Recreational Vehicle Manufacturing in Australia Industry Market Research Report Now Available from IBISWorld
Melbourne, Australia (PRWEB) October 03, 2013 -- The Recreational Vehicle Manufacturing industry produces a range of products that enable Australians to travel to remote locations comfortably and economically using the nation's road networks. To use the industry's products to their full potential, major markets need time to travel and the funds to do so. IBISWorld industry analyst Kosta Lev states, “the industry's most lucrative market segments are baby boomers and seniors.” In the five years through 2013-14, the proportion of Australians over the age of 50 has increased and the industry has entered a growth phase. Industry revenue is expected to increase at an annualised 7.0% over the five years though 2013-14, to reach $1.2 billion. Over the same period, the number of registered recreational vehicles (RVs) is expected to grow at an annualised 5.6%. Revenue is forecast to grow by 3.8% in 2013-14.
The five-year growth rate is somewhat exaggerated due to the low base year of 2008-09, caused by the global financial crisis. During the year, the importance of well-off older markets to industry performance was apparent. Although Australia never entered recession, stock markets performed poorly. Retirees and those on the cusp of retirement saw their superannuation accounts decline in value. Demand for industry products fell as consumers put off purchases of big-ticket items. However, the industry has returned to strength as demand for industry products has returned to trend. In the five years through 2018-19, demographics are on the side of the industry, with retiring baby boomers expected to boost the numbers of “grey nomads.” The coming years are projected to be increasingly lucrative for the industry. The cost of inputs, such as iron and steel, should fall as demand for industry products increases. Oil prices, however, are not expected to decline in the coming years. According to Lev, “increasing petrol prices and a regulatory direction towards decreasing carbon emissions are expected to push the industry to develop more fuel-efficient products.” The move towards greener products presents an opportunity for existing industry players to gain market share. Increasing competition from imports is another trend that will challenge the industry in the coming years. However, these effects will be minimised by a falling Australian dollar. The increased competition is likely to increase the level of technology adoption in the local industry.
The Recreational Vehicle Manufacturing industry has a medium level of market share concentration. Industry concentration has declined since 2008-09, with the strongest fall in 2009-10. This indicates that major players were more affected by the drop in demand during the global financial crisis than smaller, niche operators. Over the next five years, market share concentration is expected to be more stable than in the previous five years. The major industry players are Jayco Corporation and Fleetwood Corporation. For more information, visit IBISWorld’s Recreational Vehicle Manufacturing report in Australia industry page.
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IBISWorld Industry Report Key Topics
Companies in this industry manufacture recreational vehicles, including towable and motorised recreational vehicles. Towable recreational vehicles include caravans and camper trailers. Motorised recreational vehicles include motorhomes and campervans.
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.
Gavin Smith, IBISWorld, +61 396553838, [email protected]
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