Motor Vehicle Parts and Accessories Manufacturing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC C2319Revenue
$4.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
12,870
Businesses
1,168
Wages
$XXX.Xm
Motor Vehicle Parts and Accessories Manufacturing in Australia industry analysis
Motor vehicle parts and accessories manufacturers are struggling with intensifying import competition. More robust demand for smaller, more fuel-efficient imported vehicles is constraining production orders. Following structural changes in the Motor Vehicle Manufacturing industry, most parts and accessories businesses no longer manufacture components for passenger vehicles. These factors have prompted local manufacturers to shift focus toward the aftermarket for parts and accessories, relying less and less on local motor vehicle manufacturers. The pandemic has proven largely beneficial to this industry, driving both price and volume increases that have engendered industrywide growth in revenue and profitability. Revenue has grown at an annualised 2.0% over the five years through 2023-24 and is expected to total $4.7 billion in 2023-24, when revenue is expected to surge by 10.6% on the back of high output prices.
Trends and Insights
- Import penetration is intensifying. Downstream markets are opting for cheaper imports from countries like the United States and China with lower operating costs and greater economies of scale and scope.
- Global supply chain issues has helped boost demand for parts and accessories in the aftermarket. Demand for used cars surged, which is a positive trend for the industry because used cars usually require more replacement parts.
- Industry concentration relies heavily on population distribution. Manufacturers like to be close to downstream markets to save on transport costs.
- Motor vehicle parts and accessories manufacturers generally specialise in particular parts and accessories. This reduces the pool of internal competitors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.0 % over the past five years, to reach an estimated $4.7bn in 2024.
Trends and Insights
Demand from automotive parts dealers has kept manufacturers going
- Demand from automotive parts dealers represents the largest source of income for parts and accessories manufacturers. Activity in the automotive parts dealers market heavily relies on the aftermarket, where growth in the total number of registered motor vehicles in Australia drives production orders for new parts and accessories.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Prices will ease over the next few years, reducing industrywide revenue
- Demand for parts and accessories from the major truck makers with domestic manufacturing facilities like PACCAR, IVECO and Volvo and bus manufacturers like Volgren will continue to account for an important share of revenue growth. However, the industry is forecast to continue recent trends and increasingly rely on the aftermarket for parts and accessories.
Biggest companies in the Motor Vehicle Parts and Accessories Manufacturing in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
ARB | 398.2 | |
Arrowcrest | 47.8 | |
Mett | 41.4 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Body exterior parts, Chassis parts and Interior and safety parts. Body exterior parts is the largest segment of the Motor Vehicle Parts and Accessories Manufacturing in Australia.
Trends and Insights
The high prices of powertrain parts have weighed on demand
- Powertrain parts are the main components that generate and transfer power to the road, including radiators, transmission systems, pistons and flywheels.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Fibreglass Product Manufacturing in Australia
- Plastic Pipe and Plastic Packaging Material Manufacturing in Australia
- Motor Vehicle Manufacturing in Australia
- Wooden Furniture and Upholstered Seat Manufacturing in Australia
- Motor Vehicle Engine and Parts Repair and Maintenance in Australia
International industries
- Global Automobile Engine & Parts Manufacturing
- Global Auto Parts & Accessories Manufacturing
- Automobile Engine & Parts Manufacturing in the US
- Automobile Steering & Suspension Manufacturing in the US
- Automobile Brakes Manufacturing in the US
Table of Contents
About this industry
Industry definition
Industry companies manufacture non-electrical motor parts and accessories. These companies supply parts and accessories to motor vehicle manufacturers or the aftermarket. The industry also includes the reconditioning of factory engine on a changeover basis, but excludes the manufacturing of automotive engines, motor vehicle tyres, car seats, windscreens or any part entirely made out of plastic or fibreglass.
What's included in this industry?
Powertrain partsChassis partsAccessoriesBody exterior partsInterior and safety partsTruck and bus partsCompanies
ARBArrowcrestMettPurchase this report to view all 3 major companies in this industry.
Related Terms
ORIGINAL EQUIPMENTTIER-ONE SUPPLIERSAUTOMOTIVE TRANSFORMATION SCHEME (ATS)Industry Code
ANZSIC 2319 - Motor Vehicle Parts and Accessories Manufacturing 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
Import penetration is intensifying. Downstream markets are opting for cheaper imports from countries like the United States and China with lower operating costs and greater e...
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
Global supply chain issues has helped boost demand for parts and accessories in the aftermarket. Demand for used cars surged, which is a positive trend for the industry becau...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
Industry concentration relies heavily on population distribution. Manufacturers like to be close to downstream markets to save on transport costs.
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
Motor vehicle parts and accessories manufacturers generally specialise in particular parts and accessories. This reduces the pool of internal competitors.
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 conclusion of local passenger vehicle manufacturing adversely impacted several businesses. ARB shielded itself from this phenomenon primarily because of its focus on cate...
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
- Overview of ARB's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Arrowcrest's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Mett's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for ARB, and factors influencing its performance in the industry
- Description and key data for Arrowcrest, and factors influencing its performance in the industry
- Description and key data for Mett, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry benefited from the Automotive Transformation Scheme (ATS) until 2020. The scheme assisted motor vehicle parts and accessories manufacturers to transition into a ...
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
The pandemic allowed a sharp increase in profit. Manufacturers were able to capitalise on beneficial demand trends to lift their prices over and above rising costs of inputs ...
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)
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Motor Vehicle Parts and Accessories Manufacturing industry in Australia in 2024?
The market size of the Motor Vehicle Parts and Accessories Manufacturing industry in Australia is $4.7bn in 2024.
How many businesses are there in the Motor Vehicle Parts and Accessories Manufacturing in Australia industry in 2024?
There are 1,168 businesses in the Motor Vehicle Parts and Accessories Manufacturing industry in Australia, which has grown at a CAGR of 3.7 % between 2019 and 2024.
Has the Motor Vehicle Parts and Accessories Manufacturing industry in Australia grown or declined over the past 5 years?
The market size of the Motor Vehicle Parts and Accessories Manufacturing industry in Australia has been growing at a CAGR of 2.0 % between 2019 and 2024.
What is the forecast growth of the Motor Vehicle Parts and Accessories Manufacturing industry in Australia over the next 5 years?
Over the next five years, the Motor Vehicle Parts and Accessories Manufacturing industry in Australia is expected to decline.
What are the biggest companies in the Motor Vehicle Parts and Accessories Manufacturing market in Australia?
The biggest companies operating in the Motor Vehicle Parts and Accessories Manufacturing market in Australia are ARB, Arrowcrest and Mett
What does the Motor Vehicle Parts and Accessories Manufacturing in Australia include?
Powertrain parts and Chassis parts are part of the Motor Vehicle Parts and Accessories Manufacturing industry.
Which companies have the highest market share in the Motor Vehicle Parts and Accessories Manufacturing in Australia?
The company holding the most market share in Australia is ARB.
How competitive is the Motor Vehicle Parts and Accessories Manufacturing industry in Australia?
The level of competition is moderate and increasing in the Motor Vehicle Parts and Accessories Manufacturing industry in Australia.
