Electricity Retailing in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC D2640Revenue
$46.9bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,303
Businesses
272
Wages
$X.Xbn
Electricity Retailing in Australia industry analysis
As the client-facing link in the electricity supply chain, retailers are dealing with the flow-on effects of turbulent upstream supply. Commodity price shocks, especially during the 2022 calendar year, led to an unprecedented surge in upstream wholesale prices. To protect consumers from surging supply costs, and maintain power for homes and businesses, the Australian Energy Market Operator and the Federal Government were forced to intervene in energy markets. In June 2022, the Australian Energy Market Operator temporarily suspended the National Electricity Market, forcing generators to provide electricity at a capped rate. Later that year, the Federal Government introduced price caps on domestic coal and gas to ease upstream costs on customers and businesses. In 2023-24, the coal price cap expired and the gas price cap was extended.
Trends and Insights
- Inflated prices on the wholesale market have created turmoil for electricity retailers. In 2022, the Federal Government intervened in the National Electricity Market after retailers struggled with surging costs and limited scope to pass costs on downstream.
- Renewables are usurping traditional fossil fuels. While coal still dominates Australia’s electricity mix, massive investment in renewable technologies is prompting strong output from solar and wind sources and coal-fired power stations are closing.
- Retailers battle to meet Victoria’s power needs. In a crowded market, retailers are fighting to service Victoria’s extensive population and commercial sector.
- Deregulation has opened the door to competition. Over the past decade, regulatory reforms have opened retail markets up to small retailers that have challenged traditional energy firms.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $46.9bn in 2024.
Trends and Insights
Deregulated retail markets encourage strong competition
- Over the past decade, the electricity retail market has been progressively deregulated. This has pushed up competition between small and large retailers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Electricity demand is on track to rise over the coming years, heaping pressure on supply
- Over the past decade, operational demand on the National Electricity Market (NEM) has trended downwards, primarily because of rising uptake of rooftop solar panels. This trend is forecast to reverse over the coming years. The growth of electric vehicles and electrification are key factors set to grow overall demand on the NEM.
Biggest companies in the Electricity Retailing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Origin Energy | 8,988.4 | |
AGL | 5,712.3 | |
Shell Energy Holdings Australia | 4,153.1 |
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 Electricity generated using coal, Electricity generated using natural gas and Electricity generated using wind and large-scale solar power . Electricity generated using coal is the largest segment of the Electricity Retailing in Australia.
Trends and Insights
Coal power fuels Australia's economy
- Coal is the number one electricity source in Australia, with abundant reserves guaranteeing consistent baseload power to support businesses and households.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Gas Supply in Australia
- Electricity Transmission in Australia
- Electricity Distribution in Australia
- Fossil Fuel Electricity Generation in Australia
International industries
- Electricity Retailing in New Zealand
- Electricity Supply in the UK
- Electricity Supply in Ireland
Table of Contents
About this industry
Industry definition
Industry companies sell electricity through power distribution systems that other firms operate. The industry also includes operators that primarily provide services to the electricity market and match electricity supply and demand.
What's included in this industry?
Electricity generated using coalElectricity generated using natural gasElectricity generated using wind and large-scale solar powerElectricity generated using hydropower Electricity generated using biofuelsCompanies
Origin EnergyAGLShell Energy Holdings AustraliaPurchase this report to view all 6 major companies in this industry.
Related Terms
NATIONAL ELECTRICITY MARKET (NEM)AUSTRALIAN ENERGY MARKET OPERATOR (AEMO)TRANSMISSION NETWORKGENTAILERDEFAULT MARKET OFFER (DMO)Industry Code
ANZSIC 2640 - Electricity Retailing 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
Inflated prices on the wholesale market have created turmoil for electricity retailers. In 2022, the Federal Government intervened in the National Electricity Market after re...
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
Renewables are usurping traditional fossil fuels. While coal still dominates Australia’s electricity mix, massive investment in renewable technologies is prompting strong out...
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
Retailers battle to meet Victoria’s power needs. In a crowded market, retailers are fighting to service Victoria’s extensive population and commercial sector.
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
Deregulation has opened the door to competition. Over the past decade, regulatory reforms have opened retail markets up to small retailers that have challenged traditional en...
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
Competition is heating up for large retailers. Following progressive deregulations, smaller retailers have captured strong customer bases and challenged larger vertically int...
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 Origin Energy's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AGL's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Shell Energy Holdings Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Origin Energy, and factors influencing its performance in the industry
- Description and key data for AGL, and factors influencing its performance in the industry
- Description and key data for Shell Energy Holdings Australia, 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
Retailers are obliged to go green. The Renewable Power Percentage sets a minimum amount of electricity that retailers need to supply from renewable sources.
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
Surging supply costs stretch retailers. Ballooning wholesale prices during the 2022 calendar year heaped immense pressure on small and large retailers to maintain profit marg...
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)
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 Electricity Retailing industry in Australia in 2024?
The market size of the Electricity Retailing industry in Australia is $46.9bn in 2024.
How many businesses are there in the Electricity Retailing in Australia industry in 2024?
There are 272 businesses in the Electricity Retailing industry in Australia, which has declined at a CAGR of 0.6 % between 2019 and 2024.
Has the Electricity Retailing industry in Australia grown or declined over the past 5 years?
The market size of the Electricity Retailing industry in Australia has been growing at a CAGR of 0.1 % between 2019 and 2024.
What is the forecast growth of the Electricity Retailing industry in Australia over the next 5 years?
Over the next five years, the Electricity Retailing industry in Australia is expected to decline.
What are the biggest companies in the Electricity Retailing market in Australia?
The biggest companies operating in the Electricity Retailing market in Australia are Origin Energy, AGL and Shell Energy Holdings Australia
What does the Electricity Retailing in Australia include?
Electricity generated using coal and Electricity generated using natural gas are part of the Electricity Retailing industry.
Which companies have the highest market share in the Electricity Retailing in Australia?
The company holding the most market share in Australia is Origin Energy.
How competitive is the Electricity Retailing industry in Australia?
The level of competition is high and increasing in the Electricity Retailing industry in Australia.
