The automotive collision repair market deals with restoring vehicles that have been damaged due to accidents, road mishaps and other similar instances. It includes repairing, replacing and painting of vehicle parts. The demand for automotive collision repair services is driven by the growing fleet size of passenger and commercial vehicles worldwide and the rising number of road accidents. Collision repair ensures vehicle safety and helps restore its original functionality and appearance.
Key Takeaways
Key players operating in the automotive collision repair market include Zebra Technologies Corporation, TSC Auto ID Technology Co., Ltd., Toshiba TEC Corporation, Honeywell International, Inc., Bixolon Co., Ltd., Citizen Holdings Co., Ltd., Star Micronics Co., Ltd., Seiko Epson Corporation, SATO Holdings Corporation, HP India Sales Private Limited and Brother International Corporation. These players are focusing on adopting innovative technologies such as IoT, AI and advanced barcode/label printing solutions to optimize operations and service quality.
The automotive collision repair market offers significant growth opportunities in developed as well as emerging economies. Factors such as rising per capita income, rapid urbanization and improving road infrastructure are expected to drive the demand for vehicles and by extension collision repair services in Asia Pacific, Latin America, Middle East and Africa over the coming years. Leading market players are exploring opportunities to expand their geographic footprint in high potential markets through partnerships, joint ventures and acquisitions.
Market Drivers and Restraints
The key driver for the Automotive Collision Repair Market Demand is the increasing number of road accidents globally. As per estimates, road accidents lead to around 1.35 million deaths annually worldwide. This has propelled the need for collision repair services. Stringent safety regulations mandating original equipment manufacturer (OEM) certification for repair shops is another major factor fueling market growth.
However, the availability of cheaper aftermarket and non-certified repair options poses a major challenge. It discourages vehicle owners from opting for authorized collision repair services. Scarcity of skilled workforce and rising operational expenses for repair shops also limit the automotive collision repair market expansion to some extent.
Segment Analysis
The automotive collision repair market is dominated by body & paint sub segment. It accounts for more than 50% of the total market share as it requires extensive repairs after an accident. The vehicles need to be repaired for aesthetics along with safety. The other dominating sub segments are replacement parts which also has more than 25% share as original parts need to be replaced after damage during collision.
Global Analysis
North America region currently dominates the automotive collision repair market owing to high number of vehicles and frequent accidents. The region accounts for over 35% share of the global market size. Asia Pacific is expected to be the fastest growing region during the forecast period due to rising vehicle parc and construction of roads in developing countries like India and China. Though the collision rates are still lower compared to developed countries, the potential for growth is high considering the economic development in the region.
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