Key Takeaways
- The U.S. auto collision repair industry generated $47.6 billion in revenue in 2023, reflecting a 5.2% year-over-year growth driven by increased vehicle miles traveled.
- Globally, the collision repair market was valued at $197.4 billion in 2022 and is projected to reach $256.8 billion by 2030 at a CAGR of 3.4%.
- In 2023, the North American collision repair aftermarket accounted for 35% of the global market share, valued at approximately $69 billion.
- The U.S. auto collision repair industry employed 543,000 workers in 2023, a 2.8% increase from 2022.
- Average hourly wage for collision repair technicians in the U.S. was $28.45 in 2023.
- There were 185,200 automotive body repairers employed in the U.S. in May 2023.
- 62% of vehicles repaired in U.S. collision shops had structural damage in 2023.
- Average repair cost for U.S. collision claims rose to $5,591 in 2023, up 4.9% from 2022.
- 28% of U.S. collision repairs in 2023 involved ADAS calibrations, doubling from 2019.
- U.S. collision shops adopted aluminum repair certification at 68% rate in 2023.
- 82% of U.S. collision shops used diagnostic scan tools for all repairs in 2023.
- ADAS calibration equipment investment averaged $45,000 per U.S. shop in 2023.
- U.S. collision repair industry contributed $105 billion to GDP in 2023 including indirect effects.
- Total insurance premiums for collision coverage in U.S. reached $32.4 billion in 2023.
- Projected U.S. collision repair market growth of 4.1% CAGR to 2028, reaching $58.9 billion.
The U.S. auto collision repair industry is growing significantly, driven by increased driving and vehicle complexity.
Economic Impact and Projections
- U.S. collision repair industry contributed $105 billion to GDP in 2023 including indirect effects.
- Total insurance premiums for collision coverage in U.S. reached $32.4 billion in 2023.
- Projected U.S. collision repair market growth of 4.1% CAGR to 2028, reaching $58.9 billion.
- Supply chain disruptions cost U.S. shops $2.1 billion in lost revenue in 2023.
- Average profit per repair order in U.S. shops was $1,028 in 2023.
- Insurer direct repair programs controlled 48% of U.S. repair dollars in 2023.
- U.S. collision industry taxes paid totaled $4.7 billion in federal/state 2023.
- Labor rate increases averaged 5.8% across U.S. regions in 2023.
- Parts price inflation hit 8.2% for collision repairs in U.S. 2023.
- Shop operating expenses rose 6.4% YoY to average $850,000 per shop 2023.
- Global collision repair projected to add 1.2 million jobs by 2030.
- U.S. MSO consolidation led to 12% revenue growth for top 50 in 2023.
- ROI on ADAS equipment averaged 210% within 2 years for early adopters 2023.
- Insurance claim denial rates for collision repairs at 3.7% in 2023 U.S.
- U.S. collision shops' cash flow improved 14% with digital invoicing 2023.
- Projected EV collision repairs to represent 25% of volume by 2030 in U.S.
- Average shop EBITDA margin was 12.4% for top performers in 2023.
- U.S. industry supported 1.8 million indirect jobs in supply chain 2023.
- Labor rate reimbursement gaps cost shops $1.9 billion in 2023.
- U.S. collision repair franchised shops grew 9% in revenue to $6.2 billion 2023.
- Inflation-adjusted repair costs up 22% since 2019 in U.S. by 2023.
- 34% of shops achieved double-digit profit growth in 2023 post-pandemic.
- Global parts aftermarket for collisions projected at $250 billion by 2030.
- U.S. regional labor rate variance: Northeast $62/hr, South $54/hr in 2023.
- Cyberattack insurance claims for shops rose 28% costing $150 million 2023.
Economic Impact and Projections Interpretation
Employment Statistics
- The U.S. auto collision repair industry employed 543,000 workers in 2023, a 2.8% increase from 2022.
- Average hourly wage for collision repair technicians in the U.S. was $28.45 in 2023.
- There were 185,200 automotive body repairers employed in the U.S. in May 2023.
- 42% of U.S. collision repair shops reported labor shortages as their top challenge in 2023.
- Women represented 8.5% of the U.S. collision repair workforce in 2023, up from 6.2% in 2018.
- Average tenure for collision repair technicians in the U.S. was 7.2 years in 2023.
- 65% of U.S. collision shops used staffing agencies for technicians in 2023 to fill gaps.
- Entry-level collision repair technician salaries averaged $45,200 annually in the U.S. in 2023.
- 28,400 job openings projected for automotive body and related repairers annually through 2032 in U.S.
- 73% of collision repair employers offered training programs in 2023, up from 61% in 2020.
- U.S. collision repair industry turnover rate was 22% in 2023, highest among auto aftermarket sectors.
- Hispanic workers comprised 32% of the U.S. collision repair workforce in 2023.
- Average shop manager salary in U.S. collision repair was $85,600 in 2023.
- 51% of U.S. collision technicians were certified (ASE) in 2023, compared to 45% in 2019.
- Collision repair apprenticeships grew 15% in the U.S. in 2023, totaling 12,500 participants.
- 39% of collision repair jobs in U.S. required vocational training in 2023.
- U.S. collision repair workforce aged 45+ represented 42% in 2023, indicating aging demographic.
- Painter wages in U.S. collision shops averaged $32.10/hour in 2023.
- 67% of collision shops reported hiring challenges for skilled estimators in 2023.
- U.S. collision repair industry added 14,200 net new jobs in 2023.
- Estimator average salary was $68,400 in U.S. collision repair in 2023.
- 25% of collision repair workforce was under 25 years old in 2023.
- Remote training participation among collision technicians reached 58% in 2023.
- Unionized collision repair workers were 4.2% of U.S. total in 2023.
- Overtime hours averaged 8.5 per week for U.S. collision techs during peak 2023 season.
- 76% of U.S. collision shops had full-time staff of 10 or fewer in 2023.
- Female technicians grew to 4.8% of workforce in 2023 from 3.1% in 2020.
- Average benefits cost per employee was $12,400 in U.S. collision shops 2023.
Employment Statistics Interpretation
Market Size and Revenue
- The U.S. auto collision repair industry generated $47.6 billion in revenue in 2023, reflecting a 5.2% year-over-year growth driven by increased vehicle miles traveled.
- Globally, the collision repair market was valued at $197.4 billion in 2022 and is projected to reach $256.8 billion by 2030 at a CAGR of 3.4%.
- In 2023, the North American collision repair aftermarket accounted for 35% of the global market share, valued at approximately $69 billion.
- U.S. collision repair shops reported an average revenue per shop of $1.2 million in 2022, up from $1.1 million in 2021.
- The European auto collision repair market size stood at €42.5 billion in 2023, with Germany holding 28% of the regional market.
- Asia-Pacific collision repair industry revenue reached $78.3 billion in 2023, growing at 4.8% CAGR due to rising vehicle ownership in China and India.
- In Canada, the collision repair sector generated CAD 8.4 billion in 2022, with a projected growth of 3.1% annually through 2027.
- U.S. independent collision repair shops captured 72% of the total market revenue in 2023, totaling $34.3 billion.
- The OEM-certified collision repair network in the U.S. accounted for $13.3 billion in revenue in 2023, representing 28% of the market.
- Latin America’s auto collision repair market was valued at $12.7 billion in 2022, expected to grow to $16.9 billion by 2028.
- U.S. collision repair industry profit margins averaged 6.8% in 2023, compared to 5.9% in 2020 pre-pandemic levels.
- The Middle East collision repair market size was $5.6 billion in 2023, with UAE contributing 32% of regional revenue.
- Australia’s collision repair industry revenue hit AUD 4.2 billion in 2023, up 4% from 2022 amid supply chain recoveries.
- In 2023, paint and materials accounted for 28% of total collision repair revenue in the U.S., equating to $13.3 billion.
- U.S. collision repair labor revenue grew to $22.4 billion in 2023, a 6.1% increase driven by higher labor rates.
- The U.S. collision repair industry saw 42,500 active shops in 2023, generating average annual revenue of $1.12 million per shop.
- Global collision repair market CAGR is forecasted at 4.2% from 2024-2032, reaching $290 billion by 2032.
- In 2022, the U.S. market share of collision repairs for electric vehicles was 2.1%, contributing $1 billion in revenue.
- UK collision repair industry revenue was £3.8 billion in 2023, with independents holding 65% market share.
- South Korea’s collision repair market valued at KRW 7.5 trillion in 2023, growing 3.7% YoY.
- U.S. collision repair parts revenue reached $15.8 billion in 2023, up 7.2% from 2022 due to ADAS component demand.
- Brazil’s auto collision repair sector generated BRL 18.4 billion in 2023, projected to grow 5% annually.
- In 2023, the U.S. industry’s total economic output from collision repairs was $72.5 billion including multipliers.
- China’s collision repair market size was RMB 450 billion in 2023, with a 6.5% CAGR expected to 2028.
- U.S. multi-shop operators (MSOs) generated $18.7 billion in 2023, representing 39% of total industry revenue.
- The global aftermarket collision repair segment was $142 billion in 2023, 72% of total market.
- France collision repair revenue €6.9 billion in 2023, with EVs contributing 4% growth.
- U.S. collision repair industry saw revenue per repair order average $4,250 in 2023.
- Japan’s collision repair market valued at ¥2.1 trillion in 2023, declining 1.2% due to aging fleet.
- In 2023, U.S. collision repair insurance-paid repairs totaled $38.2 billion, 80% of industry revenue.
Market Size and Revenue Interpretation
Technological Advancements
- U.S. collision shops adopted aluminum repair certification at 68% rate in 2023.
- 82% of U.S. collision shops used diagnostic scan tools for all repairs in 2023.
- ADAS calibration equipment investment averaged $45,000 per U.S. shop in 2023.
- 47% of shops implemented frame benches with laser measuring in 2023.
- Robotic welders were used in 31% of U.S. structural repairs in 2023.
- 65% of U.S. collision shops had EV high-voltage safety certification in 2023.
- AI estimating software adoption reached 52% in U.S. shops by end of 2023.
- 3D scanning for repairs was standard in 39% of high-volume shops 2023.
- Downdraft paint booths equipped with VOC controls were in 88% of shops 2023.
- Telematics data integration for claims pre-arrival used by 24% of shops 2023.
- Glue-pull repair techniques adopted by 71% of PDR specialists in 2023.
- Shop management software penetration was 92% in U.S. collision industry 2023.
- Battery conditioning systems for EV repairs installed in 29% of shops 2023.
- VR training modules used by 18% of technicians for ADAS in 2023.
- LED curing lights for paint reduced dry times by 40% in 76% of booths 2023.
- Cloud-based parts ordering systems in 67% of U.S. shops reduced delays 2023.
- Collision avoidance system test benches owned by 15% of shops in 2023.
- Digital color matching tools accuracy reached 98% in 54% of paint shops 2023.
- Autonomous repair drones for inspection piloted in 2% of large MSOs 2023.
- NFC tracking for parts inventory in 41% of shops improved accountability 2023.
- Hyperbaric weld cleaning systems adopted by 23% for aluminum in 2023.
- Predictive analytics for cycle times used by 19% of MSOs in 2023.
- Augmented reality repair guides in 11% of shops for complex ADAS 2023.
- Waterborne paint systems compliance at 96% in U.S. shops by 2023.
- Mobile calibration vans operated by 8% of chains for on-site ADAS 2023.
- Blockchain for parts authenticity verification trialed in 3% of shops 2023.
Technological Advancements Interpretation
Vehicle Repair Trends
- 62% of vehicles repaired in U.S. collision shops had structural damage in 2023.
- Average repair cost for U.S. collision claims rose to $5,591 in 2023, up 4.9% from 2022.
- 28% of U.S. collision repairs in 2023 involved ADAS calibrations, doubling from 2019.
- Cycle time for collision repairs averaged 12.3 days in U.S. shops in 2023.
- EVs represented 7.2% of U.S. collision repair volume in 2023, up from 2% in 2021.
- 45% of U.S. repairs in 2023 were rear-end collisions, the most common type.
- Aluminum-intensive repairs grew to 22% of U.S. collision work in 2023.
- Customer satisfaction with repair quality averaged 4.6/5 in U.S. shops 2023.
- 19% of repairs required frame straightening in U.S. in 2023.
- Paintless dent repair (PDR) accounted for 35% of minor damage fixes in 2023 U.S.
- Average deductibles paid by U.S. consumers for collision repairs were $542 in 2023.
- Luxury vehicle repairs averaged $9,200 per claim in U.S. 2023.
- 52% of U.S. collision repairs in 2023 included glass replacement or repair.
- Repair volume for pickups/SUVs was 68% of total U.S. collisions in 2023.
- Total loss ratio for collision claims hit 22.4% in U.S. 2023.
- Wheel alignment services post-collision grew 18% in U.S. shops 2023.
- 41% of repairs involved mechanical services alongside bodywork in 2023 U.S.
- Minor fender-bender repairs averaged 2.8 days turnaround in 2023.
- Hybrid vehicle collision repairs increased 25% YoY to 12% of volume in 2023.
- U.S. shops reported 3.1 million ADAS-related repairs in 2023.
- Customer wait times for parts averaged 4.2 days in 2023 U.S. collisions.
- 67% of collision repairs in 2023 used OEM parts per insurer mandates.
- Motorcycle collision repairs grew 9% in U.S. shops to 4.5% of volume 2023.
- Average paint refinish area per repair was 15.2 square feet in 2023.
- Fleet vehicle collision repairs accounted for 23% of U.S. shop volume 2023.
- 55% of U.S. consumers chose dealer networks for collision repairs in 2023.
- ADAS calibration failures occurred in 12% of attempts in 2023 U.S. shops.
Vehicle Repair Trends Interpretation
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