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The research firm sees the collision repair market expanding at a compound annual growth rate of 2.5 percent from 2017 to 2025.
The rise of self-driving vehicles won’t stop the global collision repair market from growing, at least according to one research firm.
A new report from Helton, Calif.-based Hexa Research predicts that the global collision repair market will grow from $165.6 billion in 2016 to $206.5 billion by 2025.
The report notes that there are more vehicles on the road, due to improving economic conditions in the United States and Europe, and emerging middle classes in China and India.
Hexa Research also points to technological advances in auto parts manufacturing (such as 3-D printing), and growing interest in upgrading vehicles with newer, more stylish parts and accessories.
The research firm sees opportunities for shops that specialize in repairing specific vehicle models, and for shops that can provide quick turnaround times.
Still, the industry has its share of headwinds.
“High dependence on insurance is projected to hinder the growth of the industry,” Hexa Research says. “Repair shops may sell low-quality spare parts or aftermarket parts as insurance companies try to get [concessions] from these shops.”
Overall, the firm sees the collision repair market expanding at a compound annual growth rate of 2.5 percent from 2017 to 2025.