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Motor Vehicle Electrical Services in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Nov 05, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

The industry's full growth potential has been limited due to competition from motor vehicle dealers.

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Melbourne, Australia (PRWEB) November 06, 2014 -- Operators in the Motor Vehicle Electrical Services industry in Australia have expanded strongly over the past five years, benefiting from improving economic conditions and the rising number of motor vehicles on Australian roads. According to IBISWorld industry analyst David Whytcross, “the industry was negatively affected by the global financial crisis, as consumers put off non-essential repairs and the purchase of more advanced new cars, but it has rebounded significantly over the past five years.” Positive economic conditions have created greater demand for electronic servicing, as higher disposable income has prevented consumers from postponing services. Consumers have also increasingly purchased new cars with higher proportions of electronic components, benefiting the industry. Industry revenue is forecast to grow by a compound annual 4.0% over the five years through 2014-15. The industry exhibits a low level of market share concentration.

A boom in new car sales over the past five years, boosted by growing affordability due to price competition and the high Australian dollar, has assisted industry growth. New vehicles are typically more advanced, with electric and electronic components that can typically only be serviced by qualified auto electricians. However, the Motor Vehicle Electrical Services industry has faced strong competition from external sources, particularly motor vehicle dealers. “Dealerships often have strong links with manufacturers and more intimate knowledge of the electronic workings of new vehicles, giving them an advantage over independent auto electricians,” says Whytcross. With marketing campaigns such as capped price servicing bringing consumers with new cars back to dealerships, the industry's full growth potential has been limited. In 2014-15, industry revenue is forecast to be worth $1.9 billion, up 2.1% on the previous year.

Similar trends are expected over the next five years. Although the Australian dollar is expected to depreciate, new car sales are projected to remain strong. There is also expected to be pent-up demand from consumers that purchased new cars over the past five years as the components in their vehicles undergo wear and tear. Similar competitive pressures are also expected to stifle industry revenue growth as more consumers head back to motor vehicle dealers for electrical servicing.

For more information, visit IBISWorld’s Motor Vehicle Electrical Services industry in Australia report page.

Industry operators are primarily engaged in performing automotive electrical repairs. They are not involved in general non-electrical motor vehicle repairs or body repairs.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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