The United States and Canada Collision Repair Parts Market is estimated to be valued at USD 38.0 billion in 2025 and is projected to reach USD 56.2 billion by 2035, registering a compound annual growth rate (CAGR) of 4.0% over the forecast period.
| Metric | Value |
|---|---|
| United States and Canada Collision Repair Parts Market Estimated Value in (2025 E) | USD 38.0 billion |
| United States and Canada Collision Repair Parts Market Forecast Value in (2035 F) | USD 56.2 billion |
| Forecast CAGR (2025 to 2035) | 4.0% |
The United States and Canada collision repair parts market is experiencing consistent growth driven by the rising number of vehicles on the road, increasing road accidents, and the demand for timely vehicle maintenance and repair. In 2025, the market is supported by strong adoption of both aftermarket and OEM parts, particularly for passenger vehicles, which dominate the regional automotive landscape.
Market expansion is being influenced by technological advancements in vehicle manufacturing, the integration of lightweight and durable materials, and regulatory emphasis on vehicle safety standards. Growth is further reinforced by the increasing presence of independent repair shops, fleet operators, and multi-location service centers, which rely on high-quality collision repair components for operational efficiency.
The future outlook is shaped by rising vehicle ownership, aging fleets requiring maintenance, and the adoption of digital inventory and supply chain management solutions Opportunities exist in expanding the product portfolio to include more advanced materials, modular parts, and faster distribution models to enhance service delivery and reduce repair turnaround times.
The Body Panels product type is projected to hold 29.90% of the overall collision repair parts market revenue in 2025, making it the leading product type. This dominance is being attributed to the frequency of body panel damage in vehicle collisions and the critical role these components play in restoring structural integrity and aesthetic appeal. Adoption has been accelerated by improvements in material quality, such as corrosion-resistant steel and lightweight alloys, which enhance durability and ease of replacement.
The market has benefited from increasing demand from both OEM and aftermarket suppliers who provide consistent availability, ensuring faster repair turnaround. Independent repair shops and service centers prefer body panels that allow for efficient replacement while maintaining vehicle performance and safety standards.
Additionally, the development of pre-painted and modular panels has reduced labor and repainting requirements, supporting higher adoption rates The growth of the body panels segment is being reinforced by rising vehicle volumes, aging fleets, and the need for reliable parts that meet evolving regulatory and safety standards.
The Passenger Vehicle segment is expected to account for 50% of the market revenue in 2025, making it the leading vehicle type in the collision repair parts market. This prominence is being driven by the high volume of passenger vehicles in the United States and Canada, which are most frequently involved in minor and major collisions. Market growth is supported by the demand for high-quality replacement parts that preserve vehicle performance, safety, and aesthetics.
The segment benefits from a strong presence of independent dealers and repair shops, which focus on cost-effective repairs for privately owned vehicles. Advancements in material technology, modular components, and pre-finished parts have further encouraged adoption in this segment.
Additionally, the growing trend of vehicle customization and personalization in the passenger vehicle sector has increased the need for replacement parts, including body panels, lights, and bumpers With the continued expansion of urban mobility and vehicle ownership, the passenger vehicle segment is poised to sustain its market leadership through steady demand for collision repair solutions.
The Independent Dealer sales channel segment is projected to hold 35% of the market revenue in 2025, making it the leading distribution channel in the region. This leadership is being attributed to the flexibility and competitive pricing offered by independent dealers, which appeals to vehicle owners seeking cost-effective repair solutions. Independent dealers have increasingly adopted digital inventory management and logistics capabilities, enabling quick access to critical collision repair parts.
Growth has been reinforced by the expanding network of small and medium repair shops that rely on independent dealers for timely delivery and diverse product offerings. The segment benefits from strong relationships with aftermarket suppliers and OEM partners, ensuring consistent availability of high-quality components.
Additionally, independent dealers offer personalized service and expertise, which enhances trust and customer loyalty Rising demand for affordable repair solutions, coupled with the growing number of passenger vehicles and collision incidents, has ensured the independent dealer channel maintains a significant share in the market and continues to drive regional growth.
As per Future Market Insights’ (FMI) latest report, sales of collision repair parts market grew at a CAGR of 3.5% historically from 2020 to 2025. Total market value at the end of 2025 was estimated at USD 33,696.5 million.
From 2020 to 2025, the growth in vehicle sales in the United States and Canada contributed to the demand for collision repair parts.
In recent years, the United States and Canada have witnessed a steady rise in vehicle sales. This in turn has increased the likelihood of accidents and collisions, leading to a higher need for repair parts.
Future Forecast for Collision Repair Parts Industry:
The United States and Canada collision repair parts industry is projected to thrive at a CAGR of 4.2% from 2025 to 2035. The market size is anticipated to reach USD 53,041.5 million by the end of the forecast period (2035).
The collision repair parts industry is expected to continue its growth trajectory from 2025 to 2035. This is due to rising concerns over preventing accidents and the increase in average age of vehicles in the United States and Canada.
Increasing average age of vehicles is creating a sustained demand for collision repair parts to ensure the continued operation and maintenance of older vehicles. This in turn is boosting the United States and Canada collision repair parts market.
The adoption of high-quality parts that comply with the stringent performance and safety standards established by car manufacturers becomes more and more important to consumers and repair facilities.
However, market growth may be hindered by the rapid pace of technological improvement in automotive safety systems. The new technological safety systems may cause older ADAS components to become out-of-date or unsuitable with newer versions.
The expanding fleet size puts pressure on the collision repair industry to meet the repair and replacement requirements of damaged vehicles. As a result, new and improved repair parts made from strong, durable, and lightweight materials are being introduced into the market.
The collision repair process is progressively integrating AR and VR technology to increase accuracy and efficiency. These technologies allow technicians to visualize repairs, get step-by-step instructions, and enhance productivity.
Technicians can view virtual aspects, such as maintenance instructions or diagnostic data, in real-time through a headset or smartphone due to augmented reality (AR), which overlays digital information over the physical environment.
They are able to complete tasks more accurately and have a better understanding of the restoration process as a result. Technicians can improve their skills in a risk-free environment with the help of a realistic and interactive virtual experience.
By integrating AR and VR technology into collision repair, it is possible to improve repair efficiency and accuracy as well as technician training and total output.
Another trend is the growing popularity of Advanced Driver Assistance Systems (ADAS) in automobiles. Penetration of ADAS has resulted in significant alterations in the collision repair sector, particularly in the demand for relevant repair parts.
Collision repair facilities now have to find and install collision repair parts that are compatible with this cutting-edge technology. For these systems to operate and be calibrated effectively, they need ADAS-specific parts such as sensors, cameras, radar units, and associated wiring harnesses. These parts are highly impacted in the vehicle collision which directly creates demand for replacement.
The development of ADAS-compatible collision repair parts demonstrates the industry's response to the growing use of ADAS in modern vehicles. Repair facilities need to make the necessary investments in tools, equipment, and training in order to diagnose, repair, and calibrate these systems after a collision. In addition, they must stay up to date with ADAS technology's most recent advancements.
Growing Emphasis on Vehicle Safety and OEM Standards Boosting the United States Market
According to Future Market Insights (FMI), the United States collision repair parts market recorded sales of USD 28,526.0 million in 2020. The market witnessed a 3.5% year-on-year growth in 2025, and it is projected to achieve revenue of USD 27,946.1 million in 2025.
Over the assessment period from 2025 to 2035, the United States market is projected to expand at a compound annual growth rate (CAGR) of 4.1%. By the end of 2035, the United States market size is set to reach USD 41,767.7 million.
The collision repair parts market in the United States is anticipated to be driven by an emphasis on vehicle safety and compliance with Original Equipment Manufacturer (OEM) requirements.
The adoption of high-quality parts that comply with the stringent performance and safety standards established by car manufacturers becomes more and more important to consumers and repair facilities. This focus on safety and OEM standards is driven by the desire to ensure proper vehicle functionality, maintain warranty coverage, and uphold the original integrity of the vehicle.
Growing Do-it-yourself (DIY) Culture Fueling Demand for Collision Repair Parts in Canada
Canada collision repair part sales totaled revenue of USD 6,839.0 million in 2020. The market observed a 3.5% year-on-year growth in 2025 and is estimated to reach USD 7,044.7 million in 2025.
Over the assessment period, Canada market is projected to expand at a compound annual growth rate (CAGR) of 4.8%, culminating in a market size of USD 11,273.9 million by the end of 2035.
Rising DIY culture drives the demand for a wide range of collision repair parts, including body panels, interior/exterior components, mechanical components, safety components, fluid management components, and powertrain components.
Manufacturers and suppliers catering to this market segment benefit from increased sales volume as more DIY enthusiasts require access to reliable and affordable replacement parts.
Demand to Remain High for Body Panels in the Global Market
Based on product type, demand is expected to remain high for body panels during the forecast period. As per Future Market Insights (FMI), body panels segment is set to dominate the collision repair parts industry with a prominent market share of 28.9% in 2035.
Body panels are essential in the market for collision repair parts for replacing worn-out or damaged external surfaces and restoring the vehicle's look and structural integrity. These collision repair parts are witnessing high demand as they are necessary for repairing damaged vehicles.
The interior and exterior components segment is also expected to be a significant contributor to the market, with a market share of 18.5% in 2025. This segment includes components such as carpets, headliners, and door panels, which are also frequently replaced after a collision.
LCV Segment to Dominate the Market with a 49.8% Share in 2025
According to Future Market Insights (FMI), light commercial vehicle segment is expected to dominate the United States & Canada market with a share of 49.8% in 2025.
The dominance of LCVs on the roads in the United States and Canada has resulted in substantial sales within the commercial vehicle segment, particularly in the collision repair parts market.
The demand for electric and hybrid vehicles is also expected to rise, as they offer lower operating costs and reduced emissions. This will further contribute to the expansion of the LCV segment.
In recent years, collision repair part manufacturers have shifted their focus towards acquisitions and mergers to strengthen their presence across the United States and Canada. They are investing significantly in order to expand their production in the regional market and grab growth opportunities.
Manufacturers are also strengthening their distribution networks to increase their customer base. They are moving towards online sales channels to further strengthen their market presence in regional as well as global markets.
Recent developments:
| Attribute | Details |
|---|---|
| Estimated Market Size (2025) | USD 38.0 billion |
| Projected Market Value (2035) | USD 56.2 billion |
| Anticipated Growth Rate (2025 to 2035) | 4.0% CAGR |
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2025 |
| Market Analysis | USD Million for Value and Units for Volume |
| Key Regions Covered | United States and Canada |
| Key Countries Covered | United States of America and Canada |
| Key Segments Covered | Product Type, Vehicle Type, Sales Channel, and Country |
| Key Companies Profiled | Tenneco, Inc.; Magna International; LKQ Corporation; Genuine Parts Company; Dorman Products Inc.; Martinrea International Inc.; Meritor Inc.; Brogg Warner; Timken Company; Arnot INC; AP Emissions Technologies; ATP Automotive; Federal-Mogul Motorparts (Teneco); Keystone Automotive Operations (LKQ Corp) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global United States and canada collision repair parts market is estimated to be valued at USD 38.0 billion in 2025.
The market size for the United States and canada collision repair parts market is projected to reach USD 56.2 billion by 2035.
The United States and canada collision repair parts market is expected to grow at a 4.0% CAGR between 2025 and 2035.
The key product types in United States and canada collision repair parts market are body panels, interior & exterior component, mechanical component, safety component, fluid management component, powertrain component and others.
In terms of vehicle type, passenger vehicle segment to command 50.0% share in the United States and canada collision repair parts market in 2025.
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United States and Canada Collision Repair Parts Market
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