Since the enactment of the Electricity Act in 2003, the level of competition in the Indian power market has increased substantially.
Globally, the power and energy market has been marked by the transition towards a more decentralized and intelligent energy system, which is expected to continue this year as well. The power market is driven by the continued regulatory support for renewable energy, especially in developing economies like India, which is a key market for power suppliers across the globe. The growth of the power market is driven by the “three Ds of energy” – rising decentralization, growing need to decarbonize electricity generation, and digitization. However, apart from these factors, there are a few fundamental factors that are impacting the overall growth. These factors include:
- Increasing competition: With the entry of new suppliers, the market is witnessing a high level of competition with players attempting to gain a major share of the market. Additionally, the shift towards a more competitive environment from a monopolistic environment a is opening up the space for new market players to establish themselves in the industry.
- Increasing customer expectations: Leading companies are facing the need to change their business models to meet the rising demands of the customers who are now opting for suppliers that offer reliability and better security in their services.
These factors are compelling firms to leverage the use of robust market intelligence solutions. Market intelligence solutions help firms gain a precise view of the market and customer records and enable them to analyze and interpret information about the key competitors in the space. This would help businesses determine relevant market opportunities and make accurate business decisions.
The Business Challenge
- The client: A renowned power supplier
- Area of engagement: Market intelligence
The client, a renowned player in the power & energy market with distribution centers spread across various locations, wanted to gain accurate and detailed information on the Indian market’s growth potential and possible ways to increase profits, revenues, and market shares. Additionally, the client wanted to meet the growing demands of the customers by bringing about cost-effectiveness in their service offerings and gain insights into the market size calculations, substitute products, and competitor analysis. The client also wanted to minimize the risk of investments and penetrate the niche and profitable market segments.
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The market intelligence experts at Infiniti carried out extensive research, comprising of interviews and discussions with prominent stakeholders in the power and energy market to ascertain the demand for products and services and offer reliable offerings in the market. The experts also gathered information from a wide array of proprietary sources such as paid industry databases, trade shows, and company presentations.
The Solution Benefits and the Business Impact
With the help of Infiniti’s market intelligence solution, the power supplier was able to identify the niche and profitable market segments and accordingly tailor offerings and marketing efforts around the customer’s needs. Additionally, the power supplier was able to identify the key competitors in the Indian power market and devise effective strategies to establish their presence in the market.
Over the next couple of years, the power & energy secctor in India will experience promising growth despite China being the largest market in terms of revenue investment. Our analysts believe that the power market in India will witness double digit growth until 2020 due to the advent of newer business models that incentivize smarter consumption patterns.