The demand for infrastructure is driven primarily by the size and growth of the Australian population and economy.18 Technological change and competition, especially in the telecommunications sector and potentially in the energy sector, may also drive demand for infrastructure.
Other factors such as changes in the per capita use of infrastructure also affect the levels of demand for infrastructure services. For example, per capita rates of water consumption have fallen over the last decade. In Australia and in other developed countries, there is growing evidence that per capita usage of motor vehicles is stable or falling. Changes in specific sectors, e.g. the comparative cost of different energy technologies, also play a role.
Nevertheless, the dominant drivers of demand are population and economic activity. The following sections address these matters.
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18. Strictly, present demand that is unmet in some way could also drive demand in the future.