San Francisco, CA (PRWEB) September 23, 2012
The Power Grid Construction industry in China has been growing 13.9% annually over the past five years to $478.2 billion in 2012, says IBISWorld. Two events contributed to strong growth over the period; both the Beijing Olympic Games in 2008 and the Shanghai World Expo in 2010 led to large government investments in new power infrastructure construction and improvements. The total length of power transmission lines constructed during the period is estimated at 894.2 thousand kilometers.
The Power Grid Construction industry is heavily controlled by the Chinese government. The three major industry enterprises, State Grid Corporation of China, China Southern Power Grid Corporation and Inner Mongolia Power Grid Corporation, serve over 95% of China's land area and generate the majority of total industry revenue. These state-owned enterprises are heavily supported by the government, which gives them a competitive edge over possible new entrants. Advantages of new entrants include advanced technology and engagement in activities supported and encouraged by the government. Power grid construction is critical to the smooth operation and long-term development of the country. Therefore, foreign capital is not permitted, except to supply advanced technologies and R&D for new equipment.
As China puts restrictions on high power-consuming industries and places more emphasis on intensive rather than extensive production, power consumption is expected to be more reasonable with less waste. This will lead to slower growth in the Power Grid Construction industry, even as demand grows, says IBISWorld.
For more information, visit IBISWorld’s Power Grid Construction in China industry report page.
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IBISWorld industry Report Key Topics
The Power Grid Construction industry in China constructs power grids in order to supply power for domestic demand. Detailed works in the industry include the construction of pylons, wire poles, power stations, converting stations and substations. Through these equipment and tools, electricity of various voltages are transmitted and distributed to end users. Pre-construction preparatory activities are not included in the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.