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Sewerage and Drainage Services in Australia - Market Research Report (2015-2030)

Callum Francis Callum Francis Melbourne, Australia Last Updated: June 2025 ANZSIC D2812

Revenue

$12.8bn

2025-26

$12.8bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

13,987

Businesses

178

Wages

$X.Xbn

Sewerage and Drainage Services in Australia industry analysis

The Sewerage and Drainage Services industry has had limited expansion opportunities due to stunted price increases across the country. Regulatory controls and difficult economic conditions for downstream service users have forced businesses to limit price growth over the past five years, causing revenue to stagnate. Industry revenue is expected to decline at an annualised 1.1% over the five years through 2025-26, to total $12.8 billion, including a 1.3% decline anticipated in the current year. However, strong profit margins due to a lack of direct competition between service providers have limited the impact on bottom lines. Numerous service providers have also been working on futureproofing their wastewater networks by investing heavily in infrastructure upgrades. These initiatives aim to accommodate future population growth and renew ageing sewerage infrastructure. This focus on infrastructure investment can be seen in the merger of City West Water and Western Water to form Greater Western Water in Victoria. The merger led to a $1.7 billion commitment towards capital investment for western metropolitan suburbs in Melbourne, where population growth is rapid.

Trends and Insights

  • Price growth has been slow over the past five years, as price setters and regulators have been wary of the financial burden on households. As a result, real industry revenue has declined.
  • Households account for the majority of industry revenue. These customers pay an annual fee for their connection to the sewerage and water network, plus a variable rate on water supplied to each connection.
  • The largest companies in the industry operate in Australia's metropolitan areas. Sydney Water's control of the sewerage network in metropolitan Sydney allows it to be the largest revenue earner.
  • Geographical monopolies mean that consumers have little direct negotiating power and market share concentration in individual regions is absolute. Regulators limit industry firms’ monopolistic pricing power.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $12.8bn in 2025.

Trends and Insights

Stunted price growth has limited expansion opportunities

  • Industrywide revenue growth has been stunted over the past five years, as turbulent economic conditions have limited pricing growth. As businesses in the industry operate under geographical monopolies, prices are often regulated by market-controlling bodies. For example, Sydney Water’s pricing structure has to be signed off on by the Independent Pricing and Regulatory Tribunal (IPART).
  • Additional trends and insights available with purchase
Sewerage and Drainage Services in Australia
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

The industry’s structure is set to remain unchanged

  • The industry’s structure is set to remain stable over the next five years, with no major shake-ups forecast. Historically, public sector entities have dominated the industry, as most of its economic contribution has come from government-owned service companies. These entities typically operate as geographic monopolies, which significantly limits the potential for future merger and acquisition activity.

Biggest companies in the Sewerage and Drainage Services in Australia

Company
Market Share (%)
2026
Revenue ($m)
2026
Sydney Water
1,743.4
Water
1,322.2
Queensland Urban Utilities
807.8

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Sewerage and Drainage Services in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Sewerage service charges, Sewerage usage charges and Trade waste. Sewerage service charges is the largest segment of the Sewerage and Drainage Services in Australia.

Trends and Insights

Sewerage service charges account for the majority of industry revenue

  • Residents and businesses pay a fixed annual fee for connection to the sewer network. This fee does not include usage charges based on variable amounts of sewerage produced from each connection.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry companies operate sewerage systems, drainage systems and sewage treatment plants. The industry also covers stormwater systems. Sewerage and drainage service providers are generally owned and operated by the public sector.

What's included in this industry?

Products and services covered in the Sewerage and Drainage Services industry in Australia include Sewage collection, Drainage, Sewage treatment and Trade waste.

Companies

Companies covered in the Sewerage and Drainage Services industry in Australia include Sydney Water, Water and Queensland Urban Utilities.

Purchase this report to view all 7 major companies in this industry.

Related Terms

Related terms covered in the Sewerage and Drainage Services industry in Australia include wastewater, sewage treatment plant, water recycling, drainage and grey water.

Industry Code

ANZSIC 2006

ANZSIC 2812 - Sewerage and Drainage 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

Price growth has been slow over the past five years, as price setters and regulators have been wary of the financial burden on households. As a result, real industry revenue ...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

Households account for the majority of industry revenue. These customers pay an annual fee for their connection to the sewerage and water network, plus a variable rate on wat...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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

The largest companies in the industry operate in Australia's metropolitan areas. Sydney Water's control of the sewerage network in metropolitan Sydney allows it to be the lar...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

Geographical monopolies mean that consumers have little direct negotiating power and market share concentration in individual regions is absolute. Regulators limit industry f...

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 2020-2025
  • 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

Expected population growth has driven investment in constructing and upgrading major wastewater assets. The largest companies in the industry are all involved in major upgrad...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Sydney Water's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Water's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Queensland Urban Utilities's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 4 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 4 additional companies

External Environment

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

Analyst insights

Regulated pricing constrains revenue volatility. Regulatory pricing bodies have limited revenue volatility by restricting providers’ ability to raise wastewater charges.

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

Weak pricing growth has weighed on profit margins. Regulators limited pricing growth during the pandemic and recent periods of high inflation, which has led to falling margin...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Sewerage and Drainage Services industry in Australia in 2025?

The market size of the Sewerage and Drainage Services industry in Australia is $12.8bn in 2025.

How many businesses are there in the Sewerage and Drainage Services industry in Australia in 2025?

There are 178 businesses in the Sewerage and Drainage Services industry in Australia, which has declined at a CAGR of 0.9 % between 2020 and 2025.

How may import tariffs affect the Sewerage and Drainage Services industry in Australia?

The Sewerage and Drainage Services industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Sewerage and Drainage Services industry in Australia?

The Sewerage and Drainage Services industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Sewerage and Drainage Services industry in Australia grown or declined over the past 5 years?

The market size of the Sewerage and Drainage Services industry in Australia has been declining at a CAGR of 1.1 % between 2020 and 2025.

What is the forecast growth of the Sewerage and Drainage Services industry in Australia over the next 5 years?

Over the next five years, the Sewerage and Drainage Services industry in Australia is expected to grow.

What are the biggest companies in the Sewerage and Drainage Services industry in Australia?

The biggest companies operating in the Sewerage and Drainage Services industry in Australia are Sydney Water, Water and Queensland Urban Utilities

What does the Sewerage and Drainage Services industry in Australia include?

Sewage collection and Drainage are part of the Sewerage and Drainage Services industry in Australia.

Which companies have the highest market share in the Sewerage and Drainage Services industry in Australia?

The company holding the most market share in the Sewerage and Drainage Services industry in Australia is Sydney Water.

How competitive is the Sewerage and Drainage Services industry in Australia?

The level of competition is very low and steady in the Sewerage and Drainage Services industry 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.

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