Industry Analysis & Industry Trends
The Electricity Transmission and Distribution industry is expected to generate $642.9 billion in 2014, up 7.9% from 2013. Over the five years through 2014, revenue has been growing at an annualized rate of 10.2%.
Two large monopoly companies are in control of the majority of China's electricity transmission and distribution activities. The State Grid Corporation of China (SGCC) controls over 88.0% of China's land area and is expected to retail more than 66.0% of total consumed electricity in China in 2014. Meanwhile, China Southern Power Grid Corporation Limited (CSG) covers 10.4% of China's land area and will sell an estimated 15.0% of total consumed power.
Over the next five years, ACMR-IBISWorld forecasts that industry revenue will grow at the lower rate of 6.2%.... purchase to read more
Industry Report - Starting a New Business Chapter
Restrictions on operations and license requirements for firms are strictly enforced by the government. Further, incomplete regulations and regional protectionism have created regional monopolies. These factors make it increasingly difficult for new firms to enter the industry to compete with local power supply companies.
High capital intensity
Prospective entrants to this industry must have large amounts of capital and considerable expertise to enter the industry.
The two largest enterprises in this industry, SGCC and CSG, together control about 98% of electricity transmission and distribution activities in China... purchase to read more