Market share of small to medium energy companies growing: The make-up of the retail energy market landscape has changed drastically with new entrants into the market, challenging the status quo of the Big Six. In fact, research from Cornwall Insight’s Domestic Market Share Survey shows the challenger brands now collectively hold 30% of the share of the household energy market up from 18% two years ago.
If this trend continues, Cornwall Insight research shows that in just four years, there could be an almost 50-50 market share split between the incumbent Big Six and the challenger brands. This is shown in the below graph.
Katie Hickford, Analyst at Cornwall Insight, said:
“Small and medium suppliers (SaMS) have grown in recent years, increasing their share of the market by 12% in just two years. Of the 30% they currently hold; 46 small suppliers hold a 5% share of the market and 12 medium suppliers hold one-quarter of the market. With large suppliers now holding 70% of the market.
“The past quarter has seen SaMS growth dominated by a few medium suppliers, in particular, rapid growth by Bulb. In fact, Bulb’s growth set a new record and was the second-highest increase in quarterly energy accounts since the Domestic Market Share Survey began.
“It’s clear to see that the retail market is changing, and if this continues in just four years, the make-up of the market could look very different. While the domestic energy market has seen several new entrants, it has also faced challenges with exits and consolidation, making predictions of the future challenging. However, the future landscape will differ from what we have today and is certainly very different from the one experienced by customers even two years ago.”
Article by Cornwall Insight