BMI View: This quarter we have substantially updated and expanded our forecasts across various areas of the water sector. We now cover mains and non mains consumption and extraction, water losses, desalination production and household connections to mains networks. Our new forecasts reflect our overall expectation that water demand in Australia will continue to rise, putting additional pressures on the dwindling freshwater reserves, and stimulating investment in desalination and water treatment and reuse infrastructure.
We believe that the current levels of water usage, both for irrigation and livestock is unsustainable and is putting extreme pressure on an already beleaguered water system struggling to cope with limited supplies and soaring demand. In addition to the issues facing agricultural users, we also feel that the burgeoning shale gas sector in Australia could be severely hampered by declining water availability. Over the longer run, we expect companies involved in shale projects will be obliged to invest in costly water recycling facilities (both desalinated and reused wastewater).
We view direct potable reuse (DPR) as a key development opportunity over the longer term, for both infrastructure and services companies, and benefiting larger users, such as agricultural consumers, by boosting the country's available resources and reducing the conflict between domestic industrial and agricultural consumers for Australia's increasingly limited natural freshwater resources. Moreover, an additional advantage to water reuse that outweighs desalination's attractions, are the former's lower energy and financial requirements. Less energy is required to put recycled water directly back into water supplies.
Within this, we anticipate the need for new developments in wastewater treatment, collection and redistribution infrastructure and policies. We see a possible opening for new water services groups to evolve, who cater solely to the water reuse sector (though...
The Australia Water Report has been researched at source and features latest-available data covering public and private sector investment in all major water projects including water extraction, water distribution and water treatment and sanitation projects and also includes competitive intelligence. The report features Business Monitor International (BMI)'s independent industry forecasts and analysis of latest industry news, trends and regulatory developments in Australia.
BMI's Australia Water Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the water industry in Australia.
- Benchmark BMI's independent water industry forecasts for Australia to test other views - a key input for successful budgeting and strategic business planning in the Australian water industry.
- Target business opportunities and risks in Australia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering regulatory changes, major investments and projects and signifi cant national and multinational company developments. These are broken down into Water Extraction, Water Consumption and Water Treatment & Sanitation.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the water and wastewater sectors and the potential affects for industrial consumers, within the broader political, economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2011-2012) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Extraction: Total water extraction (mn cubic metres) (% growth y-o-y); underground water extraction (mn cubic metres) (% growth y-o-y) (% of total water extraction); surface water extraction (mn cubic metres) (% growth y-o-y) (% of total water extraction).
- Consumption: Total water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); total mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); household water consumption (mn cubic metres) (% growth y-o-y) (litres per household per day); total non-mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); water losses total mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction).
- Treatment: Total waste water discharged (mn cubic metres) (% growth y-o-y); treated discharged water (mn cubic metres) (% growth y-o-y); untreated discharged water (mn cubic metres) (% growth y-o-y); mechanically treated wastewater (mn cubic metres) (% growth y-o-y); biologically treated wastewater (mn cubic metres) (% growth y-o-y); combined treated wastewater (mn cubic metres) (% growth y-o-y).
- economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
BMI’s Water Risk Reward Index
BMI’s Risk Reward Indices provide investors (water management, water utility and water infrastructure companies) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
This is broken down into the following sectors:
- Water supply & Consumption: Where the water comes from, (rivers, springs, lakes, surface water, ground water and so on), key trends with regards to extraction, key trends with regards to overall water consumption, municipal or domestic consumption, and key industrial and agricultural consumption trends.
- Water distribution: This examines how the water is distributed – whether by municipalities, regional organisations or national companies, whether the water networks are nationalised or privatised, and key trends and developments.
- Water Treatment & sanitation: This section evaluates the country’s water pollution levels, the connectivity to water mains and sewage networks, the volumes and methods of water treatment, government initiatives with regards to treatment and sanitation processes and key projects, trends and developments.
- Regulations & Tariffs: Key national and regional legislations with regards to water pollution, extraction and distribution as well as an overview of water rates for domestic and industrial users.
Industry Trends & Developments
Analysis of latest projects across the water infrastructure sector including water and wastewater treatment plants, desalination facilities, mains water and sewage network expansions, dams, and hydropower plants.
Provides an overview of key government ministries overseeing the water sector together with regulatory organisations, alongside the central companies involved in water and wastewater distribution and treatment services in the country.
The Water Market Reports are based on an extensive network of primary sources, such as multilateral organisations (UN, WB, IMF), national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.