Industry Analysis & Industry Trends
The Electricity Transmission and Distribution industry is expected to generate $392.8 billion in 2013, up 9.2%. Over the five years through 2013, revenue has been growing at an annualized rate of 14.7%.
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 60.0% of total consumed electricity in China in 2013. Meanwhile, China Southern Power Grid Corporation Limited (CSG) covers 10.4% of China's land area and will sell an estimated 5.0% of total consumed power.
Over the next five years, ACMR-IBISWorld forecasts that industry revenue will grow at the lower rate of 8.9% per year to $600.4.... purchase to read more
Industry Report - Industry Investment Chapter
Revenue within the Electricity Transmission and Distribution Industry in China greatly depends on the power grid, which requires a large amount of capital. After several years of serious power shortages, the Chinese government and other companies have invested large amounts of capital on grid construction. Meanwhile, labor growth within this industry has been limited. For every dollar spent on labor, $1.22 is spent on capital in this industry.
Due to the relatively low investment level of grid construction compared with power generation construction, the Chinese government and companies will put more money into this industry, which will result in a higher level of capital to labor in the future... purchase to read more