Revolutionary road: Demand from major private toll roads has driven industry revenue

The Road Maintenance industry prolongs the life of road assets through light and heavy programmed maintenance. Since the mid-2000s, Australia's road transport network has expanded rapidly through funding from the public and private sectors. This expansion has underpinned increased requirements for scheduled maintenance and repair. Industry revenue is expected to increase at an annualised 2.1% over the five years through 2018-19, to $5.4 billion. This growth includes a projected revenue increase of 5.4% during 2018-19.Most funding for industry services comes from each tier of government, although state and territory government road authorities are mainly responsible for planning, constructing and maintaining the arterial road networks, and allocating their own federal more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Maintenance and repair of the expanded road network has aided industry revenue
  • The private sector has become more prominent, competing with large government operators
  • The private sector has made considerable inroads into the industry over the past decade
  • Industry Report - Starting a New Business Chapter

    The industry has high barriers to entry. A major barrier to establishing new operations is winning contracts from the public sector. The tendering process on public contracts tends to favour firms with a proven track record, which can be a barrier for new entrants.The industry also has a high level of capital intensity. Firms looking to establish new operations will likely require substantial initial capital outlays, even if the equipment is leased. New entrants may lack access to new road maintenance and repair technologies, and this may preclude them from tendering on some projects.Barriers to entry are expected to have decreased over the past five years as state, territory and local governments have looked to outsource work to improve efficiencies. In ...purchase to read more.

    Additional Insights for the Road Maintenance Industry

    IBISWorld has determined the most important Key Success Factors for the Road Maintenance are:

  • Ability to compete on tender
  • Having links with suppliers
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Demand from road and bridge construction and Capital expenditure by state and local government in the Road Maintenance industry impact industry performance..

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    What's in this report

    What is the Road Maintenance Industry?

    Industry firms maintain and repair roads. New infrastructure construction is excluded from the industry.

    Industry Products
  • Road sealing
  • Pavement rehabilitation
  • Electrical maintenance
  • Safety improvements
  • Road markings
  • Industry Activities
  • Pavement rehabilitation
  • Sealing works
  • Safety improvements
  • Road markings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from road and bridge construction
  • Capital expenditure by state and local government
  • Number of motor vehicles
  • Demand from road freight transport
  • Government consumption expenditure
  • World price of crude oil

  • Current Performance
  • Federal decisions
  • State and local spending
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Expanded networks
  • Weather stress
  • Funding trends
  • Table: Road Maintenance Industry Revenue Outlook

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

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

  • Key Selling Industries
  • Construction Machinery and Operator Hire
  • Gravel and Sand Quarrying
  • Lubricants and Other Petroleum Product Manufacturing
  • Machinery and Scaffolding Rental
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Road sealing
  • Pavement rehabilitation
  • Electrical maintenance
  • Safety improvements
  • Road markings
  • Chart: Road Maintenance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State and territory governments
  • Local governments
  • Private sector
  • Chart: Major Market Segmentation for the Road Maintenance 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 Road Maintenance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road Maintenance Industry

  • Industry Globalization
    Department of Transport and Main Roads Queensland, Roads and Maritime Services NSW, Main Roads Western Australia, Roads Corporation,
  • Table: Department of Transport and Main Roads Queensland - financial performance
  • Table: Roads and Maritime Services NSW - financial performance
  • Table: Main Roads Western Australia - financial performance
  • Table: Roads Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Road Maintenance 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 Road Maintenance Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dry Hire
  • The hire or lease of plant and machinery without an operator. Dry hire can be paid on an hourly, daily or weekly basis.
  • Pavement Rehabilitation
  • Upgrade or repair of road pavement to meet minimum safety requirements or to upgrade the surfaces to increase its structural capacity.
  • Public-Private Partnership (Ppp)
  • A contractual agreement between a public agency and private company to share skills, assets and financial resources to deliver a facility for public use.
  • Wet Hire
  • The hire or lease of plant and machinery with a suitably qualified operator working under the direction of the prime contractor. Wet hire can be paid on an hourly, daily or weekly basis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road Maintenance 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.

    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 Road Maintenance:
    • 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 Road Maintenance 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 Road Maintenance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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