Correctional and Detention Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: July 2023
ANZSIC O7714Revenue
$9.6bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
37,985
Businesses
18
Wages
$X.Xbn
Correctional and Detention Services in Australia industry analysis
Correctional and detention services providers aim to maintain a safe, secure and humane correctional system that incorporates elements of rehabilitation, education and community protection. The industry includes providers that operate and manage prisons, community correctional facilities, programs for adult offenders, onshore immigration detention centres, juvenile detention facilities, and other related services. Most revenue comes from publicly funded and government-operated facilities. A small number of privately operated companies accounts for most of the remaining revenue. Factors like criminal activity rates, government capital expenditure and appropriation, overall population trends, and incarceration rates all influence industry performance. The COVID-19 pandemic only had a small negative effect on the industry from late 2019-20 through 2021-22.Revenue is expected to rise at an annualised 1.2% over the five years through 2023-24, to reach $9.6 billion. This strong growth is largely due to greater funding from federal, state and territory governments. Greater government appropriation, incarceration rates and population growth contributed to rising revenue. The number of educational, vocational and transitional programs offered to offenders in industry facilities increased over the past few years. As these programs have expanded, industry funding has also grown. However, declines in immigration detention and lower incarceration rates and visitor numbers during the COVID-19 pandemic have constrained revenue in some years. Revenue is anticipated to rise by 0.8% in 2023-24, representing slightly weaker growth compared with previous years.Going forwards, revenue is projected to continue increasing, due to growth in criminal activity and high government funding. Revenue is forecast to rise at an annualised rate of 2.5% over the five years through 2028-29, to reach $10.9 billion. Funding is set to rise with a focus on improving prisoner welfare and reducing recidivism rates. Yet future immigration policy will likely reduce illegal immigration, decreasing the need for immigration detention centres.
Trends and Insights
- State and territory governments have increased their investment in new and existing correctional facilities over the past decade. Incarceration rates have increased strongly, particularly in Queensland and Western Australia.
- Government-managed prisons have increased as a proportion of correctional and detention facilities. State and territory governments have increased their prisons’ capacities as the incarceration rate has risen.
- Most prisons are located in New South Wales, Victoria, and Queensland. The large populations in these states require them to have greater capacity for inmates.
- Market share concentration is high. Correctional and detention services are largely managed by the state and territory governments, and publicly run prison numbers have increased over the past few years.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.2 % over the past five years, to reach an estimated $9.6bn in 2023.
Trends and Insights
Government expenditure shapes the industry's performance
- Correctional and detention services rely on government expenditure to maintain their performance.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
With crime rates set to rise, state governments will increase investment in their prison systems
- Criminal activity is set to rise, leading to an increase in revenue and profitability.
Biggest companies in the Correctional and Detention Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Department of Communities and Justice | 3,060.0 | |
Victorian Department of Justice | 1,960.0 | |
Queensland Corrective Services | 1,400.2 |
To view the market share and analysis for all 6 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 Government-managed prisons, 24-hour court cell centres and Periodic detention centres. Government-managed prisons is the largest segment of the Correctional and Detention Services in Australia.
Trends and Insights
Government-managed prisons have expanded to deal with rising prisoner numbers
- Government-managed prisons are facilities operated primarily by state and territory governments with diverse levels of security, ranging from minimum to maximum.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Crisis and Care Accommodation in Australia
- Personal Welfare Services in Australia
- Community Services in Australia
- Police and Firefighting Services in Australia
International industries
- Correctional Facilities in the US
- Correctional and Detention Services in New Zealand
Table of Contents
About this industry
Industry definition
Companies in the industry primarily manage and operate correctional institutions and detention centres. Facilities include prisons, remand centres, juvenile detention centres and immigration detention centres.
What's included in this industry?
Government-managed prisonsPrivately managed prisonsJuvenile detention centresTransition centres and programs24-hour court cell centresImmigration detention centresPeriodic detention centresCompanies
Department of Communities and JusticeVictorian Department of JusticeQueensland Corrective ServicesPurchase this report to view all 6 major companies in this industry.
Related Terms
MOBILE PHONE JAMMINGTRANSITION CENTREPERIODIC DETENTIONAPPROPRIATIONIndustry Code
ANZSIC 7714 - Correctional and Detention Services 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
State and territory governments have increased their investment in new and existing correctional facilities over the past decade. Incarceration rates have increased strongly,...
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
Government-managed prisons have increased as a proportion of correctional and detention facilities. State and territory governments have increased their prisons’ capacities a...
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
Most prisons are located in New South Wales, Victoria, and Queensland. The large populations in these states require them to have greater capacity for inmates.
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
Market share concentration is high. Correctional and detention services are largely managed by the state and territory governments, and publicly run prison numbers have incre...
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
State governments have grown the number of prisons under their management. New South Wales and Victoria have both opened new state-run prisons, while Western Australia and Qu...
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 Department of Communities and Justice's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Victorian Department of Justice's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Queensland Corrective Services's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Department of Communities and Justice, and factors influencing its performance in the industry
- Description and key data for Victorian Department of Justice, and factors influencing its performance in the industry
- Description and key data for Queensland Corrective Services, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Corrective centre operations are regulated by specific state and territory government legislation that oversees prisoner conditions and employee work conditions. Privately ow...
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 are low and have remained steady over the past five years. Government-managed correctional facilities are run not-for-profit and benefit from a largely steady ...
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 Correctional and Detention Services industry in Australia in 2024?
The market size of the Correctional and Detention Services industry in Australia is $9.6bn in 2024.
How many businesses are there in the Correctional and Detention Services in Australia industry in 2023?
There are 18 businesses in the Correctional and Detention Services industry in Australia, which has declined at a CAGR of 1.1 % between 2018 and 2023.
Has the Correctional and Detention Services industry in Australia grown or declined over the past 5 years?
The market size of the Correctional and Detention Services industry in Australia has been growing at a CAGR of 1.2 % between 2018 and 2023.
What is the forecast growth of the Correctional and Detention Services industry in Australia over the next 5 years?
Over the next five years, the Correctional and Detention Services industry in Australia is expected to grow.
What are the biggest companies in the Correctional and Detention Services market in Australia?
The biggest companies operating in the Correctional and Detention Services market in Australia are Department of Communities and Justice, Victorian Department of Justice and Queensland Corrective Services
What does the Correctional and Detention Services in Australia include?
Government-managed prisons and Privately managed prisons are part of the Correctional and Detention Services industry.
Which companies have the highest market share in the Correctional and Detention Services in Australia?
The company holding the most market share in Australia is Department of Communities and Justice.
How competitive is the Correctional and Detention Services industry in Australia?
The level of competition is low and steady in the Correctional and Detention Services industry in Australia.
