Powered up: New cars increasingly contain complex electronics, sparking demand

The Motor Vehicle Electrical Services industry has grown over the past five years, as industry operators have benefited from rising disposable incomes and an expanding number of motor vehicles on Australian roads. Higher disposable incomes have made electrical vehicle repairs more affordable, while the expanding vehicle fleet has caused the market for auto electrical services to continue to grow. However, motor vehicle dealers are increasingly servicing new cars with advanced electrical and electronic components, constraining revenue growth. Overall, industry revenue is expected to grow at an annualised 1.5% over the five years through 2018-19, to $2.1 billion. This includes an anticipated 1.7% rise in the current year...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
1.5%
Forecast Growth 19-24
Profit
Employment
9,746
Businesses
3,165
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increases in disposable incomes and the number of motor vehicles have boosted industry revenue growth
  • Hybrid vehicles have more electrical components, which has boosted demand for the industry
  • Competition from motor vehicle dealers and mechanics is forecast to constrain industry profit margins
  • Industry Report - Starting a New Business Chapter

    New entrants can commence operations with a small outlay on capital equipment, as the industry is largely based on the knowledge auto electricians provide. However, the entrant must have strong business acumen and an intimate understanding of their trade, customers and competition to be successful. This type of understanding typically comes with experience in the industry.While new entrants can build their own business, some entrants acquire the operations of an existing business. Acquiring an existing enterprise is a more expensive way to enter the industry, as the entrant will be paying for the existing customer base alongside regular capital outlays. The...purchase to read more.

    Additional Insights for the Motor Vehicle Electrical Services Industry

    IBISWorld has determined the most important Key Success Factors for the Motor Vehicle Electrical Services are:

  • Recommendation/accreditation from authoritative source
  • Having links with suppliers
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Motor vehicle price index in the Motor Vehicle Electrical Services industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Electrical Services Industry?

    Industry operators primarily perform automotive electrical repairs and install automotive electrical products. General non-electrical motor vehicle repairs or body repairs are not included in the industry.

    Industry Products
  • General electrical services
  • Air conditioning services
  • Electronic fuel injection services
  • Wholesale sales
  • Other services
  • Industry Activities
  • Auto-electrical garage operation
  • Automotive electrical services
  • Automotive electrical repairs and maintenance
  • Automotive electrical systems installation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Motor vehicle price index
  • Real household disposable income
  • Average age of vehicle fleet

  • Current Performance
  • Participation and profit
  • Demand trends
  • Vehicle technology
  • Increasing competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Demand trends
  • Vehicle technology
  • Boost to competitiveness
  • Table: Motor Vehicle Electrical Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Electrical Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Dealers
  • Motor Vehicle Body, Paint and Interior Repair
  • Consumers

  • Key Selling Industries
  • Automotive Electrical Component Manufacturing
  • Motor Vehicle Dismantling and Used Parts Wholesaling
  • Motor Vehicle New Parts Wholesaling

  • Products & Services
  • General electrical services
  • Air conditioning services
  • Electronic fuel injection services
  • Wholesale sales
  • Other services
  • Chart: Motor Vehicle Electrical Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Commercial operators
  • Fleet operators
  • Marine operators
  • Chart: Major Market Segmentation for the Motor Vehicle Electrical Services 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 Motor Vehicle Electrical Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Electrical Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Electrical Services 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 Motor Vehicle Electrical Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Auto Electrician
  • Auto electricians diagnose and repair faults on electronically controlled vehicle systems. They also install and service electrical parts and accessories.
  • Electronic Control Unit
  • An onboard computer that controls the engine. It is part of the vehicle management system.
  • Hybrid Vehicle
  • Vehicle that runs on an electric battery and petrol. They are more fuel-efficient than a standard car.
  • What Our Customers Say

    Why buy this report?

    The Motor Vehicle Electrical Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Motor Vehicle Electrical Services:
    • 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 Motor Vehicle Electrical Services 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 Motor Vehicle Electrical Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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