by The automotive Aftermarket in Australia is a thriving valued at over $12 billion annually. As the number of registered vehicles on Australian roads continues to grow each year, the demand for Aftermarket automotive parts and services also rises. Currently, there are over 19 million registered vehicles in the country according to data from the Australian Bureau of Statistics. With such a large vehicle parc, consumers spent over $3 billion on replacement parts and $9 billion on servicing and repairs in the last financial year. The Aftermarket plays a vital role in keeping these millions of vehicles roadworthy through the supply of spare parts and maintenance services.
Growth In Aftermarket Parts Distribution Channels
Traditional distribution channels like automotive parts stores and workshops have been the backbone of the Aftermarket parts for decades. However, new online retail models are rapidly gaining popularity as Australian consumers embrace e-commerce. Purely online retailers offering competitive pricing, convenient delivery options, and a wider variety of parts are taking share away from brick-and-mortar stores. Major multinational e-tailers like Amazon are also entering the local automotive Aftermarket space, putting further pressure on physical retailers. Meanwhile, suppliers and manufacturers are redirecting their efforts towards building stronger direct-to-consumer online channels as shopping habits evolve. With more choice and convenience for buyers moving online, multi-channel retail strategies combining in-store and digital offerings are becoming crucial for traditional players to remain competitive.
Rising Demand For Service & Repair
Vehicle servicing accounts for the largest segment of the automotive Aftermarket at over $9 billion annually. Regular maintenance helps keep vehicles performing optimally and extends their useful lifespan, creating steady demand for service centers across the country. As Australia’s vehicle fleet ages, demand for repairs is also rising in proportion. The average age of passenger vehicles has increased to over 10 years according to ABS data. Older vehicles require more repairs and component replacements to keep them roadworthy. Areas like rural and regional Australia where public transportation options are limited further drive the service and repair business. The growing complexity of modern vehicles together with increasingly stringent emission testing standards also benefits service workshops specializing in diagnostic and repair skills.
Impact Of New Technologies
Advancing vehicle technologies are having a profound impact on the Australia automotive Aftermarket landscape. The growth of hybrid, electric and autonomous vehicles brings both opportunities and challenges. Traditional gasoline and diesel components will decline in demand as new powertrain types take hold. However, advanced components like batteries, electric motors and electronic control modules open up new s. At the same time, vehicles are becoming much more dependent on sophisticated electronics, presenting independent workshops with greater technical challenges to remain competent in diagnosis and repair. Those able to invest in specialist diagnostic tools and training programs will be best positioned to tap into more complex future repair needs. Connected vehicle technologies also enable new data-driven business models centered around predictive maintenance and remote diagnostics.
Rising Popularity of 4WDs and SUVs
Vehicles designed for off-road driving continue gaining popularity among Australian buyers. The crossover SUV segment in particular has seen exceptional growth, with these versatile vehicles now accounting for 1 in 3 new vehicles sold. Their predominance on Australian roads boosts demand for parts catering specifically for 4WD and SUV models. Features like increased ground clearance, all-wheel drive systems, heavy-duty suspensions and larger tires distinguish this category from conventional passenger cars. Specialist Aftermarket companies focused on providing replacement components, upgrade accessories and services adapted for off-road driving requirements are flourishing accordingly. Independent 4WD workshops able to expertly service these more demanding vehicles also see increased business. As Australians continue to embrace the lifestyle versatility of 4WDs and SUVs, their prevalence ensures a robust outlook for supporting Aftermarket.
Growth Areas For The Australian Aftermarket
With demand drivers like a larger vehicle parc, evolving shopping channels, growing service needs from older and newer technology vehicles as well as rising SUV adoption, opportunities exist across the Australia automotive Aftermarket landscape. Online retail represents a major focus for investment and multi-channel strategies. Independent workshops enhancing capabilities around diagnostic technology and specialist skills are well-placed. Electric and hybrid component supply will emerge as future growth areas. Customization for 4WDs and SUVs also have potential. Meanwhile data-driven servicing solutions promise new revenue streams. As the Aftermarket keeps pace with road travel trends in Australia, innovation and adaptability will be keys to prospering in this thriving well into the future.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc. LinkedIn Profile
