Romans Group Analyzes Collision Repair Industry Changes in 2024

2024 was one of the slowest years in the last decade for multiple location operator – Romans Group's term for MSO  – acquisitions in the U.S. Nevertheless, consolidators continue their focus on strategic acquisitions with larger consolidators such as Caliber and Gerber developing more brownfield and greenfield locations alongside their existing location buys. 

Despite the decrease in repairable claims in 2024 and 2025, the collision repair space continues to deliver its long-term proposition of proven economics and growth supported by insurance industry-driven demand dynamics that create cash flow stability and profitability for many of the best operators. 

Regarding physical growth, the benefits and risks to all consolidators continue to be the ability to quickly, efficiently, and effectively integrate expansion and acquisitions while avoiding opportunities that detract from prudent financial performance. 

Single locations and smaller MLOs that cannot expand and establish a reasonable degree of market scale will continue to find it increasingly difficult to compete with consolidators and larger MLOs that have scale and influence with market constituents like insurers and suppliers. 

Collision Repair Industry 

Some highlights of the 2024-25 collision repair industry include: 

• The ≥$20M segment — especially the top three independent consolidators, Caliber, Boyd/Gerber, and Crash Champions — continue to grow steadily, underpinning the long-term collision repair consolidation trend. 

• Canada’s market is highly consolidated among independents, banners, and franchise organizations. Since 2012, the number of Canadian collision repair locations has decreased by 37.7 percent while industry revenue increased 55.2 percent.
• The U.S. and Canadian auto insurance markets remain highly consolidated, with the top ten private carriers controlling the majority share of premiums written and commanding most claims processed and settled.
• The top three auto insurers in both the U.S. and Canada continue to have a strong and disproportionate market share when compared to their peers. This high market share gives these top carriers the scale and clout to substantially influence the various dynamic claims processing models and the leverage to influence which repair providers participate in their DRP and preferred provider programs.
• Average repair costs continue to increase, but with a decrease of velocity change due to greater repair complexity, increasing EV repairs with higher base severity, higher inflation-based labor expenses, increased parts replacement versus repair with some associated higher parts costs, new and incremental diagnostic scans and calibrations, and the use of costly materials such as aluminum and carbon fiber.
• The aggressive premium increases by insurers have created a consumer mindset causing them to fear making a claim, known as "FOMAC." Consumers are delaying repairs or not repairing the vehicle to avoid any additional premium increases by their insurance carrier. This psychology has contributed to a reduction of 7 to 10 percent in the number of repair claims throughout the U.S. in 2024 and 2025.
• The Romans Group's five-year U.S. forecast to 2029 has the ≥$20 million segment and the top three consolidators aggressively growing their businesses while maintaining and growing their significant market share lead over the Franchise Networks and the $10-$19 million MLO segments. They expect that, by 2029, the top three consolidators will grow from their 2024 market share of more than 27 percent to a market share of up to 37 percent. 

The report can be purchased by contacting Mary Jane Kurowski of The Romans Group LLC here.