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Hardware Wholesaling in Australia - Market Research Report (2014-2029)

Yentl Liu Yentl Liu Melbourne, Australia Last Updated: November 2024 ANZSIC F3339

Revenue

$22.7bn

2024-25

$22.7bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

24,126

Businesses

5,147

Wages

$X.Xbn

Hardware Wholesaling in Australia industry analysis

Trends in building construction heavily influence hardware wholesalers. Structural change across the hardware and building supplies sector has intensified competition, putting 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 to reduce their costs. Large-scale 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 wholesale 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 via omnichannel distribution to avoid being bypassed, partly elevating profit.

Trends and Insights

  • The COVID-19 pandemic heavily weakened hardware sales to the apartment and non-residential building markets. A recent recovery in the multi-unit apartment and townhouse market has improved hardware sales.
  • Sales of hand and power tools have diminished as fewer customers can afford to undertake home renovations. This factor has also decreased retail demand more broadly, dampening hardware sales.
  • 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 activity.
  • 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.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.2 % over the past five years, to reach an estimated $22.7bn in 2024.

Trends and Insights

New online ordering systems bolstered revenue for hardware wholesalers during the pandemic

  • The COVID-19 pandemic prompted hardware wholesalers like Bunnings to expand their distribution channels to maintain sales amid social distancing regulations. As customers have various shopping behaviours, omnichannel distribution models can fulfil a wide range of needs. For instance, ordering online can satisfy time-poor hardware customers.
  • Additional trends and insights available with purchase
Hardware Wholesaling in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Continuing growth 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 set to increase and more and more people form group households. Large-scale hardware suppliers will capture the greatest demand from the residential building markets and these companies are best placed to contend with wholesale bypass. Yet, profit is only projected to inch upwards slightly over the next few years. This is partly because small enterprises are unlikely to implement advanced technologies to improve profit margins, largely due to the costs involved. As a result, unviable or low-profit small-scale companies are set to leave the Hardware Wholesaling industry or become part of major companies through acquisitions. This trend is on track to accelerate industry concentration.

Biggest companies in the Hardware Wholesaling in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Wesfarmers
4,499.7
Metcash
1,660.1
DuluxGroup
340.7

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Hardware Wholesaling in Australia
Products & Services
IBISWorld Logo 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

Demand for hand and power tools is diminishing after a temporary surge

  • Hand and power tools have the largest market share. 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

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 products

Companies

WesfarmersMetcashDuluxGroup

Purchase this report to view all 4 major companies in this industry.

Related Terms

WHOLESALE BYPASSSUPPLY CHAIN DIYFASCIAVERTICAL INTEGRATION

Industry Code

ANZSIC 2006

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 heavily weakened hardware sales to the apartment and non-residential building markets. A recent recovery in the multi-unit apartment and townhouse marke...

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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 diminished as fewer customers can afford to undertake home renovations. This factor has also decreased retail demand more broadly, dampenin...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

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 2019-2024
  • 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 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Metcash's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of DuluxGroup's performance by revenue, market share and profit margin from 2018 through 2024
  • 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 DuluxGroup, 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 (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

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. Growing wholesale bypass trends among downstream retailers have forced wholesalers to slash prices to retain customer...

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 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

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 $22.7bn in 2024.

How many businesses are there in the Hardware Wholesaling in Australia industry in 2024?

There are 5,147 businesses in the Hardware Wholesaling industry in Australia, which has grown at a CAGR of 0.6 % between 2019 and 2024.

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 4.2 % between 2019 and 2024.

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 DuluxGroup

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.

Related Industries

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Complementors

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View all industries in Australia

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.