APAC to majorly drive automotive collision repair market growth, Global revenue to surpass USD 200 billion by 2022
Global automotive collision repair market has become massive being directly influenced by the ever-expanding automotive industry and is slated to draw a trajectory growth curve over the years to come. Technology adoption in automobiles where on one hand has enhanced the value-add of the vehicles has also increased the complexities demanding for regular maintenance and repair. This trend is emerging as one of the prominent drivers of the automotive collision repair industry growth. Moreover, the economic stability of the consumers and the upliftment in the living standards is anticipated to push the automobile sales, and consequently the automotive collision repair market value. It is projected that global automotive collision repair market will surpass a revenue of USD 200 billion by 2022.
Germany automotive collision repair market size, by vehicle, 2012-2022 (USD Billion)
Over the past few years, the sale of heavy-duty vehicles has seen an upsurge in response to the depleting trend of personal vehicles. This has again created a lucrative roadmap for the automotive collision repair industry, owing to the high probability of wear & tear and increased level of complexities in this section of automobiles. In addition to this, light-duty vehicles will also contribute an appreciable share in the automotive collision repair market, with a revenue surpassing USD 150 billion by 2022.
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The increasing traffic, mainly in the urban regions, has increased the frequency of automotive collisions significantly. These collisions usually end up in causing minor dents and scratches on the vehicles, which hampers its aesthetic value. In response to this fact, paint & coatings have emerged as a vital product segment of the automotive collision repair industry, which nearly contributed 20% to the overall share in 2015. Consumables is another lucrative product segment accounting for a major share of the automotive collision repair market.
The automotive collision repair is mainly implemented via three channels- authorized channels, small workshops, and independent channels. Authorized channels gain a noticeable profit margin through the repair of technologically advanced vehicles including sensors, etc., as this category of vehicles needs expertise and the authenticity of the small and independent workshops becomes questionable in this scenario. However, the latter gains a major traction when it comes to vehicles aged more than 8 years, owing to the lesser availability of automobile parts and high expense incurred at the authorized channels.
Asia Pacific will be one of the prominent regions partaking in the automotive collision repair industry growth. High automobile sale in this region coupled with a slow-paced adoption of safety technologies, particularly in the developing countries, have supported the regional demand. India is estimated to be the major revenue pocket for APAC.
Despite having a strong profitable roadmap ahead, the automotive collision repair industry may suffer a setback due to the advent of new safety automotive technologies such as forward collision repair, automatic emergency braking (AEB), etc. However, the expanding automotive industry will likely draw a steady growth chart for the automotive collision repair market in the years ahead. Key industry participants include 3M, ABRA Auto Body & Glass, Continental AG, BASF, Service King, and Caliber Collision.
Author Name : Shikha Sinha