Ridesharing services are tipped to be the big winners of 2019, IBISWorld revealed, with revenues in the current financial year on track to grow by 81.7 per cent.
The firm’s senior industry analyst, Kim Do, suggested that it is a combination of convenience, cost efficiency and smartphone penetration that is driving demand within the share economy, and particularly for ridesharing services.
New providers — such as Ola, Taxify and DiDi — have had to offer steep discounts in a bid to compete with dominant player Uber, she said, further enhancing their appeal.
Australian liquefied natural gas (LNG) production is also set to growth sharply, up by 39.3 per cent.
Rounding out the top five fastest-growing industries are local organic farming (up by 18.2 per cent), software publishing (up by 11.5 per cent) — led by a considerable uptake in Software as a Service (SaaS) — and foreign banks operating in Australia (growing by an even 10 per cent).
Sadly, for every winner there is also a loser, and IBISWorld is predicting four industries to suffer double-digit revenue declines by the end of June 2019.
Black coal mining is on track to see revenues fall by 14.2 per cent, as global prices tank and demand shifts to more renewable energy sources. Yet hydro-electricity generation is expected to decline by 20.9 per cent, as wholesale electricity prices ease.
Toy and game retailing is also expected to take a hit, to the tune of 15.9 per cent — just months after market leader Toys ‘R’ Us collapsed.
“Prior to its demise, Toys ‘R’ Us was the largest retailer in the industry, with a market share of over 20 per cent. However, the company’s decline has accelerated the rate at which department stores and online-only retailers have captured market share, as consumers have shifted their spending away from industry retailers,” Ms Do said.
Hardest hit, though, will be diamond and gemstone miners, with revenues set to plunge by 24.2 per cent this financial year, even despite the famed Argyle diamond mine winding down production ahead of its planned closure in 2020–21.
IBISWorld also said that butter and dairy product manufacturing will take a hit, but the pain will be less than those industries outlined above, with revenue falls of 7.7 per cent, in spite of higher sales of flavoured milk products and yoghurts.
That is due to a combination of factors, including high demand for milk powders and full cream milks reducing the availability of milk fat for butter production, falling global prices as well as the drought gripping large parts of Australia.