Road and Bridge Construction in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: December 2023
ANZSIC E3101Revenue
$41.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
58,425
Businesses
2,613
Wages
$X.Xbn
Road and Bridge Construction in Australia industry analysis
Leading construction companies are riding a wave of road construction thanks to record-breaking investment in landmark developments like the WestConnex motorway in Sydney, the West Gate Tunnel in Melbourne and the Coomera Connector (Second M1) on the Gold Coast. An injection of public funding and progress on landmark public-private partnership (PPP) developments has lifted the Road and Bridge Construction industry to unprecedented levels. Industry revenue is expected to climb at an annualised 4.4% through 2023-24 to reach a record $41.5 billion.
Trends and Insights
- Work on landmark road projects like the WestConnex in Sydney and the WestGate Tunnel in Melbourne have underpinned an unprecedented level of industry activity. Road construction has slumped on new housing subdivisions following a hike in mortgage interest rates.
- Two-thirds of industry revenue is derived from constructing new road projects, including multi-lane highways, toll roads and local street networks. The start-up of landmark road developments in the major capital cities has boosted activity in recent years.
- Victoria's share of national road construction has recently risen with the start of major road projects. Still, the state's concentrated population has historically contributed to a below-average share of road construction.
- Contractors must demonstrate a proven capacity to complete projects on time, within budget and meeting technical specifications. Price becomes a point of differentiation once contractors have proven their capabilities.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated $41.5bn in 2023.
Trends and Insights
Work on landmark road projects drives the overall economy
- Road and bridge construction activity has soared to new heights throughout the COVID-19 pandemic, propelled by government stimulus spending and an injection of private investment through public-private partnership (PPP) arrangements.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Construction activity is set to remain historically high despite a substantial contraction
- Revenue is set to fluctuate considerably over the short term as work on large-scale projects starts and ends. Still, ongoing maintenance and upgrade activity on roads and bridges will help cushion the blow from landmark construction projects reaching completion.
Biggest companies in the Road and Bridge Construction in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Transport for NSW | 4,700.0 | |
CIMIC | 2,900.0 | |
Transport for Victoria | 1,764.0 |
To view the market share and analysis for all 12 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 Road and tunnel construction, Bridge, overpass and other construction and Maintenance and repairs to infrastructure. Road and tunnel construction is the largest segment of the Road and Bridge Construction in Australia.
Trends and Insights
An injection of funding has boosted new road and tunnel construction
- Two-thirds of industry revenue is derived from constructing new road projects, including multi-lane highways, toll roads and local street networks. This share has trended upwards slightly through 2023-24 with the beginning of work on landmark road developments in the major capital cities.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Heavy Industry and Other Non-Building Construction in Australia
- Site Preparation Services in Australia
- Concreting Services in Australia
- Landscaping Services in Australia
- Metal Cladding, Waterproofing and Scaffolding Services in Australia
International industries
- Bridge & Elevated Highway Construction in the US
- Road & Highway Construction in the US
- Bridge & Elevated Highway Construction in Canada
- Road & Highway Construction in Canada
- Road and Bridge Construction in New Zealand
Table of Contents
About this industry
Industry definition
Industry firms construct, repair and maintain roads, bridges, aerodrome runways and parking lots. Firms also carry out the quarrying of earth, soil or filling, in conjunction with road or bridge construction.
What's included in this industry?
Road and tunnel constructionBridge and overpass constructionMaintenance and repairs to infrastructureAlterations and additions to existing infrastructureAirport runway constructionCompanies
Transport for NSWCIMICTransport for VictoriaPurchase this report to view all 12 major companies in this industry.
Related Terms
TOLL ROADBUILD-OWN-OPERATE-TRANSFER (BOOT)PUBLIC-PRIVATE PARTNERSHIP (PPP)PAVEMENTOUTSOURCINGWET HIREDRY HIREIndustry Code
ANZSIC 3101 - Road and Bridge Construction 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
Work on landmark road projects like the WestConnex in Sydney and the WestGate Tunnel in Melbourne have underpinned an unprecedented level of industry activity. Road construct...
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
Two-thirds of industry revenue is derived from constructing new road projects, including multi-lane highways, toll roads and local street networks. The start-up of landmark r...
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
Victoria's share of national road construction has recently risen with the start of major road projects. Still, the state's concentrated population has historically contribut...
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
Contractors must demonstrate a proven capacity to complete projects on time, within budget and meeting technical specifications. Price becomes a point of differentiation once...
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
The state road authorities, like Main Roads WA and VicRoads, retain pivotal roles in promoting, designing and managing major road construction projects. Road authorities incr...
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 Transport for NSW's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of CIMIC's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Transport for Victoria's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 9 additional companies
Detailed analysis
- Description and key data for Transport for NSW, and factors influencing its performance in the industry
- Description and key data for CIMIC, and factors influencing its performance in the industry
- Description and key data for Transport for Victoria, and factors influencing its performance in the industry
- Description, key data and performance trends for 9 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Constructing roads on new residential subdivisions is a core source of revenue for many small-scale contractors. A recent hike in mortgage interest rates and the end of the H...
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 have widened in response to record road, bridge and tunnel construction activity. Still, escalating input costs from pandemic-related supply chain blockages ha...
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 Road and Bridge Construction industry in Australia in 2024?
The market size of the Road and Bridge Construction industry in Australia is $41.5bn in 2024.
How many businesses are there in the Road and Bridge Construction in Australia industry in 2023?
There are 2,613 businesses in the Road and Bridge Construction industry in Australia, which has grown at a CAGR of 2.4 % between 2018 and 2023.
Has the Road and Bridge Construction industry in Australia grown or declined over the past 5 years?
The market size of the Road and Bridge Construction industry in Australia has been growing at a CAGR of 4.4 % between 2018 and 2023.
What is the forecast growth of the Road and Bridge Construction industry in Australia over the next 5 years?
Over the next five years, the Road and Bridge Construction industry in Australia is expected to decline.
What are the biggest companies in the Road and Bridge Construction market in Australia?
The biggest companies operating in the Road and Bridge Construction market in Australia are Transport for NSW, CIMIC and Transport for Victoria
What does the Road and Bridge Construction in Australia include?
Road and tunnel construction and Bridge and overpass construction are part of the Road and Bridge Construction industry.
Which companies have the highest market share in the Road and Bridge Construction in Australia?
The company holding the most market share in Australia is Transport for NSW.
How competitive is the Road and Bridge Construction industry in Australia?
The level of competition is high and steady in the Road and Bridge Construction industry in Australia.
