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Natural Gas Distribution in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Natural Gas Distribution Market Research Report | NAICS 22121 | May 2017

Steady flow: Infrastructure investments will boost pipeline and export capacity

IBISWorld’s Natural Gas Distribution market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

Report Snapshot
Market Share of Companies
There are no companies with a dominant market share
Industry Statistics & Market Size
Revenue
$163bn
Annual Growth 12-17
3.4%
Annual Growth 17-22
Annual Growth
Profit
Profit
Employment
83,154
Businesses
2,601
Industry Threats & Opportunities
  • While low retail prices hurt revenue, low Citygate prices have reduced gas purchase costs for distributors
  • The large growth in natural gas production has led to a substantial decline in natural gas prices
  • Domestic natural gas prices are anticipated to steadily grow to converge with higher world prices
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Industry Analysis & Industry Trends

The Natural Gas Distribution industry has performed erratically over the past five years as the shale gas boom resulted in a flood of domestic natural gas production, triggering a collapse in natural gas prices. Industry profitability has remained relatively stable. While low retail prices hurt revenue, low Citygate prices have reduced gas purchase costs for distributors. Over the five years to 2022, natural gas production is projected to slow, while infrastructure investments will boost pipeline and export capacity. Upstream gas extractors are therefore expected to charge higher prices on export markets, while regulatory agencies are set to belatedly raise retail rates. However, natural gas consumption is forecast to fall slightly... ... purchase to read more

Industry Report - Industry Key Buyers Chapter

The Natural Gas Distribution industry has a very low level of market share concentration, with the four-largest industry companies anticipated to account for 10.7% of industry revenue in 2017. Natural gas distributors typically serve local and regional markets, making it difficult for any one company to dominate the market. Additionally, states have varying regulations on natural gas, making it costly for companies to operate across state lines. However, over the past five years, there has been some industry consolidation within regional markets, as larger natural gas distributors have sought to increase the scale of their operations to take advantage of economies of scale to bolster profitability. Nevertheless, industry-wide market share concentration is expected to remain low.

.. ... purchase to read more

Additional Insights for the Natural Gas Distribution Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Natural Gas Distribution Industry are

  • Ability to negotiate successfully with regulators
  • Supply contracts in place for key inputs
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Price of natural gas and Electric power consumption in the Natural Gas Distribution industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Natural Gas Distribution Industry?

    The majority of companies in this industry manage gas distribution systems consisting primarily of gas mains and meters that transport gas to end users. Other companies are gas marketers that buy gas directly from the well and sell it to a distribution system, while others still are gas brokers or agents that arrange for gas to be sold via distribution systems operated by other companies.

    Industry Products
    Natural gas distributionNatural gas marketing and brokering
     
    Industry Activities
    Operating gas distribution systems (e.g. mains and meters)Buying gas from a well and selling it to a distribution systemActing as gas brokers or agents that arrange the sale of gas over gas distribution systemsTransmitting and distributing gas to final consumers


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Price of natural gas
  • Electric power consumption
  • Industrial production index
  • World price of steaming coal
  • Housing starts
  • Regulation for the Natural Gas Distribution Industry
  • Current Performance
  • Stable profit
  • Structural changes
  • Chart: Revenue Growth
  • Industry Outlook
  • Demand
  • Growing profit
  • Table: Natural Gas Distribution Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Natural Gas Distribution Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Manufacturing
  • Petrochemical Manufacturing
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing
  • Coal & Natural Gas Power
  • Key Selling Industries
  • Gas Pipeline Transportation
  • Gasoline & Petroleum Bulk Stations
  • Gasoline & Petroleum Wholesaling
  • Oil & Gas Pipeline Construction
  • Oil Drilling & Gas Extraction
  • Products & Services
  • Natural gas distribution
  • Natural gas marketing and brokering
  • Other
  • Chart: Natural Gas Distribution Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Residential
  • Electric power
  • Industrial
  • Commercial
  • Transportation
  • Chart: Major Market Segmentation for the Natural Gas Distribution Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Natural Gas Distribution
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Natural Gas Distribution Industry
  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Natural Gas Distribution Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Natural Gas Distribution Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Henry Hub Natural Gas Price, $ per mmBtu (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Citygate
  • The point where major gas transmission pipelines end and the gas enters the distributor's system.
  • Distribution Network
  • A system of pipes used to transport natural gas from the citygate to customers.
  • Henry Hub
  • An important natural gas pipeline in Erath, Louisiana that serves as the benchmark for North American natural gas prices.
  • Liquefied Natural Gas (Lng)
  • Natural gas that has been cooled to a very low temperature until it becomes liquid. Used to transport natural gas via tanker overseas.
  • Mercaptan
  • A colorless yet foul-smelling gas that is added to natural gas to help determine when a leak has occurred.
  • Natural Gas
  • A naturally occurring gas that consists of 50.0% to 90.0% methane and small amounts of heavier hydrocarbons such as propane and butane.

  • Why Buy this Report?
    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 Natural Gas Distribution:
    • 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 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 Natural Gas Distribution 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 Natural Gas Distribution, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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