Revenue is likely to continue to decline despite growth in domestic demand
Melbourne, Australia (PRWEB) September 26, 2012
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.
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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).
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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