The Australian automotive aftermarket refers to the secondary market of components, parts, accessories, and services that keep vehicles performing after the original sale. The aftermarket business encompasses replacement parts for wear and tear items such as tires, brakes, shocks, motors as well as collision parts and performance upgrades. Australia has a well-established automotive aftermarket industry supported by a large vehicle parc and hot climate conditions that accelerate component wear and tear.
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.
Need for frequent repairs and replacement of parts drives aftermarket demand in Australia. Additionally, increasing vehicle usage and mileage are key factors necessitating regular maintenance and repairs over the lifecycle of a vehicle.
Key Takeaways
Key players operating in the Australian automotive aftermarket are Denso Corporation, Hella KGaA Hueck & Co., Continental AG, Delphi Automotive, and ACDelco. These leading companies offer a wide product portfolio covering all major component categories from fuel and air intake to chassis, lighting, and electrical systems.
Key opportunities in the Australian automotive aftermarket include rising complex electronics architecture in new vehicles requiring specialized diagnostics equipment and services. Additionally, the growing used car market presents a large potential for independent garages and workshops catering to regular maintenance needs of budget-conscious consumers.
The Australian automotive aftermarket players are also exploring opportunities in international markets like New Zealand, Southeast Asia, and the Middle East to leverage their expertise and expand globally. Partnerships with overseas suppliers and distribution networks will help domestic players penetrate high-growth regions.
Market Drivers
The large vehicle parc in Australia estimated at over 20 million vehicles acts as a key driver for steady aftermarket demand. The hot climate conditions accelerate component wear and tear requiring more frequent part replacements. Additionally, the popularity of SUVs and pick-up trucks that see extensive off-road usage drives higher repairs and maintenance spending compared to passenger cars.
Market Restraints
Unclear regulations regarding the sale of non-compliant and counterfeit parts in Australia pose a restraint. Inferior or faulty components can damage vehicles and brands opting for the lowest price point. Additionally, independent workshops lacking official dealership certification and training face difficulties procuring genuine OEM spare parts. This pushes some consumers towards authorized dealers with higher maintenance costs.
Segment Analysis
The Australia automotive aftermarket market is dominated by the replacement parts segment. Vehicle owners require regular periodic maintenance and replacement of old parts, which drives the demand for replacement parts such as oil filters, wipers, gaskets, seals, hoses, ignition parts, and other vehicle components. Within the replacement parts segment, engine components are the leading sub-segment. Critical components such as sensors, valves, filters, and piston rings require frequent replacement due to regular wear and tear. This makes engine components the highest revenue generating sub-segment in the Australia automotive aftermarket industry.
The automotive accessories segment is also growing significantly. Customization and personalization of vehicles according to changing buyer preferences is propelling the accessories segment. Rising demand for internal and external accessories such as leather interiors, lighting, entertainment systems, exterior body kits and spoilers is boosting the sales of automotive accessories.
Global Analysis
The Asia Pacific region dominates the global automotive aftermarket industry in terms of value and volume. Rapid growth in vehicle parc coupled with increased mileage is driving the replacement part segment in Asia Pacific countries. China represents the largest market followed by India. In terms of value, the Europe automotive aftermarket market is second due to substantial vehicle usage and established infrastructure for vehicle maintenance and repair. Germany and the UK account for major shares of the European aftermarket. North America, especially the US, generates high revenues owing to a large number of older vehicles requiring regular repairs and servicing. The high vehicle density renders significant demand for replacement parts and accessories in major regional markets across the globe.
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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