Automotive Restoration Market

Automobile restoration is the process of repairing the degraded aspect of an automobile into an overall “authentic” condition. A vehicle restoration is typically a process of reconditioning it from a used condition. This process helps to return the vehicle like-new condition with the help of either original parts or reproduction parts and techniques. This process includes restoration of the interior, exterior, and the engine as well.

The global automotive restoration market is projected to reach USD 2.3 billion by 2030 from an estimated USD 5.5 billion in 2022, at a CAGR of 11.2% from 2022 to 2030. Automotive restoration is regarded as a booming business primarily supported by car enthusiasts, auctioneers, and auto clubs. Factors such as increasing inclination towards vintage as well as classic cars, and increasing purchasing power parity of an individual, are expected to drive the demand for automotive restoration services.

Market Dynamics

DRIVERS: Increasing collection of vintage cars

The growing collection/sales of vintage cars as well as classic cars increases the scope for automobile restoration services. Most people regard driving vintage cars and rebuilding them as their hobby. Subsequently, people from elite economic background tend to have higher interest in purchasing classic car models and restoring them for leisure. For instance, most of the classic models such as Mercedes-Benz 300SE, GMC Typhoon, and Porsche Carrera GT, among others have seen double-digit increases in terms of sales. Thus, growing sales of vintage cars as well as classic cars, is anticipated to increase the revenue growth of the automotive restoration market during the forecast period.

DRIVERS: Rapid urbanization as well as increasing purchasing power parity

Increasing rapid urbanization along with rising purchasing power parity of an individual has positively affected the sales of classic and vintage cars. In addition, with more and more families having moved to higher economic status, their demands have changed in line with new lifestyles, leading to change in their preferences. This in turn has also increase the demand for vintage cars across the globe. All these aforementioned factors are expected to increase the demand for automotive restoration services, which in turn, will increase the market growth prospects in the coming years.

Opportunity: Rising demand for premium car segment

The automotive industry witnessed a steady recovery post-2020, with increased vehicle production as well as vehicle sales. For instance, as per OICA, in 2020, motor vehicle production in China was 25.2 million units, reaching 26.0 million units in 2021. Similarly, in India, motor vehicle production was 3.3 million units in 2020, reaching 4.3 million units in 2021. Further, the demand for premium passenger cars is expected to grow at a noticeable rate in the foreseeable future, especially in the countries such as US, Canada, Germany, Spain, Japan, UK, and France, among others. For instance, as per Inspop.com Ltd., the combined sales of luxury car in US were 5.1 million units from 2016-2020. Similarly, in Japan, the combined sales of luxury car were 1.3 million units from 2016-2020. Thus, increasing demand for premium car is likely to increase the demand for automotive restoration services in the future. This in turn, is likely to support the revenue growth of the automotive restoration market during the forecast period.

Key Market Players

The automotive restoration market is dominated by major players such as Automotive Restorations Inc (US), American Auto Restoration (US), SL Classics (Germany), Armadillo Auto Restoration (US), Royal Vintage Cars (India), Collector Car Services (US), Muscle Car Restorations Inc. (US). These companies have strong distribution networks at a global level and offer an extensive product range. These companies adopt strategies such as new product developments, collaborations, and contracts & agreements to sustain their market position.

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Recent Developments

• In December 2021, Muscle Car Restorations, Inc. expanded its offsite storage building (Wisconsin, US) which is a 10,000 square foot space for holding customer cars and parts.
• In October 2021, Hahn Auto Restoration deployed 3D scanning and printing in order to produce custom fiat-hellcat car.