Subdued industry revenue growth has been mostly due to an increasingly healthier Australian population
Melbourne, Australia (PRWEB) August 31, 2012
The Mobility Equipment Stores industry sold wheelchairs, mobility scooters and walking aids at a slow rate during the past five years. According to IBISWorld industry analyst, Aries Nuguid, “industry revenue is forecast to increase at an annualised 0.9% over the five years through 2012-13 to reach $391.8 million”. The subdued growth was mostly due to an increasingly healthier Australian population. Disability rates fell as health consciousness and health spending increased. This trend outweighed the increase in obesity levels and the ageing population. The industry's products are also partially discretionary. Customers purchase more or increase the value of products bought as household disposable income grows. As such, industry revenue is forecast to increase 2.7% in 2012-13 due to a strong increase in household disposable incomes.
Revenue growth for the Mobility Equipment Stores industry will accelerate over the five years to 2017-18. Nuguid adds, “the introduction of the National Disability Insurance Scheme will be the main driver behind the hastened growth”. The government assistance will increase the ability of people with a disability to purchase mobility equipment, boosting industry revenue growth. The higher demand will also support wider profit margins. While people with a disability will have greater purchasing power, the number of people with a disability will grow slowly. The Australian population is projected to continue to become healthier due to increasing health consciousness and health expenditure. This will outweigh growing obesity levels and the ageing population. The resulting lower disability rates will slow the market for mobility equipment.
The Mobility Equipment Stores industry is highly fragmented and market share concentration is low. Market share concentration fluctuated over the past five years due to the effects of the global financial crisis and falling disability rates on the back of increased health consciousness. During the global financial crisis, demand from individuals residing in aged-care facilities dampened as these individuals relied heavily on superannuation and pension funds for monetary support. The only major player in the industry is Aidacare.
For more information, visit IBISWorld’s Mobility Equipment Stores report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry retails products that move disabled or injured individuals from place to place. The industry does not include retailers that primarily sell their products online.
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
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