Senior business industry analysts at IBISWorld have predicted the five industries expected to boom in 2015.
1. Coal seam gas extraction
With a forecasted increase of 148% over the next twelve months, coal seam gas extraction revenue is set to reach $1.83 billion.
The industry is undergoing extensive transformation. New and improved extraction techniques have made gas projects increasingly viable, and the development of export capabilities should boost industry growth significantly.
Opening the domestic east coast gas market to the international market is likely to push gas prices higher. Australia is in a good position to meet a strong demand from China, Japan and South Korea, the three largest natural gas importers in the world.
The Curtis Island LNG plant, due to become operational in 2015, will supply the substantial coal seam reserves in Queensland to these markets. This project will become the world’s first project that turns coal seam gas into liquefied natural gas.
2. Online grocery sales
Although Australians have embraced general types of online shopping, grocery shopping has been a little slower to catch on. That is set to change as delivery options improve and busy consumers become more comfortable with having fresh produce delivered.
Fast fashion stores are expanding quickly.
Previously dominated by the successful Australian fashion business Cotton On, a number of international operators that include Topshop, Uniqlo, Forever 21 and Zara have become phenomenally popular.
Zara is likely to continue the high rate of growth already demonstrated during its first three years of operating within Australia. Newcomers to Australia – H&M, Forever 21 and Uniqlo are predicted to reach 10.4% of industry revenue growth in 2015.
4. Private equity
The private equity industry enjoyed a highly successful 2014 with similar prosperity predicted for 2015.
Private equity companies generate their earnings from the management fees paid by outside investors and from the gains made by investing their own funds.
As merger and acquisition (M&A) activities are forecasted to increase this year, private equity companies will perform a key role in these deals. This will result in increased management fees revenue and potential returns from investment, leading to forecasted industry revenue growth of 10.1 percent for 2015.
Australian M&A growth coincides with greater worldwide interest in M&A as Europe and the United States emerge from a prolonged period of subdued growth.
5. Hydroponic crop farming
Although the hydroponic crop farming industry is a relatively small component of overall Australian agricultural production, it is undergoing strong, steady growth.
Hydroponically grown produce typically uses one-fifth of the amount of water needed by soil-grown produce, making water conservation a driving force behind hydroponics.
Other benefits of hydroponics include greater productivity using vertically tiered plants, high levels of quality control, quicker plant growth and longer growing season. These offset the additional cost of hydroponic systems compared to conventional agricultural practices.
The rising capacity in the hydroponic crop farming industry is set to meet sustained demand from consumers and retailers in 2015, leading to a forecasted 5.6 percent revenue growth for the year.
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