Population-driven services, such as sewerage treatment, are expected to re-emerge as drivers of industry growth.
Melbourne, Australia (PRWEB) September 07, 2013
In the past five years, the issue of water supply has come to the fore amid one of the deepest and most protracted droughts in Australian history, the so-called Millennium Drought of 2001 to 2010. The lack of rainfall challenged a water supply industry that has historically depended on rainwater from large catchments. As dam levels dropped, interest in augmentation of the water supply grew. The focus has been on techniques for recovering useable water from salt water, wastewater and stormwater. According to IBISWorld industry analyst Caroline Finch, “This has contributed to growth in the Water Treatment Services industry in Australia, and the shift in thinking about water supply is likely to provide long-term benefits.”
In the five years through 2013-14, the industry's revenue base has expanded, and revenue has grown at a compound annual rate of 5.8%. In the current year, further growth of 2.1% is expected to take industry revenue to $5.2 billion. The industry has grown to meet increased demand for water treatment services from desalination plants. Demand for services related to water re-use and water recycling has also grown, stemming from industry and government alongside investment in the Water Supply industry. The industry's structure has been marked by these shifts. “Labour productivity has increased at large urban water utilities, as capital investment has outpaced the need for new staff,” says Finch. At the smaller end of the industry, the water services provided by local councils have been consolidated to facilitate investment. The natural monopolies within the industry result in a high level of market concentration. The major players are the Sydney Water Corporation, the Water Corporation (WA), the South Australian Water Corporation, Queensland Urban Utilities, and the Melbourne Water Corporation.
Improved rainfall in the past five years has resulted in increased water availability. Expensive water manufacturing capacity at desalination plants is sitting idle, and it is unlikely that significant new investment will occur in the assets that the industry operates. After the rapid growth of the past five years, IBISWorld anticipates that demand for industry services will increase at a slower pace. Population-driven services, such as sewerage treatment, are expected to re-emerge as drivers of growth in the Water Treatment Services in Australia industry.
For more information, visit IBISWorld’s Water Treatment Services in Australia industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry are involved in the treatment of water to ensure meet safety and environmental standards. After treatment water is transported through water mains to end users or released back into the environment. This industry excludes water testing services outside of the Water Supply division.
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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