Globally, the demand for electricity is expected to grow by 30%, and the price of electricity is expected to increase by 50% by 2030.
Today, factors such as the growing concern for energy efficiency and a radical shift toward renewable energy sources are promising the growth of smart grid market. The growing government policies and legislative mandates are forcing organizations to improve the grid reliability and reduce the carbon footprint. On the other hand, the growing need for innovations in the energy space is further fueling the adoption of automation and newer technologies to efficiently respond to the demands of the consumers. Apart from the conventional factors increasing investment in infrastructure, the relentless economic growth, and the need for smart manufacturing are contributing towards the growth of the smart grid manufacturing space. Although the smart grid manufacturing space is witnessing a promising growth, several factors may influence the growth of the industry.
Here are some of the few factors that may influence the growth of the industry.
High operating costs: Smart grid manufacturing involves the use of efficient technologies for two-way communication between the utility and its customers. A recent study also estimates that implementing a smart grid system in the US alone will cost an average of $476 billion over the next 20 years. Apart from the infrastructure costs, leading organizations are finding the necessity to invest heavily in innovations and R&D to go on par with the rising energy costs.
The complexity of smart grid: Implementing smart grid is not an easy process, it is a complex machine and involves the use of multiple sources of data to distribute energy. The process involved in smart grid manufacturing should also consider factors such as the account user behavior, human responses, and the automated responses gathered from the analysis of vast amounts of data.
To address these challenges and analyze the competitors’ landscape in the energy sector, organizations are utilizing the need for a competitive intelligence solution. Competitive intelligence solution focuses on knowing what the competitors are determined to do and involves the analysis of information to enable more informed business decisions. Organizations can profile potential competitors and compare these products with that of the competitors.
The Business Challenge
- The Client: Smart grid manufacturer
- Area of Engagement: Competitive intelligence
The client, a prominent smart grid manufacturer, wanted to analyze the business models and compare their products with that of the competitors. With the help of a competitive intelligence solution, the client wanted to understand the relative strengths and weaknesses of the competitors and formulate effective business strategies to stay ahead of the competition. The information compiled includes the history, key facts, market products and services, financials, and marketing strategy. The client also wanted to seek ways to identify the unique selling proposition and competitive pricing for the products offered.
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To understand the market scenario and profile the potential competitors, the competitive intelligence experts at Infiniti carried out extensive research methodology with prominent stakeholders in the smart grid manufacturing space. The team of CI experts also compiled data across various proprietary sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
The competitive intelligence solution offered by Infiniti helped the smart grid manufacturer efficiently compare the products with the competitors and improve their product offerings. The client was able to effectively collate data on the competitors’ product and service features, pricing models, and marketing strategies. The solution also assisted the product development and marketing teams to launch and market new products across niche potential market segments. The competitive intelligence solution also sought ways for the smart grid manufacturer to optimize their business processes and strategies by comparing against their competitors. Moreover, the solution also helped the client create a standard business model to provide a detailed analysis of the customer, finances, and infrastructure.
The future of smart grid technologies will be marked by relative advances in technologies to reduce greenhouse gas emissions. The advances in the digital technology will also focus on saving energy, reducing cost, and increasing reliability and transparency.