Tempe Body Shop Sees Growth Potential $196 Billion In Global Collision Repair Market
In June, the market research group Grand View Research published a study on the collision repair market and our Tempe body shop was pleased to see the good business news about their findings. As you could probably tell by the title of this article, the research company found that the collision repair market will expect to see a significant growth in the market, which is expected to rise to $196 billion on an international scale by 2020. To give you an idea, the same market was estimated to total almost $167 billion just two years ago. There are a number of factors leading to this conclusion and we will walk through the things that are expected to help move the market along.
INCREASE IN VEHICLE USE & AGE
Globally, our Tempe body shop found there has been an increase in vehicle ownership and use for both the commercial and consumer markets. According to one study, the total number of registered vehicles rose from 980 million in 2009 to 1.015 billion just one year later, and some researchers expect that number to rise to 2 billion by 2020. With the increased ownership and usage, of course, comes an increased number of auto accidents. The U.S. alone reported more than 14 million accidents that required some form of collision repair in 2014 and Europe had more than 30 million in the same year. Additionally, with so many vehicles on the road, there are also an increasing number of aging vehicles that will require more repairs in the coming years.
INCREASE IN DEVELOPMENTS
This rise in auto accidents each year surprisingly leads to an increase in technologies that create or facilitate faster, more efficient repairs and these, too, have helped drive the collision repair market into new heights. This Tempe body shop has reported on a fair number of these technologies, such as improvements to welding tools for newer materials and utilizing 3D printing in development and repairs.
Another example comes from the increased use of diagnostic tools to read the information stored in the vehicle’s computer to better determine the internal issues. More repair shops, like our Tempe body shop, have incorporated these diagnostic tools in their repair process and they can also store this information. This enables shops to keep a better record of a vehicle’s history and determine how past accidents or repairs may impact future ones.
NEW GROWTH IN ASIA
For most people in the repair industry and for researchers, the new frontier for collision repair growth is actually based in the Asian market. As reported by the research firm, the industry has not quite become fully organized into coalitions and organizations, like the National Automotive Service Task Force on a regional level. Because of that and the rise in vehicle ownership in booming countries like China and India, researchers expect to see a significant growth by 2020.
All of this information shows that the industry continues to grow and it is great news for us. It shows the longevity that our Tempe body shop has in the community and we hope that by 2020, you see more efficient repairs with the same quality of service that you do today.