Road to success: Further crowding on the roads and price rises are driving industry growth

Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. The industry’s revenue from individual toll roads is typically stable. Individual assets build in popularity with motorists over their lifetime, while congestion growth and market acceptance increase toll road use and allow operators to raise prices and expand. However, volatility in total industry revenue can increase when new roads enter operation. The industry is capital-intensive, as tunnels and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both operating costs and provide a return for investors after debt more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Volatility in total industry revenue can increase when new roads enter operation
  • The majority of industry assets have been built through public–private partnerships
  • Profitability of existing industry assets is anticipated to improve over the next five years
  • Industry Report - Industry Locations Chapter

    The location of industry establishments reflects state government demand for infrastructure investment structures that give rise to toll road concessions. A precondition for investment in new roads is population growth and increases in the number of motor vehicles. These are factors that are present in almost all capital cities in Australia.Industry operations exist in three Australia states: New South Wales, Queensland and Victoria. The industry developed in New South Wales, with tolls introduced on Sydney Harbour Tunnel in 1992 followed by the opening of three more toll roads during the 1990s.Victoria was the next state to adopt the model, with the Burnley and Domain Tunnels in 1999-00 followed by CityLink in 2000-01 and EastLink in 2008-09. Exp...purchase to read more.

    Additional Insights for the Toll Road Operators Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Toll Road Operators Industry are

  • Optimum capacity utilisation
  • Supply contracts in place for key inputs
  • Provision of a related range of goods/services (one-stop shop)
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicles and Demand from road freight transport in the Toll Road Operators industry impact industry performance..

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    What's in this report

    What is the Toll Road Operators Industry?

    Firms in the industry operate toll roads and bridges, often on behalf of state governments for a profit.

    Industry Products
  • Consulting
  • Toll road concession operation
  • Industry Activities
  • Toll bridge operation
  • Toll road operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicles
  • Demand from road freight transport
  • Real household disposable income
  • year bond rate
  • World price of crude oil

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Toll Road Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Toll Road Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Consumers

  • Key Selling Industries
  • Finance
  • Gravel and Sand Quarrying
  • Investment Banking and Securities Brokerage
  • Road and Bridge Construction
  • Superannuation Funds

  • Products & Services
  • Toll road concession operation
  • Consulting
  • Chart: Toll Road Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private motorists
  • Road freight operators
  • Chart: Major Market Segmentation for the Toll Road Operators 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 Toll Road Operators

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toll Road Operators Industry

  • Industry Globalization
    Transurban Group, Horizon Roads Pty Limited Group,
  • Table: Transurban Group - financial performance
  • Table: Horizon Roads Pty Limited Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Toll Road Operators 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 Toll Road Operators Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Build-Own-Operate-Transfer (Boot)
  • This is a form of project financing, where a private entity receives a concession from the government to finance, design, construct and operate a facility.
  • Concession
  • A contract to operate a toll road.
  • Public-Private Partnership (Ppp)
  • This is a government service or private business venture, which is funded and operated through a partnership of government and private companies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Toll Road Operators market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Toll Road Operators:
    • 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 Toll Road Operators 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 Toll Road Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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