Automotive Body, Paint, Interior & Glass Repair
Companies in this industry are primarily engaged in providing automotive body, paint, interior, and glass repair and replacement services for passenger cars and light trucks. Major companies include Maaco, Pittsburgh Glass Works, Safelite Group (a subsidiary of Belron SA), and Service King Paint & Body (all based in the US), as well as Belron and Carglass (both in Europe).
As more vehicles crowd roads worldwide, demand for repair and replacement services is expected to rise. In 2022, China is the world's largest car market, followed by the US and Europe, according to Statista. Emerging markets in Latin America and Asia will dominate future growth for cars and car repair. India, became the third largest auto market in 2022 displacing Japan with about 4.5 million units sold, according to Autocar India. Overall, global car sales are expected to 86.8 million by 2023, lower as compared to the prior year, according to Reuters.
The US automotive body, paint, interior, and glass repair industry includes about 42,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $43 billion.
Competitive Landscape
Demand depends the number of cars on the road and on miles driven. Severe weather events such as hail storms and flooding, may trigger localized spikes in demand for auto body and glass repair, as well as paint services. The profitability of individual companies depends on convenient locations and effective marketing. Large companies can maximize use of expensive equipment, such as state-of-the-art paint booths, and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate about 20% of revenue.
Competition includes other venues that provide specialized automotive services, including car dealerships and branches of chain stores such as Sears.
Repair shops can expect a dramatic decrease in demand for repair services when more?driverless cars?take to the road. Fully autonomous cars are being tested on roads today and projected about 60% will embrace self-driving cars, according to Zipdo. Autonomous vehicles could reduce US auto accidents by 80%, according to KPMG, which predicts mass adoption of auto-piloted vehicles beginning by 2040. Some newer cars already incorporate?collision avoidance systems?designed to prevent crashes and trips to the body shop.
Products, Operations & Technology
Major services include maintenance and repair services for automobiles and light-trucks, which accounts for more than 90% of the industry revenue. Other
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Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms