Utilities in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 22Revenue
$1.0tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
970k
Businesses
55,997
Wages
$XXX.Xbn
Utilities in the US industry analysis
The utility sector is currently experiencing transformative changes driven by unprecedented investments in renewable energy infrastructure, particularly in solar and wind projects. In 2023, the share of renewable energy in the US electric power generation has surged to over 20%, a significant climb from less than 10% just a few years ago. This shift is primarily supported by favorable tax credits to boost electricity production from sustainable sources. The sector is witnessing a resurgence in nuclear energy, exemplified by the commissioning of Vogtle Unit 3 in Georgia—marking the first new nuclear reactor in the US since 2016. Such developments signal a growing commitment to clean energy solutions and a strengthened focus on reducing environmental footprints across the nation. Overall, revenue has swelled at a CAGR of 1.4% through 2024, reaching $1.0 trillion, including a 0.5% uptick in 2024 alone.
Trends and Insights
- Infrastructure advancements like smart grids and expanded EV charging stations are vital to the energy sector’s evolution. These innovations help optimize service and meet the growing electricity needs of a shifting consumer market.
- Natural gas distribution's revenue is sensitive to market fluctuations, making it a volatile part of the sector. Companies must carefully navigate these price changes to maintain stability and profitability in their operations.
- The Southwest is recognized as the energy capital of the world. Its rich natural gas reserves and a booming population have led to a high concentration of utility providers in this region.
- Internal competition heats up with the growing prevalence of independent power producers (IPP). IPPs provide competition and choice for consumers and help to meet growing demand for low-cost electricity.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.3 % over the past five years, to reach an estimated $1.0tr in 2024.
Trends and Insights
The pathway to cleaner energy remains vital
- The US has poured an unprecedented amount of investment into renewable energy infrastructure, like solar and wind, to reduce the nation's environmental footprint and improve sustainability. Renewable generation companies, especially those that focus on solar and wind, have performed exceptionally well during the period as tax credits aimed at investment in producing electricity from these resources supported expansion.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Prices and consumption impacts revenue
- Over two-thirds of total sector revenue comes from electric power generation and transmission. The two most significant catalysts of electric power generation, transmission and distribution are the consumption of electric power and the price of electric energy.
Biggest companies in the Utilities in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Nextera Energy Inc. | 36,203.2 | 11,506.2 | 31.8 | |
Exelon Corporation | 30,851.0 | 4,480.0 | 14.5 | |
Duke Energy Corporation | 30,473.3 | 4,474.6 | 14.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Electric power transmission and distribution, Electric power generation and Natural gas distribution. Electric power transmission and distribution is the largest segment of the Utilities in the US.
Trends and Insights
Electric power transmission is the sector’s leading provision
- Electric power transmission (IBISWorld report 22112) is the process of transporting power from its production source to end users. It involves operators of transmission lines, transformer stations, power lines, poles, meters and wiring.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Coal & Natural Gas Power in the US
- Nuclear Power in the US
- Hydroelectric Power in the US
- Wind Power in the US
- Solar Power in the US
- Electric Power Transmission in the US
- Natural Gas Distribution in the US
- Water Supply & Irrigation Systems in the US
International industries
- Electric Power Transmission in Canada
- Wind Power Generation in the UK
- Hydroelectric Power in China
Table of Contents
About this industry
Industry definition
The sector comprises operators engaged in the provision of various utility services, such as electric power, natural gas, steam supply, water supply and sewage removal. Excluded from this sector are operators primarily engaged in waste management services classified in Subsector 562, Waste Management and Remediation Services. These operators also collect, treat and dispose of waste materials; however, they do not use sewer systems or sewage treatment facilities.
What's included in this industry?
Electric power generationElectric power transmission and distributionNatural gas distributionWater supplySteam supplyCompanies
Nextera Energy Inc.Exelon CorporationDuke Energy CorporationPurchase this report to view all 4 major companies in this industry.
Related Terms
TRANSMISSIONDISTRIBUTIONPUBLIC UTILITY COMMISSION (PUC)Industry Code
NAICS 22 - Utilities in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Infrastructure advancements like smart grids and expanded EV charging stations are vital to the energy sector’s evolution. These innovations help optimize service and meet th...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Natural gas distribution's revenue is sensitive to market fluctuations, making it a volatile part of the sector. Companies must carefully navigate these price changes to main...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southwest is recognized as the energy capital of the world. Its rich natural gas reserves and a booming population have led to a high concentration of utility providers i...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Internal competition heats up with the growing prevalence of independent power producers (IPP). IPPs provide competition and choice for consumers and help to meet growing dem...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Tennessee Valley Authority is one of the nation’s largest public power corporation by generating capacity. Its Cumberland coal-fired power plant has a summer net capacity of ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Nextera Energy Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Exelon Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Duke Energy Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Nextera Energy Inc., and factors influencing its performance in the industry
- Description and key data for Exelon Corporation, and factors influencing its performance in the industry
- Description and key data for Duke Energy Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Utilities is one of the most heavily regulated sectors of the US economy. Businesses must comply with a myriad of regulations that make it extremely costly to do business.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Regulative rate hikes largely benefit the utilities sector's profitability. These price increases, often approved by public utility commissions, help companies recover costs ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Utilities in the US industry in United States in 2024?
The market size of the Utilities in the US industry in United States is $1.0tr in 2024.
How many businesses are there in the Utilities in the US industry in 2024?
There are 55,997 businesses in the Utilities in the US industry in United States, which has grown at a CAGR of 1.7 % between 2019 and 2024.
Has the Utilities in the US industry in United States grown or declined over the past 5 years?
The market size of the Utilities in the US industry in United States has been declining at a CAGR of 2.3 % between 2019 and 2024.
What is the forecast growth of the Utilities in the US industry in United States over the next 5 years?
Over the next five years, the Utilities in the US industry in United States is expected to grow.
What are the biggest companies in the Utilities in the US market in United States?
The biggest companies operating in the Utilities market in United States are Nextera Energy Inc., Exelon Corporation and Duke Energy Corporation
What does the Utilities in the US in United States include?
Electric power generation and Electric power transmission and distribution are part of the Utilities in the US industry.
Which companies have the highest market share in the Utilities in the US in United States?
The company holding the most market share in United States is Nextera Energy Inc..
How competitive is the Utilities in the US industry in United States?
The level of competition is low and steady in the Utilities in the US industry in United States.
