By Jeff Sanford
Toronto, Ontario – November 5, 2015 -- A new report from a consultancy called Radiant Insights suggests the global collision repair market will expand over the years ahead to $196.97 billion USD.
According to the authors, the industry will “witness significant growth” owing to increasing number of on-road vehicles. Also spurring business will be a general aging of the fleet of vehicle. The report also suggests that shifts in the ratio between cars categorized as a total loss and those that are repaired will also drive demand for collision repair services.
Among the findings:
- Paints and coating products were valued at 34.76 billion USD in 2013, with growth estimates of 2.4 percent from 2014 to 2020 due to increasing use of abrasives and adhesives in repair work.
- Governments around the world are becoming more stringent in terms of the purchase of insurance coverage. This will fuel growth in the industry.
- As well, collisions repair centres will reap the benefits of the compulsion on the part of finance companies to repair rather than replace leased vehicles.
- Increasing intra-city transport of passengers and goods is expected to impact the public transport and commercial vehicle numbers on the road.
- The report admits that “escalating driver assistance systems such as forward collision warning” will hinder the automotive collision repair market, but, all-in, the overall trend will towards growth.
Other key findings:
- The Asia Pacific is estimated to be the fastest growing region in terms of collision repair industry growth. It is estimated the region will reach 48.45 billion USD by 2020 due to increasing demand for automobiles along with development in the region’s economies.
- The total U.S. automotive collision repair market was valued at USD 32.92 billion in 2013, with forecast of 38.06 billion USD by 2020, with an average compound rate of growth of 2.1 percent. The growth can be attributed to unpredictable weather conditions.
- In terms of products, replacement materials and spare parts were valued at 108.69 billion in 2013, with growth expectation of 2.35 percent from 2014 to 2020. The increasing usage of spare parts is driving the demand growth.
- Light-duty vehicles are predicted to be the fastest growing segment in terms of need for collision repair services. Compound annual growth rates are expected to be 2.5 percent from 2014 to 2020, owing to growing public transport needs. Heavy-duty vehicles will drove 48.45 billion USD in 2013 in business. That sector will also grow at 2.3 percent per year from 2014 to 2020 owing to increasing demand for high loading capacity vehicles.