Industry Analysis & Industry Trends
The Electricity Transmission and Distribution industry is expected to generate $448.7 billion in 2015, up 1.7% from 2014. Over the five years through 2015, revenue has been growing at an annualized rate of 5.8%.
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 2015. 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 3.0%.... 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. However, market competition mechanisms have been implemented for power supply (retail) to ensure the healthy development of this industry in China. Therefore, barriers to entry in this industry is expected to decrease slowly in the future.
High capital intensity
Prospective entrants to this industry must have large amounts of capital and considerable expertise to enter the industry... purchase to read more