Car Body Shops in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 81112CARevenue
$8.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
41,926
Businesses
10,822
Wages
$X.Xbn
Car Body Shops in Canada industry analysis
Car body shops offer necessary and discretionary services for various vehicles, ranging from painting and window tinting to bodywork repairs. Body shops have contended with volatile conditions in recent years as the COVID-19 pandemic shook the world and Canadian economies. Although body shops were deemed essential businesses, demand dropped significantly as lockdowns kept people from driving. The prices of key commodities shot up in the wake of pandemic-related restrictions as supply lagged behind surging demand, driving up revenue as price parts rose but pressuring profit. As the economy has steadily recovered following the pandemic peak, Canadian car body shop revenue is forecast to rise at a CAGR of 0.8% to $8.6 billion, including an anticipated growth of 2.1% in 2024 alone.
Trends and Insights
- The more cars on the road, the higher the demand. A high number of vehicles on the road leads to more accidents, necessitating more repairs.
- Body repairs generate the highest portion of revenue. The expensive repairs are necessary for a car to function safely, especially after an accident.
- Body shops follow population spread. Where there are people, there are more drivers and accidents. In Canada, this means Ontario and Quebec in particular.
- Small, independent body shops dominate the industry. Locality and relationships drive success in this industry. Body shops with better reputations drive the best business.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.8 % over the past five years, to reach an estimated $8.6bn in 2024.
Trends and Insights
Lockdowns keep cars parked
- As COVID-19 swept the globe, the government put lockdown orders in place, preventing Canadians from driving.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The insurance industry will continue to lean on repair prices
- Many car body shops rely on direct repair programs (DRPs) with insurance companies, guaranteeing an influx of customers as insurance companies can dictate which repair shops they're willing to work with.
Biggest companies in the Car Body Shops in Canada
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 | Profit ($short_0)
2024 | Profit Margin (%)
2024 |
|---|
There are no companies that hold a large enough market share in the Car Body Shops in Canada industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Body repair services, Painting services and Glass replacement and repair. Body repair services is the largest segment of the Car Body Shops in Canada.
Trends and Insights
Bodywork carries the industry
- Significant repairs to the body of a vehicle can't be safely put off, so as long as travel is continuing at a healthy level, they're unavoidable. These come at a high price tag since they require substantial effort and material.
- More insights available in the full report
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Competitors
- Auto Mechanics in Canada
- Car Wash & Auto Detailing in Canada
- Oil Change Services in Canada
Complementors
- SUV & Light Truck Manufacturing in Canada
- New Car Dealers in Canada
- Used Car Dealers in Canada
- Gas Stations with Convenience Stores in Canada
International industries
- Car Body Shops in the US
- Auto Windshield Repair Services in the US
- Motor Vehicle Body, Paint and Interior Repair in Australia
- Motor Vehicle Body, Paint and Interior Repair in New Zealand
- Car Repair Services in China
Table of Contents
About this industry
Industry definition
A car body shop specializes in repairing and restoring the exterior and structural components of vehicles that have been damaged, typically an outcome of accidents, collisions or wear and tear.
What's included in this industry?
Body repair servicesPainting servicesGlass replacement and repairUpholstery and interior repairMerchandise salesDetailing services and body conversionsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
DIRECT REPAIR PROGRAM (DRP)TRIMELECTRONIC STABILITY CONTROL (ESC)Industry Code
NAICS 81112 - Car Body Shops in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The more cars on the road, the higher the demand. A high number of vehicles on the road leads to more accidents, necessitating more repairs.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Body repairs generate the highest portion of revenue. The expensive repairs are necessary for a car to function safely, especially after an accident.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Body shops follow population spread. Where there are people, there are more drivers and accidents. In Canada, this means Ontario and Quebec in particular.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Small, independent body shops dominate the industry. Locality and relationships drive success in this industry. Body shops with better reputations drive the best business.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Expansion through acquisition proves to be the name of the game. Minimizing costs by acquiring related companies can help large body shops get ahead.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The number of accidents dictates demand for body repairs. Necessary, larger bodywork drives revenue into the industry. Technological developments like assisted driving can im...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit holds strong through difficult times. Nondiscretionary services drive high profit during economic downturns. A rise in vehicle usage and collisions boosts demand for r...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Car Body Shops industry in Canada in 2024?
The market size of the Car Body Shops industry in Canada is $8.6bn in 2024.
How many businesses are there in the Car Body Shops in Canada industry in 2024?
There are 10,822 businesses in the Car Body Shops industry in Canada, which has grown at a CAGR of 0.2 % between 2019 and 2024.
Has the Car Body Shops industry in Canada grown or declined over the past 5 years?
The market size of the Car Body Shops industry in Canada has been growing at a CAGR of 0.8 % between 2019 and 2024.
What is the forecast growth of the Car Body Shops industry in Canada over the next 5 years?
Over the next five years, the Car Body Shops industry in Canada is expected to grow.
What does the Car Body Shops in Canada include?
Body repair services and Painting services are part of the Car Body Shops industry.
How competitive is the Car Body Shops industry in Canada?
The level of competition is high and steady in the Car Body Shops industry in Canada.
