CRA Market News – Global
Source: Research and Markets
The Global Collision Repair Market appraised at USD 181.52 billion in 2019 is anticipated to reach USD 237.19 billion by 2027, at a CAGR of 3.4% during the forecast period.
The rise in the cases of road collisions due to rash driving or driving under the effect of alcoholic consumption accelerates the market demand over the prediction timespan. The rising incidences of natural calamities, riots, and traffic jams are likely to damage vehicles, thereby accentuating the need for repair services for the vehicles. Progressive tools and technological advancements in the automotive collision repair products reassure market growth.
Road traffic injuries are the principal reasons behind human casualties due to increased motorization, transportation, and growing populace. The inadequate safety measures and non-adherence to traffic rules or guidelines in developing economies are contributing to increasing accidents, advancing the market growth of collision repairs. There is a growing need for automobile and road safety fueling the need for timely repairs. Furthermore, natural calamities and spurt in road accidents leading to vehicle harm activate growth.
Another factor driving the repair sector’s development is the quick progression of paints and coatings innovation, which adapts to the protective automobile materials and provides a neat appearance to vehicles. However, the harmful environmental effects arising out of using cheap synthetic layer and refinishing materials impede market growth to a certain extent. The growth of hybrid and electric vehicles and driverless cars also escalates the automotive collisions, thereby leading to more need for collision repairs. With growing sales and the aging of vehicles globally, the automotive collision repair market will advance with certainty.
Independent collision repair shop plays a significant role in the collision repair market
Independent collision repair shops are likely to witness steady growth as they offer economic repairing services. Many large fleet vehicle-owners prefer independent repair shops to dealer-based shops due to low service costs. Moreover, independent collision repair shop owners offer warranties for various parts and pass the advantages of suppliers and associations to escalate sales.
Passenger vehicles segment is dominating
The Passenger vehicle segment dominates this market due to rising road traffic in the developing economies. Besides, vehicle repair centers’ strong presence offering restoration and refurbishment services will spur the segment size. Supportive accident claim services and vehicle insurance policies offered by insurance providers are significant drivers for the market.
Rising demand for electric and hybrid cars
Rising sales of electric and hybrid cars and other conventional vehicles have resulted in the more requirements of customized spare parts. It has led to the growth of the OEM segment, offering customized repair services and parts. OEMs have advanced service outlets to distribute branded parts with customized service stations. Surging requests for electric and hybrid vehicles is likely to propel the market for specific gears and spare parts used in such vehicles, reassuring market development in forthcoming years. Private equity in automotive collision repair companies and workshops appeal to the investors leading to market growth.
Increasing accidental cases
Increasing accident rates among different vehicle segments, especially in heavy commercial vehicles, are pushing the request for collision repair products. Besides, inadequate maintenance of these vehicles leading to wear and tear of parts or their failures contributes to accidents. The growing requirement for refurbishment, corrosion coatings, paint elimination, and extensive body repairs is projected to induce section penetration.
Europe expected to witness significant growth
Among regions, Europe held the largest market share globally in 2017. The primary drivers in the region were high demand for luxury automobiles, amplifying demand for driverless cars, and strict government regulations concerning vehicular and road safety. Electric and hybrid car sales display an upward trend ensuring more requests during the projection period.
The increasing number of vehicle sales is foremost and an essential development in the Asia Pacific. A surge in accidents due to a lack of strict vehicle driving rules in the region is fueling the market’s development. The Asia Pacific is assumed to be the significant market constituent for local organizations and multinationals supplying low-cost mechanisms to prominent vehicle vendors.
The major companies operating in this market are Denso Corporation, Continental AG, 3M, Honeywell International, Inc., DuPont, BASF, Johnson Controls, Inc., ZF Friedrichshafen, Robert Bosch GmbH, Federal-Mogul LLC, Automotive Technology Products LLC, Caliber Collision and Henkel AG & Co., KGaA and other prominent players.
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Credit to Globe Newswire.