Going the distance: Niche products sustain revenue growth despite strong import competition

The Communication Equipment Manufacturing industry's performance has fluctuated over the past five years due to increased demand from international markets and rising import penetration. Local industry players have benefited from manufacturing niche products, such as radio frequency augmenting equipment, that large multinational companies typically do not manufacture. The industry exhibits high globalisation, with a large proportion of industry revenue generated through export markets, particularly China, Hong Kong and the United States. Additionally, imports from countries such as China and Vietnam satisfy the vast majority of domestic demand. These countries have dominated the Australian communications equipment market over the past five years due to their lower manufacturing costs...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
0.4%
Forecast Growth 19-24
Profit
Employment
4,288
Businesses
386
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry exports have increased strongly over the past five years, fuelling revenue growth
  • Many local firms have focused on niche products that cater for lucrative international markets
  • Industry firms will continue focusing on niche international markets and high value-added products
  • Industry Report - Starting a New Business Chapter

    The industry has high barriers to entry due to its high technological base, which can require significant investment in R&D. Established players require continuous R&D to maintain profitability. Initial investment in facilities and wage costs, associated with the high-skilled labour required by the industry, can also deter new entrants.Firms seeking to enter the industry also have to compete with large multinational firms that produce standardised products at low costs. Additionally, patent and licencing laws restricts firms from benefiting from other firms’ innovation. Entrants hoping to benefit from economies of scale, and therefore not depend on R&D, face competition from large firms operating in countries that have lower operating costs, such as China and Vietnam...purchase to read more.

    Additional Insights for the Communication Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Communication Equipment Manufacturing Industry are

  • Effective quality control
  • Production of a range which accommodates future developments
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Demand from telecommunications and other electrical goods wholesaling and Trade-weighted index in the Communication Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Communication Equipment Manufacturing Industry?

    Industry operators manufacture telecommunication, broadcasting and transceiver equipment. Products include telecommunication exchange equipment, telecommunication transmission equipment (except cabling) and broadcasting equipment (such as transceivers and transmitters). The industry also manufactures telecommunication customer premises equipment, such as telephones, private exchanges, modems and routers.

    Industry Products
  • Telecommunication equipment parts
  • Line telephone and telegraph equipment
  • Radio and television equipment and parts
  • Mobile phones
  • Other communication equipment and parts
  • Industry Activities
  • Modem, intercom, alarm system and pager equipment
  • Radio and television studio broadcast equipment
  • Radio transceiver and transmitter
  • Digital telecommunications switch
  • Telecommunication equipment
  • Telephone and telephone switching equipment
  • Data transmission equipment
  • Cable TV equipment
  • TV antenna and parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from telecommunications and other electrical goods wholesaling
  • Trade-weighted index
  • Demand from telecommunications services
  • Private capital expenditure on machinery and equipment
  • Private research and development expenditure

  • Current Performance
  • Key drivers
  • Exports and imports
  • Other industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition and demand
  • Weak Australian dollar
  • Hurdles ahead
  • Table: Communication Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Communication Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Information Media and Telecommunications
  • Central Government Administration
  • Consumer Goods Retailing
  • National and Regional Commercial Banks

  • Key Selling Industries
  • Computer and Electronic Office Equipment Manufacturing
  • Computer System Design Services
  • Plastic Pipe and Plastic Packaging Material Manufacturing

  • Products & Services
  • Line telephone and telegraph equipment
  • Radio and television equipment and parts
  • Other communication equipment and parts
  • Telecommunication equipment parts
  • Mobile phones
  • Chart: Communication Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Communications service providers
  • Governments and businesses
  • Households
  • Agriculture, forestry and mining sectors
  • Chart: Major Market Segmentation for the Communication Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Communication Equipment Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Communication Equipment Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Communication Equipment Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Communication Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Re-exports (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    5G Network
  • A term that describes the fifth generation cellular technology network for mobile telecommunications.
  • Broadband
  • A type of data transmission in which a single medium (wire) can carry several channels at once.
  • Internet Protocol
  • A method of sending data from one computer to another over the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Communication Equipment Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Communication Equipment Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Communication Equipment Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Communication Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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