Electric Utilities Industry Profile

Companies in this industry generate, transmit, and distribute electric power. Major companies include Duke Energy, Exelon, and Southern Company (all based in the US), as well as EDF (France), Enel (Italy), EON (Germany), and TEPCO (Japan).

The global electricity industry generated more than 30,000 terawatt hours (TWh) of electricity in 2024, according to Statista. Leading countries in electricity generation include China, the US, and India, according to the World Population Review. Power generation has increased and is expected to continue growing by 3.4% annually through 2026, according to the International Energy Agency (IEA).

The US electric utilities industry includes about 11,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $460 billion.

COMPETITIVE LANDSCAPE

Although deregulation has altered power markets in many nations, electric utilities often continue to operate as unofficial monopolies in a given service territory. The intended purpose of moving toward a less-regulated electricity market is to decrease the cost of electricity by fostering competition among producers. One practical effect is the divestment of generation facilities by many investor-owned and government-owned utilities.

Profitability in the electric utility industry is determined by government regulations and fuel costs. Large companies have an advantage in negotiating fuel contracts. Small companies can compete effectively by exploiting market niches, such as offering green power in regulated markets.

In the US, the electricity industry for many years consisted of investor-owned utilities, ...