Telecommunication, Broadcasting and Transceiving Equipment in Australia Industry Market Research Report Now Updated by IBISWorld

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The Telecommunication, Broadcasting and Transceiving Equipment Manufacturing industry in Australia is constrained by a small local market, a lack of locally sourced components and investment in research and development, and high costs. Over the five years to 2012-13, industry revenue is forecast to contract. For these reasons, industry research firm IBISWorld has updated its report on the Telecommunication, Broadcasting and Transceiving Equipment industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Revenue is likely to continue to decline despite growth in domestic demand

The Telecommunication, Broadcasting and Transceiving Equipment Manufacturing industry in Australia is constrained by a small local market, a lack of locally sourced components and investment in research and development, and high costs. According to IBISWorld Industry analyst Nigel Fitzpatrick, “industry operators tend to concentrate on small niche markets, which are often outside the radar of large foreign transnational companies”. The industry is expected to generate revenue of $1.88 billion in 2012-13 (down 1.0% on 2011-12). Revenue for the industry is expected to contract 2.5% per annum over the five years through 2012-13.

The contraction in industry revenue will mainly be due to a significant loss of domestic market share to imports. Local companies will target export markets to boost sales, but industry exports have subsided in recent years. “Some transnational firms will close their Australian manufacturing operations during the period”, says Fitzpatrick. Also, some local firms will outsource manufacturing to operations based overseas. Over the next five years, revenue is likely to continue to decline despite growth in domestic demand. This performance will occur due to an increase in import penetration and a decline in industry exports.

The Telecommunication, Broadcasting and Transceiving Equipment Manufacturing industry exhibits a low degree of market share concentration. The industry will become more concentrated, as some players exit the industry and some local players merge or are acquired by global operators. Some smaller players will be acquired by companies that have access to capital (e.g. for research and development, production capacity, marketing), strong brand names and global distribution networks. Often, global players will outsource manufacturing to either overseas or local contract manufacturers. Contract manufacturing will increasingly move overseas where labour costs are lower than in Australia), where there is a critical mass of electronic manufacturing capacity, and where there is close access to raw materials. Industry concentration varies significantly by market segment. For example, Codan Ltd has a significant local market share in its product segments. The largest two players in the industry are Standard Communications and Codan.

For more information, visit IBISWorld’s Telecommunication, Broadcasting and Transceiving Equipment Manufacturing report in Australia industry page.

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

IBISWorld industry Report Key Topics

Companies in this industry manufacture telecommunication, broadcasting and transceiving equipment. Major products include telecommunication exchange equipment, telecommunication transmission equipment (except cable), telecommunication customer premises equipment (e.g. telephones, private exchanges, modems, routers) and broadcasting equipment (such as transceivers and transmitters).

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.

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Gavin Smith
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