The U.S. automotive collision repair market size was valued at USD 36.66 billion in 2023 and is projected to grow at a CAGR of 0.8% from 2024 to 2030. In the U.S., transportation authorities and local governments require car owners to have active car insurance. This ensures that car owners can cover any expenses they are legally responsible for in the event of bodily injuries or vehicle damages during accidents. This requirement is a key factor contributing to the growth of the automotive collision repair market in the U.S.
High employment rates in the U.S. have contributed to continued economic growth and, in turn, high automobile sales. Subsequently, the average miles driven per vehicle has also increased, thereby driving the need for repairs and part replacement. Stringent mileage regulations set up by the U.S. government have compelled vehicle manufacturers to shift to carbon-based and aluminum-based products. These products offer an environmentally friendly and cost-effective way to increase vehicle performance and reduce emissions.
Vehicle Insights
The light-duty vehicle segment dominated the market and accounted for a revenue share of 56.5% in 2023. Consumers prioritize light-duty vehicles such as cars, SUVs, and small trucks for personal and professional use. Customers in the country are increasingly seeking affordable and fuel-efficient vehicles. Moreover, the increasing popularity of electric SUVs among environmentally conscious consumers is expected to drive the segment’s growth.
Product Insights
The spare parts segment dominated the market in 2023. The spare parts used in the automobile industry include repair materials, supplementary mechanical parts, spare parts restoration materials, and tools. The increasing rate of road accidents destroying vital components such as grilles, bumpers, fenders, dents, and scratches drives the need for spare parts replacement. Additionally, better maintenance practices lead to longer vehicle lifespans. The constant need for change in spare parts to ensure the smooth operation of older vehicles drives the segment's growth.
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Service Channel Insights
The OE (handled by OEMs) segment dominated the market in 2023. Consumers prioritize original equipment parts for repairs to maintain their vehicle's integrity, safety features, and guarantee coverage. The emphasis on quality, high standards, and the manufacturer's expertise strengthen the OE sector's dominance in the U.S. collision repair industry.
Key U.S. Automotive Collusion Repair Company Insights
Some of the key companies in the U.S. automotive collision repair market include ZF Friedrichshafen AG, VALEO, Federal-Mogul LLC, and others. The major players are taking strategic initiatives, such as acquisitions and partnerships with other major players to gain a competitive edge in the industry.
ZF is a global tech firm providing advanced mobility products and systems for passenger cars, commercial vehicles, and industrial technology. Its product range is aimed at automobile manufacturers, companies providing transportation services, and startups in the transportation and mobility sectors. The company focuses on reducing emissions, protecting the climate, and enhancing safe mobility.
3M offers a perfect blend of art and science in the automotive collision repair market. It plays a vital role in enduring relationships with customers. The company constructed adhesives, abrasives, and coatings to solve the latest auto body repair demands. Their various products deliver new levels of efficiency in auto body paint and coating applications.
Key U.S. Automotive Collision Repair Companies:
- ZF Friedrichshafen AG
- VALEO
- Federal-Mogul LLC
- Faurecia
- Continental AG
- 3M
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