Utilities Connections Market Report - UK 2013-2017 Analysis
Published: 29/04/2013 / Number of Pages: 77 / Price:
Introduction and Overview
The 2nd Edition of the report, "Utilities Connections Market Report - UK 2013-2017 Analysis" focuses on providing a comprehensive and up to date review of the structure of the market for utilities connections. This unique report answers the need for both a quantitative and qualitative analysis of the Utilities Connections sector and represents an invaluable guide to the overall market for sales and marketing professionals involved in the support services and utilities industries. Focusing on market size and trends, sector analysis (gas, electricity, water and telecoms), competition within the connections sector, leading connections organisations and future prospects, the report is comprehensive, informative and will facilitate operational and strategic decision-making processes.
Key issues analysed include:
- Utilities Connections Market - market value, key market influences, volume & value analysis of gas & electricity connections.
- Competition Within Connections - extent to which market are "open", trends in last 2 years.
- Overall Utilities Market - construction output GB, quarterly analysis of output and new orders, output by sector.
- Major Connections Companies
The utilities connections market has been affected by the downturn in the construction sector with both volume and value experiencing significant decline 2008-11. Downward pressure on pricing has been a key feature of the market as contractors compete to win share of decreasing volumes. The electricity sector has seen significant share gain by the Independents 2010-11 but this still only represents minority share compared with 61% for the gas sector. The current outlook for the market over the medium-term is for moderate growth into the short-term followed by good growth rates 2015-17. However, the key to the future of the market remains the rate and pace of the expected recovery in the domestic and non-domestic construction sectors.
Areas of particular interest include:
- Performance of connections market and utilities sector 2006-11, forecasts 2012-17, key influencing factors and effects of increased competition on average connections prices.
- Changes to the connections mix by type of connections for gas, electricity, water and telecoms sectors.
- Progress of competition on connections for individual sector and growth of the multi-utility packages.
- Leading organisations working the utilities connections sectors.
- Detailed market data and insight on the utilities connections market by AMA Research, a leading UK provider of construction market intelligence.
Leading companies mentioned in the report include:
AMEC, Balfour Beatty, Blyth Utilities, Carillion, Clancy Docwra, Complete Energy Solutions, Connect Utilities, Crown Energy, Crown Utilities, E.ON UK, Energetics Networked Energy, Enterprise, ES Pipelines, Fulcrum Group Holdings, GTC, Integrated Utility Services (IUS), KK& E, May Gurney, Morland Utilities, Morrison Utility Services, Murphy Group, Northern Energy Connections, PN Daly, Power On Connections, Powersave Direct, Scottish & Southern Energy, SP Energy Networks, Stats Utility Connections, United Utilities, Waterlink Services.
Focus on Utilities Connections Market
- Market Overview - market value, influence of connections type eg new build or existing property connections, identification of key types of connections providers, difficulties in accurately assessing market size, etc. Market sizes from 2007, with forecasts by sector through to 2017.
- Key Market Influences - influence of the construction sector, new build & RMI works, housebuilding & non-domestic construction output, key factors influencing connections to existing properties.
- Mix of connections sectors, 2008 compared to 2011 - reasons for change and development of the relative size of the different sectors.
- Competition in the Connections Sector - increased use of contestable works options opening up connections sector, growth of multi utility packages & providers, competition in gas & electricity sectors.
- Major Connections Companies - identification of key utilities connections providers.
Connections Market by Sector
- Gas Connections By Sector - analysis by volume and value, connections by type - domestic & non-domestic, mix by sector, average prices of gas connections by type.
- Electricity Connections Sector - volume and value of electricity connections, analysis by type of connection - low voltage, high voltage, distributed generation, etc - average value of low voltage electricity connections.
- Water and Telecommunications sector - water and sewerage connections levels, key trends, influences, recent developments, future prospects, telecoms sector connections, key trends.
Review of Future Prospects
- Trends over the medium-term, and forecasts to 2017; key influencing factors within the market, potential influence of regulative and legislative changes.
- Recognition of need to secure UK's future energy supplies - change to renewable generation as well as greater influence of nuclear power likely to boost electricity sector output.
Utilities Market Overview
- UK Construction Output - overview of UK construction market, mix by sector 2010 and 2011, Q1-3 2012, key influencing factors, trends, influence on the connections sector. Forecasts through to 2017.
- Infrastructure and Utilities construction output levels - size in terms of GB construction output, sector mix 2010-17, key trends in infrastructure sectors, transport, utilities etc. National infrastructure plan, influence on the market etc.
- Utilities Market Analysis - sector mix, output by sector, quarterly analysis by output and new orders, key influencing factors, future prospects.
- Utilities output forecasts - assessment of potential performance 2010-12, key influencing factors, and output forecasts to 2017.
The utilities connections market is closely aligned with levels of non-domestic construction output and housebuilding, in addition the health of the utilities construction market also impacts on the value of the connections sector. Estimation of the market value for the utility connections market is difficult due to the variation in the volume and value of such connections made available through the various utility sub-sectors.
The utilities connections market experienced good annual growth rates 2006-08. The market subsequently suffered an 18% reversal to 2011, due to significant volume decline in sectors such as housebuilding, private commercial and retail. The connections market appeared to stabilise in 2011 and 2012, underpinned by increases in the average price of electricity connections, though the outlook for 2013 and 2014 is for only modest growth at best. In common with many other construction sectors, the market has become characterised by increasing price competition as contractors compete for diminishing workloads. The decline in the housebuilding sector has been particularly significant for the majority of utilities connections with the decline in the commercial sector affecting both HV and unmetered electricity connections as well as the non-domestic gas installations.
The gas sector has been heavily affected the downturn in construction with the volume of connections decreasing by around 39% 2008-10 with corresponding value decline of 55% over the same period. Gas connections volumes increased by 12% 2010-11, but value decreased by around 8%. 2012 is considered to have been stable, with modest growth by volume balanced by the price competition. Electricity connections have also been affected by construction downturn with 38% volume decrease 2008-11 and corresponding value decline of 21%.
Although distributed generation connections have experienced significant growth 2008-11, the latest trend has been for 19% decline 2010-11 as changes to Feed In Tariffs (FIT's) affected the number of domestic installations of solar pv systems. Water industry connections peaked at 421,800 in 2007-08 coinciding with the buoyancy of the new housebuilding market at the time. The subsequent 35% decline to 2010-11 underlines the importance of the new housebuilding sector.
The increased take up of 3G network devices and the launch of 4G networks 2012-13 is likely to stimulate telecoms connections volumes into the medium-term however average value of connections is likely to face continued downward price pressure due to the level of competition within the sector. Growth in the connections market remains dependent upon the recovery of new housebuilding and non-domestic construction sectors with prospects for both remaining subdued into Q1 2013. Longer term prospects are currently viewed as modest with value expected to increase to around £1.18bn by 2017, approximately 21% higher than value estimated for 2011.
List of Report Contents
- Contents Listing
- 1. INTRODUCTION 6
- 1.1 BACKGROUND 6
- 1.2 SOURCES OF INFORMATION 7
- 2. SUMMARY AND FUTURE PROSPECTS 8
- 2.1 SUMMARY 8
- 2.2 FUTURE PROSPECTS 10
- 3. ECONOMIC ENVIRONMENT 12
- 3.1 GDP 12
- 3.2 INFLATION & INTEREST RATES 13
- 3.3 UNEMPLOYMENT 14
- 3.4 HOUSEHOLD CONSUMPTION 14
- 3.5 HOUSING & CONSTRUCTION 15
- 3.6 STERLING 17
- 3.7 POPULATION PROFILE 18
- 3.8 CONCLUSIONS 18
- 4. CONSTRUCTION OUTPUT IN THE UTILITIES SECTOR 20
- 4.1 THE UTILITIES CONSTRUCTION MARKET 20
- 4.2 OVERALL UK CONSTRUCTION OUTPUT 20
- 4.2.1 Sector Mix UK 23
- 4.2.2 Sector Mix 2008-12 United Kingdom 24
- 4.3 INFRASTRUCTURE OUTPUT GREAT BRITAIN 26
- 4.3.1 New Work 26
- 4.3.2 RMI 28
- 4.3.3 Infrastructure Sectors 29
- 4.3.4 National Infrastructure Plan 30
- 4.4 UTILITIES CONSTRUCTION OUTPUT 31
- 4.4.1 Output by Sector 32
- 4.4.2 Output and New Orders Quarterly Analysis 35
- 4.5 FUTURE PROSPECTS AND FORECASTS - UTILITIES CONSTRUCTION 36
- 5. UTILITIES CONNECTIONS MARKET 39
- 5.1 MARKET OVERVIEW 39
- 5.2 MARKET VALUE 40
- 5.3 CONNECTIONS MARKET AND THE CONSTRUCTION SECTOR 42
- 5.3.1 New Housebuilding Applications 42
- 5.3.2 Non-Domestic Construction Sectors 45
- 5.4 CONNECTIONS MARKET SECTOR MIX 47
- 5.5 GAS CONNECTIONS SECTOR 48
- 5.5.1 Gas Connection Volumes by Type of Connection 49
- 5.5.2 Gas Connection Values by Type of Connection 51
- 5.5.3 Mix by Sector 52
- 5.5.4 Forecasts and Future Prospects 53
- 5.6 ELECTRICITY CONNECTIONS SECTOR 54
- 5.6.1 Electricity Connections by Value 55
- 5.6.2 Average Price of Electricity Connections 56
- 5.6.3 Electricity Connections by Region 58
- 5.6.4 Future Prospects 59
- 5.7 WATER AND TELECOMS SECTORS 61
- 5.7.1 Water Sector 61
- 5.7.2 Telecoms Sector 64
- 6. COMPETITION IN THE CONNECTIONS MARKET 66
- 6.1 COMPETITION IN THE GAS SECTOR 66
- 6.2 COMPETITION IN ELECTRICITY CONNECTIONS 68
- 6.3 ICP'S AND MULTI-UTILITY PROVIDERS 69
- 7. MAJOR CONNECTIONS COMPANIES 71
- 7.1 STRUCTURE OF THE CONNECTIONS INDUSTRY 71
- 7.2 MAJOR CONNECTIONS SUPPLIERS 72
- Tables & Charts
- CHART 1 UK UTILITIES CONNECTIONS MARKET 2006 TO 2016 - BY VALUE (£BN) 8
- TABLE 2 GDP DATA 2010 TO 2012 - KEY CONSTITUENT ELEMENTS 12
- CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 1992-2017 14
- CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 1995-2017 15
- TABLE 5 EXCHANGE RATE FLUCTUATIONS 2008-2014 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
- CHART 6 UK CONSTRUCTION OUTPUT (NEW WORK AND RMI) 2007 TO 2017 - BY VALUE (£ BILLION AT CURRENT PRICES) 21
- TABLE 7 UK CONSTRUCTION OUTPUT BY END USE SECTOR 2011 - BY VALUE (£MILLION AT CURRENT PRICES) 24
- CHART 8 UK CONSTRUCTION OUTPUT BY SECTOR 2008 TO 2012 - % BY VALUE 25
- CHART 9 GB CONSTRUCTION NEW WORK OUTPUT FOR INFRASTRUCTURE 2007 TO 2017 - BY VALUE (£BN AT CURRENT PRICES) 26
- TABLE 10 GB CONSTRUCTION NEW WORK OUTPUT FOR INFRASTRUCTURE BY PUBLIC AND PRIVATE SECTOR 2007 TO 2012 - BY VALUE (£M CURRENT PRICES) 27
- CHART 11 GB INFRASTRUCTURE RMI OUTPUT Q1 2010 TO Q3 2012 - BY VALUE (£ MILLION AT CURRENT PRICES) 28
- CHART 12 INFRASTRUCTURE OUTPUT (NEW WORK) BY SECTOR - ROADS, RAIL, WATER, ELECTRICITY ETC. GREAT BRITAIN 2011 AND Q1-Q3 2012 - % BY VALUE 29
- TABLE 13 UTILITIES CONSTRUCTION OUTPUT AS A PERCENTAGE OF TOTAL INFRASTRUCTURE OUTPUT (GREAT BRITAIN) 2007 TO 2012, 2017 - BY VALUE (£M CURRENT PRICES) AND % 31
- CHART 14 UTILITIES CONSTRUCTION OUTPUT GB BY SECTOR WATER, SEWERAGE, ELECTRICITY ETC, 2007 TO 2011 - BY VALUE (£ MILLION AT CURRENT PRICES) 33
- TABLE 15 UTILITIES MARKET GB OUTPUT MIX BY SUB-SECTOR WATER, SEWERAGE, ELECTRICITY ETC. 2005, 2008, 2010 AND 2011 - % BY VALUE 34
- CHART 16 UTILITIES OUTPUT AND NEW ORDERS GB QUARTERLY ANALYSIS Q1 2009 TO Q3 2012 - BY VALUE (£BN AT CURRENT PRICES) 35
- CHART 17 UTILITIES MARKET GB CONSTRUCTION OUTPUT 2011 TO 2017 - BY VALUE (£BN AT CURRENT PRICES) 36
- CHART 18 UTILITIES CONNECTIONS MARKET (GB) 2006-17 - BY VALUE (£M AT CURRENT PRICES) 41
- TABLE 19 HOUSING COMPLETIONS FOR PUBLIC AND PRIVATE SECTORS (GREAT BRITAIN) 2007 TO 2016 - BY VOLUME (NUMBER OF COMPLETIONS) 43
- TABLE 20 HOUSEBUILDING COMPLETIONS BY REGION (GB) 2009 AND 2011 - BY VOLUME (000'S) AND % SHARE 44
- CHART 21 NON DOMESTIC CONSTRUCTION OUTPUT GROWTH FORECASTS 2007 TO 2017 - BY VALUE (£ BILLION AT CURRENT PRICES) 46
- CHART 22 UK CONNECTIONS MARKET SECTOR MIX (GAS, GAS ELECTRICITY, WATER & TELECOMS) 2008 AND 2011 - % BY VALUE 48
- TABLE 23 VALUE AND VOLUME OF GAS CONNECTIONS GREAT BRITAIN 2005-06 TO 2010-11 49
- TABLE 24 VOLUME OF GAS CONNECTIONS GREAT BRITAIN 2005-06 TO 2010-11 - TYPE OF CONNECTION BY VOLUME 50
- TABLE 25 GAS CONNECTIONS GREAT BRITAIN 2004-05 TO 2010-11 BY TYPE OF CONNECTION - BY VALUE (£M) 51
- CHART 26 MIX BY SECTOR GB GAS CONNECTIONS 2010-11 - % BY VALUE 52
- TABLE 27 FORECASTS FOR GAS CONNECTIONS SECTOR GREAT BRITAIN 2010-11 TO 2016-17 - BY VOLUME AND VALUE (£M) 53
- TABLE 28 VALUE AND NUMBER OF ELECTRICITY CONNECTIONS GREAT BRITAIN 2005-06 TO 2010-11 55
- CHART 29 MIX BY ELECTRICITY CONNECTION TYPE (GB) 2010-11 - % BY VALUE 56
- TABLE 30 AVERAGE PRICE OF ELECTRICITY CONNECTIONS GREAT BRITAIN 2005-06 TO 2010-11 BY TYPE OF CONNECTION - BY VALUE (£) 57
- TABLE 31 ELECTRICITY CONNECTIONS BY REGION (GB) - BY VOLUME (000'S) AND % SHARE 58
- TABLE 32 FORECASTS FOR ELECTRICITY CONNECTIONS SECTOR GREAT BRITAIN 2009-10 TO 2015-16 - BY VOLUME AND VALUE (£M) 59
- TABLE 33 WATER INDUSTRY CONNECTIONS (ENGLAND AND WALES) 2005-06 TO 2010-11 - BY VOLUME (000'S) 61
- TABLE 34 WATER CONNECTIONS (ENGLAND AND WALES) 2005-06 TO 2010-11 - BY VOLUME (000'S) 62
- TABLE 35 SEWERAGE CONNECTIONS (ENGLAND AND WALES) 2005-06 TO 2010-11 - BY VOLUME (000'S) 63
- TABLE 36 TELECOMS SECTOR CONNECTIONS 2006 TO 2011 - BY VOLUME (PER 100 POPULATION) 65
- TABLE 37 GAS CONNECTIONS MARKET GB 2009-10 AND 2010-11 MIX BY PROVIDER - BY VOLUME AND % OF TOTAL CONNECTIONS 67
- CHART 38 ELECTRICITY CONNECTIONS MARKET GB 2009-10 AND 2010-11 MIX BY PROVIDER - % BY VOLUME 68
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