The Australia automotive aftermarket, projected to reach a valuation of USD 13.98 billion in 2025, is poised for steady growth. Estimates suggest the market will expand to USD 18.27 billion by 2032, registering a CAGR of 3.9% during the forecast period. Current market dynamics highlight the increasing average vehicle age, growing vehicle parc, and rising demand for vehicle customization and maintenance services as primary growth drivers. Advancements in diagnostic tools, e-commerce auto parts distribution, and connected car technologies are reshaping aftermarket service models. Additionally, a surge in electric and hybrid vehicle adoption, coupled with supportive government policies for sustainable mobility and a rise in do-it-yourself (DIY) repair culture, is further propelling the market expansion across Australia.
Key Takeaways
- By Accessories, the interior segment is projected to dominate the market with a 62.3% share in 2025, attributed to consumers’ growing emphasis on in-vehicle comfort, aesthetics, and convenience during travel.
- By Parts, the tyres segment is expected to lead the market with a 52.4% share in 2025, driven by their essential role in ensuring vehicle safety, performance, and fuel efficiency, along with rising replacement rates due to road and climate conditions.
- By Services, general automotive repairs are anticipated to contribute the highest market share, as they offer cost-effective, routine solutions for mechanical and electrical issues, supporting long-term vehicle reliability and performance.
Australia Automotive Aftermarket Report Coverage
The full report is now available for purchase: https://www.coherentmi.com/industry-reports/australia-automotive-aftermarket-market
Report Coverage
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Details
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Market Revenue in 2025
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USD 13.98 billion
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Estimated Value by 2032
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USD 18.27 billion
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Growth Rate
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Poised to exhibit a CAGR of 3.9%
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Historical Data
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2020-2024
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Forecast Period
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2025–2032
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Forecast Units
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Value (USD Billion)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Accessories, By Parts, and By Services
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Growth Drivers
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Trends
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Opportunities
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Restraints & Challenges
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Market Dynamics
The Australia automotive aftermarket is experiencing steady expansion, driven by aging vehicle fleet, increased vehicle ownership, and growing consumer preference for vehicle personalization and routine maintenance. The average age of passenger vehicles in Australia is rising, boosting demand for replacement parts, lubricants, tyres, and diagnostics services. Additionally, the shift toward cost-effective vehicle repairs and the adoption of predictive maintenance tools are enhancing service efficiency and customer retention.
Technological advancements such as connected car solutions, telematics integration, and mobile diagnostics are reshaping how automotive services are delivered across both urban and regional areas. During the past few years, leading players in the region began offering AI-powered diagnostics and app-based service booking platforms, improving access to repair and maintenance while reducing downtime for vehicle owners.
Moreover, the aftermarket ecosystem is being strengthened by the growth of e-commerce platforms for auto parts, a rise in DIY vehicle care, and increased penetration of electric and hybrid vehicles, which require specialized maintenance services. Government efforts to improve road safety, enforce emissions regulations, and encourage sustainable vehicle use are also contributing to market development. As digital transformation, sustainable mobility trends, and data-driven service delivery gain traction, the Australia automotive aftermarket is well-positioned for consistent growth through 2032.
Market Trends
Rise of Predictive Maintenance and Connected Vehicle Diagnostics
The Australian automotive aftermarket is undergoing a transformative shift with the rapid integration of predictive maintenance technologies, fueled by the proliferation of telematics, IoT, and AI-powered analytics. These systems offer real-time vehicle health monitoring, fault code interpretation, and maintenance forecasting, enabling workshops and fleet operators to anticipate issues before they lead to costly breakdowns.
This trend is especially significant as the average vehicle age in Australia increases and the demand for uptime and efficiency grows across both consumer and commercial vehicle segments. Predictive maintenance not only minimizes unplanned repairs but also extends the lifespan of components, reduces labor costs, and enhances customer trust through transparency and proactive service.
In March 2025, Geotab expanded its AI-powered telematics suite—featuring predictive maintenance and driver safety analytics—to Australia’s heavy vehicle market. Their GO9 device with satellite connectivity allows continuous diagnostics for long-haul operations, reducing downtime and maintenance costs.
Recent Key Developments
- In April 2024, Denso Corporation, a leading global mobility supplier based in Kariya, Japan, announced the launch of MobiQ, its new brand focused on aftermarket smart mobility and vehicle-to-everything (V2X) products and solutions. This announcement was made at the ITS America Conference & Expo 2024 in Phoenix, showcasing Denso's commitment to enhancing vehicle connectivity and safety through innovative technologies.
- In July 2023, Capricorn Society Limited, a member-based organization supporting over 25,000 automotive businesses in Australia and New Zealand, and Repairify Australia Holdings Pty Ltd, known for its innovative remote automotive repair solutions, formed a joint venture. This collaboration aims to deliver advanced remote diagnostic services to automotive repairers across the region, enhancing their capabilities to manage modern vehicle servicing efficiently.
Competitive Landscape
- Denso Corporation
- Hella KGaA Hueck & Co.
- Continental AG
- Delphi Automotive
- ACDelco
- Faurecia SA
- Magneti Marelli SpA
- Robert Boosch GmbH
- Aisin Seiki Co.,Ltd.
- Bridestone Corporation.
Australia Automotive Aftermarket Segmentation
By Accessories
- Interior
- Exterior
By Parts
- Tyres
- Wear & Tear Parts
- Lubricants
- Collision Body
- Exhaust Components
- Others
By Services
- General Automotive Repairs
- Automotive Transmission Repairs