Warming up: The big three gas retailers have faced intense competition from small retailers

The Gas Supply industry consists of gas retailers that buy and sell gas, and gas distributors that operate the distribution networks carrying gas to end users. The retail and distribution functions are separated by regulation, with different firms performing these activities. Gas retailing accounts for most industry revenue. Gas retailing is dominated by three major players, AGL Energy Limited, Origin Energy Limited, and EnergyAustralia Holdings Limited. SGSP (Australia) Assets Pty Ltd, which operates under the Jemena brand, is the only distribution firm with greater than 5.0% market share.The industry is expected to grow at an annualised 2.7% over the five years through 2018-19, to reach $11.5 billion...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
2.7%
Forecast Growth 19-24
Profit
Employment
2,423
Businesses
194

Industry Threats & Opportunities

  • Rising gas prices over the two years through 2017-18 have driven industry revenue growth
  • Increasing domestic gas prices have underpinned industry growth over the past five years
  • Industry profit is projected to rise as firms pass on a greater share of costs to customers
  • Industry Report - Industry Key Buyers Chapter

    In terms of gas retail, industry concentration is at medium level. The three largest energy companies, AGL Energy Limited, Origin Energy Limited and EnergyAustralia Holdings Limited dominate the eastern seaboard, providing bundled gas and electricity packages for clients. In contrast, industry concentration in gas distribution is at a high level, a consequence of the natural monopoly characteristics of capital-intensive distribution networks. Other large companies in the industry include SGSP (Australia) Assets Pty Ltd, Australian Gas Networks Limited and AusNet Services.Overall, the Gas Supply industry has a moderate level of concentration, with the largest four players controlling approximately 47% of the market. Thi...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
  • Provision of a related range of goods/services (one-stop shop)
  • Having contracts which are favourable to purchasers
  • IBISWorld analysts also discuss how external factors such as Domestic price of natural gas and Electricity service price in the Gas Supply industry impact industry performance..

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    What's in this report

    What is the Gas Supply Industry?

    Industry firms retail gas to consumers and businesses. Industry participants also distribute natural gas to end users via a system of pipes, known as gas distribution mains. However, regulation prevents firms from both retailing and distributing gas. The industry excludes the operation of gas transmission pipelines, which transport gas from gas production facilities to gas distribution mains.

    Industry Products
  • Gas retailing
  • Gas distribution
  • Industry Activities
  • Fuel gas distribution through main systems
  • Coal seam gas (CSG) distribution through mains systems
  • Liquefied petroleum gas distribution through mains systems
  • Natural gas distribution through mains systems
  • Gas retailing through mains systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of natural gas
  • Electricity service price
  • Demand from manufacturing
  • Population

  • Current Performance
  • Revenue and demand
  • Pricing trends
  • Supply shortage
  • Import terminal development
  • Competition and assistance
  • Chart: Revenue Growth

  • Industry Outlook
  • Gas prices
  • Gas demand
  • Industry structure
  • 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
  • Manufacturing
  • Education and Training
  • Consumer Goods Retailing
  • Professional Services
  • Health Services
  • Consumers

  • Key Selling Industries
  • Oil and Gas Extraction
  • Pipeline Transport

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

  • Demand Determinants
    Major Markets
  • Manufacturing firms
  • Households
  • Other sectors
  • 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
  • Internal competition
  • External competition

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

  • Industry Globalization
    AGL Energy Limited, Origin Energy Limited, EnergyAustralia Holdings Limited, SGSP (Australia) Assets Pty Ltd,
  • Table: AGL Energy Limited - financial performance
  • Table: Origin Energy Limited - financial performance
  • Table: EnergyAustralia Holdings Limited - financial performance
  • Table: SGSP (Australia) Assets Pty Ltd - 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Distribution Network
  • A system of pipes used to transport natural gas from the city gate measuring station to customers.
  • Lng
  • Liquefied natural gas, which can be transported via ship.
  • Natural Gas
  • Naturally occurring gases consisting of 50.0% to 90.0% methane and small amounts of heavier hydrocarbons, such as propane and butane.
  • Transmission Pipelines
  • High-volume gas pipelines that transport gas from the producing field or processing plant to the distribution network.
  • What Our Customers Say

    Why buy this report?

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

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