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Water and Waste Services Infrastructure Construction in Australia - Market Research Report (2014-2029)

Anthony Kelly Anthony Kelly Melbourne, Australia Last Updated: May 2024 ANZSIC OD5165

Revenue

$8.9bn

2024-25

$8.8bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

14,593

Businesses

1,147

Wages

$X.Xbn

Water and Waste Services Infrastructure Construction in Australia industry analysis

The performance of the Water and Waste Services Infrastructure Construction industry is principally driven by trends in population growth, water availability, government infrastructure funding and mining developments. Australia is vulnerable to protracted droughts, which encourages public investment to improve water security, including the construction of desalination, re-use and recycling plants and irrigation and storage projects. Coal seam gas (CSG) extraction, iron ore and coal mining drive investment in water treatment plants, recycling and water supply pipelines.

Trends and Insights

  • The Federal Government has lifted investment in nationally significant water infrastructure through the National Water Grid Fund (NWGF). Government funding has aimed at improving water security by developing smart water grids and upgrading water treatment and recycling plants.
  • The principal source of industry revenue comes from the construction of water treatment facilities, including purification, filtration, sewage treatment and desalination. Activity in this segment has been strengthened by progress on Sydney Water's $1.2 billion Advanced Water Recycling Centre.
  • Heavy skew in water services towards Queensland, reflecting the investment in water storage and pipelines to improve water security. The state also has extensive wastewater treatment and pipeline infrastructure servicing the coal seam gas (CSG) fields in Central Queensland.
  • Competition on complex projects is generally confined to preferred tender applicants with demonstrated capabilities. Contractors must have a proven track record of delivering projects on time and budget while meeting quality standards.

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 grown at a CAGR of 3.8 % over the past five years, to reach an estimated $8.9bn in 2024.

Trends and Insights

Public funding of water infrastructure floats the industry

  • Trends in the downstream Water Supply, Sewerage and Drainage industries are the core drivers for capital expenditure by state and local governments on public infrastructure.
  • Additional trends and insights available with purchase
Water and Waste Services Infrastructure Construction in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

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

Trends and Insights

Ongoing population growth drives water consumption

  • The resurgence in Australia's population growth as net migration returns to pre-pandemic levels will drive the ongoing expansion in the upstream Water Supply industry and the Sewerage and Drainage Services industry.

Biggest companies in the Water and Waste Services Infrastructure Construction in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
CIMIC
663.1
Downer
399.5
John Holland
310.7

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Water and Waste Services Infrastructure Construction in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Pipeline network and storage construction, Water and sewerage pumping facilities construction and Treatment facilities construction. Pipeline network and storage construction is the largest segment of the Water and Waste Services Infrastructure Construction in Australia.

Trends and Insights

Continuous upgrades to water treatment facilities

  • The principal source of industry revenue comes from the construction and maintenance of water treatment facilities, including purification and filtration works, sewage treatment plants and desalination plants.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry firms construct the infrastructure that supports the supply of water to, and the removal of waste from, end users.

What's included in this industry?

Pipeline networks construction, repair and maintenancePumping stations construction, repair and maintenanceWaste and sewerage treatment facilities construction, repair and maintenanceDesalination plants construction, repair and maintenanceDams, storage reservoirs and spillways construction, repair and maintenanceIrrigation and reticulation systems construction, repair and maintenance

Companies

CIMICDownerJohn Holland

Purchase this report to view all 6 major companies in this industry.

Related Terms

MILLENNIUM DROUGHTREVERSE OSMOSISWET HIREDRY HIREPUBLIC-PRIVATE PARTNERSHIP (PPP)CSG

Industry Code

ANZSIC 2006

ANZSIC 3109 - Water and Waste Services Infrastructure Construction 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

The Federal Government has lifted investment in nationally significant water infrastructure through the National Water Grid Fund (NWGF). Government funding has aimed at impro...

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

The principal source of industry revenue comes from the construction of water treatment facilities, including purification, filtration, sewage treatment and desalination. Act...

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

Heavy skew in water services towards Queensland, reflecting the investment in water storage and pipelines to improve water security. The state also has extensive wastewater t...

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

Competition on complex projects is generally confined to preferred tender applicants with demonstrated capabilities. Contractors must have a proven track record of delivering...

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

A handful of multi-disciplined contractors undertake the lion's share of large-scale or complex water infrastructure projects. Prominent companies, like CIMIC Group and Downe...

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 CIMIC's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Downer's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of John Holland's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for CIMIC, and factors influencing its performance in the industry
  • Description and key data for Downer, and factors influencing its performance in the industry
  • Description and key data for John Holland, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

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

Analyst insights

Capital expenditure by state and local governments is the principal source of funding for much of Australia’s water infrastructure. State and territory governments typically ...

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

Profit margins are expected to widen despite the upward pressure on input prices. The favourable trends in water and sewerage infrastructure construction have allowed contrac...

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 and Waste Services Infrastructure Construction industry in Australia in 2024?

The market size of the Water and Waste Services Infrastructure Construction industry in Australia is $8.9bn in 2024.

How many businesses are there in the Water and Waste Services Infrastructure Construction in Australia industry in 2024?

There are 1,147 businesses in the Water and Waste Services Infrastructure Construction industry in Australia, which has grown at a CAGR of 1.8 % between 2019 and 2024.

Has the Water and Waste Services Infrastructure Construction industry in Australia grown or declined over the past 5 years?

The market size of the Water and Waste Services Infrastructure Construction industry in Australia has been growing at a CAGR of 3.8 % between 2019 and 2024.

What is the forecast growth of the Water and Waste Services Infrastructure Construction industry in Australia over the next 5 years?

Over the next five years, the Water and Waste Services Infrastructure Construction industry in Australia is expected to decline.

What are the biggest companies in the Water and Waste Services Infrastructure Construction market in Australia?

The biggest companies operating in the Water and Waste Services Infrastructure Construction market in Australia are CIMIC, Downer and John Holland

What does the Water and Waste Services Infrastructure Construction in Australia include?

Pipeline networks construction, repair and maintenance and Pumping stations construction, repair and maintenance are part of the Water and Waste Services Infrastructure Construction industry.

Which companies have the highest market share in the Water and Waste Services Infrastructure Construction in Australia?

The company holding the most market share in Australia is CIMIC.

How competitive is the Water and Waste Services Infrastructure Construction industry in Australia?

The level of competition is high and increasing in the Water and Waste Services Infrastructure Construction industry in Australia.

Related Industries

Widen your competitive advantage with related industries

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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.