Down the pipes: Increasing competition has limited industry firms' profitability

The Gas Supply industry includes gas retailers and gas distributors. Gas retailers purchase gas from wholesalers and pay for transmission and distribution to sell to end users. Gas distributors own and operate networks of medium- and low-pressure gas mains and charge fees to gas retailers for transporting gas to customers. Industry operators have faced rising input costs and greater competition over the past five years. Stronger competition has encouraged retailers to increase their focus on customer service, driving employment growth and higher industry wage costs. Industry revenue is expected to decline at an annualised 0.5% over the five years through 2019-20, to total $597.2 million...read more.

Industry Statistics & Market Size
Revenue
$597m
Annual Growth 15-20
-0.5%
Forecast Growth 20-25
Profit
Employment
342
Businesses
14

Industry Threats & Opportunities

  • Acquiring new customers has become significantly easier over the past five years
  • Rising efficiency has contributed to increasing industry profit margins over the past five years
  • Low gas exploration activity is forecast to limit supply and lead to upward price pressure
  • Industry Report - Starting a New Business Chapter

    The Gas Supply industry has high entry barriers, and this trend has remained unchanged over the past five years. Entry barriers are highest in the gas distribution segment, with Vector Limited and Powerco holding a high market share. It is uneconomical for new players to establish new gas pipelines alongside these players’ existing infrastructure, due to duplication of costs. Gas pipelines are highly regulated monopolies that are overseen by the Commerce Commission, and entry into this market is unfeasible unless through merger or acquisition.Entry barriers are strong in the retail segment. Exi...purchase to read more.

    Additional Insights for the Gas Supply Industry

    IBISWorld has determined the most important Key Success Factors for the Gas Supply are:

  • Effective cost controls
  • Economies of scale
  • Access to required utility infrastructure
  • IBISWorld analysts also discuss how external factors such as Electricity service price index and Net energy consumption in the Gas Supply industry impact industry performance..

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    What's in this report

    What is the Gas Supply in New Zealand Industry?

    Industry players distribute gas through mains systems to consumers and industrial users. Firms mainly supply either natural gas or LPG. The industry excludes firms that operate gas pipelines.

    Industry Products
  • Gas retailing
  • Gas distribution
  • Industry Activities
  • Natural gas distribution through mains system
  • Gas retailing through mains system
  • Liquefied petroleum gas distribution through mains system
  • Fuel gas distribution through mains system
  • Coal seam gas distribution through mains system
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Electricity service price index
  • Net energy consumption
  • Population
  • Real household disposable income

  • Current Performance
  • Customer switching
  • Concentration and competition
  • Prices and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Exploration, supply and prices
  • Participation

    and profit

  • Table: Gas Supply Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gas Supply Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Education and Training
  • Consumers in New Zealand

  • Key Selling Industries
  • Oil and Gas Extraction in New Zealand
  • Pipeline Transport in New Zealand

  • Products & Services
  • Gas retailing
  • Gas distribution
  • Chart: Gas Supply Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Industrial users
  • Chart: Major Market Segmentation for the Gas Supply Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gas Supply

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gas Supply Industry

  • Industry Globalization
    Genesis Energy Limited, Contact Energy Limited, Todd Corporation Limited, Mercury NZ Limited, Powerco Limited, Vector Limited,
  • Table: Genesis Energy Limited - financial performance
  • Table: Contact Energy Limited - financial performance
  • Table: Todd Corporation Limited - financial performance
  • Table: Mercury NZ Limited - financial performance
  • Table: Powerco Limited - financial performance
  • Table: Vector Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gas Supply 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 Gas Supply Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Gas Distribution
  • The distribution of gas through intermediate-, medium- and low-pressure gas mains. Gas is reticulated from high-pressure pipelines and distributed to final users.
  • Gas Retailing
  • The purchase of gas from wholesalers for sale to end users, through transmission pipelines and distribution gas mains.
  • Gas Transmission
  • The transmission of gas through high-pressure pipelines.
  • Gentailer
  • An energy generator and retailer.
  • Icp
  • An installation control point, which indicates a gas connection for a single retail customer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gas Supply in New Zealand market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Gas Supply in New Zealand:
    • 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 Gas Supply in New Zealand 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 Gas Supply in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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