Water Supply in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: May 2024
ANZSIC D2811Revenue
$13.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
16,831
Businesses
597
Wages
$X.Xbn
Water Supply in Australia industry analysis
Water suppliers provide an essential service to Australia's growing population, which is generating steady demand for water from households and industrial markets. In recent years, La Nina conditions have swelled catchments while also prompting investment to improve resilience against extreme weather events like bushfires and floods. The high rainfall had led to a sharp rise in supply, while demand also stagnated during the pandemic when border closures led to a collapse in migration. These trends have reduced prices as supply has outstripped demand. Revenue is expected to decline at an annualised 2.8% over the past five years, with an expected 0.4% rise in 2023-24, to reach an estimated $13.6 billion. Although revenue has declined, suppliers have managed to keep purchase costs down amid very high annual rainfall and plentiful storage capacity in water catchments around the country. This trend has prevented heavy declines in profitability.
Trends and Insights
- Australia has an ageing water asset base. This dynamic will drive an increase in investment over the next few years, which makes rising prices for consumers an inevitability.
- Water volume charges reflect an expanding population. Households, which pay charges based on water volumes consumed, are encouraged to conserve water as Australia’s population grows.
- New South Wales is the biggest water supply market. The state’s large population and steady agricultural output needs a consistent supply of water from large-scale facilities.
- Water supply is geographically segmented. The water supply chain is well-suited to natural geographic monopolies, with state-owned entities providing essential services to specific regions.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated $13.6bn in 2024.
Trends and Insights
Steady population growth underlies demand for water supply
- Water suppliers are servicing the essential needs of Australia's growing population, while providing industrial and mining markets with necessary inputs in their production processes. Predicting demand is a crucial planning challenge, as water supply organisations must ensure a consistent water supply to households and businesses.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Water suppliers will need to shore up Australia's water security
- Governments and water supply firms are bracing for the impacts of climate change on Australia's water supply. Changing weather patterns and sea level rises will affect ongoing water availability and quality, challenging Australia's long-term water security. Alongside more erratic climate conditions, a combination of an ageing water asset base and forecast population growth is set to fuel a sharp increase in capital expenditure on water assets.
Biggest companies in the Water Supply in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Sydney Water | 1,414.1 | |
Water | 1,050.4 | |
Duplicated Seqwater | 1,041.0 |
To view the market share and analysis for all 8 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 Water service charges, Water volume charges and Other water services. Water service charges is the largest segment of the Water Supply in Australia.
Trends and Insights
Suppliers are adjusting their water volume charges to service an expanding population base
- Almost all industry firms have adopted a user-pays system to supply water to customers. This system replaced charges based on property values, which water suppliers used until the early 2000s.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Shearing, Cropping and Agricultural Support Services in Australia
- Sewerage and Drainage Services in Australia
- Heavy Industry and Other Non-Building Construction in Australia
- Waste Remediation and Materials Recovery Services in Australia
International industries
- Water Supply & Irrigation Systems in the US
- Water Supply & Irrigation Systems in Canada
- Water Supply in New Zealand
- Water Collection, Treatment & Supply in the UK
- Water Collection, Treatment & Supply in Ireland
Table of Contents
About this industry
Industry definition
Industry firms catch, store, purify and supply water, usually through a system of pipes. Although companies that operate irrigation systems to supply water to farms are included in the industry, the on-farm operation of irrigation systems is not included.
What's included in this industry?
Water service chargesWater volume chargesService connectionWater inspectionWater testingCompanies
Sydney WaterWaterDuplicated SeqwaterPurchase this report to view all 8 major companies in this industry.
Related Terms
WATER TREATMENT PLANTWATER MAINSWASTEWATERWATER RECYCLINGPOTABLE WATERIndustry Code
ANZSIC 2811 - Water Supply 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
Australia has an ageing water asset base. This dynamic will drive an increase in investment over the next few years, which makes rising prices for consumers an inevitability.
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
Water volume charges reflect an expanding population. Households, which pay charges based on water volumes consumed, are encouraged to conserve water as Australia’s populatio...
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
New South Wales is the biggest water supply market. The state’s large population and steady agricultural output needs a consistent supply of water from large-scale facilities...
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
Water supply is geographically segmented. The water supply chain is well-suited to natural geographic monopolies, with state-owned entities providing essential services to sp...
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
Large-scale suppliers are turning to desalination facilities to balance their existing water sources. Desalination facilities re-use existing resources, helping firms maintai...
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 Sydney Water's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Water's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Duplicated Seqwater's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 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 Duplicated Seqwater, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Water supply is highly regulated. Regulators and governments keep a close eye on the water supply chain, with stringent quality measures in place.
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
Water suppliers re-invest profit to fund infrastructure extensions. Regulators make sure pricing schedules are fair for consumers, given the monopoly nature of the water supp...
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 Water Supply industry in Australia in 2024?
The market size of the Water Supply industry in Australia is $13.6bn in 2024.
How many businesses are there in the Water Supply in Australia industry in 2024?
There are 597 businesses in the Water Supply industry in Australia, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Water Supply industry in Australia grown or declined over the past 5 years?
The market size of the Water Supply industry in Australia has been declining at a CAGR of 2.8 % between 2019 and 2024.
What is the forecast growth of the Water Supply industry in Australia over the next 5 years?
Over the next five years, the Water Supply industry in Australia is expected to grow.
What are the biggest companies in the Water Supply market in Australia?
The biggest companies operating in the Water Supply market in Australia are Sydney Water, Water and Duplicated Seqwater
What does the Water Supply in Australia include?
Water service charges and Water volume charges are part of the Water Supply industry.
Which companies have the highest market share in the Water Supply in Australia?
The company holding the most market share in Australia is Sydney Water.
How competitive is the Water Supply industry in Australia?
The level of competition is low and increasing in the Water Supply industry in Australia.
