Motor Vehicle Dismantling and Used Parts Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: June 2023
ANZSIC F3505Revenue
$926.1m
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,037
Businesses
1,732
Wages
$XXX.Xm
Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry analysis
The Motor Vehicle Dismantling and Used Parts Wholesaling industry has faced challenging conditions in recent times. Growth in the number of vehicles fitted with crash avoidance technology has reduced the likelihood of serious motor vehicle accidents. Hence, demand from smash repairers for used parts has withered. The pandemic and associated lockdown measures significantly reduced people's movement, minimising motor vehicle use and decreasing the need for dismantling and used parts wholesaling services. But a rising motor vehicle price index has discouraged people from purchasing new vehicles and parts, with consumers opting to buy used parts to fix their current vehicles. The average age of Australia's vehicle fleet has also increased, limiting demand falls for used auto parts, as older vehicles are more likely to need repairing. Overall, revenue has plunged at an annualised 5.2% over the past five years and is expected to total $926.1 million in 2023-24, when revenue is expected to sink by 1.7%.Internal competition has intensified as more local sole traders have competed for market share. External competition has also expanded as the motor vehicle market has become more globalised. Rising competition has placed downward pressure on industry prices as businesses have competed for demand. Purchase expenses have also strengthened mainly because of global supply chain disruptions in the motor vehicle sector, which has caused profitability to slump.Revenue is forecast to return to growth over the five years through 2028-29, rising at an annualised 1.0% to an estimated $972.6 million. New car sales are set to pick up, negatively influencing demand for motor vehicle dismantling and used parts wholesaling. Disposable incomes are also set to swell in the coming years, boosting the affordability of new cars and parts and reducing demand growth for used parts. Nonetheless, a hike in the number of motor vehicles will boost overall demand for used parts wholesaling and dismantling services.
Trends and Insights
- Reduced vehicle use and more safety features in vehicles have caused demand for used parts to drop. But a hike in the number of vehicles on Australian roads and an ageing vehicle fleet have limited this slump.
- The number of motor vehicles on Australian roads has steadily accelerated. The larger industry customer pool has ramped up demand for used parts.
- Industry enterprises locate themselves in areas of high automotive activity. Since this coincides with population distribution, New South Wales, Victoria and Queensland house most industry businesses.
- Industry internal competition is intensifying with significant growth in enterprise numbers. Industry wholesalers compete with each other based on price, quality of service and parts availability.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 5.2 % over the past five years, to reach an estimated $926.1m in 2023.
Trends and Insights
Industry businesses have benefited from the rising number of motor vehicles on Australian roads
- A higher number of vehicles has boosted the need for used parts.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand from the increasing number of motor vehicles will offset other forms of demand declines
- Going forward, more vehicles will be fitted with advanced crash avoidance technology as motor vehicle manufacturers continue to develop new safety features.
Biggest companies in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
ACM Parts Pty Ltd | 9.3 | |
U-Pull-It | 9.3 |
To view the market share and analysis for all 2 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 Recycled products and Used parts . Recycled products is the largest segment of the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia.
Trends and Insights
More vehicles on Australian roads have boosted demand for used parts
- Industry wholesalers sell various used parts obtained through the dismantling process, comprising crash repair parts, including car panels, fenders, grilles and headlights; mechanical parts, including engines, drivetrains and suspension parts; and electrical parts.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Motor Vehicle New Parts Wholesaling in Australia
- Motor Vehicle Dealers in Australia
Complementors
- Motor Vehicle Engine and Parts Repair and Maintenance in Australia
- Motor Vehicle Parts Retailing in Australia
International industries
- Auto Parts Wholesaling in the US
- Used Car Parts Wholesaling in the US
- Auto Parts Wholesaling in Canada
- Motor Vehicle New Parts Wholesaling in New Zealand
- Motor Vehicle Parts Wholesaling in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Used partsRecycled productsCompanies
ACM Parts Pty LtdU-Pull-ItPurchase this report to view all 2 major companies in this industry.
Related Terms
ATTRITION RATEDISMANTLING 3D PRINTINGIndustry Code
ANZSIC 3505 - Motor Vehicle Dismantling and Used Parts Wholesaling 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
Reduced vehicle use and more safety features in vehicles have caused demand for used parts to drop. But a hike in the number of vehicles on Australian roads and an ageing veh...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
The number of motor vehicles on Australian roads has steadily accelerated. The larger industry customer pool has ramped up demand for used parts.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
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 enterprises locate themselves in areas of high automotive activity. Since this coincides with population distribution, New South Wales, Victoria and Queensland house...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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
Industry internal competition is intensifying with significant growth in enterprise numbers. Industry wholesalers compete with each other based on price, quality of service a...
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 2018-2023
- 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 industry has no Major Companies. The highly fragmented nature of the industry and the plethora of small-scale businesses hinder any single player’s ability to gain signif...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of ACM Parts Pty Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of U-Pull-It's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for ACM Parts Pty Ltd, and factors influencing its performance in the industry
- Description and key data for U-Pull-It, 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 vehicle dismantling service segment of the industry is highly regulated. This is primarily done to avoid the disposal of stolen vehicles and parts.
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Purchase costs have increased in line with the rising motor vehicle price index. When vehicle prices strengthen, wholesalers are forced to source parts at higher costs.
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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 Dismantling and Used Parts Wholesaling industry in Australia in 2024?
The market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is $926.1m in 2024.
How many businesses are there in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry in 2023?
There are 1,732 businesses in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia, which has grown at a CAGR of 5.2 % between 2018 and 2023.
Has the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia has been declining at a CAGR of 5.2 % between 2018 and 2023.
What is the forecast growth of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Motor Vehicle Dismantling and Used Parts Wholesaling market in Australia?
The biggest companies operating in the Motor Vehicle Dismantling and Used Parts Wholesaling market in Australia are ACM Parts Pty Ltd and U-Pull-It
What does the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia include?
Used parts and Recycled products are part of the Motor Vehicle Dismantling and Used Parts Wholesaling industry.
Which companies have the highest market share in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia?
The company holding the most market share in Australia is ACM Parts Pty Ltd.
How competitive is the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia?
The level of competition is moderate and increasing in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia.
