Tough breaks: Growth in disposable income has limited demand for used parts

Operators in the Motor Vehicle Dismantling and Used Parts Wholesaling industry have faced challenging conditions over the past five years. The average age of Australia's vehicle fleet has remained unchanged over the period, due to growing new vehicle sales and an improvement in the reliability of recently purchased vehicles. This trend has limited demand for industry parts over the period. Improved reliability has also extended the lifespan of existing vehicles, reducing demand for dismantling services. Growth in the number of vehicles fitted with crash-avoidance technology has reduced the likelihood of serious motor vehicle accidents. As a result, demand from smash repairers for used parts has grown only marginally over the period...read more.

Industry Statistics & Market Size
Revenue
$999m
Annual Growth 15-20
-0.9%
Forecast Growth 20-25
x.x%lock
Profit
x.x%lock
Employment
3,730
Businesses
1,271
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Falling costs of imported new parts has reduced demand for used parts over the past five years
  • New car technology, including crash-avoidance systems, has constrained industry demand
  • Profit margins are forecast to decrease as imported vehicles and parts continue to fall in price

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    Industry Report - Industry Key Buyers Chapter

    Low market share concentration characterises the industry, due to its high fragmentation and large number of small-scale players. In 2019-20, no industry operator is expected to account for over 5.0% of industry revenue. Over 99% of industry enterprises employ fewer than 20 employees, with over 45% of industry enterprises operating as non-employing businesses. While industry concentration is low, it has increased over the past five years. Larger players typically operate multiple locations within the one state. Greater size and capital backing have enabled larger industry operators to innovate and grow, bringing in additional business through convenient services such as online parts catalogues. Sma...purchase to read more.

    Additional Insights for the Motor Vehicle Dismantling and Used Parts Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Motor Vehicle Dismantling and Used Parts Wholesaling are:

  • Effective product promotion
  • Prompt delivery to market
  • Having a good technical knowledge of the product

    • IBISWorld analysts also discuss how external factors such as Average age of vehicle fleet and Demand from motor vehicle body, paint and interior repair in the Motor Vehicle Dismantling and Used Parts Wholesaling industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Motor Vehicle Dismantling and Used Parts Wholesaling Industry?

    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.

    Industry Products
  • Recycled products
  • Used parts
    • Industry Activities
  • Dismantling motor vehicles
  • Wholesaling used motor vehicle parts
    • 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
  • Average age of vehicle fleet
  • Demand from motor vehicle body, paint and interior repair
  • Number of motor vehicles
  • Motor vehicle price index
  • Real household disposable income

    • Current Performance
  • Participation and profit
  • Demand trends
  • Smash repairers
  • Imported parts
  • Vehicle recycling
  • Chart: Revenue Growth

    • Industry Outlook
  • Participation and profit
  • Demand trends
  • Table: Motor Vehicle Dismantling and Used Parts Wholesaling Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Dismantling and Used Parts Wholesaling Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Motor Vehicle Electrical Services
  • Motor Vehicle Body, Paint and Interior Repair
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Consumers

    • Key Selling Industries
  • Commercial Vehicle Wholesaling
  • Consumers
  • Motor Vehicle Wholesaling

    • Products & Services
  • Used parts
  • Recycled products
  • Chart: Motor Vehicle Dismantling and Used Parts Wholesaling Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Motor vehicle mechanics
  • Households
  • Motor vehicle retailers and motor vehicle parts retailers
  • Smash repairers
  • Chart: Major Market Segmentation for the Motor Vehicle Dismantling and Used Parts Wholesaling 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 Dismantling and Used Parts Wholesaling

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Dismantling and Used Parts Wholesaling 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 Dismantling and Used Parts Wholesaling 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 Dismantling and Used Parts Wholesaling Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

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

    Jargon & Glossary

    Attrition Rate
  • A measurement of the estimated proportion of motor vehicles taken off the register. Also known as the scrappage or scrapping rate.
    • Autotrade
  • Guidelines for the automotive aftermarket regarding product information, numbering and bar coding, and E-messaging.
    • Oem
  • Original equipment manufacturer. OEM car parts are identical to those used when producing the vehicle.
    • What Our Customers Say
    Why buy this report?

    The Motor Vehicle Dismantling and Used Parts Wholesaling 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 Dismantling and Used Parts Wholesaling:
    • 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 Dismantling and Used Parts Wholesaling 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 Dismantling and Used Parts Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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