Collision Repair Market to Reach $200B by 2022
Feb. 3, 2017—According to Global Market Insights, the automotive collision repair market is expected to reach $200B by 2022.
The report states that growing demand for improved repair quality in large and medium shops is expected to drive the automotive collision repair market share. Increasing consumer preference toward buying advanced and technologically equipped vehicles will drive automobile sales and prove favorable for the automotive collision repair market size.
The advent of new safety technologies—which includes lane departure warning system (LDWS), automatic high-beam control, night vision and pedestrian control, forward collision repair, and autonomous emergency braking, etc.—are expected to reduce collisions as well as severity of the accident. Incorporation of these reliable technologies in vehicles will restrain the industry demand. Improving highways and roadways infrastructure will lower the crash rate, which in turn will negatively affect the automotive collision repair market growth.
Customers prefer using authorized channels over other alternatives due to low rate of depreciation. Vehicles older than a range of four to eight years are usually garaged at independent channels or small workshops owing to lower cost advantage over authorized channels and unavailability of parts.
Paints and coatings accounted for 20 percent of the automotive collision repair market share in 2014 and will grow significantly from 2015 to 2022. This growth can be attributed to rising demand for quality and competitive paint jobs. Increasing traffic in urban areas presents high risk of small crashes and minor dents, which require touchups for restoring the vehicle to its original appearance.
Light duty vehicle repair demand will surpass $150 billion by 2022. Fuel economy initiatives by OEMs and regulatory bodies are also set to augment vehicle sales and provide a growth platform for the industry.