North America Automotive Collision Repair Market size exceeded USD 85 billion in 2020 and is anticipated to exhibit a CAGR of 2.3% between 2021 and 2027. An increasing number of vehicles on the road coupled with high automotive production and support infrastructure will drive market demand.

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Automotive collision repair refers to the repairing of vehicles affected by a direct or indirect collision. Rising urbanization, income, and population are fueling the demand for automobiles, making streets & highways increasingly crowded and prone to accidents. In the U.S., in 2018, the average collision claim was $3,574; the average comprehensive claim was $1,833.

The global health crisis caused by the outbreak of the highly contagious COVID-19 has led to a significant social & economic impact across North America. The highly contagious and adaptive nature of the virus has forced government to apply strict restrictions, such as lockdowns and curfews, disrupting the market supply chain in terms of raw material procurement and manufacturing operations. Consumer spending plummeted and negatively impacted the market in 2020.

North America Market, By Product

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The crash parts segment size was over USD 25 billion in 2020. Crash parts comprise OEM parts and cosmetics parts, which are replaced during a collision incident. Typical examples of crash parts are bumpers, metal sheets, metal body parts, mirrors, wiper components, and other aesthetical parts. These parts do not comprise engine components, batteries, and filters. The parts are required to be procured from OEMs by many states as they must adhere to stringent road safety norms. Crash parts are also the most affected part in the event of an automotive collision.

North America Market, By Vehicle

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The Passenger Carrying Vehicle (PCV) segment dominated around 45% North America automotive collision repair market share in 2020. Increasing per capita income and increasingly frequency of new iterations & models of the vehicle, especially in the SUV segment. As more & more vehicles are registered and operated on the roads, the congestion and rapid growth will result an increasing number of road collisions. Slow pace development of road and traffic infrastructure in some states is also contributing to the increasing demand for collision repair products & services.

North America Market, By Source

New OEMs are expected to remain the primary source of collision repair products. As companies and manufacturers are increasing their service networks, especially in tier 2 and tier 3 cities, the segment is set to experience a CAGR of 2.4% till 2027. Special services and provision of superior & reliable facilities to customers are expected to keep the new OEM subsegment dominant in the source segment.

However, aftermarket is also estimated to grow rapidly as consumers in the North America are DIY friendly. Increasing accessibility to complex parts fueled by the advent of e-commerce is also poised to contribute to the North America market revenue.

Competitive Industry Landscape

Some of the key industry players are 3M, Caliber Collision, Denso Corporation, Continental Corporation, ATP Automotive, Eastman Chemical Company, Dupont, Faurecia, Federal-Mogul Holdings Corporation, Honeywell International Inc., Henkel AG & Co., KGaA, Jonson Control Inc., Mann + Hummel, Huntsman Corporation, Magna International, Martinrea International Inc., Mitsuba Corporation, Robert Bosch GmbH, Tenneco Inc, and Valeo.

These companies adopt various strategic initiatives, such as acquisitions, mergers, and product launches, to widen their business reach and achieve an advantageous position in the market. For instance, in August 2018, General Motors launched a collision repair network. This network is a setup to increase the company’s customer accessibility, safety, and satisfaction.