Toronto, Ontario — June 24, 2019 — Auto sales have been slowly dipping for the past few years but that doesn’t mean that the collision repair industry has suffered. According to a new study, the CR industry is projected to be worth 275 billion dollars by the year 2024.
According to Market Study Report, the collision repair market will increase from 236 billion to 275 billion in the next five years. This is a significant increase and experts are saying it can be accredited to urbanization.
“Increasing traffic congestion leading to road accidents and vehicle damage will drive industry share over the forecast timeframe,” Global Market Insights Inc. stated in a press release.
On top of an increase in population and heavier traffic in more urban areas, another key factor is mobility.
Autonomous vehicles are no longer a distant and futuristic concept, and an increase in accessibility in vehicles means more drivers will be on the road.
Michael Antkiewicz, a research associate at Waterloo University, reported to Global News earlier this year that AV’s being tested on roads in the U.S. are already causing problems.
“We are at least five years away (when it comes to AVs on our roads),” Antkiewicz reported. “But drivers are becoming frustrated in areas where automated vehicles are being tested.”
Although the increase of accessibility is exciting for many, the increase of vehicles on the road calls for more congested highways, which according to a study conducted in Maryland, can cause more (but less severe) car accidents.
“Drivers may seek to make the most of a slowdown and engage in distracting behaviors, such as reading, texting, or making phone calls,” stated Robert McCann, a practicing personal injury and accident lawyer.
“The stop-and-go pattern of a traffic jam can lead to rear-end accidents, as one car piles into another due to inattention.”
As the collision repair market grows, alongside accessibility to mobility, we can only hope that the next main focus is facing congestion on highways to keep all drivers safe.
