Gas Supply in the UK Industry Market Research Report Now Updated by IBISWorld

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The Gas Supply industry is expected to generate revenue of £25 billion in 2012-13, compared with £19 billion in 2007-08. The growth, estimated to be 5.7% per year, has occurred as higher gas prices have more than offset a fall in gas volumes. Gas sales volumes are expected to be about 567,123 gigawatt hours in 2012-13, compared with 591,274 gigawatt hours five years earlier. Sales volumes, which had already eased due to higher prices and measures to reduce energy consumption and greenhouse gas emissions, fell sharply in response to the financial crisis. Demand from industrial users plunged particularly steeply in 2009-10. Although sales volumes rebounded in 2010-11, another fall occurred in 2011-12 as weak economic activity cut demand and higher prices encouraged greater conservation. A pick up in sales volumes is anticipated for 2012-13, as economic activity starts to recover. Industry revenue is expected to increase by 12.2% in 2012-13 on the back of higher sales volumes and prices; profit is expected to be about £2.86 billion. Despite the stronger economic growth expected for the next five years, demand for gas supplied through the mains is expected to fall as conservation measures continue and gas prices rise. The price increases are expected to be moderate. Rising gas production worldwide will help to meet the overall global increase in demand, much of which will come from developing countries. Industry revenue is forecast to fall marginally over the next five years to 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Gas Supply industry.

IBISWorld Market Research

IBISWorld Market Research

Conservation measures will affect industry demand and revenue

The Gas Supply industry is expected to generate revenue of £25 billion in 2012-13, compared with £19 billion in 2007-08. The growth, estimated to be 5.7% per year, has occurred as higher gas prices have more than offset a fall in gas volumes. Gas sales volumes are expected to be about 567,123 gigawatt hours in 2012-13, compared with 591,274 gigawatt hours five years earlier. According to IBISWorld industry analyst Marina Williams-Wynn, “sales volumes, which had already eased due to higher prices and measures to reduce energy consumption and greenhouse gas emissions, fell sharply in response to the financial crisis”. Demand from industrial users plunged particularly steeply in 2009-10. Although sales volumes rebounded in 2010-11, another fall occurred in 2011-12 as weak economic activity cut demand and higher prices encouraged greater conservation. A pick up in sales volumes is anticipated for 2012-13, as economic activity starts to recover. Industry revenue is expected to increase by 12.2% in 2012-13 on the back of higher sales volumes and prices; profit is expected to be about £2.86 billion.
Williams-Wynn adds, “despite the stronger economic growth expected for the next five years, demand for gas supplied through the mains is expected to fall as conservation measures continue and gas prices rise”. The price increases are expected to be moderate. Rising gas production worldwide will help to meet the overall global increase in demand, much of which will come from developing countries. Industry revenue is forecast to fall marginally over the next five years to 2017-18.
The Gas Supply industry has a high level of market share concentration with the largest four players accounting for over 80% of gas sales in the United Kingdom. These businesses are all based in Great Britain and are regulated by OFGEM. Industry concentration has declined though since the introduction of full retail competition from 1999. Since then, customers have been able to shop around for their gas and electricity supplier. Major companies include Centrica, E.ON UK, Scottish and Southern Energy and RWE AG.
For more information on the Gas Supply industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in the industry sell gas to end users such as households and businesses.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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