In 2016, the growth of the renewable energy industry slowed in one respect and speeded up in another. Investment in renewables excluding large hydro fell by 23% to $241.6 billion, but the amount of new capacity installed increased from 127.5GW in 2015 to a record 138.5GW in 2016.
Renewable energy is considered as the use of resources that can be naturally renewed within a human lifetime. Sources of renewable energy include sunlight, waves, wind, wood residues, and geothermal temperature. The renewable energy industry is witnessing a transformation towards a service-driven economy owing to the recent technological improvements and environmental concerns. Additionally, with the recent shift toward a service-driven economy, leading companies within the renewable energy industry are increasing their focus on delivering energy with greater energy efficiency and productivity. However, a few factors are expected the disrupt the growth of this sector. The factors include:
- Increasing customer expectations: Today, renewable energy providers are facing relentless pressures to maintain a reliable, secure, and an affordable supply to the customers owing to the increase in the demand for renewable energy services. As a result, leading companies are facing the need to switch suppliers frequently to meet the demand of the customers.
- Increasing competition: With the entry of global leaders, the renewable industry is witnessed an increasing level of competition with new entrants attempting to gain a major segment of the industry. Additionally, the shift from monopoly to a more competitive environment is opening up the space for new market entrants in this sector.
These factors are compelling companies operating in the renewable energy space to leverage the use of market assessment solutions. Market assessment solutions help companies address these factors and enhance business performance. These solutions also help leading firms classify potential market segments in terms of geography, lifestyle, and distribution.
The Business Challenge
- The client: A renowned renewable energy provider
- Area of engagement: Market assessment
The client, a leading provider of renewable energy with business operations spread across various regions, wanted to identify the best customer segments and refine their relationship. The client also wanted to gain insights into the market landscape and identify regional opportunities and challenges. The client also wanted to gain actionable insights into customer awareness, usage patterns, customer perception of their service offerings, and competitors within the renewable energy space.
Additionally, the primary concern of the client was to comprehend the purchasing patterns of the customers and accordingly allocate marketing resources to meet the business requirements.
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To identify potential bottlenecks and assess the potential market opportunities the market assessment experts at Infiniti carried out extensive research, comprising of interviews and discussions with leading stakeholders in the renewable energy space. Additionally, the experts also compiled information from a wide array of secondary sources such as industry forums and company presentations within the renewable energy space to assess the current market scenario.
The Solution Benefit and the Business Impact
With the help of the market assessment solution offered by Infiniti, the renewable energy provider gained a detailed assessment of business characteristics in terms of the organic and inorganic growth. The solution also helped the renewable energy company to position their product and service offerings based on customer preferences and mitigated bottlenecks associated with the market entry. Additionally, the client gained actionable insights into the current market scenario and helped them develop tailored offerings.
The energy revolution must be made in totally different and much more difficult times – while the global economy is in retreat. As a result, it will be difficult to bring about new changes when the economy is stagnant and when people are expected to struggle to afford expensive innovation in the coming years.