Melbourne, Australia (PRWEB) June 22, 2012
The industry suffered large falls in revenue over the past five years as the total number of gaming machines in Australia declined. Government regulations – such as caps on the number of poker machines – have constrained growth in the Gaming and Vending Machines Manufacturing industry over the five years through 2011-12, with revenue falling 10% per annum over this period. In addition, industry operators state that the introduction of smoking bans in indoor areas in some states saw customers shift expenditure to the development of outdoor areas for smokers. However, according to IBISWorld industry analyst David Stephen, “Conversion sales have provided some growth over this period – driven by new machine technology, such as the cashless poker machine that uses ticket in, ticket out (TITO) technology”.
The vending machine products segment accounts for only a small share of revenue as most of these products are imported. IBISWorld estimates that revenue is forecast to fall by 15.7% in 2011-12 to total $439 million, the biggest drop since 2008-09. Investment in research and development will continue to decrease over the period, affecting net profit. Stephen adds, “The five years through 2016-17 are expected to bring more declines to the industry due to changing government regulation, restrictions and lower demand”.
Market share concentration for the Gaming and Vending Machines Manufacturing industry is medium. The top two players in the industry are Aristocrat Leisure and Ainsworth Game Technology. Given the high level of barriers to entry, it is not surprising that the industry is controlled by a few major players. IBISWorld expects that concentration levels will begin to fall as some manufacturing is outsourced overseas, leaving room for smaller companies. However, this will be affected by major companies such as Aristocrat moving their own manufacturing overseas and continuing to supply a major share of the market.
For more information, visit IBISWorld’s Gaming and Vending Machines Manufacturing report in Australia industry page.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
Companies in the industry manufacture gaming and vending machines. Gaming machines refer mainly to poker and other gambling machines. Vending machines refer to automated machines that are operated by coin, cash or credit card and dispense various packaged goods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.