Automotive Collison Repair Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Vehicle Type:

Based on vehicle type, the automotive collision repair market is segmented into passenger cars, HCV & LCV, and motorcycles.

Trends in vehicle type:

• Modern vehicles are equipped with ADAS and high strength materials, which require specialised repair techniques and parts, while influencing the demand for advanced repair services.
• Vehicles, including pickup trucks, vans, and utility vehicles, are widely used for commercial purposes such as transportation of goods and services. Due to their frequent usage in demanding environments, they are prone to collisions and accidents, necessitating repair services to maintain operational efficiency.
• Thus, the above trends are driving the automotive collision repair market demand and opportunities.

The passenger cars segment accounted for the largest revenue in the market in 2024.

• Automakers and technology suppliers invest heavily in research and development to enhance vehicle safety performance, comply with regulatory requirements, and meet consumer expectations for safer vehicles. This drive for innovation has led to the introduction of advanced safety systems.
• For instance, in July 2023, BMW joined Sustaining Partner Program by I-CAR. This program support funding plans and accident repair education services that eliminate training redundancies.
• Electric vehicles (EVs) and hybrid vehicles have unique repair and maintenance requirements, including battery diagnostics, electrical system repairs, and specialized training for technicians. As the market share of EVs and hybrids continues to grow, aftermarket service providers can capitalize on this trend by investing in training, equipment, and infrastructure to cater to the specific needs of these vehicles.
• Thus, based on the above analysis, these developments are further driving the automotive collision repair market growth.

The HCV and LCV segment are anticipated to register the fastest CAGR during the forecast period.

• Heavy commercial vehicles, including trucks, buses, and trailers, play a crucial role in transporting goods and passengers over long distances, often encountering challenging road conditions and heavy traffic.
• Collisions and accidents involving heavy commercial vehicles can result in significant damage, requiring specialized repair expertise and equipment to address structural integrity and safety concerns.
• With the unique characteristics and requirements of heavy commercial vehicles, repair services tailored to this segment are essential for ensuring fleet reliability and compliance with regulatory standards.
• Thus, based on the above analysis, these factors are expected to drive the automotive collision repair market share and growth during the forecast period.

By Product:

Based on product, the automotive collision repair market is segmented into paint and coatings, consumable, and spare parts.

Trends in product:

• Remanufactured automotive parts offer performance and quality as new components, which are better options for consumers seeking reliable and affordable repair solutions.
• Technological advancements such as computer-aided repair systems and laser measuring devices have revolutionized the repair process, enabling technicians to achieve precise and accurate results. The increasing complexity of modern vehicles, including advanced safety features and composite materials, necessitates specialized repair techniques and equipment.

The spare parts segment accounted for the largest revenue share of 47.31% in the year 2024.

• The spare parts used in automobile service delivery often include repair materials, supplementary mechanical parts, crash parts, and restoration materials. They are required to restore damaged vehicles to their pre-accident condition.
• The high number of road accidents leading to damage of integral elements, such as bumpers, grilles, dents, and scratches, are fuelling the need for spare parts.
• As vehicle manufacturers continue to introduce new models and technologies, the availability of quality replacement parts becomes more important for collision repair shops. The emergence of online platforms and e-commerce channels has simplified the procurement process for repair parts, further propelling the market growth.
• Thus, based on the above analysis, these factors are driving the automotive collision repair market growth.

The paints and coatings segment is anticipated to register the fastest CAGR during the forecast period.

• Technological advancements have significantly influenced the automotive paints and coatings market. Innovations such as waterborne coatings, powder coatings, and UV-curable coatings have been developed to meet the growing need for sustainable and eco-friendly solutions.
• For instance, in May 2021, Axalta Coating Systems extended its waterborne coatings manufacturing facility in Shanghai, China. The expanded facility was designed to meet the growing need for sustainable coating solutions for commercial vehicles.
• OEM coatings are applied to vehicle bodies, parts, and components to enhance durability, corrosion resistance, appearance, and functionality. These coatings not only protect vehicles from environmental factors such as UV radiation, moisture, and chemicals, but also contribute to the overall aesthetics and brand identity of automotive manufacturers.
• These developments in the paints and coatings segment are anticipated to further drive the automotive collision repair market trends during the forecast period.

By Service Channels:

Based on service channels, the automotive collision repair market is segmented into do-it-yourself (DIY), do-it-for-me (DIFM), handling to OEMs (OE).

Trends in service channels:

• Customers often choose authorized garage services for their assurance of genuine parts, factory-trained technicians, and warranty protection, particularly for newer vehicles still under warranty.
• Independent garages may specialize in certain types of repairs or cater to specific customer preferences, such as offering more personalized services or utilizing aftermarket parts for cost-effectiveness. Customers appreciate the flexibility and convenience of independent garages, especially in areas where authorized services are limited or distant.

The do-it-yourself (DIY) segment accounted for the largest revenue share in the year 2024 and it is expected to register the highest CAGR during the forecast period.

• The availability of online resources and DIY products makes it easier for individuals to undertake repair vehicles themselves.
• The increasing complexity of vehicle repairs and the rising cost of labor are driving the people to attempt DIY repairs.
• Thus, based on the above analysis, these factors would further supplement the global market share and need for automotive collision repair services.