Following years of stagnation and bad press, the hydro energy industry is experiencing a resurgence. Technologies with a lower environmental impact such as run-of-river, small hydro and low head turbines are proving to be extremely popular to both appease critics of hydro and meet energy needs. Additionally, there has been an increase in pumped storage projects as a standalone option and retrofitted on to existing hydro energy assets. However, innovation in the sector has been lacking and has mainly been in the use of computation for monitoring, diagnosis, and control of plants.
Let’s look at a few key factors that are expected to influence the growth forecasts of the hydro energy industry in the coming years.
- Increasing competition: With the entry of prominent global leaders, the hydro energy industry has witnessed an increasing level of competition with new entrants attempting to gain a significant share of the industry. Additionally, the shift toward renewable sources of energy is resulting in the entry of new players, thereby, affecting the current supply landscape.
- Increasing customer expectations: Prominent hydro energy companies are facing relentless pressures to maintain a secure, reliable, and affordable supply to the customers as the demand for energy services is spurring significantly. Additionally, with customer expectations increasing, leading companies are facing the need to switch suppliers frequently to meet the rising needs of the individuals.
Many such factors are compelling firms in the hydro energy space to leverage the use of market assessment solutions. Market assessment solutions help firms gain strategic insights on real-time market information and predict the entry of new companies. Additionally, companies can categorize the most profitable market segments and refine their relationship with the customers to improve overall profitability.
The Business Challenge
- The Client: A leading hydro energy provider
- The client, a renowned hydro energy provider with business operations spread across the globe, wanted to profile potential customer segments and implement appropriate marketing initiatives to enhance business performance. Additionally, the client wanted to gain an understanding of the demographics to create robust value framing strategies across the industry.
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To help the client better define their tactical actions, Infiniti’s market assessment experts carried out extensive qualitative and quantitative research and identified the prominent stakeholders in the metal fabrication market. Furthermore, to address the specific category requirements of the metal fabrication company, the experts 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 assessment solution offered by Infiniti helped the client profile the most profitable target segments and devise the best possible market strategy. Additionally, the client identified the current market position of their company and identified key competitors through SWOT analysis. This helped them increase market shares across every vertical.
More environmentally friendly hydro products are likely to enter the market in the future as the environmental impact of projects along with local opposition from tribal groups is backing the development of these projects.