By Jeff Sanford
Toronto, Ontario -- July 3, 2015 -- A new report from Grand View Research suggests the global collision repair market is going to enjoy strong growth in the years to 2020. According to the report, the market will generate US $196.97 billion in sales by that time.
The strong business is partly a result of advancements in insurance, claims processing and repair techniques, which have considerably widened the scope of commercial and passenger vehicle markets. The “strategic reorganization” of the way in which automobile accidents and damage claims are handled has been good for business, claim the authors of the report. They note that, “shared and standard guidelines along with electronic appraisal reviews” now allow work to be accomplished in a transparent, compliant, and efficient manner. This shift has led to a more profitable and efficient collision repair industry.
The report also notes that organizations such as the U.S. National Automotive Service Task Force (NASTF), which established a Collision Repair Committee (CRC), have helped collision repair centres achieved new levels of efficiency and customer satisfaction.
Further key findings from the study:
- Automotive collision repair centres across the globe are procuring recycled and refurbished spare parts from salvaged cars to lower the production costs. This has led to an increased demand for recycled and reconditioned spare parts across the industry. The reliance on recycled parts is having a “major impact on the global automotive collision repair market.”
- The aging fleets of automobiles, along with an exponential increase in the number of vehicles on the road, are major factors driving profitability in the global automotive collision repair market.
- Key market players in the collision repair market include Federal-Mogul Holdings, Continental Corporation, DENSO Corporation, Bosch, DuPont and 3M.
- Intelligent diagnostics modules and advanced automotive telematics are keeping track of real time data on vehicles. This data is syncing with company “clouds.” These advanced techniques are giving company-owned repair centres an edge over other independent collision repair centres. The company stores “know” the life history of the vehicle.
- Automotive collision repair centres are providing customers updates about the status of their repairs via a smart mobile device. This makes it convenient for the customers to pick up their vehicles when ready. The result has been an overall enhancement of customer experience and increased loyalty.
- The report also suggests that the unorganized and untapped automotive collision repair market in the Asia Pacific region poses as a major opportunity for automotive collision repair vendors.