Sewerage and Drainage Services in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC D2812Revenue
$10.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,386
Businesses
188
Wages
$X.Xbn
Sewerage and Drainage Services in Australia industry analysis
Operators in the Sewerage and Drainage Services industry have faced a difficult operating environment over the past five years. Industry revenue is expected to decline at an annualised 2.5% over the five years through 2023-24, to total $10.1 billion. These revenue declines were mainly driven by sharp drops in 2020-21 and 2021-22, and some pricing restrictions throughout the period. Government lockdowns in response to the COVID-19 pandemic forced many businesses to temporarily close, limiting demand from many sectors and rising defaults on their utility payments in 2020-21, including those to the industry. Further defaults, driven by high inflation and rising interest rates are expected to lead to revenue falling by 2.2% in the current year, with low volume growth and downward pressure on pricing also hindering the industryState governments own most of the industry's operations, largely due to the high capital costs required to develop sewage collection pipe networks and sewage treatment plants. However, some public sewerage authorities have outsourced industry functions. For example, South Australian Water Corporation has a joint venture with France-based SUEZ Water to operate its sewerage network, while SUEZ Water also operates Unitywater's sewage treatment plant in Noosa, QLD. As a result, private enterprises have a small presence in the industry. Industry enterprise numbers have declined slightly over the past five years, as some local authorities have merged operations to reduce management and operating costs. This decrease has occurred despite population growth and new suburbs being created on city fringes.Industry revenue is forecast to increase at a similar pace to Australia's population growth over the next five years, reflecting growth in demand and largely inflation-adjusted pricing increases that will be necessary to fund sewerage network maintenance and new investment. Overall, revenue is projected to rise at an annualised 1.3% over the five years through 2028-29, to $10.8 billion. Profit margins are forecast to decline marginally over the period due to increased capital expenditure and rising wage costs.
Trends and Insights
- Industry profit margins have been weighed down by limited price increases and the impacts of the COVID-19 pandemic. The economic disruptions of the pandemic have led to rising rates of customer defaults on payments to industry firms.
- Weakening construction activity has reduced demand from the construction sector. Builders have faced shortage of construction materials and bankruptcies disrupting demand for sewerage and drainage services.
- Population distribution is the major determinant of the dispersion of industry enterprises. The three east coast states account for over three-quarters of all industry firms, roughly in line with their share of the Australian population.
- Geographical monopolies mean that consumers have little direct negotiating power and market share concentration in individual regions is absolute. Regulators limit the monopolistic pricing power of industry firms.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $10.1bn in 2023.
Trends and Insights
Industry profit margins have been hit from all sides
- Industry profit margins have declined significantly over the past five years. Lower industry profit margins have been due to rising operating costs, higher capital input requirements, mixed pricing across the industry and revenue declines as a result of increased payment defaults during the COVID-19 pandemic.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising capital expenditure is expected to put pressure on profit margins
- A slow recovery in economic conditions is expected to reduce defaults on payments and support industry profit margins, but this is expected to be offset by increased capital expenditure over the next five years.
Biggest companies in the Sewerage and Drainage Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Sydney Water | 1,320.0 | |
Water | 1,035.2 | |
Queensland Urban Utilities | 655.8 |
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 Sewage collection services, Sewage treatment services and Drainage services. Sewage collection services is the largest segment of the Sewerage and Drainage Services in Australia.
Trends and Insights
Sewage collection services have had stronger price increases than other segments
- Sewage is collected through the sewerage pipe network, which industry wastewater authorities own and maintain. A proportion of the sewerage fees that wastewater organisations charge to customers finances this collection service, with the balance of the fees applicable to sewage treatment services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Water Supply in Australia
- Heavy Industry and Other Non-Building Construction in Australia
- Liquid Waste Collection Services in Australia
- Waste Treatment and Disposal Services in Australia
International industries
- Sewage Treatment Facilities in the US
- Sewage Treatment Facilities in Canada
- Sewerage and Drainage Services in New Zealand
- Sewerage in the UK
- Sewage Treatment Facilities in China
Table of Contents
About this industry
Industry definition
Industry companies operate sewerage systems, drainage systems and sewage treatment plants. Industry organisations are generally owned and operated by state or territory governments.
What's included in this industry?
Sewage collectionSewage treatmentTrade wasteDrainageRecycled wastewaterCompanies
Sydney WaterWaterQueensland Urban UtilitiesPurchase this report to view all 6 major companies in this industry.
Related Terms
WASTEWATERSEWAGE TREATMENT PLANTWATER RECYCLINGDRAINAGEGREY WATERIndustry Code
ANZSIC 2812 - Sewerage and Drainage 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
Industry profit margins have been weighed down by limited price increases and the impacts of the COVID-19 pandemic. The economic disruptions of the pandemic have led to risin...
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
Weakening construction activity has reduced demand from the construction sector. Builders have faced shortage of construction materials and bankruptcies disrupting demand for...
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
Population distribution is the major determinant of the dispersion of industry enterprises. The three east coast states account for over three-quarters of all industry firms,...
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
Geographical monopolies mean that consumers have little direct negotiating power and market share concentration in individual regions is absolute. Regulators limit the monopo...
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
Expected population growth has driven investment into the construction and upgrading of major wastewater assets. The largest companies in the industry are all involved in maj...
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 Sydney Water's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Water's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Queensland Urban Utilities'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 Sydney Water, and factors influencing its performance in the industry
- Description and key data for Water, and factors influencing its performance in the industry
- Description and key data for Queensland Urban Utilities, 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
Industry revenue volatility is constrained by regulated pricing. Regulatory pricing bodies have limited revenue volatility during the COVID-19 pandemic by restricting price g...
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
Depreciation costs have increased as firms have invested in future-proofing their networks. Industry firms have sought to prepare for future population growth by upgrading an...
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 Sewerage and Drainage Services industry in Australia in 2024?
The market size of the Sewerage and Drainage Services industry in Australia is $10.1bn in 2024.
How many businesses are there in the Sewerage and Drainage Services in Australia industry in 2023?
There are 188 businesses in the Sewerage and Drainage Services industry in Australia, which has declined at a CAGR of 2.6 % between 2018 and 2023.
Has the Sewerage and Drainage Services industry in Australia grown or declined over the past 5 years?
The market size of the Sewerage and Drainage Services industry in Australia has been declining at a CAGR of 2.5 % between 2018 and 2023.
What is the forecast growth of the Sewerage and Drainage Services industry in Australia over the next 5 years?
Over the next five years, the Sewerage and Drainage Services industry in Australia is expected to grow.
What are the biggest companies in the Sewerage and Drainage Services market in Australia?
The biggest companies operating in the Sewerage and Drainage Services market in Australia are Sydney Water, Water and Queensland Urban Utilities
What does the Sewerage and Drainage Services in Australia include?
Sewage collection and Sewage treatment are part of the Sewerage and Drainage Services industry.
Which companies have the highest market share in the Sewerage and Drainage Services in Australia?
The company holding the most market share in Australia is Sydney Water.
How competitive is the Sewerage and Drainage Services industry in Australia?
The level of competition is low and steady in the Sewerage and Drainage Services industry in Australia.
