Stalling revenue: Vehicle safety features reduce road accidents, constraining industry growth

The Towing Services industry has grown slowly but steadily over the past five years. The industry has benefited from the rising number of motor vehicles on Australia's roads, as new passenger motor vehicle sales have increased. The rising number of vehicles on the roads creates greater potential for breakdowns and accidents, stimulating demand for towing services. As a result, industry revenue is expected to grow at an annualised 0.6% over the five years through 2017-18, to reach $435.1 million. This includes growth of 0.4% in the current year.While the presence of new vehicles on the roads increases the total number of motor vehicles, it can also adversely affect the more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Newer vehicles typically generate less demand for towing services than older vehicles
  • Most industry establishments are owner-operated and service relatively small geographic areas
  • Stable revenue growth and low risk are projected to attract new entrants to the industry
  • Industry Report - Industry Key Buyers Chapter

    The Towing Services industry has low market share concentration, and this trend has remained unchanged over the past five years. The industry is dominated by small owner-operators that service local areas. The industry is therefore highly fragmented, with no player earning more than 5% of revenue. In 2017-18, the top four players account for well under 10% of total industry revenue.Companies have access to limited economies of scale. The industry has low overhead costs, and its nature requires a high level of labour to effectively service customers. As a result, expanding into new geographic areas does not boost profitability. There are providers of towing services that dominate the industry in specific areas or regions. The...purchase to read more.

    Additional Insights for the Towing Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Towing Services Industry are

  • Proximity to key markets
  • Ensuring pricing policy is appropriate
  • Business expertise of operators
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Average age of vehicle fleet in the Towing Services industry impact industry performance..

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    What's in this report

    What is the Towing Services Industry?

    Industry operators primarily tow light or heavy vehicles and other machinery over short or long distances. Operators may also provide incidental ancillary services, such as emergency roadside repairs and temporary pound or storage. The industry excludes long-distance transportation of freight such as heavy machinery and equipment, buildings or containers, and motor vehicles.

    Industry Products
  • Roadside assistance towing
  • Salvage towing
  • Car park or limited-access towing
  • Law enforcement towing
  • Machinery and equipment towing
  • Industry Activities
  • Motor vehicle towing
  • Machinery and equipment towing
  • Emergency roadside assistance
  • Bog or salvage assistance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Average age of vehicle fleet
  • Population aged between 18 and 25
  • Number of vehicle accident deaths

  • Current Performance
  • Vehicle numbers
  • New vehicles
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Vehicle numbers and industry participation
  • Vehicle developments
  • Technological systems
  • Table: Towing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Towing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Motor Vehicle Dealers
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Parking Services
  • General Insurance
  • Public Administration and Safety
  • Consumers

  • Key Selling Industries
  • Commercial Vehicle Wholesaling
  • Computer and Software Retailing
  • Fuel Retailing

  • Products & Services
  • Roadside assistance towing
  • Machinery and equipment towing
  • Salvage towing
  • Law enforcement towing
  • Car park or limited-access towing
  • Chart: Towing Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individuals
  • Commercial customers
  • Local and state governments
  • Chart: Major Market Segmentation for the Towing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Rent and other
  • Chart: Cost Structure Benchmarking – Sector vs Towing Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Towing Services 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 Towing Services 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 Towing Services Industry
  • 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
    Computer-Aided Dispatch
  • A method of monitoring roadside assistance activity with the aid of computers.
  • Light Rigid Trucks
  • A vehicle with a gross mass of more than 4,500 kilograms and less than 8,000 kilograms.
  • National Roads And Motorists’ Association (Nrma)
  • A NSW organisation that offers road services and insurance to its members.
  • Royal Automobile Club Of Victoria (Racv)
  • A Victorian organisation that offers road services and insurance to its members.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Towing Services 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 Towing Services:
    • 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 Towing Services 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 Towing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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