The collision repair parts market in the United States and Canada is projected to see a large increase up to the end of 2033.
According to a report from Future Market Insights (FMI), the United States and Canada collision repair parts market reached a value of US$ 33,696.5 million in 2022. This number is expected to reach US$ 34,990.8 million in 2023 due to increased interest in the market. Over the next few years, this value is expected to continue growing as the industry continues to develop. By the end of 2033, the value of this market is projected to reach US$ 53,041.5 million.
FMI cites multiple reasons for this increase in interest and value. These include a growing number of road accidents across the United States and Canada, a rising trend in DIY vehicle customizations and repairs, and an increase in popularity of electric and hybrid cars. These are factors that contribute to this trend in market value, which directly impact the demand for replacement parts. As the number of cars being sold rises, the demand for collision repair parts increases as well. Additionally, collision repair parts are increasing in demand as more cars increase in age. The change in market value for the industry reflects these new demands.
The report highlights recent trends that have effects on the collision repair parts market in the United States and Canada. In the report, FMI states that the growing integration of virtual aspects, such as maintenance instructions or diagnostic data, in the collision repair process has an impact on the future of the industry’s market. An example of advanced new technology being used in the industry is the use of augmented reality to overlay digital information over physical environments via a smartphone or headset. This technology allows for more efficiency in the collision repair process. Another rising technology trend is the prevalence of Advanced Driver Assistance Systems (ADAS), which require ADAS-specific repair parts. Because of this, there is now an increased demand for these new technological tools.
As of now, it is becoming increasingly important for collision repair facilities to become familiarized and compatible with new automotive technology. Despite an increase in demand for repair parts in the industry, there is a possibility for the growth in the collision repair parts market to be hindered as advances are made in the field. As high-quality parts and new technological advances enter the market, retailers and repair facilities must be prepared to continue keeping up with relevant collision repair demands.