Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.4 % over the past five years, to reach an estimated $15.9bn in 2024.
Trends and Insights
Regulators pivoted in 2015, marking a turning point in revenue determinations
- The Australian Energy Regulator (AER) sets revenue allowances for electricity distribution companies in five-year blocks, effectively setting what returns they can get from providing distribution services. Electricity distribution firms operate natural monopolies and provide an essential service, which means there are stringent regulations in place to prevent electricity distribution firms from price gouging. Providers also need to meet strict reliability, safety and efficiency standards.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
New regulation cycles will kick in over the next few years, driving annual revenue growth
- Most network providers entered new five-year regulatory periods in 2019-20 and 2020-21, with the Australian Energy Regulator (AER) setting the allowable revenue, capital investment and rates of return. Some providers, like TasNetworks and Ausgrid, have entered new regulatory periods in 2024-25.
Biggest companies in the Electricity Distribution in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Energy Queensland | 3,769.4 | |
Ausgrid | 2,813.6 | |
Endeavour Energy | 1,858.2 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Electricity distribution, Streetlight operation and Smart meter installation. Electricity distribution is the largest segment of the Electricity Distribution in Australia.
Trends and Insights
Electricity distribution forms a key link in the electricity supply chain
- Electricity is converted to from high to low voltages, using transformers and electricity substations, and then provided to households and businesses. It is a critical link in the electricity supply chain that cannot be replaced. Distribution networks are also a natural monopoly, which means that revenue is regulated to prevent price gouging.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry companies operate low-voltage electricity distribution systems that deliver electricity to consumers, including lines, poles, meters and wires. Industry firms transport electricity that is sourced from upstream high-voltage transmissions networks.
What's included in this industry?
Electricity distributionStreetlight operationSmart meter installationCompanies
Energy QueenslandAusgridEndeavour EnergyPurchase this report to view all 7 major companies in this industry.
Related Terms
ELECTRICITY DISTRIBUTION SYSTEMSUBSTATIONNATIONAL ELECTRICITY MARKET (NEM)AUSTRALIAN ENERGY REGULATOR (AER)REGULATED ASSET BASE (RAB)Industry Code
ANZSIC 2630 - Electricity Distribution 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
Revenue allowances are rising, reversing a decade of steady declines. Regulators are adapting to a new environment, as structurally higher interest rates and the need to prep...
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
Smart meter rollout has sped up in non-Victorian states and territories. The rollout has aimed to capture more accurate data on electricity usage in these areas.
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
Victoria has five distribution providers, which is the most in Australia. The state’s network assets were privatised in the 1990s.
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
Distribution networks are difficult for consumers to substitute. Electricity distribution networks convert high-voltage transmission into more user-friendly forms of electric...
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
Distribution companies are turning to microgrids. Microgrids support resilience in rural networks and can also include renewable energy and battery energy storage.
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 Energy Queensland's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Ausgrid's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Endeavour Energy's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Energy Queensland, and factors influencing its performance in the industry
- Description and key data for Ausgrid, and factors influencing its performance in the industry
- Description and key data for Endeavour Energy, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The AER determines revenue allowances for distribution companies. With set prices and revenue, distributors need to ensure that they carefully manage their assets and costs.
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
Borrowing costs have been shifting with the cash rate. Regulators have updated the rate of return for distribution providers on the back of these changes.
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 Electricity Distribution industry in Australia in 2024?
The market size of the Electricity Distribution industry in Australia is $15.9bn in 2024.
How many businesses are there in the Electricity Distribution in Australia industry in 2024?
There are 15 businesses in the Electricity Distribution industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Electricity Distribution industry in Australia grown or declined over the past 5 years?
The market size of the Electricity Distribution industry in Australia has been declining at a CAGR of 3.4 % between 2019 and 2024.
What is the forecast growth of the Electricity Distribution industry in Australia over the next 5 years?
Over the next five years, the Electricity Distribution industry in Australia is expected to grow.
What are the biggest companies in the Electricity Distribution market in Australia?
The biggest companies operating in the Electricity Distribution market in Australia are Energy Queensland, Ausgrid and Endeavour Energy
What does the Electricity Distribution in Australia include?
Electricity distribution and Streetlight operation are part of the Electricity Distribution industry.
Which companies have the highest market share in the Electricity Distribution in Australia?
The company holding the most market share in Australia is Energy Queensland.
How competitive is the Electricity Distribution industry in Australia?
The level of competition is low and increasing in the Electricity Distribution industry in Australia.
Related Industries
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Competitors
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Complementors
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.
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