Holding water: Spending on desalination plants has caused fee increases, boosting revenue

The Water Supply industry provides high-quality water to a large number of households and commercial end users each year. As the industry requires substantial water sources, weather and climatic conditions can affect its operations, particularly during extended periods of low rainfall and drought. Historically, the water that the industry captures, transports and processes was sourced from traditional rain-fed sources such as dams. However, alternative sources of supply have increasingly been built. Construction of desalination plants in several states, prompted by previous droughts, has substantially grown the industry's asset base, resulting in fee increases for some consumers and businesses.Industry revenue is expected to grow at an annualised 4.2%...read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
Profit
Employment
16,500
Businesses
604

Industry Threats & Opportunities

  • The industry’s structure has changed as new sources of water supply have been built
  • Increasing user charges have caused industry profitability to rise over the past five years
  • The private sector is forecast to play a greater role in the industry over the next five years
  • Industry Report - Industry Locations Chapter

    New South Wales accounts for the largest proportion of water consumption in Australia, reflecting its relatively high population and its extensive agricultural output. Households in New South Wales are projected to account for 31.2% of total water consumption by consumers in 2017-18, while the state's farms account for approximately 40% of Australia's total agricultural use of distributed water. The state is anticipated to have 32.1% of industry establishments in the current year, generating 30.3% of industry revenue.Victoria is the second-largest consumer of distributed water. Victorian households are expected to account for 21.9% of Australia's total household water use in the current year. Its...purchase to read more.

    Additional Insights for the Water Supply Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Water Supply Industry are

  • Economies of scale
  • Adoption of a commercial focus
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Population and Capital expenditure by the public sector in the Water Supply industry impact industry performance..

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    What's in this report

    What is the Water Supply Industry?

    Industry firms catch, store, purify and supply water, usually through a system of pipes. Although firms that operate irrigation systems supplying water to farms are included in the industry, the on-farm operation of irrigation systems is considered part of the agricultural services sector.

    Industry Products
  • Water service charges
  • Water volume charges
  • Other water services
  • Industry Activities
  • Dam operation
  • Desalination plant operation
  • Filtration plant operation
  • Mineral water supply (from the ground)
  • Pumping station operation
  • Reservoir operation
  • Water supply system operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population
  • Capital expenditure by the public sector
  • Level of annual rainfall
  • Availability of water
  • Agriculture irrigation water use

  • Current Performance
  • Costs and profit
  • Desalination and investment
  • Consolidation and private participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising revenue
  • Demand trends
  • Productivity gains
  • Table: Water Supply Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Water Supply Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grain Growing
  • Grain and Livestock Farming
  • Beer Manufacturing
  • Soft Drink Manufacturing
  • Outdoor Vegetable Growing
  • Consumers

  • Key Selling Industries
  • Electricity Distribution
  • Engineering Consulting
  • Heavy Industry and Other Non-Building Construction
  • Industrial and Agricultural Chemical Product Wholesaling

  • Products & Services
  • Water service charges
  • Water volume charges
  • Other water services
  • Chart: Water Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Other industries and sectors
  • Agriculture, forestry and fishing businesses
  • Manufacturing sector
  • Mining sector
  • Utility operators
  • Chart: Major Market Segmentation for the Water Supply Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Water Supply

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water Supply Industry

  • Industry Globalization
    Sydney Water Corporation, Water Corporation, South Australian Water Corporation, Melbourne Water Corporation, Queensland Bulk Water Supply Authority, Central SEQ Distributor-Retailer Authority,
  • Table: Sydney Water Corporation - financial performance
  • Table: Water Corporation - financial performance
  • Table: South Australian Water Corporation - financial performance
  • Table: Melbourne Water Corporation - financial performance
  • Table: Queensland Bulk Water Supply Authority - financial performance
  • Table: Central SEQ Distributor-Retailer Authority - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Water Supply Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Water Supply Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Potable Water
  • Water that is treated to a level to be suitable for human consumption.
  • Wastewater
  • Water that has already been used and discharged.
  • Water Mains
  • Pipe systems that transport water to customers.
  • Water Recycling
  • The treatment and use of wastewater, often for irrigation or industrial purposes.
  • Water Treatment Plant
  • A facility that uses chemicals and filtration to ensure that water quality meets the required standard.
  • What Our Customers Say

    Why buy this report?

    The Water Supply market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Water Supply:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Water Supply market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Water Supply, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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