Toll Road Operators in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC I5299aRevenue
$3.7bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
1,267
Businesses
4
Wages
$XXX.Xm
Toll Road Operators in Australia industry analysis
Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. Revenue from individual toll roads is typically stable as individual assets grow in popularity with motorists over their lifetime, and congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both operating costs and provide a return for investors after debt payments.Industry revenue has been growing at an annualised 2.1% over the past five years and is expected to total $3.7 billion in 2023-24, when revenue falls by an estimated 0.4%. The industry's expansion has been driven by newly constructed toll roads and increased traffic volumes on established assets. The completion of new roads, bridges, and tunnels has propelled revenue growth. State governments have undertaken projects to address congestion and infrastructure bottlenecks, leading to the development of more toll roads. However, revenue has been affected by fluctuations in traffic volumes, particularly during the COVID-19 pandemic when restrictions limited private motorists' use of toll roads, leading to revenue declines over the three years through the end of 2021-22. Nevertheless, climbing demand from road freight transporters supported revenue during this period.The Toll Road Operators industry comprises only a few players, with all of Australia's toll roads concentrated in New South Wales, Victoria and Queensland. The completion and opening of new assets in recent years and further projects scheduled to be completed in the next few years will drive the industry's continued future growth. Furthermore, rising vehicle numbers and toll charges will aid revenue growth from existing toll roads. An ongoing rise in road freight activity will also boost revenue from trucks and commercial vehicles. Industry revenue is forecast to grow at an annualised 1.5% over the five years through 2028-29, to $4.0 billion.
Trends and Insights
- Newly completed toll road projects and further projects under construction are driving the industry’s growth. The majority of industry assets have been built through public-private partnerships.
- Toll road operators operate toll roads and bridges, maintaining the asset and setting charges. They are frequently involved in toll road projects from the planning stages as part of consortiums that provide funding, operating and construction expertise.
- Toll roads operate across New South Wales, Queensland and Victoria. The location of industry establishments reflects state government demand for infrastructure investment structures that give rise to toll road concessions.
- Competition occurs during the tender process for new assets. Once built, the industry's assets form natural monopolies within their geographical areas.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $3.7bn in 2023.
Trends and Insights
Newly constructed toll roads have pushed up industry revenue
- The industry has expanded significantly over the past decade, thanks to the completed construction of new roads, bridges and tunnels.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising road congestion will fuel demand for toll roads
- Due to growing urban sprawl and rising numbers of motor vehicles, traffic congestion is on track to worsen, thereby driving demand for toll roads.
Biggest companies in the Toll Road Operators in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Transurban | 3,173.2 | |
ConnectEast Group Eastlink | 378.4 | |
Transport for NSW | 167.3 |
To view the market share and analysis for all 3 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 Toll road concession operation. Toll road concession operation is the largest segment of the Toll Road Operators in Australia.
Trends and Insights
The industry derives revenue from toll road concession operation
- The industry's only activity is the operation of toll road concessions involving motorways, bridges and tunnels.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Road and Bridge Construction in Australia
- Port and Water Transport Terminal Operations in Australia
Complementors
- Airport Operations in Australia
- Industrial and Other Property Operators in Australia
International industries
- Toll Roads & Weigh Stations in the US
- Toll Road Operation in China
Table of Contents
About this industry
Industry definition
Industry firms operate toll roads and bridges, often on behalf of state governments, for a profit.
What's included in this industry?
Toll road concession operationCompanies
TransurbanConnectEast Group EastlinkTransport for NSWPurchase this report to view all 3 major companies in this industry.
Related Terms
BUILD, OWN, OPERATE AND TRANSFER (BOOT)PUBLIC-PRIVATE PARTNERSHIP (PPP)CONCESSIONIndustry Code
ANZSIC 5299 - Toll Road Operators 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
Newly completed toll road projects and further projects under construction are driving the industry’s growth. The majority of industry assets have been built through public-p...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Toll road operators operate toll roads and bridges, maintaining the asset and setting charges. They are frequently involved in toll road projects from the planning stages as ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
Toll roads operate across New South Wales, Queensland and Victoria. The location of industry establishments reflects state government demand for infrastructure investment str...
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 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
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 occurs during the tender process for new assets. Once built, the industry's assets form natural monopolies within their geographical areas.
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 2018-2023
- 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
Transurban Group accounts for over 80% of revenue in the Toll Road Operators industry. The company operates many toll roads across New South Wales, Queensland and Victoria.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Transurban's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of ConnectEast Group Eastlink's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Transport for NSW's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Transurban, and factors influencing its performance in the industry
- Description and key data for ConnectEast Group Eastlink, and factors influencing its performance in the industry
- Description and key data for Transport for NSW, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation and policy remain central to the Toll Road Operators industry. For instance, transport policy determines which roads are proposed for which location.
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
The industry's capital costs are reflected by its depreciation expenses. Depreciation costs mainly stem from the high expense of the industry's assets and also from computer ...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
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 Toll Road Operators industry in Australia in 2024?
The market size of the Toll Road Operators industry in Australia is $3.7bn in 2024.
How many businesses are there in the Toll Road Operators in Australia industry in 2023?
There are 4 businesses in the Toll Road Operators industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Toll Road Operators industry in Australia grown or declined over the past 5 years?
The market size of the Toll Road Operators industry in Australia has been growing at a CAGR of 2.1 % between 2018 and 2023.
What is the forecast growth of the Toll Road Operators industry in Australia over the next 5 years?
Over the next five years, the Toll Road Operators industry in Australia is expected to grow.
What are the biggest companies in the Toll Road Operators market in Australia?
The biggest companies operating in the Toll Road Operators market in Australia are Transurban, ConnectEast Group Eastlink and Transport for NSW
What does the Toll Road Operators in Australia include?
Toll road concession operation and are part of the Toll Road Operators industry.
Which companies have the highest market share in the Toll Road Operators in Australia?
The company holding the most market share in Australia is Transurban.
How competitive is the Toll Road Operators industry in Australia?
The level of competition is moderate and increasing in the Toll Road Operators industry in Australia.
