Australia Automotive Aftermarket Reach USD 18.27 Bn by 2032

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.

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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.

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.