Industry Statistics and Trends
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $1.9bn in 2023.
Trends and Insights
Elevated wholesale electricity prices boosted industry revenue, despite subdued demand
- The main reason behind strong recent growth rates was a sustained period of high prices on the wholesale market for electricity. Since 2018-19, the wholesale electricity price has stayed above $100 per megawatt hour. In the preceding decade, the average price was approximately $67 per megawatt hour.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Profit margins will remain healthy, bolstered by high prices
- Industry profit margins are forecast to remain healthy over the coming years, as wholesale electricity prices are forecast to remain elevated. As more fossil fuel electricity generators exit the market, supply will struggle to keep pace with demand which is set to continue rising.
Biggest companies in the Geothermal, Wind and Other Electricity Generation in New Zealand
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Mercury NZ | 566.8 | |
Contact Energy | 446.1 | |
Meridian Energy | 195.4 |
To view the market share and analysis for all 3 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 Geothermal electricity generation, Wind electricity generation and Bioenergy electricity generation. Geothermal electricity generation is the largest segment of the Geothermal, Wind and Other Electricity Generation in New Zealand.
Trends and Insights
Geothermal electricity generation is a large and stable form of electricity generation in New Zealand
- Geothermal electricity generation represents the industry's largest source of revenue. Geothermal electricity generation involves using heat that is sourced from below the earth's surface to power turbines. New Zealand's location between two tectonic plates offers an abundance of this power source.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Industry operators generate electricity using geothermal power plants, solar farms, biomass plants and wind farms. This electricity is sold on the wholesale spot market and transported through transmission lines to network substations.
What's included in this industry?
Geothermal electricity generationWind electricity generationSolar electricity generationBiomass electricity generationCompanies
Mercury NZContact EnergyMeridian EnergyPurchase this report to view all 3 major companies in this industry.
Related Terms
CENTRALLY GENERATED ELECTRICITYBASELOAD POWERPEAKING POWERIndustry Code
ANZSIC 2619 - Geothermal, Wind and Other Electricity Generation in New Zealand
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
High prices on the electricity wholesale market in New Zealand have driven a healthy growth in revenue. Firms in this industry have weathered the storm of the pandemic and re...
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 (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- 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
Wind power is the fastest source of electricity generation in New Zealand. Surging public and private investment has fuelled steady growth in wind power capacity, entrenching...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
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
Geothermal energy can only operate in areas that have the requisite environmental resources. That’s why the Bay of Plenty and Waikato regions are the largest source of geothe...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
Operating in this industry requires access to capital, significant levels of expertise and ownership of scarce natural resources like geothermal fields. This dynamic preclude...
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 2018-2023
- 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
The two largest players in the industry, Mercury and Contact, have deep and entrenched advantages in geothermal electricity generation. Control of these vital resources preve...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Mercury NZ's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Contact Energy's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Meridian Energy's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Mercury NZ, and factors influencing its performance in the industry
- Description and key data for Contact Energy, and factors influencing its performance in the industry
- Description and key data for Meridian Energy, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Prices on the wholesale market are highly consequential for the performance of electricity generators. In 2023-24, the wholesale electricity price is set to surge, opening up...
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 (2013-2028)
- Assistance historical data and forecast (2013-2028)
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
Revenue growth has outstripped rising costs, allowing an uptick in profit margins. Wages and purchase costs have fallen as a share of revenue because costs have failed to ris...
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 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
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 (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Geothermal, Wind and Other Electricity Generation industry in New Zealand in 2024?
The market size of the Geothermal, Wind and Other Electricity Generation industry in New Zealand is $1.9bn in 2024.
How many businesses are there in the Geothermal, Wind and Other Electricity Generation in New Zealand industry in 2023?
There are 46 businesses in the Geothermal, Wind and Other Electricity Generation industry in New Zealand, which has grown at a CAGR of 8.9 % between 2018 and 2023.
Has the Geothermal, Wind and Other Electricity Generation industry in New Zealand grown or declined over the past 5 years?
The market size of the Geothermal, Wind and Other Electricity Generation industry in New Zealand has been growing at a CAGR of 2.6 % between 2018 and 2023.
What is the forecast growth of the Geothermal, Wind and Other Electricity Generation industry in New Zealand over the next 5 years?
Over the next five years, the Geothermal, Wind and Other Electricity Generation industry in New Zealand is expected to grow.
What are the biggest companies in the Geothermal, Wind and Other Electricity Generation market in New Zealand?
The biggest companies operating in the Geothermal, Wind and Other Electricity Generation market in New Zealand are Mercury NZ, Contact Energy and Meridian Energy
What does the Geothermal, Wind and Other Electricity Generation in New Zealand include?
Geothermal electricity generation and Wind electricity generation are part of the Geothermal, Wind and Other Electricity Generation industry.
Which companies have the highest market share in the Geothermal, Wind and Other Electricity Generation in New Zealand?
The company holding the most market share in New Zealand is Mercury NZ.
How competitive is the Geothermal, Wind and Other Electricity Generation industry in New Zealand?
The level of competition is moderate and increasing in the Geothermal, Wind and Other Electricity Generation industry in New Zealand.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Hydro-Electricity Generation in New Zealand
- Fossil Fuel Electricity Generation in New Zealand
Complementors
- Electricity Retailing in New Zealand
International industries
- Wind Power in the US
- Solar Power in the US
- Solar Farm Developers in the US
- Geothermal Electricity Plant Operation in the US
- Renewable Power in Canada
View all industries in New Zealand
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 New Zealand include:
- Statistics New Zealand
- New Zealand Company Register
- Ministry of Business, Innovation & Employment
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.
