According to a new Automotive Collision Repair Market Forecast from Reportbuyer, the global automotive collision repair market is expected to reach $206.46 billion USD by 2025.
The growth in the collision repair sector is expected to be driven by a surge in automobile production, digitalization of automobile repair services and advances in manufacturing technology such as 3D printing of automotive parts to optimize costs.
According to recent statistics, Europe was the largest market, accounting for 44.9 percent of the revenue share in 2016. However, it is expected to lose its share over the forecast period on account of increase in trade barriers created by Brexit.
The increase in demand for vehicles driven by improvement in lifestyle in developing countries such as India and Brazil is expected to drive the growth of the market. Asia Pacific is anticipated to witness the fastest growth over the forecast period at a Compounded Annual Growth Rate) (CAGR of 3.7 percent on account of increase in production and sale of automobiles and rising living standards. The increase in the number of vehicles on the road in countries such as China and India is expected to drive growth.
The automobile industry is expected to grow on account of increasing demand for passenger cars. Increasing number of accidents due to the lack of proper infrastructure is projected to drive the demand for spare parts and other special tools. The collision repair market is expected to grow at a CAGR of 2.5 percent from 2017 to 2025. The requirement of quick turnaround time for replacement of parts is likely to be an opportunity for growth of the market.
Companies are investing extensively in R&D to enhance technology. In July 2016, BASF announced plans to step up its R&D activities for automotive coatings to a new world-class platform at the BASF Innovation Campus Asia Pacific in Shanghai, China.
In addition to this, companies are adopting the strategy of mergers & acquisitions. In February 2016, 3M Automotive Aftermarket Division collaborated with the German-based Tool Technic Systems AG & Co. KG to provide the collision repair industry a comprehensive surface preparation and finishing system.
The new system is expected to launch in the U.S. and Canada, impacting the growth of the market in North America.