Key Takeaways
- The U.S. collision repair industry revenue reached $47.2 billion in 2023, marking a 4.5% increase from 2022.
- Global automotive collision repair market size was valued at $210.5 billion in 2022 and is projected to grow to $285.3 billion by 2030 at a CAGR of 3.9%.
- In 2023, the North American collision repair market accounted for 38% of the global market share, driven by high vehicle ownership rates.
- U.S. reported 6.7 million collision claims in 2023, averaging $5,200 per claim.
- Rear-end collisions accounted for 29.8% of all U.S. insurance claims in 2023.
- Average cycle time for collision repairs increased to 22.3 days in 2023 from 20.1 in 2022.
- U.S. collision repair employment totaled 512,000 workers in 2023.
- Average hourly wage for collision repair technicians was $28.45 in 2023.
- Automotive body repairers employment grew 2.1% to 142,800 in 2023.
- 28% adoption rate of robotic welders in U.S. collision shops by 2023.
- 65% of shops used digital estimating software like Mitchell Cloud in 2023.
- ADAS calibration equipment installed in 48% of collision centers in 2023.
- U.S. collision repair market projected to reach $58.4 billion by 2028 at 4.2% CAGR.
- Global collision repair industry expected to grow 4.1% annually through 2030.
- EV collision repairs forecasted to comprise 25% of claims by 2030.
The collision repair industry continues to grow globally, fueled by vehicle production and technology claims.
Collision Frequency and Claims
- U.S. reported 6.7 million collision claims in 2023, averaging $5,200 per claim.
- Rear-end collisions accounted for 29.8% of all U.S. insurance claims in 2023.
- Average cycle time for collision repairs increased to 22.3 days in 2023 from 20.1 in 2022.
- 42% of U.S. collision claims in 2023 involved vehicles under 5 years old.
- Hit-and-run incidents represented 14.7% of collision claims filed in 2023.
- SUV collision claims rose 8.2% year-over-year to 2.1 million in 2023.
- 67% of collision repairs in 2023 required structural work, up from 58% in 2021.
- Average claim severity for collision repairs hit $4,950 in Q4 2023.
- Deer-vehicle collisions led to 1.5 million claims in 2023, costing $2.1 billion.
- Electric vehicle collision claims grew 25% to 450,000 in 2023.
- 31% of claims in 2023 involved paintless dent repair (PDR) techniques.
- Urban areas saw 4.2 million collision claims in 2023 vs. 2.5M rural.
- Pickup truck claims increased 12% to 1.8 million in 2023.
- 18.4% of claims involved theft-related damage in 2023.
- Average repairable write-off threshold rose to $9,200 per vehicle in 2023.
- Side-impact collisions made up 22.6% of claims, second to rear-end.
- 55% of 2023 claims were paid within 30 days of filing.
- Luxury vehicle collision claims averaged 1.2 million annually in 2023.
- Winter months saw 28% higher collision claim frequency in 2023.
- ADAS-related repair claims surged 35% to 1.9 million in 2023.
- Multi-vehicle accidents accounted for 41% of total claims volume in 2023.
- Florida led U.S. states with 850,000 collision claims in 2023.
- 23% of claims involved hail damage, totaling 1.6M incidents in 2023.
- Repair cycle time for EVs averaged 28.5 days in 2023 vs. 21.4 for ICE.
- Young drivers (under 25) filed 29% of all collision claims in 2023.
- Total loss declarations rose 7.3% to 2.4 million vehicles in 2023.
- Nighttime collisions represented 52% of claims by volume in 2023.
Collision Frequency and Claims Interpretation
Employment and Wages
- U.S. collision repair employment totaled 512,000 workers in 2023.
- Average hourly wage for collision repair technicians was $28.45 in 2023.
- Automotive body repairers employment grew 2.1% to 142,800 in 2023.
- 68% of collision shops reported technician shortages in 2023 survey.
- Entry-level technician wages averaged $22.10 per hour in 2023.
- Women comprised 12.4% of collision repair workforce in 2023.
- Average shop manager salary in collision repair was $78,500 annually in 2023.
- Technician turnover rate in collision shops was 24.7% in 2023.
- I-CAR certified technicians numbered 45,200 in U.S. collision industry 2023.
- Painters earned average $27.80 hourly, highest among tech roles in 2023.
- 31% of technicians had 10+ years experience in 2023 industry survey.
- Collision repair estimators averaged $65,200 annual salary in 2023.
- Apprenticeships in collision repair enrolled 18,500 workers in 2023.
- Unionized collision workers made up 8.2% of total employment in 2023.
- Average benefits package for techs cost shops $12,400 per employee in 2023.
- High school graduates filled 76% of technician positions in 2023.
- Overtime hours averaged 4.2 per week for techs during peak 2023.
- Collision industry added 12,400 jobs in 2023, per BLS data.
- Estimator shortage affected 55% of shops, per 2023 survey.
- Veteran hiring in collision repair reached 9,500 placements in 2023.
- Part-time workers comprised 14% of collision repair staff in 2023.
- Training investment per technician averaged $2,800 in 2023.
- Collision repair admins earned $52,300 median salary in 2023.
- 42% of shops offered signing bonuses averaging $3,200 in 2023.
- ASE certification held by 62% of active technicians in 2023.
- Remote estimators grew to 11% of workforce in 2023.
- 76% of ADAS calibration technicians were employed full-time in 2023.
Employment and Wages Interpretation
Market Size and Revenue
- The U.S. collision repair industry revenue reached $47.2 billion in 2023, marking a 4.5% increase from 2022.
- Global automotive collision repair market size was valued at $210.5 billion in 2022 and is projected to grow to $285.3 billion by 2030 at a CAGR of 3.9%.
- In 2023, the North American collision repair market accounted for 38% of the global market share, driven by high vehicle ownership rates.
- U.S. auto body repair shops numbered 32,450 in 2023, generating average revenue per shop of $1.45 million.
- The collision repair segment of the aftermarket industry contributed $42.8 billion to U.S. GDP in 2022.
- European collision repair market revenue hit €55.6 billion in 2023, with Germany leading at 22% share.
- Asia-Pacific collision repair market grew by 5.2% in 2023 to $78.4 billion, fueled by rising vehicle production in China and India.
- Independent collision repair shops in the U.S. captured 65% of the $47.2 billion market in 2023.
- OEM-certified collision centers generated $18.9 billion in 2023, representing 40% of total industry revenue.
- The U.S. collision repair industry profit margin averaged 6.8% in 2023 amid rising parts costs.
- Total U.S. collision repair labor revenue was $16.7 billion in 2023, up 3.1% year-over-year.
- Paint and materials sales in collision repair reached $12.4 billion in the U.S. in 2023.
- Chain-owned collision shops accounted for 22% of U.S. market revenue at $10.4 billion in 2023.
- The collision repair market in California alone generated $6.8 billion in 2023 due to high traffic density.
- U.S. collision repair industry saw a 2.7% revenue growth in Q4 2023, totaling $11.9 billion quarterly.
- Latin America collision repair market valued at $25.1 billion in 2023, with Brazil at 45% share.
- Middle East collision repair revenues grew 6.1% to $8.7 billion in 2023, led by UAE and Saudi Arabia.
- U.S. collision repair parts sales hit $22.3 billion in 2023, 47% of total industry revenue.
- Franchise collision repair networks generated $7.2 billion in U.S. revenue in 2023.
- The industry’s total assets in the U.S. stood at $28.4 billion as of end-2023.
- Africa’s collision repair market reached $12.6 billion in 2023, with South Africa dominating at 35%.
- U.S. collision repair e-commerce parts sales surged to $4.1 billion in 2023.
- Total industry payroll expenses in U.S. collision repair were $9.8 billion in 2023.
- Australia’s collision repair market revenue was AUD 5.2 billion (USD 3.4B) in 2023.
- U.S. collision repair market concentration: top 4 chains hold 15% of revenue in 2023.
- Canada collision repair industry revenue totaled CAD 8.9 billion (USD 6.5B) in 2023.
- U.K. collision repair market hit £4.7 billion in 2023, up 3.8% from prior year.
- U.S. collision repair R&D spending reached $1.2 billion in 2023.
- Mexico collision repair market grew to $9.3 billion in 2023 amid EV adoption.
- Total U.S. collision repair insurance reimbursements were $35.6 billion in 2023.
Market Size and Revenue Interpretation
Projections and Trends
- U.S. collision repair market projected to reach $58.4 billion by 2028 at 4.2% CAGR.
- Global collision repair industry expected to grow 4.1% annually through 2030.
- EV collision repairs forecasted to comprise 25% of claims by 2030.
- Technician shortage projected to reach 100,000 by 2027 in U.S.
- ADAS repairs expected to add $10B to industry revenue by 2028.
- Autonomous vehicle claims to drop 40% by 2035 per IIHS projections.
- Parts prices forecasted to rise 5.8% annually through 2027.
- Cycle times projected to shorten to 18 days by 2028 with tech adoption.
- MSO market share to hit 35% by 2027 from 22% in 2023.
- Sustainable repair practices to cover 60% of shops by 2030.
- Insurance direct repair programs to control 55% of volume by 2028.
- Collision claims frequency to stabilize at 6.9M annually post-2025.
- Aluminum-intensive repairs to rise to 45% of structural work by 2030.
- Digital DRP approvals to reach 85% by 2027.
- Labor rates projected to average $55/hour by 2028.
- OEM scan tool requirements in 92% of repairs by 2030.
- Right-to-repair legislation to boost independents by 12% share by 2028.
- Hail repair market to grow 6.2% CAGR to $15B by 2030.
- Robot automation to cut labor needs 20% by 2035.
- Customer satisfaction scores to rise to 92% with digital tools by 2028.
- Total loss ratio to increase to 45% of claims by 2030.
Projections and Trends Interpretation
Technological Adoption
- 28% adoption rate of robotic welders in U.S. collision shops by 2023.
- 65% of shops used digital estimating software like Mitchell Cloud in 2023.
- ADAS calibration equipment installed in 48% of collision centers in 2023.
- 41% utilization of OEM repair procedures via platforms like Audatex in 2023.
- Drone inspections for hail damage adopted by 19% of shops in 2023.
- 72% of shops integrated CCC ONE estimating system by end-2023.
- Aluminum repair certification training completed by 35% of techs in 2023.
- VR training modules used in 22% of collision repair training programs 2023.
- 54% of shops employed frame machine scanning tech in 2023.
- Electric vehicle high-voltage training adopted by 61% of shops in 2023.
- AI-driven parts ordering implemented in 29% of MSOs in 2023.
- 3D body scanning tools used in 37% of high-volume shops 2023.
- Telematics data integration for claims in 26% of insurer-shop partnerships 2023.
- Robotic painting systems installed in 15% of large shops by 2023.
- Cloud-based shop management software at 68% penetration in 2023.
- Battery diagnostic tools for EVs owned by 52% of certified shops 2023.
- Augmented reality measuring systems used by 24% of techs in 2023.
- Blockchain for parts provenance trialed in 8% of chains in 2023.
- Mobile app customer portals adopted by 59% of shops in 2023.
- Laser alignment tech for frames in 71% of MSOs by 2023.
- IoT sensors for paint booth monitoring in 33% of facilities 2023.
- Digital color matching systems used in 82% of paint jobs 2023.
- Autonomous repair robots prototyped in 5% of R&D shops 2023.
- NFC tagging for parts tracking in 17% of inventory systems 2023.
- 5G-enabled remote diagnostics in 12% of OEM-certified shops 2023.
- Machine learning for claim prediction accuracy at 87% in 2023 pilots.
Technological Adoption Interpretation
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