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Motor Vehicle Dismantling and Used Parts Wholesaling in Australia - Market Research Report (2014-2029)

Nicholas Larter Nicholas Larter Melbourne, Australia Last Updated: November 2024 ANZSIC F3505

Revenue

$1.3bn

2024-25

$1.3bn

Past 5-Year Growth

Profit

$XX.Xm

Employees

5,345

Businesses

1,723

Wages

$XXX.Xm

Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry analysis

The Motor Vehicle Dismantling and Used Parts Wholesaling industry has contended with difficult conditions despite a boost in the number of cars on the road. Manufacturers are constructing vehicles with more advanced crash avoidance technology, reducing the severity of accidents on Australian roads and lowering demand from smash repairers. When accidents occur, more Australians are using insurance policies to cover repairs. Since insurance agencies typically prefer replacement over repair, fewer spare or refurbished parts are required. Even compared to a low base year of 2019-20, revenue is expected to contract at an annualised 1.1% over the five years to 2024-25, to total $1.28 billion. This figure includes a 3.4% drop in revenue in the current year, notably resulting from easing second-hand car prices, which make replacing a troublesome vehicle more appealing than repairing it.

Trends and Insights

  • Improved safety features have led to lower demand from smash repairers. With fewer accidents, wholesalers are seeing less demand for their products, as smash repairers need fewer used parts for vehicle repairs.
  • Swelling demand for car insurance policies has limited the need for second-hand parts. Insurance companies prefer to fix the damage with a brand-new part instead of repairing it using a second-hand piece.
  • Used parts wholesalers locate themselves in areas of high automotive activity. Since this coincides with population distribution, most wholesalers are located in New South Wales, Victoria and Queensland.
  • External competition from foreign suppliers is ramping up. Foreign parts producers supplying parts at relatively lower prices are hindering industry demand.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $1.3bn in 2024.

Trends and Insights

A strengthening Australian dollar has incentivised mechanics and stores to import replacement parts

  • The appreciation of the Australian dollar has harmed used parts wholesalers, as imported new cars and parts have become more affordable. These lower prices apply not only to generic parts sold by retailers like Supercheap Auto and Repco but also to certified parts, including those imported by vehicle manufacturers.
  • Additional trends and insights available with purchase
Motor Vehicle Dismantling and Used Parts Wholesaling in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

A growing number of motor vehicles in the country will offset other forms of demand declines

  • Motor vehicle manufacturers are continually introducing new safety features, leading to a growing share of vehicles on the road being equipped with advanced crash avoidance technology. At the same time, government campaigns targeting risky behaviours – like speeding, texting and drunk driving – will reduce accident rates even more.

Biggest companies in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia

Company
Market Share (%)
2025
Revenue ($short_0)
2025

There are no companies that hold a large enough market share in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry for IBISWorld to include in this product.

Products & Services Segmentation

Motor Vehicle Dismantling and Used Parts Wholesaling in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Recycled and refurbished parts and Used parts . Recycled and refurbished parts is the largest segment of the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia.

Trends and Insights

A higher number of vehicles on the road has driven demand for used parts

  • Industry wholesalers sell various used parts obtained from dismantled vehicles. These include car panels, fenders and headlights for crash repairs; mechanical parts like engines, drive trains and suspension systems; and electronic parts like radio or climate control systems.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators primarily dismantle motor vehicles or motorcycles, and wholesale the used parts obtained in the dismantling process. Industry operators can also wholesale used motor vehicle parts online. However, pure online wholesalers are excluded from the industry.

What's included in this industry?

Used partsRecycled products

Companies

Purchase this report to view all major companies in this industry.

Related Terms

ATTRITION RATEDISMANTLING 3D PRINTING

Industry Code

ANZSIC 2006

ANZSIC 3505 - Motor Vehicle Dismantling and Used Parts Wholesaling in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Improved safety features have led to lower demand from smash repairers. With fewer accidents, wholesalers are seeing less demand for their products, as smash repairers need f...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Swelling demand for car insurance policies has limited the need for second-hand parts. Insurance companies prefer to fix the damage with a brand-new part instead of repairing...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Used parts wholesalers locate themselves in areas of high automotive activity. Since this coincides with population distribution, most wholesalers are located in New South Wa...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

External competition from foreign suppliers is ramping up. Foreign parts producers supplying parts at relatively lower prices are hindering industry demand.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The Motor Vehicle Dismantling and Used Parts Wholesaling industry has no Major Companies. The highly fragmented nature of the market and the plethora of small-scale businesse...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024

Detailed analysis

    External Environment

    Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

    Analyst insights

    The vehicle dismantling service segment is highly regulated. Dismantlers must keep registers to record the acquisition and disposal of motor vehicles, prescribed parts and ac...

    In this chapter

    • External Drivers
    • Regulation & Policy
    • Assistance

    Key metrics

    • Regulation & policy level and trend
    • Assistance level and trend

    Charts

    • Regulation & Policy historical data and forecast (2014-2029) 
    • Assistance historical data and forecast (2014-2029) 

    Detailed analysis

    • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
    • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
    • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

    Financial Benchmarks

    View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

    Analyst insights

    Consumers have elected to use second-hand parts in an effort to save money amid economic stresses. Increased demand for these products has allowed wholesalers to elevate thei...

    In this chapter

    • Cost Structure
    • Financial Ratios
    • Key Ratios

    Key metrics

    • Profit margin, and how it compares to the sector-wide margin
    • Average wages, and how it compares to the sector-wide average wage
    • Largest cost component as a percentage of revenue
    • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

    Charts

    • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
    • Investment vs. share of economy

    Data tables

    • Cash Flow & Debt Service Ratios (2014-2029)
    • Revenue per Employee (2014-2029)
    • Revenue per Enterprise (2014-2029)
    • Employees per Establishment (2014-2029)
    • Employees per Enterprise (2014-2029)
    • Average Wage (2014-2029)
    • Wages/Revenue (2014-2029)
    • Establishments per Enterprise (2014-2029)
    • IVA/Revenue (2014-2029)
    • Imports/Demand (2014-2029)
    • Exports/Revenue (2014-2029)

    Detailed analysis

    • Trends in the cost component for industry operators and their impact on industry costs and profitability 

    Key Statistics

    Industry Data

    Data Tables

    Including values and annual change:

    • Revenue (2014-2029)
    • IVA (2014-2029)
    • Establishments (2014-2029)
    • Enterprises (2014-2029)
    • Employment (2014-2029)
    • Exports (2014-2029)
    • Imports (2014-2029)
    • Wages (2014-2029)

    Top Questions Answered

    Unlock comprehensive answers and precise data upon purchase. View purchase options.

    What is the market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia in 2024?

    The market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is $1.3bn in 2024.

    How many businesses are there in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry in 2024?

    There are 1,723 businesses in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia, which has grown at a CAGR of 4.1 % between 2019 and 2024.

    Has the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia grown or declined over the past 5 years?

    The market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia has been declining at a CAGR of 1.1 % between 2019 and 2024.

    What is the forecast growth of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia over the next 5 years?

    Over the next five years, the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is expected to grow.

    What does the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia include?

    Used parts and Recycled products are part of the Motor Vehicle Dismantling and Used Parts Wholesaling industry.

    How competitive is the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia?

    The level of competition is moderate and increasing in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia.

    Related Industries

    Widen your competitive advantage with related industries

    Competitors

    • Motor Vehicle New Parts Wholesaling in Australia
    • Motor Vehicle Dealers in Australia

    Complementors

    • Motor Vehicle Engine and Parts Repair and Maintenance in Australia
    • Motor Vehicle Parts Retailing in Australia

    International industries

    • Auto Parts Wholesaling in the US
    • Used Car Parts Wholesaling in the US
    • Auto Parts Wholesaling in Canada
    • Motor Vehicle New Parts Wholesaling in New Zealand
    • Motor Vehicle Parts Wholesaling in the UK

    View all industries in Australia

    Methodology

    How are IBISWorld reports created?

    IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

    Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

    IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

    What data sources do IBISWorld analysts use?

    Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

    Key data sources in Australia include:

    • Australian Bureau of Statistics
    • Australian Taxation Office
    • Australian Securities & Investments Commission

    Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

    These sources include:

    • Industry and trade associations
    • Industry federations or regulators
    • Major industry players annual or quarterly filings

    Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

    How does IBISWorld forecast its data?

    IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

    IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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