Grid expansion: rising temperatures and increased households will grow industry demand

The Electric Power Transmission industry in California grew modestly over the past five years due to increased housing starts and rising temperatures, bolstering demand for HVAC space cooling and the energy that runs it. The adoption of smart grid technology has bolstered grid reliability and lowered operating costs, resulting in improved profit margins. Over the next five years, businesses and factories will expand operations and bolster electricity consumption. Additonally, PUCs are expected to grant rate increases for renewable energy transmission investments. As a result, it is anticipated that revenue will grow and profitability will improve...read more.

Industry Statistics & Market Size
Revenue
$50bn
Annual Growth 12-17
0.9%
Forecast Growth 17-22
Profit
Employment
44,055
Businesses
285
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Industry Threats & Opportunities

  • An increase in housing starts has spurred demand for electricity, prompting service providers to expand their infrastructures
  • The widespread increased use of HVAC systems has further pushed up energy consumption levels
  • Continued housing start growth will further bolster demand for industry services
  • Industry Report - Industry Investment Chapter

    The Electric Power Transmission industry in California is highly capital intensive, similar to the overall utilities sector. This is due to the high cost of transmission infrastructure, including poles, wires, cables, power transformers, substations and meters. In addition, utilities require various computer systems to operate and monitor the power grid. However, utilities also rely heavily on skilled labor from electricians and engineers, which results in relatively high wages. Nonetheless, capital investments have significantly outpaced wages over the past five years due to government incentives for infrastructure.California public utility commissions typically grant higher rate increases to utilities that invest in infrastructure. Con...purchase to read more.

    Additional Insights for the Electric Power Transmission in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electric Power Transmission in California Industry are

  • Ability to pass on cost increases
  • Ensuring pricing policy is appropriate
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Electric Power Consumption in California and Housing Starts in California in the Electric Power Transmission in California industry impact industry performance..

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    What is the Electric Power Transmission in California Industry?

    This industry transmits and distributes electricity from power generators to distribution centers, other electric utilities and final consumers. The transmission system includes lines and transformer stations, while the distribution system consists of lines, poles, meters and wiring that deliver the electricity to final consumers. This industry does not generate electricity.

    Industry Products
  • Natural gas-generated electricity
  • Nuclear-generated electricity
  • Solar-generated electricity
  • Hydro-generated electricity
  • Wind-generated electricity
  • Industry Activities
  • Electric bulk power transmission and control
  • Electric power distribution
  • Wholesale electricity brokering and marketing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electric Power Consumption in California
  • Housing Starts in California
  • Number of Businesses in California
  • Manufacturing GDP for California

  • Current Performance
  • Rise in homeownership spurs demand
  • PV adoption
  • Chart: Revenue Growth

  • Industry Outlook
  • Transportation electrification
  • Emerging “net-zero” cities
  • Table: Electric Power Transmission in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electric Power Transmission in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Consumers

  • Key Selling Industries
  • Coal & Natural Gas Power
  • Heavy Infrastructure Construction
  • Hydroelectric Power
  • Nuclear Power
  • Solar Power
  • Transmission Line Construction
  • Wind Power

  • Products & Services
  • Natural gas-generated electricity
  • Other
  • Nuclear-generated electricity
  • Solar-generated electricity
  • Hydro-generated electricity
  • Wind-generated electricity
  • Chart: Electric Power Transmission in California Industry Products and Services Segmentation

  • Major Markets
  • Commercial
  • Residential
  • Industrial
  • Agricultural
  • Other
  • Mining
  • Chart: Major Market Segmentation for the Electric Power Transmission in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Electric Power Transmission in California

  • Basis of Competition
  • External competition
  • Internal competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electric Power Transmission in California Industry

  • PG&E CorporationEdison InternationalSempra EnergyExelon Corporation
  • Table: PG&E Corporation - financial performance
  • Table: Edison International - financial performance
  • Table: Sempra Energy - financial performance
  • Table: Exelon Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electric Power Transmission in California 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 Electric Power Transmission in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Electric Power Consumption in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Distribution
  • The transportation of electricity along low-voltage wires, typically to end users.
  • Kilowatt Hour (Kwh)
  • The billing unit for energy delivered by electric power transmission utilities. It represents one kilowatt of power expended for one hour of time.
  • Peak Hours
  • Several hours each day when electricity consumption and prices are the highest.
  • Public Utility Commission (Puc)
  • A governing body that regulates the rates and services of a public utility.
  • Smart Grid
  • The use of two-way digital technology to allow suppliers to control customer appliances in order to save energy and reduce costs.
  • Transmission
  • The transportation of electricity along high-voltage wires.
  • Why buy this report?

    IBISWorld’s Electric Power Transmission in California Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Electric Power Transmission in California industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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 Electric Power Transmission in California:
    • 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 of 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 Electric Power Transmission in California 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 Electric Power Transmission in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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