices and materials, shaping the market landscape.

Report Scope of the Automotive Collision Repair Market

Automotive Collision Repair Market Trends:

• Integration of Advanced Technologies: The industry is witnessing increased adoption of advanced technologies such as augmented reality (AR), artificial intelligence (AI), and computer-aided design (CAD) for more accurate assessments and efficient repairs.
• Focus on Sustainability: Growing environmental concerns are driving the adoption of eco-friendly practices and products, leading to the development of low-VOC (volatile organic compound) paints and sustainable repair processes.
• Specialization in Modern Vehicle Systems: The complexity of modern vehicles, including advanced safety systems and electronics, is leading to specialization among repair professionals who require specific training and equipment to handle repairs effectively.
• Digitalization of Processes: Digital platforms and software solutions are being increasingly utilized for estimating, scheduling, and managing collision repair processes, streamlining operations and enhancing customer experience.
• Shift Towards OEM Certification: There is a growing emphasis on OEM (Original Equipment Manufacturer) certification among repair facilities, as it signifies adherence to manufacturer standards and ensures high-quality repairs, thereby enhancing trust and credibility among customers.
• Rise of Alternative Materials: The use of alternative materials such as carbon fiber and aluminum in vehicle construction is challenging traditional repair methods, leading to the development of specialized techniques and equipment to address these materials' unique characteristics.
• Expansion of Multi-Shop Operators (MSOs): The industry is experiencing consolidation, with larger MSOs acquiring smaller independent repair facilities, driving competition and innovation while offering economies of scale and standardized processes.

Product Insights

The spare parts segment dominates the market, with a revenue share of 65% in 2023. 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 increasing consumer awareness of the importance of maintenance and repair in improving vehicle performance and lifecycle is driving the growth of the spare parts segment.

The paints & coatings segment is expected to grow at the fastest CAGR of 2.72% from 2024 to 2033. 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 is projected to grow steadily during the forecast period because of the environmental and health risks associated with automotive body paint materials.

Service Channel Insights

The OE (handled by OEM's) segment dominates the market in terms of revenue share in 2023. The DIY (Do It Yourself) segment, on the other hand, is expected to grow at the fastest CAGR of 2.53% from 2024 to 2033. Globally, people have been retaining their car usage for longer periods, which has supported the demand for replacement parts. The automotive collision repair industry will continue to significantly grow, which is attributed to its robust demand from emerging economies. The DIY segment is expected to grow at the highest CAGR in the Asia Pacific region from 2024 to 2033, followed by South America. Manufacturers in the automotive industry are gradually shifting their focus to vehicle modification, where they can customize the vehicle to meet the needs of the customer rather than purchasing new vehicles.

The future of the collision repair industry is with DIY kits. Thus, several companies have initiated the production of complete kits that provide DIY solutions to users. 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 longer product lifecycles, reliability, and better performance. The abovementioned factors are expected to strengthen the position of OEMs in the market from 2024 to 2033.

Vehicle Type Insights

The light-duty segment dominated the market in 2023. The light-duty vehicles segment comprises hatchbacks, sedans, SUVs, and crossover cars. The demand for alternative transportation options, government initiatives for improving fuel economy, and the availability of alternative fuel vehicles are expected to increase the sales of light-duty vehicles in the coming years. 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 drivetrain electrification.

The heavy-duty vehicles segment is expected to grow at a CAGR of 1.54% from 2024 to 2033. 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 are expected to augment the demand for heavy-duty vehicles equipped with the latest technologies for hauling and loading.

Regional Insights

North America accounted for a significant revenue share of the global market in 2023. The region has a higher technology adoption rate, which will result in the faster and higher adoption of hybrid electric automobiles in the region as compared to other geographies. Due to this trend, the region is anticipated to witness a growing proportion of specialized automotive collision repair centers that are dedicated to servicing the vehicles of a particular make, such as alternate fuel powered vehicles

Asia Pacific is expected to grow at the fastest CAGR of 3.53% from 2024 to 2033. The increasing number of vehicle sales is leading to significant growth of the regional industry. An upsurge in vehicular damage due to lack of stringent driving regulations in Asia Pacific 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.

Automotive Collision Repair Market Key Companies

• 3M
• Automotive Technology Products LLC (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 ODU GmbH & Co.KG

Recent Developments

• In July 2023, BMW North America became a part of the Sustaining Partner Program initiated by I-CAR. This program aims to financially support initiatives and educational endeavors in collision repair, ultimately minimizing training redundancies. Moreover, it allows partners to demonstrate advocacy and contribute funding to industry-wide initiatives led by I-CAR.
• Also in July 2023, Classic Collision announced its acquisition of the Dayton Collision Center located in Dayton, Tennessee. This strategic move enables the company to broaden its operations within the state, following its successful expansion endeavors in other states such as Minnesota, Georgia, Texas, Colorado, and Florida throughout 2023.
• In March 2023, DENSO Products and Services Americas, Inc. unveiled the expansion of its aftermarket ignition coils range by introducing nine new part numbers. These additions cover over 9 million vehicles currently in operation. With this enhancement, DENSO further diversifies its selection of high-quality replacement ignition coils, catering to various models from Buick, BMW, Cadillac, GMC, Infiniti, Lincoln, Ford, Nissan, Chevrolet, and Volvo.

Automotive Collision Repair Market Segmentation

By Product

• Paints & coatings
• Consumables
• Spare parts

By Vehicle Type

• Light-duty vehicle
• Heavy-duty vehicle

By Service channel

• DIY
• DIFM
• OE

By Region

• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa