Selbyville, Delaware, July 22, 2021 (GLOBE NEWSWIRE) —
The automotive collision repair market revenue is anticipated to record a valuation of USD 310 billion by 2027, according to the most recent study by Global Market Insights Inc. The Market demand is majorly driven by an increase in the rates of vehicle ownership and the glossy appearance and superior glaze that are offered by finished compounds. The product demand is augmented by favorable trends in the automotive industry comprising the development of superior repair mechanisms and diagnostic tools.
The growth can be attributed to various strategies implemented by industry participants including acquisitions, mergers, partnerships, and product developments for consolidating their position in the market. Some of the participants include Continental Corporation, Magna International Inc., Tenneco, Inc., Henkel AG & Co., KGaA, Caliber Collision, PPG Industries, 3M, Robert Bosch GmbH, Sika G, and others.
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In addition, numerous investors are also infusing capital into the businesses of key industry participants. For instance, in June 2020, Penfund announced that it has completed its first lien debt investment in Caliber Collision Centers, one of the prominent players in the auto collision repair industry. The funding is set to be utilized for general corporate purposes.
With regards to the prospects of the automotive collision repair industry growth in the coming years, some key trends impacting market value are as follows:
Rising demand for adhesives & sealants
The adhesives & sealants segment in the global automotive collision repair market is poised to record more than 10% of the overall revenue through the forecast period. Automotive adhesives provide rapid curing rates and superior cohesive strength.
Meanwhile, the effective bonding strength that is maintained on automotive metal, glass, painted surfaces, and fiber assemblies ensures the operational safety of vehicles. The product demand is additionally driven by automotive sealants that offer adhesive flexibility and enhanced chemical stability.
Surging requirement for low-cost personal mobility solutions
An escalation in the demand for low-cost personal mobility solutions is expected to impel the sales of two wheelers through the coming years. It is to be noted that lower costs associated with the maintenance and acquisition of such vehicles will play a vital role in escalating their expansion.
The automotive collision market growth is likely to be supported by the rising two-wheeler traffic congestion in emerging economies, which is contributing to crashes and accidents.
Increasing popularity of light commercial vehicles and aftermarket services
Light commercial vehicles are slated to register a CAGR of over 2.5% through 2027 owing to the surging requirements of transportation and the soaring growth of e-commerce.
Furthermore, the aftermarket segment in automotive collision repair industry is estimated to exceed a valuation of USD 45 billion through 2027. This growth is on account of the easy availability of products and rising cost efficiency. The segment expansion is supported by an increase in complications that include complex engine designs as well as other high-tech safety features.
Increase in technological advancements
The automotive repair service providers offer lucrative packages comprising discount benefits for improving profitability and attracting a wide customer base. The industry expansion is supported by continuous advancements in technologies for ancillary products in addition to efficient services including body repairs, painting, and denting.
In a nutshell, a rise in the number of independent repair shops will bolster automotive collision repair market size over the assessment period.
About Global Market Insights
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.