The cheaper option: Rising national unemployment rate has aided industry revenue growth

Revenue for the Furniture, Appliance and Equipment Rental industry is expected to grow slightly over the five years through 2017-18. The industry is partially counter-cyclical, as rental firms generally benefit from increased demand when economic conditions are uncertain or weak. Increased unemployment, growth in real household discretionary income and high household debt (particularly by historical standards) over the past five years have boosted demand for rental goods due to the lower outlay required. Additionally, some larger industry operators have created new rent-to-buy options to compete with the retail sector, allowing consumers to purchase goods after long-term rentals...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
1.0%
Forecast Growth 18-23
Profit
Employment
19,920
Businesses
9,982
Market Share of Companies

Industry Threats & Opportunities

  • Higher household debt and growth in business numbers have increased demand for rental goods
  • Some rental firms have capitalised on business demand for rapidly evolving computer technology
  • Rapidly advancing home entertainment technology is forecast to help drive rental demand
  • Industry Report - Industry Analysis Chapter

    Revenue for the Furniture, Appliance and Equipment Rental industry has grown slowly over the past five years. Although it is not entirely counter-cyclical, the industry does benefit from poor economic conditions, such as increased unemployment and a high household debt-to-assets ratio. Increases in household and business numbers over the past five years have also contributed to higher demand for rental goods, further strengthening the industry. Although higher real household discretionary income and low interest rates allow more people to rent products from the industry, these factors can also boost retail purchases outside the industry.Industry growthIndustry revenue is expected to increase at an annualised 1.0% o...purchase to read more.

    Additional Insights for the Furniture, Appliance and Equipment Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Furniture, Appliance and Equipment Rental Industry are

  • Prompt delivery to market
  • Ability to carry out credit checks on clients
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Household debt to assets ratio and Number of households in the Furniture, Appliance and Equipment Rental industry impact industry performance..

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    What's in this report

    What is the Furniture, Appliance and Equipment Rental Industry?

    Companies in the industry rent out a variety of household goods, equipment, appliances and furniture to consumers and corporate clients.

    Industry Products
  • Electronic equipment rental
  • Party equipment rental
  • Appliance rental
  • Furniture rental
  • Clothing rental
  • Other product rentals and sales
  • Industry Activities
  • Domestic appliance rental
  • Furniture rental
  • Sporting equipment rental
  • Computers and computer peripheral equipment rental
  • Electronic equipment rental
  • Suit and costume rental
  • Hand tools and DIY equipment rental
  • Bike, artwork, amusement machine and other household goods rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household debt to assets ratio
  • Number of households
  • Real household discretionary income
  • Demand from online shopping
  • National unemployment rate
  • Number of businesses

  • Current Performance
  • Industry growth
  • Technological change
  • Rent-to-buy options
  • Student rental
  • Chart: Revenue Growth

  • Industry Outlook
  • Pricing and demand
  • Industry expansion
  • Table: Furniture, Appliance and Equipment Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture, Appliance and Equipment Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Public Administration and Safety
  • Health Services
  • Consumers

  • Key Selling Industries
  • Clothing Wholesaling
  • Computer and Computer Peripheral Wholesaling
  • Furniture and Floor Covering Wholesaling
  • Household Appliance Wholesaling
  • Toy and Sporting Goods Wholesaling

  • Products & Services
  • Electronic equipment rental
  • Furniture rental
  • Appliance rental
  • Party equipment rental
  • Clothing rental
  • Other product rentals and sales
  • Chart: Furniture, Appliance and Equipment Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Government agencies
  • Other sectors
  • Chart: Major Market Segmentation for the Furniture, Appliance and Equipment Rental 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 Furniture, Appliance and Equipment Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture, Appliance and Equipment Rental Industry

  • Industry Globalization
    Thorn Group Limited,
  • Table: Thorn Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture, Appliance and Equipment Rental 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 Furniture, Appliance and Equipment Rental Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computerised Inventory Tracking
  • A computerised tracking system that allows firms to manage rental stock use, monitor popular styles, carry out database queries and manage inventory effectively.
  • Leasing
  • An agreement between a leasing company and a client where the client takes ownership of the home appliances at the end of the lease period after payment of a pre-determined residual value.
  • Rental-Purchase Agreement
  • A type of flexible purchase agreement that allows a customer to take ownership of merchandise after an agreed-upon rental period.
  • Renting
  • An agreement between a rental company and a client where the client chooses to return the home appliances at the end of the rental period, or purchase the appliances outright.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Furniture, Appliance and Equipment Rental market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Furniture, Appliance and Equipment Rental:
    • 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 Furniture, Appliance and Equipment Rental 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 Furniture, Appliance and Equipment Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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