The collision repair industry is growing thanks to increased rates of car ownership and insurance. However, the industry is facing some challenges linked to increased costs and repairs becoming more complex.
Here are ten curious statistics for the collision repair industry:
- The industry is now worth $190.37 billion and will continue to grow as demand increases.
- The average car in need of repairs is 6.34 years old. Consumers are keeping their vehicles longer and are more likely to need repairs.
- Fatal and serious crashes are on the rise, contributing to the increased demand for collision repairs.
- Spare parts make up 64.2% of the market and replacing parts is the most common type of repair.
- Front impacts are far more common than other types of crashes, increasing the demand for bumpers, grills, and other parts.
- EVs represent 10% of sales. These vehicles are more expensive and complex to repair.
- Prices are going up for parts and supplies. For instance, paints and coatings went up by 24%.
- The automotive 3D printing market could be worth $7.9 billion by 2027 and transform the repair collision industry.
- Employment is up by 5.2% as the demand and complexity of collision repairs increase.
- However, with an average salary of $24.36 an hour, the pay might not be sufficient to prevent labor challenges.
An Increased Demand for Collision Repairs
Repair shops are busier than ever amid increased rates of car ownership and a higher awareness of the importance of maintenance.
The Industry Is Worth $190.37 Billion
The collision repair industry is worth $190.37 billion as of 2022. Experts believe it will keep growing and reach $219.58 billion by 2030.
Several factors are contributing to this growth:
- The insurance market is growing. A majority (87%) of drivers carry car insurance, and the insurance market saw a recent growth of 2.7%.
- There are more cars than ever on the roads. The rise of the last-mile delivery industry is partially responsible for this phenomenon.
- Repairs are becoming more complex since vehicles increasingly rely on technology. The average repair takes more time and costs more.
The Average Car in Need of Repairs Is 6.34 Years Old
Recent data shows that people are keeping their vehicles longer. On average, the vehicles repair collision shops work on are 6.34 years old, while cars were 5.99 years old on average in 2011. The average odometer reading is 83,570 miles compared to 82,634 miles in 2011.
Consumers are keeping their vehicles longer for a variety of reasons:
- Prices are going up for new vehicles, partly due to supply chain challenges.
- Used vehicles are also costing more due to the increased demand.
- Interest rates are making it difficult to find affordable financing for some consumers.
Fatal Crashes Are Up 0.5%
During the first half of 2022, 20,175 people died in traffic crashes. This number is 0.5% higher than the number of fatalities recorded in the first half of 2011.
Since the pandemic, there is a concerning increase in serious and fatal crashes. Many states are seeing a sharp increase in dangerous practices like speeding, drunk driving, and distracted driving. Speeding was a factor in 29% of all fatal crashes in 2020.
The overall increase in traffic crashes contributes to the higher demand for collision repair services. However, the steady increase in fatal accidents also means that some vehicles might be beyond repairs.
What Does the Typical Collision Repair Look Like?
These collision repair industry statistics are representative of the kind of repairs shops provide daily.
Spare Parts Make Up 64.2% of the Market
Spare parts represented 64.2% of the collision repair market in 2022. Replacing old or damaged parts is the most common type of work collision repair shops do.
Crashes are the primary reason for going to a collision repair shop to replace parts, but consumers are also being more proactive about car maintenance. The demand for spare parts is also increasing because these drivers want to replace old and worn-out parts as a preventative measure.
There Were 2.8 Million Front Impacts in 2019
Data from the National Highway Traffic Safety Institute reveals which parts are more likely to sustain damages in a crash.
Out of the 6 million crashes recorded in 2019, 2.8 million were front impacts. Rear impacts represented 1.57 collisions.
Front impacts typically result in a bumper, grill, or hood replacement. Headlights and front fenders are other common repairs. For rear impacts, drivers are likely to need new trunks and back fenders.
Front impacts can also affect internal components, including the radiator, alternator, and transmission.
Opportunities and Challenges
The collision repair industry is going through some changes. These statistics can help predict the major trends that will shape the industry in the near future.
EVs and Hybrid Vehicles Represent 10% of Sales
In the US, EVs and hybrid vehicles account for 10% of light-duty vehicles sold. This percentage is growing as more consumers opt for electric cars.
EVs are a challenge for the collision repair industry. These vehicles tend to contain more digital parts and require a thorough understanding of the latest automotive tech.
EVs are also creating challenges because these vehicles cost more to repair. The average EV repair costs $4,000, which is 27% higher than the average gas-powered car repair. When comparing luxury SUVs, an EV costs around $8,000 to fix, which is 53% of the average repair bill for a gas-powered luxury SUV.
Paints and Coatings Cost 24% More
Since 2020, the average cost of paints and coatings went up by 24%. This percentage represents a broader trend since the cost of most OEM parts and other supplies has increased.**
A few different factors coming together to result in higher prices:
- OEMs are facing supply chain challenges that make moving cargo more expensive.
- The price of raw materials has been increasing.
- The war in Ukraine is an issue since this country manufactures wiring and neon gas, a crucial element in manufacturing semiconductors.
The Automotive 3D Printing Market Will Be Worth $7.9 Billion by 2027
Experts believe the automotive 3D printing market will grow at an impressive CAGR of 21.7% and reach $7.9 billion by 2027.
Automakers will contribute to this growth by incorporating 3D printing into manufacturing. The adoption of 3D printing could also transform the collision repair industry and potentially address supply chain challenges.
Being able to 3D-print spare parts would reduce costs linked to managing an inventory. It would limit downtime and eliminate the cost of lending vehicles to customers while they wait for a repair.
Production and Labor
These statistics show what it’s like to work in the collision repair industry.
Employment Increased by 5.2%
In 20219, employment in the collision repair industry increased by 5.2% while businesses grew by 1.6%.
These statistics show that collision repair shops need more employees to keep up with the increased demand for repairs. The increased complexity of the average repair also creates more work for the technicians.
The Average Hourly Salary Is $24.36
On average, a collision repair technician makes $24.36 an hour. It translates to an annual income of $50,660 a year.
Data shows that the average salary in this industry has increased by 9% over the past five years. However, work conditions are becoming more challenging. Production is up 11%. Technicians are often working long hours and completing complex repairs.
Some sources describe the pay rate as mismatched given the rising cost of repairs. Pay is a potential challenge that could worsen labor issues for an industry with over 45,000 job openings to fill.
The collision repair industry is growing steadily thanks to an increased demand for repairs. The industry is also going through significant changes and challenges, including more complex repairs, ongoing supply chain challenges, and the rise of EVs and 3D printing.