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What the mower boom means for vendors and used assets

The Australia Lawn Mower Market Analysis & Forecast 2022-2027 has predicted that the Australian mower market is set to become a $1.2B (USD) industry by 2027. This 4.79% growth is estimated to occur steadily over the next 5 years and indicates huge potential for the used mower market in years to come.

Industry growth in the mower sector is unsurprising, as industrial-focused businesses have observed a huge rise in the resale prices of used assets within the last 3 years. These changes have instigated interest in what this market growth means for the used economy now and the used economy post-2027.

The mower industry today

The used mower industry in Australia is currently experiencing a huge leap in prices due to high demand and a lack of new and used assets available. Due to COVID-19-induced manufacturing and shipping shortages, there are many Australians who are willing to pay more than top dollar to get their hands on a used asset. This shortage, alongside a worldwide increase in self-managed lawn maintenance during pandemic restrictions, has created an all-time high for the mower industry.

The YoY growth of mower sales at Pickles auctions were staggering between 2020-21. In 2020, Pickles sold 132 mowers at an average of $8,000 an asset, totalling $1.05M. In 2021, Pickles sold 131 mowers at an average of $11,000 an asset for a total of $1.45M in sales for the year. This is a 38% sale increase between one year for the same amount of assets for sale. Pickles sales reports show that 100% of the used mowers being sent to auction are being sold. The mower market is so hot that assets are being sold with more hours and at a higher price than years previous.

One of the most popular mowers, the Kubota F3690, has seen a 71% price increase in the last 24 months for used assets under 5 years old. The average price of a Kubota at a Pickles auction in 2020 was $9,287, which jumped to $15,881 in 2021 despite assets coming with more hours than in previous years.

While the industry is estimated to rise because of the introduction of new and improved mowers, some Pickles experts believe that pre-covid production rates won’t reappear until 2025. This could indicate that the recirculation of used assets already located in Australia could see even more resale growth. The current supply of used mowers is heavily dictated by Australian councils buying and selling their equipment. As councils are the market leaders and are experiencing issues gaining access to new assets, the market is receiving less used mowers to contend for.

While borders across the world are reopening, there is still a significant delay in the production and shipping of new mowers. This is due to a range of influences including a lack of materials and Australia sitting low on the pecking order of production companies. This is largely due to the inconvenience of servicing a country that is separated by large distances from all major shipping ports, made increasingly more expensive due to shipping price hikes in the last few years. Some Australian businesses have noted that lead times are actually becoming longer, with some ordered assets estimated to take up to 18 months before hitting Australia. These long lead times are pushed out even further for customised assets.

For mowers being ordered with specialty features to suit Australian needs, the estimated wait times can be further blown out. This inclined market has made it less affordable to buy mowers in general, as mowers have become so sought after that companies can avoid using the usual sales gimmicks in order to sell newly produced stock. With a lack of sales, deals or inclusions on new assets, it’s never been harder or more expensive to purchase new mowers.

The mower industry post-2027

Though the industry is slated to peak in 2027, the implications of such a steady incline in the market reach further than the next 5 years. The introduction of massive amounts of mowers into the Australian market could dilute the price of assets due to saturation. This makes it crucial for many businesses to offload their assets within the next 5 years while their mowers still have practical use. This keeps businesses able to maintain young fleets by retaining asset value with an early offload.

Alternatively, the market could continue to grow if shipping and manufacturing issues continue to cause extreme delays or lack of assets. With Australia taking low priority on the international market, world events that slow travel and production would further affect asset availability.

While there’s no doubt that the mower industry will continue to expand in the next decade, there are multiple trends on the horizon that could affect the Australian mower market.

Improved technology

The most resounding expectation of the industry is to see a range of technological improvements in the new assets hitting the market. These improvements are likely to be advanced safety and productivity technologies.

Battery vs. fuel

It’s likely that battery-powered mowers will steal the stage in the decade to come. While fuel-driven mowers are still the most popular model, battery-powered assets are expected to see a jump in the market share from 18% to 24% by 2025. This is partially due to the environmentally-friendly use of battery over fuel, and also in part, due to technology catching up to allowing ride-on mowers to be built with batteries.

Robotic mowers

Because of the growing interest in personal home garden maintenance, it is suspected that robotic mowers may enter the market as soon as technology allows. Robotic mowers would include lithium-ion technology to create environmentally-friendly, compact assets. These mowers would be predominantly suburban-based and would need to include barrier recognition and lawn-mapping technology to make a successful entrance into the market.

Interested in buying a used mower? Check out all the assets available at Pickles around Australia or speak to our industrial team about upcoming sales.

Interested in selling a used mower? Talk to our industrial team about all the options available for secondhand industrial assets. 

23 Mar