Truck repair revenue grows solidly due to higher demand from road freight transport
Melbourne, Australia (PRWEB) January 22, 2013
The Truck Repair industry enjoyed solid demand conditions over the past five years. Industry revenue is estimated to grow by an annualised 2.2% over the five years through 2012-13 to reach $5.04 billion. The industry benefited as a result of higher demand from road freight transport. Furthermore, the number of trucks and commercial vehicles continued to grow along with the number of kilometres driven for these vehicles. The higher truck and commercial vehicle traffic increased wear and tear on vehicles and boosted industry revenue. Countering the increased demand from higher traffic of trucks and commercial vehicles was the declining accident rate resulting from safer roads and vehicles. According to IBISWorld industry analyst Caroline Finch, “industry revenue is estimated to grow 1.6% in 2012-13”. The slower pace is expected to come from an uptick in capital expenditure in the private sector, which is expected to result in a newer fleet that will require fewer repairs.
The Truck Repair industry is dominated by small enterprises and is without major players. As a consequence, market share concentration is low. Finch adds, “there are signs of a consolidation trend within the industry”. The number of industry participants operating as sole traders or contractors has decreased. This is reflected in the number of employees per enterprise, which has increased in the five years through 2012-13. Another measure of consolidation, the number of establishments to enterprises, has also increased slightly.
The Truck Repair industry is expected to continue to benefit from expansion in the truck and commercial vehicle market. Industry revenue is forecast to increase over the next five years. Demand from road freight is expected to rise over the same period. The resulting wear and tear from transporting greater freight volumes will boost demand for industry services. The truck and commercial fleet is also expected to continue expand, enlarging the industry's market. However, investment in new trucks and commercial vehicles is expected to lead to a newer vehicle fleet that will be less likely to require repairs. For more information, visit IBISWorld’s Truck Repair report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry provides aftermarket repair services and products for light-, medium- and heavy-duty trucks. Aftermarket refers to maintenance, repair, parts, accessories, chemicals and fluids for trucks after their initial sale.
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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