Hit the gas: Revenue decline is anticipated to continue ahead of a new pricing framework

Operators in the Gas Distribution industry maintain a 284,000 km gas pipeline network across the United Kingdom. The industry is primarily comprised of four Gas Distribution Networks (GDNs), which operate monopolies across eight regions of Great Britain. To protect consumers, operators are heavily regulated through price control frameworks. The Office of Gas and Electricity Markets (Ofgem) is the regulatory body for Great Britain, while the Northern Ireland Authority for Utility Regulation (NIAUR) is the regulatory body for Northern Ireland.Industry revenue is expected to decrease at an estimated compound annual rate of 1% over the five years through 2018-19, including an expected decline of 0.9% in the current year, to total £4.1 billion...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Revenue is forecast to fall but innovation may benefit industry operators in the short term
  • Limited revenue allowances have contributed to lower household gas bills and declining revenue
  • The increasing number of smart meters is expectedto curtail demand for gas
  • Industry Report - Industry Products Chapter

    Due to the nature of the Gas Distribution industry, operators carry out only one service and cannot be segmented along product or service lines.Industry operators are responsible for taking gas from the high-pressure transmission system and distributing it to households and commercial and industrial premises through low-pressure networks. The distribution networks are split into regional systems. Since each industry operator has a regional monopoly, the industry is regulated to ensure that consumers receive a good service at a manageable price. The industry is regulated by the Office of Gas and Electricity Markets (Ofgem) in Great Britain and the Northern Ireland Authority for Utility Regulation (NIAUR) in Northern Ireland...purchase to read more.

    Additional Insights for the Gas Distribution Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gas Distribution Industry are

  • Effective cost controls
  • Ability to manage external (outsourcing) contracts
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Average maximum temperature and Consumer price index in the Gas Distribution industry impact industry performance..

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    What's in this report

    What is the Gas Distribution Industry?

    Firms in this industry operate the low-pressure gas distribution mains that carry gas from high-pressure transmission pipelines to end users.

    Industry Products
  • Gas distribution
  • Industry Activities
  • Operating low-pressure gas main distribution systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Average maximum temperature
  • Consumer price index
  • Number of households
  • year bond rate
  • Downstream demand from manufacturing

  • Current Performance
  • Industry structure
  • Financial performance
  • Innovation
  • Chart: Revenue Growth

  • Industry Outlook
  • Renewable growth
  • Changes in the pipeline
  • Table: Gas Distribution Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gas Distribution Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale and Retail Trade
  • Accommodation and Food Service Activities
  • Public Administration and Defence; Compulsory Social Security
  • Consumers

  • Key Selling Industries
  • Consultant Engineering Services
  • Pipeline Transport

  • Products & Services
  • Gas distribution
  • Other
  • Chart: Gas Distribution Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Manufacturing and industrial premises
  • Commercial and government premises
  • Other
  • Chart: Major Market Segmentation for the Gas Distribution Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gas Distribution

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gas Distribution Industry

  • Industry Globalization
    Cadent Gas Ltd, Scotia Gas Networks Ltd, Wales & West Utilities Limited, Northern Gas Networks Ltd,
  • Table: Cadent Gas Ltd - financial performance
  • Table: Scotia Gas Networks Ltd - financial performance
  • Table: Wales & West Utilities Limited - financial performance
  • Table: Northern Gas Networks Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Distribution Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gas Distribution Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Gd14 And Gd17
  • Gas distribution price controls enforced by NIAUR.
  • Northern Ireland Authority For Utility Regulation
  • The NIAUR is the industry regulator in Northern Ireland.
  • Office Of Gas And Electricity Markets (Ofgem)
  • The regulator of gas distributors in Great Britain. Ofgem sets the prices that distributors can charge for their services.
  • Riio-Gd1
  • The first gas distribution price control review to use the Revenue = Incentives+Innovation+Outputs model, enforced by Ofgem.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gas Distribution market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Gas Distribution:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gas Distribution market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gas Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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