Toronto, Ontario -- Canada’s collision repair market is becoming more concentrated as repair volumes soften and larger operators continue to gain share, according to a new industry study from The Romans Group LLC.
The annual study examines how the collision repair industry is changing in Canada and the United States. It looks at market size, repair volumes, business acquisitions, insurance influence and the balance between single-location shops, dealer-owned operations, franchise and banner networks and large multi-location operators.
In 2024, Canada’s collision repair market was valued at $4.3 billion. This came during a period of long-term consolidation. The number of collision repair locations in Canada fell by 37.7 percent from 2012 to 2024, while industry revenue increased by 55.2 percent over the same period. Larger operators, franchise groups and banner networks accounted for most of that growth.
Rankings included in the study show franchisors and banner networks occupying many of the top positions among Canadian repair organizations. Groups such as Fix Auto and Driven Brands ranked at the top, reflecting the importance of scale, network affiliation and insurer relationships in the Canadian market. Independent and dealer-owned operators continued to operate across the country, but controlled a smaller share of total industry revenue.
Repairable claims declined in Canada during 2024 and are expected to remain lower into 2025. Rising auto insurance premiums played a role. Higher premiums made some consumers hesitant to file claims because they feared further rate increases. As a result, some delayed repairs or chose not to repair vehicles at all.
Repair costs continued to rise, although the pace of increase slowed. Vehicles became more complex to repair. Electric vehicles required additional procedures and training. Labour costs increased. Shops replaced more parts instead of repairing them. Diagnostic scans and calibrations became more common. The use of materials such as aluminum and carbon fibre added to overall repair costs.
The insurance sector remained highly concentrated. In Canada, a small number of large insurers controlled most premiums and claims. This concentration gave insurers significant influence over claims handling processes and preferred repair networks, affecting where work is directed.
Consolidation pressures were also evident among repair businesses. Single-location shops and smaller multi-location operators without sufficient scale faced growing challenges. Larger organizations benefited from stronger purchasing power, deeper insurer relationships and the ability to meet direct repair program and automaker certification requirements.
The study also includes U.S. market data for comparison. In 2024, U.S. collision repair market size was US$48.2 billion, marking the first overall market decline since 2020. Acquisition activity slowed in the U.S., although large consolidators continued to grow through selective purchases and new location development.
The report spans more than 80 pages and includes 60 charts and graphs. It also provides a five-year outlook through 2029.
