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Motor Vehicle Dismantling and Used Parts Wholesaling in Australia - Market Research Report (2015-2030)

Michael Doyle Michael Doyle Melbourne, Australia Last Updated: December 2025 ANZSIC F3505

Revenue

$1.7bn

2025-26

$1.7bn

Past 5-Year Growth

Profit

$XX.Xm

Employees

4,614

Businesses

1,665

Wages

$XXX.Xm

Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry analysis

The Motor Vehicle Dismantling and Used Parts Wholesaling industry has performed well over recent years, fuelled by difficult economic conditions and a boost in the number of cars on the road. In recent years, consumers have felt the impact of tighter budgets, with more car owners requesting that repairs be made using second-hand parts rather than brand-new replacements. This change in purchasing habits has created excess demand for used parts, while supply has remained consistent, enabling wholesalers to increase their sale prices and boost profit margins. This profit margin is vital as many enterprises are owner-operators that take wages as a portion of the business's profit. Limiting demand is the fact that manufacturers are constructing vehicles with more advanced crash avoidance technology, which reduces the severity of accidents on Australian roads and lowers demand from smash repairers. When accidents occur, more Australians are using insurance policies to cover the costs of repairs. Since insurance agencies typically prefer replacement over repair, fewer spare or refurbished parts are required. The appreciation of the Australian dollar has intensified import competition, with narrowing price differentials between used and new components encouraging substitution towards less expensive imported alternatives.​ Overall, revenue is expected to grow at an annualised 4.5% over the five years to 2025-26, to total $1.70 billion. This figure includes a 0.5% increase in revenue in the current year.

Trends and Insights

  • Falling discretionary incomes have driven consumers towards used parts, supporting revenue growth. Elevated interest rates, inflation and normalising household budgets have pushed the cost-conscious purchasing behaviour.
  • Motor vehicle mechanics have remained the largest industry market. These businesses service vehicles that need replacement parts using second-hand parts.
  • Used parts wholesalers locate themselves in areas of high automotive activity. Since this coincides with population distribution, most wholesalers are located in New South Wales, Victoria and Queensland.
  • External competition from foreign suppliers is ramping up. Foreign parts producers supplying parts at relatively lower prices are hindering industry demand.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 4.5 % over the past five years, to reach an estimated $1.7bn in 2025.

Trends and Insights

Falling discretionary incomes have pushed consumers toward used parts

  • Over recent years, discretionary incomes have fallen, positively impacting demand for industry wholesalers and resulting in revenue growth over the past five years as consumers increasingly turn to used parts rather than opting for new parts to save money.
  • Additional trends and insights available with purchase
Motor Vehicle Dismantling and Used Parts Wholesaling in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

A growing number of motor vehicles in the country will offset other forms of demand declines

  • Motor vehicle manufacturers continually introduce new safety features, resulting in an increasing number of vehicles on the road equipped with advanced crash avoidance technology. At the same time, government campaigns targeting risky behaviours, like speeding, texting and drunk driving, will reduce accident rates even more.

Biggest companies in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia

Company
Market Share (%)
2026
Revenue
2026

There are no companies that hold a market share exceeding 5% in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry.

Products & Services Segmentation

Motor Vehicle Dismantling and Used Parts Wholesaling in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Recycled and refurbished parts and Used parts . Recycled and refurbished parts is the largest segment of the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia.

Trends and Insights

A higher number of vehicles on the road has driven demand for used parts

  • Industry wholesalers sell various used parts obtained from dismantled vehicles. These include car panels, fenders and headlights for crash repairs; mechanical parts like engines, drive trains and suspension systems; and electronic parts like radio or climate control systems.
  • More insights available in the full report

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?

Products and services covered in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia include Used parts and Recycled products.

Companies

Companies covered in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia include attrition rate, dismantling and 3d printing.

Industry Code

ANZSIC 2006

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

Falling discretionary incomes have driven consumers towards used parts, supporting revenue growth. Elevated interest rates, inflation and normalising household budgets have p...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Motor vehicle mechanics have remained the largest industry market. These businesses service vehicles that need replacement parts using second-hand parts.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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

Used parts wholesalers locate themselves in areas of high automotive activity. Since this coincides with population distribution, most wholesalers are located in New South Wa...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

External competition from foreign suppliers is ramping up. Foreign parts producers supplying parts at relatively lower prices are hindering industry demand.

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 2020-2025
  • 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

There are no companies that hold a market share exceeding 5% in the Motor Vehicle Dismantling and Used Parts Wholesaling in Australia industry.

Analyst insights

The Motor Vehicle Dismantling and Used Parts Wholesaling industry has no Major Companies. The highly fragmented nature of the market and the plethora of small-scale businesse...

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The vehicle dismantling service segment is highly regulated. Dismantlers must keep registers to record the acquisition and disposal of motor vehicles, prescribed parts and ac...

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Consumers have elected to use second-hand parts in an effort to save money amid economic stresses. Increased demand for these products has allowed wholesalers to elevate thei...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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 2025?

The market size of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is $1.7bn in 2025.

How many businesses are there in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia in 2025?

There are 1,665 businesses in the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia, which has grown at a CAGR of 2.3 % between 2020 and 2025.

How may import tariffs affect the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia?

The Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia?

The Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

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 growing at a CAGR of 4.5 % between 2020 and 2025.

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 does the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia include?

Used parts and Recycled products are part of the Motor Vehicle Dismantling and Used Parts Wholesaling industry in Australia.

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.

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.

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