As global energy sectors shift from fossil-based sources of energy production & consumption to renewable sources the market is changing rapidly.
Over the next number of years, there will be increased investment in renewable energy sources, carbon capture facilities, green hydrogen & rural electrification programs, on a global scale. With Governments across the globe investing in decarbonization, it is essential for organisations to ensure that their strategy reflects this new reality to remain competitive.
Current Global Energy Trends
- All major oil companies reduced their spending in 2021 significantly and have pivoted their strategies to focus on ESG and energy transition investments.
- Almost 70% of the estimated increase in global energy demand will be concentrated in emerging markets and developing economies.
- Carbon Capture and Utilisation (CCUS) and Hydrogen are expected to register significant growth until 2030, growing at CAGRs of 29% and 27% respectively during 2019-30.
- It is expected that by 2030, the world’s first dedicated hydrogen-transmission pipelines will be operational around the globe.
- The cost of both CCUS and Hydrogen is a major barrier that is expected to push the timelines for global adoption of these technologies if unsupported by government policies and investment.
The traditional energy & resource markets will remain extremely competitive as major players strive to increase market share and grow revenue in markets that will not offer the necessary growth to meet expectations. For organisations to remain competitive, they must be considering the following:
- Developing a source of competitive advantage and focusing on areas of strength is becoming increasingly important – and more difficult as owners are pushing toward increased commoditisation of services.
- Clients in all sectors are driving cost reduction through improved efficiency, greater competition, risk avoidance, digital technology, planning, etc.
- Enable strategies to optimise the efficiency & effectiveness of each part of the organisation (operations, sales & support functions) to maximise order intake & delivery performance.
- Introduce growth initiatives to capture higher market share in existing markets with existing services.
Ingenium works with energy service providers across the globe to help them transition to this new reality. Contact us today to plan your strategy to remain ahead of your competitors in the long run.
Talk to a consultant and see how we can benefit your organisation today