The global collision repair market is expected to reach nearly $247 billion by 2022, expanding at a compound annual growth rate of 3.8 percent percent, according to Crystal Market Research.

The market was valued at approximately $163 billion in 2012, according to the research firm.

“Escalating road accidents and damages they caused to vehicles and the damage due to natural disasters are all unfortunate events driving the automotive collision repair industry growth,” the research firm says. “Additionally, technological innovations in automotive repair services and equipment, accident claims and insurance have contributed to the additional growth of the automotive collision repair industry.”

The forecast includes collision repair services as well as materials such as coatings and crash parts.

Growth in the global collision repair market “is directly linked to the expansion of the global automobiles industry,” according to Crystal Market Research.

“Moreover, rising usage and production of electric and hybrid vehicles are determined to boost the application scope of automotive collision repair, worldwide,” the research firm asserts. “Hence, with the rising sales and maturing of automobiles worldwide, the automotive collision repair demand is set to expand. In regions like Latin America and Asia Pacific, a huge rise in passenger vehicles utilization is anticipated during the forecast years, which will strengthen the automotive collision repair industry growth in these regions. Also, expansion in the automotive field and growing private equity funding in automotive collision repair workshops and companies will influence the global market growth.”