Hardware Wholesaling in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: November 2023
ANZSIC F3339Revenue
$18.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
34,478
Businesses
5,570
Wages
$X.Xbn
Hardware Wholesaling in Australia industry analysis
Trends in building construction heavily influence hardware wholesalers. Intense competition has been associated with structural change across the hardware and building supplies sector, which has put pressure on wholesalers. Escalating wholesale bypass trends have also affected hardware wholesalers, as more retailers have been sourcing products directly from manufacturers or import agents. Large hardware wholesalers, like Bunnings and Mitre 10, have undertaken strategic acquisitions to extend their wholesale operations. Despite consolidation efforts from these brands, market share concentration is low, as most hardware wholesalers are small-scale establishments that contend with both wholesaler bypass and stiff competition from larger wholesalers. Leading hardware distributors are increasingly leveraging digital technology to build, deliver and sustain new and meaningful customer experiences to avoid wholesale bypass trends.
The economic fallout from the COVID-19 pandemic has heavily weakened demand from the apartment construction and non-residential building markets. Some hardware wholesalers have benefited from surging investment in single-unit house construction and renovation stemming from the Federal Government's HomeBuilder grants. Households have had more capacity to allocate time and expenditure to home renovations, further supporting hardware wholesalers. These positive factors are expected to help revenue edge upwards at an annualised 0.3% through the end of 2023-24, to $18.3 billion. This includes a slight anticipated bump of 0.8% in 2023-24.
Revenue for hardware wholesalers is projected to expand by an annualised 2.4% over the five years through 2028-29, to $20.6 billion. This performance stems from moderate improvements across key building markets as the economic effects of repeated interest rate hikes begin to wane. Sales to the household sector will strengthen on the back of favourable household income and consumption trends, which will fuel DIY spending on hardware and building supplies for renovation projects. Hardware wholesalers will continue to face ongoing pressure from wholesale bypass trends. Several larger hardware chains will ramp up their wholesaling activities, expanding their networks and introducing structural changes.
Trends and Insights
- The COVID-19 pandemic has heavily weakened hardware sales to the apartment and non-residential building markets. Even so, the Federal Government's HomeBuilder subsidies spurred investment in home renovation, supporting hardware wholesalers.
- Sales of hand and power tools have expanded as customers have become accustomed to fixing, remodelling and renovating their houses. This practice has bolstered retail demand, benefiting hardware wholesalers.
- New South Wales and Victoria have a high concentration of hardware wholesalers. These two states are key national transportation and distribution centres, with significant commercial and industrial construction.
- Price is a primary point of competition for hardware wholesalers. Even so, product delivery options diversified during pandemic restrictions, providing some wholesalers with an opportunity to stand out in the market.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $18.3bn in 2023.
Trends and Insights
New online ordering systems bolstered revenue for hardware wholesalers during the pandemic
- The COVID-19 pandemic cut back opportunities for wholesalers to both buy and sell hardware products by disrupting global supply chains and temporarily closing many downstream retail stores.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A revival in multi-unit apartment and townhouse construction will support sales of hardware supplies
- Sales of hardware products are slated to strengthen as multi-unit apartment and townhouse projects are revived and more people undertake home renovations. Large-scale hardware suppliers will capture the greatest demand in the residential building markets and these companies are best placed to contend with wholesale bypass.
Biggest companies in the Hardware Wholesaling in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Wesfarmers | 4,595.6 | |
Metcash | 1,669.0 | |
Bowens Timber & Hardware | 274.8 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Hand and power tools, Security and other products and Cement, sand and plaster. Hand and power tools is the largest segment of the Hardware Wholesaling in Australia.
Trends and Insights
The popularity of DIY renovations is pushing up demand for hand and power tools
- Hand and power tools are the largest product segment for hardware wholesalers. Hand tools include screwdrivers, hammers, wire cutters, mallets, measuring gauges, measuring tapes, chisels and clamps. Power tools include hand drills, chainsaws, welders, soldering irons, jigsaws, nail guns and routers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Timber Wholesaling in Australia
- Textile Product Wholesaling in Australia
- Furniture and Floor Covering Wholesaling in Australia
- Plumbing Goods Wholesaling in Australia
Complementors
- There are no industries to display.
International industries
- Stone, Concrete & Clay Wholesaling in the US
- Roofing, Siding & Insulation Wholesaling in the US
- Tool & Hardware Wholesaling in the US
- Tool & Hardware Wholesaling in Canada
- Hardware Wholesaling in New Zealand
Table of Contents
About this industry
Industry definition
Industry firms primarily wholesale a range of hardware products including building supplies, tools, doors and windows. The industry does not include firms that wholesale timber and plumbing products.
What's included in this industry?
Hand and power toolsCement, sand and plasterBricksDoors, windows and roofing productsTilesPaint and paint suppliesWire, nails and building suppliesSecurity productsCompanies
WesfarmersMetcashBowens Timber & HardwarePurchase this report to view all 4 major companies in this industry.
Related Terms
WHOLESALE BYPASSSUPPLY CHAIN DIYFASCIAVERTICAL INTEGRATIONIndustry Code
ANZSIC 3339 - Hardware Wholesaling in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The COVID-19 pandemic has heavily weakened hardware sales to the apartment and non-residential building markets. Even so, the Federal Government's HomeBuilder subsidies spurr...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Sales of hand and power tools have expanded as customers have become accustomed to fixing, remodelling and renovating their houses. This practice has bolstered retail demand,...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales and Victoria have a high concentration of hardware wholesalers. These two states are key national transportation and distribution centres, with significant co...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price is a primary point of competition for hardware wholesalers. Even so, product delivery options diversified during pandemic restrictions, providing some wholesalers with ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Hardware Wholesaling industry includes several large-scale vertically integrated companies, like Wesfarmers and Metcash, which have hardware wholesaling and retailing oper...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Metcash's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bowens Timber & Hardware's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description and key data for Metcash, and factors influencing its performance in the industry
- Description and key data for Bowens Timber & Hardware, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Hardware Australia aims to provide benefits, professional services and guidance to businesses in different hardware industries. During the COVID-19 pandemic, Hardware Austral...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins tend to be thin for hardware wholesalers. Intense price competition among downstream retailers has forced wholesalers to slash prices to retain customers, putt...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hardware Wholesaling industry in Australia in 2024?
The market size of the Hardware Wholesaling industry in Australia is $18.3bn in 2024.
How many businesses are there in the Hardware Wholesaling in Australia industry in 2023?
There are 5,570 businesses in the Hardware Wholesaling industry in Australia, which has grown at a CAGR of 2.2 % between 2018 and 2023.
Has the Hardware Wholesaling industry in Australia grown or declined over the past 5 years?
The market size of the Hardware Wholesaling industry in Australia has been growing at a CAGR of 0.3 % between 2018 and 2023.
What is the forecast growth of the Hardware Wholesaling industry in Australia over the next 5 years?
Over the next five years, the Hardware Wholesaling industry in Australia is expected to grow.
What are the biggest companies in the Hardware Wholesaling market in Australia?
The biggest companies operating in the Hardware Wholesaling market in Australia are Wesfarmers, Metcash and Bowens Timber & Hardware
What does the Hardware Wholesaling in Australia include?
Hand and power tools and Cement, sand and plaster are part of the Hardware Wholesaling industry.
Which companies have the highest market share in the Hardware Wholesaling in Australia?
The company holding the most market share in Australia is Wesfarmers.
How competitive is the Hardware Wholesaling industry in Australia?
The level of competition is high and increasing in the Hardware Wholesaling industry in Australia.
