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The automotive collision repair market is set to cross $280 billion by 2024, according to a new research report by Global Market Insights, Inc.
The automotive collision repair market is set to eclipse $280 billion by 2024, according to a new research report by Global Market Insights, Inc.
The report found that due to an increased demand for rebuilding, refinishing and reprocessing of automobile components after accidents, the trend is positively affecting the automotive collision repair market size. It adds that continuous technological advancements in ancillary products coupled with supplementary services such as painting, denting and body maintenance services will further augment the industry demand.
Finishing compounds are expected to exhibit growth rate of approximately 4 percent during the projected timeline. Paints and coatings are the commonly used products in the auto refinishing industry. This wide acceptance can be credited to rising road congestion that poses the risk of minor dents, scratches and small crashes resulting in restoring of the vehicle to its original color.
Consumer trends in shared mobility behavior are positively influencing automobile sales across the globe. Shared mobility vehicles observe higher wear and tear as compared to personal vehicles, resulting in industry growth over the forecast timeframe. Rising technical, software and electronic complexities associated with new-generation vehicles are enhancing investments and expertise that are required in repair handling services.
Passenger cars are expected to dominate the automotive collision repair industry over the forecast timeframe. Technological advancements such as 3D stereophotogrammetry for accurate measurement and documentation of the accident damage will contribute to revenue generation. Moreover, associations such as the National Automotive Service Task Force have formed a Collision Repair Committee (CRC) recognizing, addressing and resolving the service gaps.
OEMs accounted for highest revenue share with more than 65 percent in 2017 owing to the consumer’s high trust level towards the brand manufacturers. Predilection towards warranty provided and customer’s brand loyalty is enhancing its dominance. According to Global Market Insights, the original products offer multiple benefits including better performance, longer product life cycle and reliability than the counterparts, further escalating the segment share in the automotive collision repair business.
Aftermarket automotive collision repair industry is anticipated to exhibit a CAGR of more than 3 percent from 2018 to 2024. This growth can be primarily attributed to its cost-effectiveness as compared to the original manufacturer’s auto parts. Aftermarket parts are developed by the third-party companies specializing in the manufacturing of the auto components that may rival the original parts quality and specifications.
Dealer-owned shops are anticipated to exhibit a maximum CAGR of more than 2.5 percent from 2018 to 2024. Rising dealer retail network along with transparent pricing policy are driving the industry growth rate. Quality of work by certified technicians and warranty coverage will further boost the industry share over the forecast timeframe.
To read the full summary of the report, click here.