The automotive aftermarket in Australia provides repair and maintenance services for vehicles across the country. It involves the distribution and sale of vehicle parts, components, tools, materials, supplies, and equipment required for repairing and maintaining vehicles post-purchase. Some of the common products included in this market are engine components, drive transmission and steering parts, suspension and braking components, electronics, equipment, and tools among others. The automotive aftermarket ensures safe and efficient functioning of vehicles throughout their lifespan. The growing vehicle fleet and increasing average age of vehicles are prompting higher spend on aftersales services in Australia.
Australia automotive aftermarket market is estimated to be valued at US$ 9.88 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Australia automotive aftermarket are Denso Corporation, Hella KGaA Hueck & Co., Continental AG, Delphi Automotive, ACDelco and Among Others.
The market provides opportunities for players in auto components export and manufacturing. Connected vehicle technologies are also opening up opportunities for electronic component suppliers and remote diagnostics service providers.
Advancement in connectivity solutions for vehicles including telematics and cloud-based services are enabling predictive maintenance and remote system monitoring. This is supporting the digital transformation of automotive aftermarket services.
Market Drivers
One of the key driver for the Australia automotive aftermarket is the increasing average age of vehicles. As vehicles age, the maintenance and repair requirements go up, driving greater spends in the aftermarket. According to various estimates, the average age of passenger vehicles in Australia is over 10 years currently. This high average age is conducive to the growth of automotive aftermarket business.
Current Challenges In Australia Automotive Aftermarket Market
The Australia automotive aftermarket is facing challenges such as shortage of skilled technicians and mechanics in the industry. Maintaining vehicles has become more complex with advanced technologies being used in modern vehicles. Finding technicians with expertise to work on such complex systems is difficult. Another challenge is supply chain disruptions caused due to the COVID pandemic. Movement restrictions and lockdowns impacted supplies of parts from overseas manufacturers. This led to increased lead times and costs for repairs. The shift towards electric vehicles also poses a challenge. Traditional retailers need to adapt their skills and infrastructure to support the servicing of electric powertrains. Overall, the industry needs to focus on skill development and workforce training to overcome these challenges.
SWOT Analysis
Strength: Strong domestic auto manufacturing industry in Australia provides opportunities for local aftermarket players.
Weakness: High costs of operating in Australia compared to other markets.
Opportunity: Growing demand for vehicle maintenance and repairs driven by the rising vehicle parc.
Threats: Increased competition from cheap auto parts imported from Asia.
Geographical Regions
In terms of value, the Australia automotive aftermarket is concentrated in the Eastern region comprising New South Wales, Victoria, Australian Capital Territory and Queensland. This region accounts for over 70% of the total market value due to high vehicle population and workshops in major cities.
Fastest Growing Region
The Western region of Australia including Western Australia and Northern Territory is expected to be the fastest growing region during the forecast period. This can be attributed to ongoing infrastructure projects, mining activities and rising disposable incomes in these regions leading to more vehicle purchases and subsequent need for repairs and maintenance.
What Are The Key Data Covered In This Australia Automotive Aftermarket Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Australia Automotive Aftermarket’s growth between 2024 and 2031.
:- Accurate calculation of the size of the Australia Automotive Aftermarket and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Australia Automotive Aftermarket Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Australia Automotive Aftermarket vendors
FAQ’s
Q.1 What are the main factors influencing the Australia Automotive Aftermarket?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Australia Automotive Aftermarket companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Australia Automotive Aftermarket’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile