Melbourne, Australia (PRWEB) December 13, 2013
Australian industry and households use gas and electricity as their primary sources of energy. A stable and secure supply of electricity supports economic activity, and governments act to make sure that this essential infrastructure is available. Large energy users in the private sector also invest heavily in reliability to safeguard their operations. This means that changing demand for electricity is instrumental in driving revenue for the Electricity Infrastructure Construction industry in Australia. Perceived increases in demand for electricity are met by investment in infrastructure by the public and private sector in advance of anticipated future demand. To ensure safety of supply, electricity infrastructure is built with extra capacity to minimise the risk of downtime. According to IBISWorld industry analyst Caroline Finch, “as infrastructure is built in advance of, and in surplus to, expected future needs, changes in demand often result in a larger change in investment.”
Over the past five years, demand for electricity infrastructure has increased from both the Electricity Supply subdivision and heavy industry, in particular the Mining division. The Electricity Infrastructure Construction industry has been the greatest beneficiary of this increased demand, with revenue climbing at a compound annual rate of 2.5% to reach $14.3 billion in 2013-14. Concentration in the industry is at a medium level, with major players UGL Limited, Ausgrid, Electricity Networks Corporation, ENERGEX Limited and Ergon Energy Corporation Limited dominating the market.
“Demand for new infrastructure is expected to diminish in the next five years, as both private and public sector capital expenditure on electricity assets levels off,” says Finch. Industry growth is expected to slow in the current year to 1.1% as upstream industries adapt their outlook. Decreasing per capita demand for electricity in the next five years is expected to shape expenditure within the Electricity Supply subdivision, demand from which will be further affected by recently introduced regulatory changes. Privatisation is on the cards in upstream industries within the subdivision, which could prove a wildcard for the structure of the Electricity Infrastructure Construction industry. In the private sector, declining capital expenditure within the Mining division is also expected to dampen industry activity.
For more information, visit IBISWorld’s Electricity Infrastructure Construction in Australia industry report page.
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IBISWorld industry Report Key Topics
Businesses in this industry are primarily engaged in building infrastructure for electricity suppliers. This includes the construction of distribution and transmission networks, as well as power stations, substations and associated work. Maintenance and repair services are excluded from the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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