Automotive Collision Repair Market to Reach Valuation of USD 209.5 Billion by 2028 – Rising Customer Demand for Buying Vehicles Drives the Market

Vantage Market Research

Jun 22, 2022

In terms of revenue, the Global Automotive Collision Repair Market is expected to reach USD 209.5 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 1.9% from 2022 to 2028.

Increasing road accidents, rising customer demand for buying vehicles, and technological advancement in this industry are anticipated to augment the growth of the market during the forecast period.

Key Highlights from Report:

  • The spare parts segment dominates this market. Different types of spare parts are used in the automobile collision repair market such as repair material, replacement material, and parts. This is expected to support the segmental growth of the paint market.

  • is expected to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. Asia Pacific is the fastest region due to the growing number of vehicle sales in the region is supporting significant expansion in the Automotive Collision Repair business. In the Asia Pacific region, an increase in vehicle damage due to a lack of severe driving regulations is fueling regional market expansion. Local enterprises and multinationals see the region as a source of components, with the goal of supplying low-cost components to major vehicle manufacturers this is anticipated to support the regional growth of the market.

Market Dynamics:

Automotive Collision Repair, also known as repair and reinstallation operations, is conducted on vehicles damaged in an incident. There are various materials used in Automotive Collision Repair, like spare parts, paints, and scratch-resistant coatings. Also, engine motor oil, crash parts, mechanical tools & parts. These services are provided through company-owned outlets or local garages. In the last few years, the number of road accidents has increased, resulting in increasing awareness regarding the insurance of vehicles. Innovations in the worldwide automobile industry, particularly in the sectors of electric and hybrid vehicles, OEMs are attempting to increase profits by offering particular spare components to collision service centers.

Also, the use of 3D printing technology to build complex and difficult automotive components and prototypes is boosting the market growth. This market is also supported by technology such as (ADAS) Advanced Driver Assistance Systems, collision avoidance sensors, and radar technologies. This industry has benefited from technological advancements such as low-cost maintenance and reduced service time. Vehicle accidents damage parts such as windshields, doors, headlights, bumpers, etc. that need to be replaced or repaired.

Europe held the largest shares in 2021. The US held the largest share in European for the Automotive Collision Repair Market. The growth in this region is due to the presence of the largest automotive manufacturers in the region, such as BMW and Mercedes. An increase in the penetration of electric and hybrid vehicles in this region is also anticipated to support the regional growth of the market.