A colder climate: Revenue decline is expected as households take a conservative approach

Operators in the Gas Supply industry purchase gas from the wholesale market and sell it to end users via the distribution network. Industry revenue is expected to decline at a compound annual rate of 7.5% over the five years through 2018-19. Falling gas consumption has been the key driver behind the decreasing revenue and is the result of greater energy efficiency and a more conservative approach to gas consumption within households, aided by an increasing number of smart meter installations. Wholesale gas prices tend to reflect global gas price trends due to the UK's current reliance on imported gas. IBISWorld expects that revenue will fall by approximately 3% in the current year to reach £13.1 billion...read more.

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

Industry Threats & Opportunities

  • Ofgem has encouraged industry competition, contributing to rising enterprise numbers
  • The weak value of the pound has increased the cost of imports, weighing on profit margins
  • A tariff cap is expected to reduce energy bills for millions of households, restricting revenue
  • Industry Report - Industry Key Buyers Chapter

    The Gas Supply industry has a moderate level of market share concentration. The four largest firms - Centrica, E.ON, SSE and RWE - are expected to generate 65.9% of industry revenue in 2018-19. The industry is dominated by six major firms, which account for an estimated 81% of gas sales in the United Kingdom. These businesses are all based in Great Britain and are regulated by Ofgem. Industry concentration is therefore medium, and it has been on the decline since the introduction of full retail competition in 1999. Since then, customers have been able to shop around for their gas and electricity supplier. Concentration has fallen further in the past five years as increasing numbers of independent suppliers have captured a greater share of the industry. The...purchase to read more.

    Additional Insights for the Gas Supply Industry

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

  • Ability to pass on cost increases
  • Access to required utility infrastructure
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as World price of natural gas and Average maximum temperature in the Gas Supply industry impact industry performance..

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    What's in this report

    What is the Gas Supply Industry?

    Firms in the industry purchase gas from the wholesale market and sell it to end users via the distribution network.

    Industry Products
  • Gas retailing
  • Industry Activities
  • Retail sale of gas
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of natural gas
  • Average maximum temperature
  • Number of households
  • Business capital expenditure
  • Real household disposable income

  • Current Performance
  • Pricing problems
  • Import costs
  • Smart consumption
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer engagement
  • The Big Five
  • A fractured outlook
  • Table: Gas Supply Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Crude Petroleum & Natural Gas Extraction
  • Gas Distribution

  • Products & Services
  • Gas retailing
  • Chart: Gas Supply 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 Supply Industry

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Centrica plc, E.ON UK plc, SSE plc, RWE AG, Scottish Power UK plc, EDF Energy Holdings Ltd,
  • Table: Centrica plc - financial performance
  • Table: E.ON UK plc - financial performance
  • Table: SSE plc - financial performance
  • Table: RWE AG - financial performance
  • Table: Scottish Power UK plc - financial performance
  • Table: EDF Energy Holdings Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Supply 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 Supply 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
    Hydraulic Fracturing
  • A method of extracting natural gas by fracturing rock with pressurised liquid. It is often known as fracking.
  • Niaur
  • Stands for Northern Ireland Authority for Utility Regulation, which is the authority that regulates the industry in Northern Ireland.
  • Ofgem
  • Stands for the Office of Gas and Electricity Markets, which is the authority that regulates the industry in Great Britain.
  • Smart Meter
  • An electrical meter that is fitted in households and business premises to record the level of gas and electrical consumption.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gas Supply market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Supply:
    • 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 Supply 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 Supply, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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