$10.1bn
$X.Xbn
14,386
188
$X.Xbn
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.
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $10.1bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Sydney Water | 1,320.0 | |
Water | 1,035.2 | |
Queensland Urban Utilities | 655.8 |
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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.
Sewage collection services have had stronger price increases than other segments
Industry companies operate sewerage systems, drainage systems and sewage treatment plants. Industry organisations are generally owned and operated by state or territory governments.
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ANZSIC 2812 - Sewerage and Drainage Services in Australia
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Including values and annual change:
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Key data sources in Australia include:
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The market size of the Sewerage and Drainage Services industry in Australia is $10.1bn in 2024.
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.
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.
Over the next five years, the Sewerage and Drainage Services industry in Australia is expected to grow.
The biggest companies operating in the Sewerage and Drainage Services market in Australia are Sydney Water, Water and Queensland Urban Utilities
Sewage collection and Sewage treatment are part of the Sewerage and Drainage Services industry.
The company holding the most market share in Australia is Sydney Water.
The level of competition is low and steady in the Sewerage and Drainage Services industry in Australia.