Iron Ore Mining in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: January 2024
ANZSIC B0801Revenue
$131.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
37,956
Businesses
69
Wages
$X.Xbn
Iron Ore Mining in Australia industry analysis
Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 5.3% over the five years through 2023-24, to total an estimated $131.9 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2023-24, prompting iron ore revenue to drop an estimated 9.9% over the year. Profit margins have largely followed prices higher over the past five years, but are set to ease in 2023-24.
Trends and Insights
- Rising prices and production volumes are driving revenue and profitability higher for iron ore miners. Australia is the world’s largest iron ore producer, accounting for over half of global production.
- Steel manufacturing activity in China is the primary driver of iron ore demand. China accounts for over 80% of Australia’s iron ore exports.
- Almost all domestic iron ore production is based in Western Australia. The major iron ore mining companies all operate large mines in the Pilbara region.
- Production is heavily concentrated among the largest iron ore mining companies. Together, the four largest producers account for over 80% of revenue.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.3 % over the past five years, to reach an estimated $131.9bn in 2024.
Trends and Insights
Production growth and price rises are boosting iron ore miners' revenue
- Domestic iron ore production has grown over the past decade, to an estimated 955.4 million tonnes in 2023-24. This includes moderate growth in the current year.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Lower prices will offset production growth, pushing revenue lower
- Iron ore prices are set to moderate over the next five years, following recent price spikes driven by supply constraints.
Biggest companies in the Iron Ore Mining in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Rio Tinto | 36,600.0 | |
BHP | 34,600.0 | |
Fortescue Metals | 16,700.0 |
To view the market share and analysis for all 8 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 Lump ore, Iron ore fines and Iron ore pellets. Lump ore is the largest segment of the Iron Ore Mining in Australia.
Trends and Insights
Mine expansions are increasing the production of iron ore fines
- Iron ore fines are produced through mining, crushing and screening raw iron ore. Iron ore fines are less than 6.3 millimetres in size.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Bauxite Mining in Australia
- Copper Ore Mining in Australia
- Gold Ore Mining in Australia
- Mineral Sand Mining in Australia
- Nickel Ore Mining in Australia
International industries
- Global Iron Ore Mining
- Iron Ore Mining in the US
- Iron Ore Mining in Canada
- Iron Ore Mining in New Zealand
- Iron Ore Mining in China
Table of Contents
About this industry
Industry definition
Industry firms extract iron ore and iron ore sands, and carry out beneficiation processes to refine the mined ore. The industry also includes businesses that produce sinter and other agglomerates.
What's included in this industry?
Iron ore finesLump oreIron ore pelletsCompanies
Rio TintoBHPFortescue MetalsPurchase this report to view all 8 major companies in this industry.
Related Terms
LUMP OREFINESIRON ORE PELLETSBENEFICIATIONSINTERIndustry Code
ANZSIC 0801 - Iron Ore Mining 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
Rising prices and production volumes are driving revenue and profitability higher for iron ore miners. Australia is the world’s largest iron ore producer, accounting for over...
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
Steel manufacturing activity in China is the primary driver of iron ore demand. China accounts for over 80% of Australia’s iron ore exports.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
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
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
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
Almost all domestic iron ore production is based in Western Australia. The major iron ore mining companies all operate large mines in the Pilbara region.
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
Production is heavily concentrated among the largest iron ore mining companies. Together, the four largest producers account for over 80% of revenue.
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
Major company revenue has soared over the past decade. New developments and project expansions have seen the largest producers strengthen their hold on domestic iron ore prod...
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 Rio Tinto's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of BHP's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Fortescue Metals's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 5 additional companies
Detailed analysis
- Description and key data for Rio Tinto, and factors influencing its performance in the industry
- Description and key data for BHP, and factors influencing its performance in the industry
- Description and key data for Fortescue Metals, and factors influencing its performance in the industry
- Description, key data and performance trends for 5 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Iron ore prices are set to fall in 2023-24, weighing on miners’ revenue. Growth in domestic production volumes and weakness in the Australian dollar are set to dull the impac...
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 have risen over the past five years on the back of growing prices and production volumes. The larger producers are among the lowest cost iron ore producers glo...
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)
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.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Iron Ore Mining industry in Australia in 2024?
The market size of the Iron Ore Mining industry in Australia is $131.9bn in 2024.
How many businesses are there in the Iron Ore Mining in Australia industry in 2024?
There are 69 businesses in the Iron Ore Mining industry in Australia, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Iron Ore Mining industry in Australia grown or declined over the past 5 years?
The market size of the Iron Ore Mining industry in Australia has been growing at a CAGR of 5.3 % between 2019 and 2024.
What is the forecast growth of the Iron Ore Mining industry in Australia over the next 5 years?
Over the next five years, the Iron Ore Mining industry in Australia is expected to decline.
What are the biggest companies in the Iron Ore Mining market in Australia?
The biggest companies operating in the Iron Ore Mining market in Australia are Rio Tinto, BHP and Fortescue Metals
What does the Iron Ore Mining in Australia include?
Iron ore fines and Lump ore are part of the Iron Ore Mining industry.
Which companies have the highest market share in the Iron Ore Mining in Australia?
The company holding the most market share in Australia is Rio Tinto.
How competitive is the Iron Ore Mining industry in Australia?
The level of competition is high and steady in the Iron Ore Mining industry in Australia.
