Auto Paint Customization Shops in the US Industry Market Research Report Now Available from IBISWorld

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The Auto Paint Customization Shops industry's performance has been streaky during the past five years. According to IBISWorld, industry revenue is expected to fall 0.5% annually on average over the five years to 2012, but it is expected to grow 2.5% in 2012 to $665.3 million. The recession had lingering effects on the industry, with consumers holding off non-essential vehicle alterations and customizations. However, from 2010 to 2012, consumer spending increased, resulting in a steady increase in spending on car customization and rising revenue for auto paint customization shops. Demand has also been encouraged by several new styles of automobile body paint, including chrome and water-based paints. Firms will likely experience growing demand for their services over the next five years, prompted by an expanding economy and favorable trends. For this reason, industry research firm IBISWorld has added a report on the Auto Paint Customization Shops industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Growth will stabilize, as consumer interest rises and new paint technologies emerge

The Auto Paint Customization Shops industry's performance has been streaky during the past five years. According to IBISWorld, industry revenue is expected to fall 0.5% annually on average over the five years to 2012, but it is expected to grow 2.5% in 2012 to $665.3 million. The recession has had lingering effects on the industry, with consumers holding off non-essential vehicle alterations and customizations, such as aftermarket paint jobs.

The Auto Paint Customization Shops industry derives its revenue from drivers that pay auto paint customization shops for customized paint jobs for their vehicles. Nearly all of the industry's services are considered discretionary luxuries (since paint is an aesthetic non-operational feature of a vehicle); as such, industry demand and revenue are subject to consumer and discretionary spending levels. In 2009, consumer spending declined and discretionary purchases like automotive alterations were put on the chopping block. According to IBISWorld industry analyst Antonio Danova, “consumers who continued to invest in auto paint customization scaled back on the amount they spent on their projects and opted for lower-cost services and projects.” From 2010 to 2012, consumer spending increased, resulting in a steady increase in spending on car customization and rising revenue for auto paint customization shops.

Despite recessionary declines, a number of industry-specific trends have bolstered demand for auto paint customization shops over the long term. Danova says, “one of the biggest driving forces has been growing pop-culture interest in customized vehicles.” Industry demand has also been encouraged by several new styles of automobile body paint, including chrome paints, paints with ultraviolet light-cured finishes and paints that incorporate nanotechnology. Water-based paints are the future of automotive paint technology and are expected to boost demand for paint customization, given their ease of use and lower potential cost once the technology is widely adopted. All of these factors will bode well for the Auto Paint Customization Shops industry. Firms will likely experience growing demand for their services over the next five years, prompted by an expanding economy and favorable trends.

For more information visit IBISWorld’s Auto Paint Customization Shops in the US industry page

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This industry provides customized paint jobs and other exterior graphics for automobiles. Businesses in this industry customize cars to make a style statement for the consumer, making the car look unique and unlike a factory-finished car. Freight truck and trailer customization services are also included in this industry. This industry does not include original equipment manufacturer (OEM) repair and paint work.

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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