Picking up speed: Industry revenue growth returns as the number of motor vehicles increases

The Motor Vehicle Engine and Parts Repair and Maintenance industry has grown steadily over the past five years. This performance is largely due to consistent growth in the number of motor vehicles, coupled with increases in real household disposable income. The continual reduction in the cash rate has encouraged new car purchases, widening the industry's client base. However, new vehicles are often purchased with accompanying capped-price servicing, which has slightly constrained industry revenue growth over the period. The average age of the vehicle fleet has remained largely stable over the past five years, reducing potential fluctuations in revenue. Industry revenue is expected to grow at an annualised 2.5% over the five years through 2017-18, to an estimated $16.1 billion...read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
72,402
Businesses
23,154
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry operators have had to upgrade equipment and upskill workers to adapt to vehicle technology
  • Increased price competition has reduced profit margins over the past five years
  • The average age of Australia’s vehicle fleet is expected to increase, requiring more repairs

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    Industry Report - Industry Investment Chapter

    The industry exhibits moderate capital intensity. The industry is expected to spend an estimated $7.83 on wages for every dollar spent on capital in 2017-18. Capital intensity varies significantly among operators. Larger automotive repair centres often use heavy machinery and sophisticated technology to repair vehicles and conduct major services, typically observing higher capital intensity than small-scale backyard operators. Repair equipment tends to have a long service life, limiting depreciation costs. Operators are increasingly required to purchase expensive equipment, particularly diagnostic equipment.The majority of the tasks involved in the industry require high labour usage. Sma...purchase to read more.

    Additional Insights for the Motor Vehicle Engine and Parts Repair and Maintenance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Motor Vehicle Engine and Parts Repair and Maintenance Industry are

  • Proximity to key markets
  • Access to highly skilled workforce
  • Provision of superior after-sales service

    • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Consumer sentiment index in the Motor Vehicle Engine and Parts Repair and Maintenance industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Motor Vehicle Engine and Parts Repair and Maintenance Industry?

    Industry operators primarily repair motor vehicle engines and parts, and perform the regular maintenance and servicing of vehicles. Smash repairs and electrical repairs are not included in the industry.

    Industry Products
  • Motor vehicle servicing
  • Engine repairs
  • Transmission repairs
  • Muffler, brake and exhaust repairs
  • Other repairs
    • Industry Activities
  • Engine repair or reconditioning
  • Clutch or brake repair
  • Radiator repair
  • Muffler repair
  • Gearbox repair
  • General automotive repair
  • Transmission repair
  • Trailer repair (boat or box)
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Consumer sentiment index
  • Average age of vehicle fleet
  • Real household disposable income

    • Current Performance
  • Participation and profit
  • Demand trends
  • Changing fleet characteristics
  • Warranty regulations
  • Chart: Revenue Growth

    • Industry Outlook
  • Participation and profit
  • Demand trends
  • Environmental and technology trends
  • Table: Motor Vehicle Engine and Parts Repair and Maintenance Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Engine and Parts Repair and Maintenance Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Motor Vehicle Body, Paint and Interior Repair
  • Road Freight Transport
  • Consumers

    • Key Selling Industries
  • Motor Vehicle Dismantling and Used Parts Wholesaling
  • Motor Vehicle New Parts Wholesaling

    • Products & Services
  • Motor vehicle servicing
  • Engine repairs
  • Muffler, brake and exhaust repairs
  • Other repairs
  • Transmission repairs
  • Chart: Motor Vehicle Engine and Parts Repair and Maintenance Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Households and individuals
  • Businesses and government
  • Transport operators
  • Chart: Major Market Segmentation for the Motor Vehicle Engine and Parts Repair and Maintenance Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Engine and Parts Repair and Maintenance

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Engine and Parts Repair and Maintenance Industry

    • Industry Globalization

    Major Companies

    There are no major players in this industry. This report includes analysis of other companies.

    Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Engine and Parts Repair and Maintenance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Motor Vehicle Engine and Parts Repair and Maintenance Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Hybrid Vehicles
  • Usually referring to electric-hybrids, which run on an electric battery and a gasoline engine. They are more fuel efficient than a standard car.
    • Liquefied Petroleum Gas (Lpg)
  • A product of petroleum gases, principally propane and butane. It is a replacement to petrol and must be stored under pressure to keep it in a liquid state.
    • On-Board Diagnostic Systems (Obd)
  • A vehicle’s self-diagnosing system that controls engine functions and diagnoses engines problems. Most cars and trucks are manufactured with an OBD.
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    Why buy this report?

    IBISWorld’s Motor Vehicle Engine and Parts Repair and Maintenance market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Engine and Parts Repair and Maintenance:
    • 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 Engine and Parts Repair and Maintenance 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 Engine and Parts Repair and Maintenance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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