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Water Treatment Services in Australia - Market Research Report (2014-2029)

Jack Fahey Jack Fahey Melbourne, Australia Last Updated: May 2024 ANZSIC OD5422

Revenue

$6.4bn

2024-25

$6.5bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

8,819

Businesses

75

Wages

$X.Xbn

Water Treatment Services in Australia industry analysis

Water treatment services are intertwined with Australia's wider water security – purification and wastewater management are essential for making the most of existing resources and reducing any environmental harms. The Millennium drought in the 2000s still reverberates today, as public and private sector funding flows to improving water security.

Trends and Insights

  • Australia’s growing population needs water treatment services. Pandemic-induced disruptions population growth has driven a temporary decline in demand. A resumption of population growth needs efficient water treatment services for a healthy supply of drinking water and efficient wastewater management.
  • Desalination unlocks saltwater resources. Bulk water purification is important for a stable water supply, with desalination emerging as a viable option to convert saltwater to freshwater.
  • Population density determines business locations. Densely populated urban areas need large-scale facilities to treat and manage water flows, while smaller areas have scaled back treatment services.
  • Water treatment facilities bring steep start-up costs. Water treatment providers need to manage scale and efficiencies to make a return on their investment, considering the strong capital investment when starting out.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $6.4bn in 2024.

Trends and Insights

Water security is vital for Australia's long-term prosperity

  • Water security involves managing and treating water resources to ensure a stable and safe supply. Therefore, water treatment services are an essential service and a high performing water treatment system is a valuable community asset that is vital to social cohesion.
  • Additional trends and insights available with purchase
Water Treatment Services in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Maximising existing resources will be key to ensuring long-term water security

  • The Millennium Drought, one of the longest and most severe droughts in Australia's history, emphasised the importance of addressing long-term water security concerns. It caused a major shift in government policies, primarily through investments in rainfall-independent sources of water. The processes inherent in extracting water from these sources has expanded the volume of water in Australia's water supply chain that needs to be treated in some way.

Biggest companies in the Water Treatment Services in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Sydney Water
1,240.3
Water
953.8
Queensland Urban Utilities
676.4

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Water Treatment Services in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Sewerage treatment, Bulk water purification and Industrial water treatment. Sewerage treatment is the largest segment of the Water Treatment Services in Australia.

Trends and Insights

Sewerage treatment recycles waste and optimises water usage

  • Sewerage water treatment plants process blackwater produced by households and office buildings to various re-use standards.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry firms treat water to meet water users’ requirements. Industry operators also treat contaminated or saline water for re-use or release into the environment.

What's included in this industry?

Bulk water purificationIndustrial water treatmentSewerage treatment

Companies

Sydney WaterWaterQueensland Urban Utilities

Purchase this report to view all 5 major companies in this industry.

Related Terms

SEWAGE TREATMENT PLANT WASTEWATER SELF-EXTRACTED WATERRECYCLED WATERDESALINATIONPOTABLE

Industry Code

ANZSIC 2006

ANZSIC 2811 - Water Treatment Services in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Australia’s growing population needs water treatment services. Pandemic-induced disruptions population growth has driven a temporary decline in demand. A resumption of popula...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Desalination unlocks saltwater resources. Bulk water purification is important for a stable water supply, with desalination emerging as a viable option to convert saltwater t...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Population density determines business locations. Densely populated urban areas need large-scale facilities to treat and manage water flows, while smaller areas have scaled b...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Water treatment facilities bring steep start-up costs. Water treatment providers need to manage scale and efficiencies to make a return on their investment, considering the s...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Climate change challenges water treatment providers. Water treatment providers are incorporating climate change into their risk management plants, with potential impacts on w...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Sydney Water's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Water's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Queensland Urban Utilities's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Sydney Water, and factors influencing its performance in the industry
  • Description and key data for Water, and factors influencing its performance in the industry
  • Description and key data for Queensland Urban Utilities, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Water treatment is tightly regulated. As an essential service, the water supply chain is closely watched, with federal and state governments imposing high quality standards o...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Water treatment providers are battling rising fixed costs, as extensive capital expenditure is driving up depreciation expenses. Given the essential nature of these services,...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Water Treatment Services industry in Australia in 2024?

The market size of the Water Treatment Services industry in Australia is $6.4bn in 2024.

How many businesses are there in the Water Treatment Services in Australia industry in 2024?

There are 75 businesses in the Water Treatment Services industry in Australia, which has grown at a CAGR of 0.5 % between 2019 and 2024.

Has the Water Treatment Services industry in Australia grown or declined over the past 5 years?

The market size of the Water Treatment Services industry in Australia has been declining at a CAGR of 2.5 % between 2019 and 2024.

What is the forecast growth of the Water Treatment Services industry in Australia over the next 5 years?

Over the next five years, the Water Treatment Services industry in Australia is expected to grow.

What are the biggest companies in the Water Treatment Services market in Australia?

The biggest companies operating in the Water Treatment Services market in Australia are Sydney Water, Water and Queensland Urban Utilities

What does the Water Treatment Services in Australia include?

Bulk water purification and Industrial water treatment are part of the Water Treatment Services industry.

Which companies have the highest market share in the Water Treatment Services in Australia?

The company holding the most market share in Australia is Sydney Water.

How competitive is the Water Treatment Services industry in Australia?

The level of competition is low and steady in the Water Treatment Services industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Water Supply in Australia
  • Sewerage and Drainage Services in Australia
  • Bottled Water Manufacturing in Australia
  • Waste Remediation and Materials Recovery Services in Australia

International industries

  • Water Supply & Irrigation Systems in the US
  • Sewage Treatment Facilities in the US
  • Water Supply in New Zealand
  • Sewerage and Drainage Services in New Zealand
  • Water Collection, Treatment & Supply in the UK

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.