According to a new report from Global Market Insights, the worldwide collision repair market is set to grow to $275 billion by 2024.

That’s an increase from $236 billion today at a Compounded Annual Growth Rate (CAGR) of more than 2.5 percent.

The report cites several key factors for the growth, namely a continued increase in intercity and intra-city goods transportation that is likely to influence commercial vehicle fleets.

Additionally, the rising number of passenger cars hitting the streets worldwide has surged on-road traffic, resulting in an increasing number and frequency of vehicle collisions.

The report also says that technological innovations by industry participants will pave the way for opportunities to penetrate the market with new and/or improved products.

It also expects to see an increase in the adoption of electric and hybrid vehicles driven by fuel prices and environmental awareness.

The advent of electrified powertrains as well as the increasing adoption of advanced driver aid safety systems such as lane departure warning, night vision with pedestrian control, and automatic emergency braking system are seen as posing a threat to the automotive aftermarket and collision repair sectors however.

According to the report, multiple sales valuation models within the collision repair and bodywork sector provide a range of opportunities. These include “Do-It Yourself (DIY)” packages for the consumers that prefer self-repairing for their own vehicles, as well as consumables such as paints, coatings and spare or replacement parts to serve larger a consumer base. Continuous advancements in the technologies for ancillary products along with additional services such as painting, denting, and body repairs are seen as further augmenting market growth.

Based on the report’s findings, the paints and coatings sector will witness a CAGR of around 2.5 percent through 2024, owing to rising traffic leading to a greater number of rear end vehicle crashes and dents.

Adhesives and sealants are also seen as gaining steady growth over the forecast timeframe with increasing vehicle safety norms and standards along with a greater emphasis on lighter and more fuel-efficient vehicles which will continue to see the adoption of composite and multi-material structures and body panels along with an increasing number of computerized sensors.

Light vehicle sales are also expected to increase over the same period. According to the International Organization of Motor Vehicle Manufacturers (OICA), overall passenger car sales across the globe grew by around 2 percent in 2017 compared with the year prior

Shifting consumer preferences towards shared mobility are also expected to influence new vehicle demand as well as increase the demand for collision repair service due to higher use rates and resulting greater wear and tear, as well as the potential for crashes.

To request a sample of the report, click here.