Electricity Transmission and Distribution in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
4420Revenue
$1.2tr
Past 5-Year Growth
Profit
$XX.Xbn
Employees
2m
Businesses
3
Wages
$XX.Xbn
Electricity Transmission and Distribution in China industry analysis
Social and economic development is highly dependent on electricity. The steady growth of China's economy and the rapid increase of electricity consumption in China have promoted the demand for electricity transmission and distribution. Also, the power production center in China is mainly in western and northern regions with rich resources of water, wind, solar, coal, while the power consumption center is mainly in middle and eastern regions with developed economy, the demand for long-distance and high-efficient electricity transmission is increasing.Total electricity consumption in China is expected to increase at an average rate of 5.9% over the past five years to 2023, to 9,120.8 billion kilowatt-hours. Industry revenue is expected to increase at an average rate of 7.7% to $1.2 trillion over the past five years, including 11.5% in 2023 alone. Industry profit margins will reach 2.3% in 2023, down from 3.0% in 2018, mainly due to the increasing electricity costs.The industry is oligopolistic. Two large monopoly companies control the majority of China's electricity transmission and distribution activities. State Grid controls over 88% of China's land area and is estimated to retail about 74.8% of total consumed electricity in China in 2023. CSG covers 10.4% of China's land area and is estimated to sell 17.4% of total consumed power in the year.The industry will continue to experience growth in the next five years, driven by the increasing domestic demand for electricity as well as the expansion of UHV electricity transmission market. Industry revenue will grow at an average rate of 6.0% to $1.7 trillion over the five years to 2028, when profit margins will grow to 2.5%.
Trends and Insights
- Regional imbalance between power supply and demand supported industry demand. Eastern regions have larger electricity demand but scarce energy resources, while western regions have smaller electricity demand but abundant energy resources.
- Ultra-high voltage power transmission has been increasingly important. The Chinese Government has encouraged the construction of more ultra-high voltage transmission projects to increase the trans provincial power transmission capacity in China.
- Industry activities are dynamic in regions with developed economies. Electricity is an important driving force for economic growth. Regions with developed economies demand more electricity and therefore power transmission and distribution.
- The industry is a duopoly. The two largest enterprises in this industry, State Grid and CSG, together control over 95% of electricity transmission and distribution activities in China.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.7 % over the past five years, to reach an estimated $1.2tr in 2024.
Trends and Insights
Regional imbalance between power supply and demand has promoted industry demand
- There is a regional imbalance in the spread and demand of energy resources in China. The eastern regions have a larger demand for electricity, but energy resources are relatively scarce. The demand for electricity in the western regions is smaller, but the energy resources are abundant.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Continuous increases in electricity demand in China will support industry growth
- As China's economy shifts from a “high-speed development stage” to a “high-quality development stage” in the future, the rapid development of emerging industries represented by high-tech equipment manufacturing, information transmission and internet services in the context of economic restructuring and upgrading will continue to promote the growth of electricity demand.
Biggest companies in the Electricity Transmission and Distribution in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Electricity Transmission and Distribution in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including High voltage power transmission, Extra-high voltage power transmission and Ultra-high voltage power transmission. High voltage power transmission is the largest segment of the Electricity Transmission and Distribution in China.
Trends and Insights
Ultra-high voltage power transmission is highly efficient in long-distance transmission
- Ultra-high voltage or UHV in China refers to power transmission with voltage of 1,000kV or above in alternating current and 800kV or above in direct current.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Natural Gas Production and Distribution in China
- Power Grid Construction in China
- Solar Power Generation in China
International industries
- Electric Power Transmission in the US
- Electric Power Transmission in Canada
- Electricity Transmission in Australia
- Electricity Distribution in Australia
- Electricity Transmission and Distribution in New Zealand
Table of Contents
About this industry
Industry definition
The Electricity Transmission and Distribution industry comprises large power companies primarily engaged in high voltage electricity transmission, low voltage electricity distribution, and electricity retailing through power grids to end users. Electricity transmitted and distributed by the industry is originally purchased from different kinds of power generation enterprises.
What's included in this industry?
High voltage power transmissionExtra-high voltage power transmissionUltra-high voltage power transmissionPower distribution gridCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FERROUSULTRA HIGH VOLTAGE (UHV)EXTRA HIGH VOLTAGE (EHV)Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Regional imbalance between power supply and demand supported industry demand. Eastern regions have larger electricity demand but scarce energy resources, while western region...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Ultra-high voltage power transmission has been increasingly important. The Chinese Government has encouraged the construction of more ultra-high voltage transmission projects...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Industry activities are dynamic in regions with developed economies. Electricity is an important driving force for economic growth. Regions with developed economies demand mo...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is a duopoly. The two largest enterprises in this industry, State Grid and CSG, together control over 95% of electricity transmission and distribution activities...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The industry is monopolized by two companies. There are just three power grid companies in China, and the industry is basically monopolized by State Grid and CSG.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is closely regulated by the Government. Power grids are important infrastructure. The construction, operation and maintenance of power grids have been closely su...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profit margins have been decreasing. Massive investment in power grid construction and renovation, as well as increasing electricity costs have reduced industry prof...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Electricity Transmission and Distribution industry in China in 2024?
The market size of the Electricity Transmission and Distribution industry in China is $1.2tr in 2024.
How many businesses are there in the Electricity Transmission and Distribution in China industry in 2024?
There are 3 businesses in the Electricity Transmission and Distribution industry in China, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Electricity Transmission and Distribution industry in China grown or declined over the past 5 years?
The market size of the Electricity Transmission and Distribution industry in China has been growing at a CAGR of 7.7 % between 2019 and 2024.
What is the forecast growth of the Electricity Transmission and Distribution industry in China over the next 5 years?
Over the next five years, the Electricity Transmission and Distribution industry in China is expected to grow.
What does the Electricity Transmission and Distribution in China include?
High voltage power transmission and Extra-high voltage power transmission are part of the Electricity Transmission and Distribution industry.
How competitive is the Electricity Transmission and Distribution industry in China?
The level of competition is low and increasing in the Electricity Transmission and Distribution industry in China.
