Global Automotive Restoration Market Outlook to 2028

Global Automotive Restoration Market Overview

The Global Automotive Restoration Market reached a valuation of USD 5.8 billion in 2023, driven by the increasing passion for classic and vintage cars among enthusiasts. The market growth is propelled by the rising disposable incomes and the cultural trend of restoring vehicles as a form of investment. Additionally, the surge in demand for custom and personalized vehicles has further bolstered the restoration market. This growth is supported by a robust network of specialized workshops and suppliers catering to the niche market.

The key players dominating the Automotive Restoration Market include Hagerty, Inc., Classic Car Restoration Club, RK Motors Charlotte, C&N Classic Car Restorations, and Classic Motor Cars. These companies have established themselves through their expertise in restoring classic vehicles, extensive service offerings, and strategic acquisitions. For instance, Hagerty, Inc. has strengthened its global presence by acquiring firms in Europe and Australia, expanding its restoration services.

In 2023, cities like Los Angeles, London, and Munich emerged as dominant hubs for automotive restoration. Los Angeles leads due to its affluent customer base and a strong car culture, which includes numerous car shows and events. London and Munich follow closely, driven by the European affinity for vintage cars and the availability of skilled labor. These cities are also home to numerous restoration shops that specialize in high-end vehicles, attracting clients from around the world.

One of the key growth drivers for the automotive restoration market in 2023 is the growing trend of Restomods, which involves restoring classic cars with modern components. This trend caters to a younger demographic that values both the aesthetics of vintage cars and the reliability of modern technology. The rise of this trend is supported by events such as the SEMA Show in Las Vegas, where Restomods gain significant attention and drive market demand.

Global Automotive Restoration Market Segmentation

The Global Automotive Restoration Market can be segmented based on several factors:

By Vehicle Type: The Global Automotive Restoration Market is segmented by vehicle type into classic cars, muscle cars, and antique cars. In 2023, classic cars dominated the market due to their timeless appeal and the wide availability of parts and expertise for restoration. Brands like Porsche and Ferrari have established a significant presence in this segment, with a strong following among collectors and enthusiasts.

By Service Type: The market is segmented by service type into mechanical restoration, body restoration, and interior restoration. In 2023, mechanical restoration dominated the market, driven by the need to restore the functionality of classic vehicles. This includes engine rebuilding, suspension upgrades, and brake system restoration, which are crucial for ensuring the vehicle's performance and safety.

By Region: The Global Automotive Restoration Market is segmented by region into North America, Europe, Asia- Pacific, and Latin America. In 2023, North America dominated the market, driven by significant investments in classic car culture, a well-established network of restoration workshops, and the presence of key market players. The regions focus on maintaining and preserving automotive heritage has led to a high demand for restoration services.

Global Automotive Restoration Market Competitive Landscape

Company

Establishment Year
Headquarters
Hagerty, Inc.
1984
Traverse City, MI
Classic Car Restoration Club
1990
Minneapolis, MN
RK Motors Charlotte
2010
Charlotte, NC
C&N Classic Car Restorations
1995
London, UK
Classic Motor Cars
1993
Bridgnorth, UK

Classic Car Restoration Club: The Practical Classics Classic Car & Restoration Show 2024will take place from March 22-24at the NEC in Birmingham. This significant event for the global automotive restoration market will feature over1,000 carsand participation from more than150 car clubs. Attendees can enjoy live restorations and workshops, reflecting the growing interest in DIY restoration and online learning initiatives offered by the Classic Car Restoration Club.

Hagerty, Inc.: In 2023, Hagerty expanded its services to Australia by partnering with a local restoration shop in Melbourne. This strategic move aims to capture the growing demand for classic car restoration in the Asia- Pacific region and is expected to generate $10 million in annual revenue, with plans to expand to other Australian cities by 2025

Global Automotive Restoration Industry Analysis

Global Automotive Restoration Market Growth Drivers

Increasing Popularity of Restomods: The rising demand for Restomodsclassic cars equipped with modern technologyhas become a significant growth driver for the Global Automotive Restoration Market. In 2023, Retromod accounted for a large portion of the market, driven by a younger demographic seeking the aesthetics of vintage cars combined with modern functionality. This trend is particularly strong in North America, where it has become a key focus at major automotive events like the SEMA Show.

Expansion of Classic Car Auctions: The increase in the number of classic car auctions globally has fueled the demand for high-quality restorations. In 2023, Barrett- Jackson reported record sales exceeding USD 190 million, with a significant portion attributed to restored vehicles. The rising popularity of auctions, coupled with the growing number of high-net-worth individuals investing in classic cars, continues to drive market growth.

Growing Affluent Customer Base: The expanding base of high-net-worth individuals (HNWIs) worldwide has significantly contributed to the automotive restoration market's growth. In 2023, the Knight Frank Wealth Report highlighted a 7% increase in the global HNWI population, with many showing interest in classic car collections. This demographic's interest in restored vehicles as both a passion and an investment has bolstered market demand, particularly in North America and Europe.

Global Automotive Restoration Market Challenges

Supply Chain Disruptions: The global supply chain disruptions that began in 2021 continue to impact the availability of parts and materials necessary for automotive restoration. In 2023, several restoration shops reported delays of up to 6 months in acquiring essential components, particularly for rare or out-of-production vehicles. This challenge has led to project delays and increased costs, affecting customer satisfaction and potentially deterring future business. The ongoing geopolitical tensions and material shortages are expected to further strain the supply chain.

Skilled Labor Shortage: The automotive restoration industry is facing a shortage of skilled labor, particularly in highly specialized areas such as engine rebuilding and bodywork. According to a 2023 report by the Automotive Restoration Market Association, the industry is experiencing a 15% decline in the availability of experienced craftsmen, as many are reaching retirement age without a corresponding influx of new talent. This shortage has led to increased labor costs and longer project timelines, presenting a significant challenge for restoration businesses.

Global Automotive Restoration Market Government Initiatives

FAME India Phase II: This initiative promotes the adoption of electric and hybrid vehicles by offering upfront incentives for purchases. It aims to support the electrification of public and shared transportation, which can indirectly benefit restoration projects that convert classic cars into electric vehicles. The scheme has a budget of 10,000 crores and focuses on expanding the electric vehicle market in India.

Production Linked Incentive (PLI) Scheme: This scheme provides financial incentives to boost domestic manufacturing of advanced automotive technologies, including electric vehicles. It aims to improve access to modern parts and technologies for restoration businesses, thereby supporting the automotive restoration market.

Global Automotive Restoration Market Future Outlook

The Global Automotive Restoration Market is expected to experience sustained growth over the next five years, driven by the increasing popularity of Restomods, the expansion of classic car auctions, and the rising number of affluent collectors.

Future Market Trends

Integration of Modern Technology: Over the next five years, the automotive restoration market will see a growing trend of integrating modern technology into classic vehicles. This will include the use of electric drivetrains, advanced infotainment systems, and modern safety features in vintage cars. As demand for environmentally friendly Restomods increases, restoration shops will focus on offering these upgrades, catering to a younger demographic that values both sustainability and classic aesthetics.

Expansion of Virtual Restoration Services: The future will see a rise in virtual restoration services, where customers can oversee the restoration of their vehicles online. Companies will offer virtual consultations, progress updates, and even augmented reality (AR) previews of completed restorations. This trend will be driven by the global nature of the market, allowing customers from different regions to engage with restoration shops without the need for physical presence. The convenience and accessibility of virtual services will attract a wider customer base.
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