Changing gears: Economic recovery signals growing demand for paint and dent repairs

The Car Body Shops industry has improved steadily over the past five years. Industry revenue has experienced steady growth since 2012, reflecting steady increases in per capita disposable income and motor vehicle registrations, alongside aging vehicle fleets. Stricter regulations have pushed car manufacturers to include heavy safety provisions for the driver, and these advanced technologies in new vehicles have led to fewer collisions over the past five years, resulting in a smaller client base for industry operators. This smaller client base has also led to overcapacity among industry operators; consequently, operators have either consolidated operations or exited the industry entirely...read more.

Industry Statistics & Market Size
Revenue
$42bn
Annual Growth 12-17
1.9%
Forecast Growth 17-22
Profit
Employment
330,732
Businesses
120,780
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • The number of new cars purchased instead of old ones may limit growth among industry body shops
  • Profit margins remained the same as a result of heightened competition in an oversaturated market
  • As the economy continues improving, consumers will be more likely to spend money on major repairs
  • Industry Report - Industry Products Chapter

    Industry players typically derive revenue from different auto repair services. While some operators specialize in one area of repair, such as painting vehicles or frame replacement, others provide highly specialized services, such as van conversion, upholstering and antique car restoration.Body repair servicesBody repair services are expected to account for an estimated 59.7% of industry revenue. This segment includes repairing bent vehicle bodies, removing dents and replacing damaged metal and plastic parts that cannot be repaired. These types of repairs generally need to be performed after a vehicle collision. This segment also includes purchasing prefabricated metal parts, welding equipment and labor. The...purchase to read more.

    Additional Insights for the Car Body Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Body Shops Industry are

  • Membership of an industry organization
  • Provision of superior after sales service
  • Ability to keep direct repair programs
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and New car sales in the Car Body Shops industry impact industry performance..

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    What is the Car Body Shops Industry?

    This industry provides repair and customization work to the interior and body of passenger cars, trucks, vans and trailers. Some industry operators specialize in specific auto repairs; for example, paint shops specialize in post-collision paint jobs, while automotive glass shops replace, repair and tint windows. Restoration shops, which typically represent a niche market, restore classic and antique cars.

    Industry Products
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Upholstery and interior repair
  • Merchandise sales
  • Detailing services and body conversions
  • Other services
  • Industry Activities
  • Automotive bodywork
  • Automotive painting
  • Automotive upholstery shop operation
  • Automotive interior repair
  • Antique and classic automotive restoration
  • Truck trailer body shop operation
  • Truck trailer paint and body repair
  • Van conversion
  • Automotive glass shop operation
  • Automotive glass tinting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • New car sales
  • Number of vehicle accidents
  • Average age of vehicle fleet
  • Number of motor vehicle registrations

  • Current Performance
  • More business, but slower enterprise growth
  • Profit remains steady
  • Direct repair programs
  • Chart: Revenue Growth

  • Industry Outlook
  • New cars and safety standards
  • Profit and establishment growth
  • Table: Car Body Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Body Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling
  • Used Car Dealers
  • Property, Casualty and Direct Insurance
  • Couriers & Local Delivery Services

  • Key Selling Industries
  • Glass Product Manufacturing
  • Paint Manufacturing
  • Plastic & Resin Manufacturing
  • Structural Metal Product Manufacturing

  • Products & Services
  • Body repair services
  • Painting services
  • Glass replacement and repair
  • Merchandise sales
  • Detailing services and body conversions
  • Upholstery and interior repair
  • Other services
  • Chart: Car Body Shops Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Middle income bracket
  • Highest income bracket
  • Businesses
  • Lowest income bracket
  • Other
  • Chart: Major Market Segmentation for the Car Body Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Labor
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Car Body Shops

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Body Shops Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car Body Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Body Shops Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Vehicle registration (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Aftermarket Parts
  • Essential car components manufactured by a company other than the manufacturer of the vehicle.
  • Crash Rate
  • The average percentage of registered motor vehicles involved in accidents annually.
  • Direct Repair Program (Drp)
  • An agreement between insurance companies and car body shops in which insurance companies refer claimants to a particular shop to get their car repaired.
  • Nanoparticles
  • Used in newer paints as fillers which reduce corrosion, fading, and scratching while creating a better bond between paint and the surface of the car.
  • Why buy this report?

    The Car Body Shops Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Body Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Body Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Body Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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