Felton, California -- June 29, 2016 -- Global automotive collision repair market size is expected to grow to $196 billion USD by 2020, according to a new report by Hexa Research. This is a compound annual growth rate (CAGR) of over 2 percent from 2014 to 2020. Aging fleets and an increasing number of vehicles are the major factors estimated to have a positive impact on the global collision repair market.
Part of the expected growth will likely come from increases in repairs to commercial vehicles. Repair costs for heavy trucks and busses are extremely high compared to most passenger vehicles. The report from Hexa Research indicates an increase in both intercity and intra-city transportation globally for both goods and passengers, leading to an increase in total dollar volume of repairs in this sector.
The report takes into account the growing implementation of driver assistance systems, including forward collision warnings, and forecasts that the continued proliferation of these systems will impact overall global growth of the industry.
Globally, light-duty vehicle repairs were valued at over $118 billion USD in 2013. This segment is forecast to exceed $140 billion USD globally by 2020.
North America is expected to grow at a CAGR of over 2 percent from 2014 to 2020. The Hexa Research report anticipates growth in North America at a CAGR of over 1.5 percent from 2014 to 2020. Much of the growth can be attributed to erratic weather conditions, according to Hexa Research.