According to recent statistics, global energy investment in 2016 accounted for 2.2% of the global GDP.
The global energy industry is witnessing a transformation towards a service-driven economy, owing to the technological improvements and environmental concerns. At the fundamental level, population and energy efficiency improvements are influencing the organizations to shift toward renewable sources of energy. With the recent shift towards a service-driven economy, leading organizations are insisting on supplying energy with greater productivity and energy efficiency. Although the market for renewable energy is witnessing promising growth, several factors are hampering the overall growth of the renewable energy industry. These factors include:
- The cost of production: Since countries across the globe rely on fossil fuels for their daily energy consumption, organizations are shifting toward alternate renewable sources of energy. With the raw materials being free and infinite, the cost of the equipment and materials are generally high as compared to non-renewable sources. Moreover, the advances in the renewable sources require a significant amount of initial capital investments.
- Storage costs: If countries across the globe are relying on renewable energy, then storage becomes a major concern. Also, to bridge the growing demand for renewable energy, efficient storage facilities should be in place. The maintenance of such storage spaces is time-consuming and requires a lot of initial capital investment.
- Stringent government regulations: To promote the use of renewable sources of energy, organizations are combining a series of major laws and regulations to control energy prices further, reduce competition, and drastically narrow down the imports. Also, these interventions in the tax preferences and subsidies may further affect the growth of the energy space.
To combat such factors and shift toward a more renewable space, organizations are leveraging market opportunity assessments. A well-defined market opportunity assessment provides a better understanding of the overall market scenario by categorizing the market into products and services. Moreover, with prominent organizations shifting toward a more consumer-driven economy, market opportunity provides assistance to the companies by maintaining a consistent awareness of the challenges and the barriers to entry.
The Business Challenge
- The Client: Renewable energy provider
- Area of Engagement: Market opportunity
A leading client in the renewable energy space wanted to identify the potential barriers to enter niche market areas and understand the market sizing and growth projections. With the help of the market opportunity assessment, the client wanted to profile the prominent competitors and build an accurate go-to-market strategy and business plans. The primary concern for the client was to provide market size estimates and identify the market requirements and the barriers to entry. Moreover, the client wanted to identify the demand-supply scenario for the services and tailor resources accordingly.
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The Journey
To determine the demand for renewable energy and enhance their offerings, Infiniti’s market opportunity experts carried out extensive research comprising of interviews and discussions with leading stakeholders in the energy space. To understand the competitive scenario, the experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
The market opportunity assessment offered by Infiniti helped the renewable energy provider identify new market opportunities and meet the different needs, requirements, and preferences of the customers. The engagement also assisted the client to gain a competitive edge over other companies and the market sizing and growth projections. The client was able to design a go-to-market strategy by taking into account the data gathered from a SWOT analysis. Through the engagement, the client gained a holistic understanding of the market and was able to improve their offerings.
The Future
With the relentless growth of technologies, the energy sector companies are expected to adopt large-scale IT technologies to improve service efficiency. Furthermore, leading organizations are looking for more lucrative opportunities for doing businesses across niche market segments.
