Water Supply in Australia Industry Market Research Report Now Updated by IBISWorld

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Although severe drought conditions reduced water consumption during much of the past five years, the effect of this dry spell on the Water Supply industry’s revenue was more than offset by substantial increases in water prices. Governments have also increasingly been turning to private partnerships to supplement funding into infrastructure and new technologies. For these reasons, industry research firm IBISWorld has updated its report on the Water Supply industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Water conservation measures are curtailing usage, but the industry still requires revenue to support its capital base

The Water Supply industry in Australia is expected to generate revenue of $9.87 billion in 2011-12, growing an annualized 9.3% over the past five years. Although severe drought conditions reduced water consumption during much of this period, the effect of this dry spell on revenue was more than offset by substantial increases in water prices. According to IBISWorld industry analyst Kate Convey, “industry revenue is forecast to expand by 10.7% in 2011-12, as prices are increased well ahead of inflation”. Higher revenue is required to maintain existing industry infrastructure (much of which has been put under additional strain by protracted dry conditions), fund ongoing infrastructure development and to develop new water sources. Although low rainfall and drought conditions in several states have curtailed growth in the volume of water supplied by the industry, its infrastructure spending requirements continue to grow, requiring higher revenue, and in turn, higher water prices.

The Water Supply industry is dominated by state government-owned corporations, but public-private funding mechanisms are becoming more commonplace for large infrastructure developments, including major water treatment plants and desalination facilities. “The Water Supply industry is highly concentrated within each state, with only a small number of government-owned organisations accounting for the great bulk of operations”, Convey said. However, over the country as a whole, the market share concentration level is moderate. Industry concentration has remained stable over the past five years. Major companies in the industry include Water Corporation, Sydney Water, South Australian Water, Yarra Valley Water and South East Water.

The next five years will be challenging for the Water Supply industry, given the trend towards less reliable rainfall and the need to develop alternative sources of water, including desalination plants. Industry revenue is expected to increase and industry participants will require robust profit margins in order to provide for capital spending.

For more information, visit IBISWorld’s Water Supply report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Firms in this industry catch, store, purify and supply water, usually via a system of pipes. Firms that operate irrigation systems supplying water to farms are also included in the industry, but the on-farm operation of irrigation systems forms part of the Services to Agriculture industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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