KBS - Automotive Repair - Market Insight

CURRENT TRENDS WITHIN THE SECTOR

The market has rebounded strongly post-Covid, with accident volumes now exceeding pre-pandemic levels.

INCREASED REPAIR COMPLEXITY This is shaped by advances in vehicle technology, increasing operational complexity and shifting expectations from insurers and consumers alike. One of the most notable developments is the growing complexity of vehicle repairs due to the integration of sophisticated technologies such as Advance Driver Assistance Systems (ADAS), sensors, radar systems and onboard diagnostics. These features, once limited to premium models, are now standard across mainstream vehicles. This means that even seemingly minor collisions can trigger intricate repair processes that demand specialist knowledge, precise recalibration, and investment in advanced diagnostic equipment. Workshops that lack these capabilities risk being excluded from insurer networks and falling behind the curve. ELECTRIC VEHICLE (EV) AND HYBRID REPAIR READINESS The rapid shift towards electric vehicles (EV) and hybrid models is placing new demands on repairers. EV and hybrid models require entirely different protocols for diagnostics, battery handling, and structural repairs, particularly when high-voltage systems are involved. As adoption of these vehicles continues to accelerate, driven by both consumer preferences and government mandates, repairers must invest in technician training, safety accreditation, and dedicated EV repair bays to remain competitive. For many insurers and fleet operators, EV-readiness is no longer a bonus, but a baseline requirement when allocating repair volumes. RISING REPAIR COSTS At the same time, repair costs are rising across the board. The combination of global supply chain challenges, extended lead times for parts, and rising labour costs is pushing up average repair values. High-tech vehicles take longer to assess and fix, particularly when recalibration or component replacement is required. This has led to increased cycle times, more downtime for end users, and growing pressure on bodyshops to operate more efficiently under tight margins. These cost pressures are forcing many independent repairers to rethink their operations or consider joining larger groups with stronger purchasing power and process optimisation tools. INSURER-LED EFFICIENCY PUSH Insurers, under their own cost and efficiency pressures, are also playing a decisive role in reshaping the repair landscape. Many are actively consolidating their networks of approved repairers, reducing the number of operators they work with and concentrating volume on those who can provide national or regional coverage, faster turnaround, and seamless digital integration. This means bodyshops which offer streamlined claims processing, digital estimating, real-time updates, and customer portals are increasingly winning insurer contracts. Conversely, smaller businesses without these capabilities are being squeezed out or pushed toward acquisition. CONSOLIDATION OF INDEPENDENTS As a result of these market dynamics, consolidations continue at a rapid pace. Private equity-backed platforms and large strategic operators are actively acquiring smaller independents to expand their geographic footprint, boost insurer appeal, and driver profitability through acquisition. For owners of well-managed but resource constrained repair shops, this consolidation wave offers both opportunity and urgency - a chance to exit on favourable terms before operational demands outpace their capacity to compete.