Consolidation in the utility connections market
The UK ICP market is a competitive industry with hundreds accredited independent providers who design and build new electricity connections — work previously delivered by the regulated regional Distribution Network Operator (DNO) monopolies such as UK Power Networks, Northern Powergrid and SSEN. ICPs now deliver the majority of new electricity connections. Similar competitive models exist in water and gas.
Demand for electricity connections has accelerated in recent years, driven by growth in distributed supply e.g. renewables/storage and new sources of demand, specifically data centres, EV charging.
This growth has attracted significant investment, with the largest specialist ICPs and multi‑utility contractors receiving backing from private equity.
However, the market remains highly fragmented. There is a long tail of smaller ICPs and a growing number of suppliers overall, creating an ongoing roll‑up opportunity for financial and strategic investors.
Types of Company Active in the UK Connections Market
The landscape of accredited independent connection providers spans connections specialists through to civils and infrastructure contractors.
Utility-focused contractors, developers and operators
350-400 companies
Companies whose core business is related to delivering, developing or operating utility‑related infrastructure.
Illustrative company types:
- Connections specialists
- IDNOs / DNOs
- EV infrastructure contractors
- Multi-utility contractors
- Renewables developers
Abbreviations: IDNO = Independent Distribution Network Operator; DNO = Distribution Network Operator.
Source: LRQA, MDS Strategy research.
Generalist contractors
c.200 companies
Companies whose core business spans broader construction, engineering or facilities services, with connections work delivered as part of wider projects.
Illustrative company types:
- Civils and infrastructure contractors
- Housebuilders
- Mechanical & Electrical contractors
- Facilities managers
- Engineering consultants
Industry Structure and Service Mix
The utility‑focused segment of the market is highly fragmented, with a small number of large groups and a broad base of smaller specialists. While private equity and strategic buyers have invested heavily in the top end of the market, there remains a long tail of 300–350 independent operators, most of which focus on electrical connections or offer multiple services.
Demand drivers: new loads and distributed supply
The demand for connections is growing rapidly, driven by the expansion of distributed supply and new sources of demand.
Number of contractors
Rising demand is driving expansion on the supply side. The number of registered ICPs (independent connections providers) has grown 60% from 2020 to 2025.
Investments and acquisitions
The space has seen sustained and increasing investment, with especially strong activity in 2024. While platform acquisitions by financial investors slowed in 2025, bolt‑on activity and strategic acquisitions have continued.
With demand rising, supply expanding and consolidation reshaping the operator landscape, the utility‑focused connections market presents both opportunities and complexity. MDS Strategy works with operators and investors to clarify strategic options and guide investment decisions. If you would like to explore how we can support you, please get in touch.