Australia Automotive Aftermarket Market To Surpass US$16 Billion By 2031 Owing To Growing Demand For Quality Aftermarket Services

The Australia automotive aftermarket provides products essential to maintain, repair, and enhance vehicle performance. It comprises replacement parts, accessories, lubricants, tires, batteries, repair services, and diagnostics. Some key products supplied in the aftermarket include spark plugs, brake pads, alternators, filters, and body parts. The demand for quality aftermarket services is rising in Australia due to the increasing average lifespan of vehicles.

Australia automotive aftermarket is estimated to be valued at US$ 9.88 billion 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 demand for aftermarket products and services is growing owing to the large vehicle parc in Australia and increasing repairs and maintenance needs of older vehicles. Australians are also opting for more premium parts which is fueling market revenue.

Technological advancements such as telematics solutions, data-driven diagnostics, and predictive maintenance are helping players offer value-added aftermarket services and gain an edge over competitors.

Market Trends

OEMs are expanding their operations in the independent aftermarket by acquiring wholesale/retail network chains. However, this is facing resistance from independent players.

Adoption of electric vehicles is gradually increasing in Australia, driving the demand for different aftermarket products like charging equipment and components with shorter replacement cycles.

 Market Opportunities

Non-mechanical services related to vehicle appearance, comfort & convenience present significant growth opportunities. Increased demand for customized/imported parts and accessories also provides opportunities for players.

Availability of real-time diagnostics data from connected vehicles will allow players to introduce predictive service programs and data-driven aftermarket solutions. This presents a major opportunity to improve service quality.

COVID-19 Impact On Australia Automotive Aftermarket Market Growth

The COVID-19 pandemic has significantly impacted the growth of the automotive aftermarket in Australia. During the initial lockdown phase in 2020, vehicle usage and mileage dramatically declined as people followed stay-at-home orders. This led to a plunge in demand for replacement parts and components. Shops also faced temporary closures or operated at limited capacity to adhere to social distancing norms. Supply chains were disrupted due to restrictions on domestic and cross-border transportation of goods.

However, as lockdowns eased, vehicle usage and mileage started increasing gradually. People preferred personal mobility over public transportation owing to fears of virus transmission. This fueled demand for vehicle servicing and repairs. While demand recovered post-lockdowns, supply chain issues continued to exert pressure on component availability. Rising vehicle ownership also supported the long-term demand outlook. Several workshops expanded service offerings such as disinfection services to boost customer confidence.

Going forward, the market is expected to grow steadily driven by factors such as rising vehicle parc, increasing complexities of modern vehicles and mileage expansion. However, supply chain constraints may continue to hamper short-term growth prospects to some extent. Workshops are focusing on training technicians to cope with evolving vehicle technologies. They are also enhancing digital services and strengthening inventory management to ensure seamless service delivery. Original equipment manufacturers are collaborating with workshops to streamline supply networks.

Australia Automotive Aftermarket Market In Geographical Regions

In terms of value, New South Wales holds the major share of the automotive aftermarket in Australia. It accounted for over 30% share due to the presence of a large vehicle parc, prosperous automotive industry and workshop infrastructure. Victoria is the second largest market driven by significant aftermarket spending from Melbourne city. Other high potential states include Queensland and Western Australia due to growing new vehicle sales leading to higher demand for replacement parts.

The automotive aftermarket in Northern Territory is projected to expand at the fastest pace during the forecast period. This can be attributed to factors such as rising vehicle ownership per capita, increasing spending power and sparse workshop network necessitating higher dependency on replacement parts imports from other regions. Remote areas also experience rapid wear and tear of vehicles demanding frequent repairs and component replacements. The market is poised to gain further momentum from infrastructure development projects and economic growth initiatives by the territorial government.

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Ravina Pandya, 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, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

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