End of the road: Revenue significantly declines as local vehicle manufacturing winds down

The Automotive Electrical Component Manufacturing industry has struggled to compete against increasing import penetration throughout the automotive supply chain over the past five years. Demand for industry products has weakened over the period due to rising import penetration and changing consumer preferences in downstream industries. The negative effects of these trends throughout the entire supply chain have hit the industry hard. Industry revenue is expected to decline at an annualised 15.1% over the five years through 2017-18, to $457.3 million.The industry has faced falling domestic demand over the past five years, while import penetration has increased. The local automotive supply chain has been negatively affected by its comparatively high cost of production...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The withdrawal of local vehicle manufacturers has negatively affected the automotive supply chain
  • The high cost of Australian production makes it difficult for firms to develop export markets
  • Domestic demand from car manufacturers will almost entirely dissipate over the next five years
  • Industry Report - Industry Investment Chapter

    The Automotive Electrical Component Manufacturing industry is characterised by a moderate level of capital intensity. For every dollar paid as wages, an estimated $0.14 is spent on capital investment. Capital intensity varies for companies operating at different volumes of production. Large-scale manufacturers tend to produce components through automated processes, using a high amount of capital with minimal reliance on labour. In contrast, the majority of enterprises are smaller operators with lower automation. These types of establishments generally have higher labour intensity, bringing down the industry’s level of capital intensity to a moderate level. Capital intensity has fallen over the past five years as some large-scale manufacturers have downsized their Australian operations. Ind...purchase to read more.

    Additional Insights for the Automotive Electrical Component Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Automotive Electrical Component Manufacturing Industry are

  • Establishment of export markets
  • Successful industrial relations policy
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from motor vehicle manufacturing and Number of motor vehicles in the Automotive Electrical Component Manufacturing industry impact industry performance..

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    What's in this report

    What is the Automotive Electrical Component Manufacturing Industry?

    Industry operators primarily manufacture automotive electrical components such as air conditioners and demisters. Operators supply components to motor vehicle manufacturers and also the aftermarket. The manufacturing of batteries is excluded from the industry.

    Industry Products
  • Other non-engine parts
  • Automotive electrical components
  • Heaters and demisters
  • Engine-related parts
  • Industry Activities
  • Automotive electrical component (excluding batteries)
  • Automotive electrical component factory reconditioning
  • Automotive wire
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from motor vehicle manufacturing
  • Number of motor vehicles
  • Trade-weighted index
  • Consumer sentiment index

  • Current Performance
  • Structural problems
  • Foreign competition
  • Profit and exports
  • Chart: Revenue Growth

  • Industry Outlook
  • Manufacturing demise
  • Export markets
  • New direction
  • Table: Automotive Electrical Component Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Automotive Electrical Component Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Manufacturing
  • Motor Vehicle New Parts Wholesaling

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing

  • Products & Services
  • Other non-engine parts
  • Automotive electrical components
  • Engine-related parts
  • Heaters and demisters
  • Chart: Automotive Electrical Component Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic motor vehicle manufacturers
  • Aftermarket
  • Export markets
  • Chart: Major Market Segmentation for the Automotive Electrical Component Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Automotive Electrical Component Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Automotive Electrical Component Manufacturing Industry

  • Industry Globalization
    Robert Bosch (Australia) Proprietary Limited, DENSO Automotive Systems Australia Pty Ltd,
  • Table: Robert Bosch (Australia) Proprietary Limited - financial performance
  • Table: DENSO Automotive Systems Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Automotive Electrical Component Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Automotive Electrical Component Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The market in which service parts or replacement parts are sold.
  • Diode
  • A component used to convert the electrical output produced by a vehicles alternator from alternating current (AC) to direct current (DC). DC power is then used to power the vehicles electronics.
  • Just-In-Time
  • Supply chain model predicated on delivery of parts to be used immediately in production, minimising inventory costs.
  • Original Equipment
  • Parts manufactured for motor vehicle manufacturers and their dealers, rather than for the aftermarket.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Automotive Electrical Component Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Automotive Electrical Component Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Automotive Electrical Component Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Automotive Electrical Component Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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