Green Hydrogen Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application
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Introduction to the Green Hydrogen Industry
Green hydrogen, produced through electrolysis powered by renewable energy sources, is emerging as a transformative element in the global energy transition, distinguished by its zero-carbon footprint during production. Unlike grey hydrogen, derived from fossil fuels, green hydrogen aligns with decarbonization goals, offering a sustainable alternative for hard-to-abate sectors. The industry is characterized by rapid technological advancements, significant policy support, and increasing investments, driven by the urgent need to reduce greenhouse gas emissions. The European Union’s “Fit for 55” package, including the Carbon Border Adjustment Mechanism (CBAM), underscores a regulatory push toward low-carbon solutions. South Korea’s Hydrogen Economy Promotion and Safety Management Act, enacted in February 2020, establishes a pioneering legal framework for hydrogen pricing, infrastructure, and safety, targeting a 100 MW green hydrogen production system by 2030 and cost reductions to 3000 KRW/kg by 2040. China’s Hydrogen Energy Industry Development Plan (2021-2035) aims for 100,000 to 200,000 tonnes of renewable-based hydrogen annually by 2025, supporting its carbon peak by 2030 and neutrality by 2060 goals. The International Energy Agency (IEA) notes that global hydrogen demand reached 97 million tonnes in 2023, up 2.5% from 2022, though green hydrogen’s contribution remains marginal at under 1 million tonnes. With planned projects, production could scale to 49 million tonnes by 2030, driven by cost declines in renewable-powered electrolysis.
Market Size and Growth Forecast
The global green hydrogen market is projected to reach USD 100 billion to USD 120 billion by 2025. With an estimated compound annual growth rate (CAGR) of 30% to 40% through 2030, the market reflects accelerating adoption across mobility, power generation, and industrial applications, bolstered by policy incentives and technological breakthroughs.
Regional Analysis
Europe anticipates a growth rate of 32% to 42%, propelled by the EU’s aggressive climate policies like CBAM and investments in hydrogen infrastructure. Germany and France lead, with trends favoring green hydrogen in industrial decarbonization and renewable energy integration.
Asia Pacific expects a growth rate of 35% to 45%, with South Korea and China at the forefront. South Korea’s legal framework supports a shift to hydrogen-based mobility and industrial use, while China’s focus on renewable hydrogen aligns with its carbon neutrality ambitions, emphasizing large-scale production.
North America projects a growth rate of 28% to 38%, driven by the U.S., where federal incentives and corporate commitments from firms like Air Products boost green hydrogen in power and transport sectors.
Middle East and Africa (MEA) anticipate 25% to 35% growth, with Saudi Arabia’s NEOM Green Hydrogen Company spearheading ambitious projects to export clean energy, capitalizing on abundant solar resources.
South America expects 20% to 30% growth, with Brazil emerging as a potential hub due to its renewable energy capacity, though adoption remains nascent.
Application Analysis
Mobility: Projected at 35% to 45%, this segment is fueled by hydrogen fuel cell vehicles (FCVs) in markets like South Korea and Europe, with trends toward heavy-duty transport decarbonization.
Power Generation: Expected at 30% to 40%, green hydrogen supports grid stability and renewable energy storage, gaining traction in regions with high solar and wind penetration.
Chemical: Anticipated at 25% to 35%, it serves as a low-carbon feedstock for ammonia and methanol production, with growing use in Asia and Europe’s industrial clusters.
Others: Projected at 20% to 30%, includes niche applications like heating, expected to expand as infrastructure develops.
Key Market Players
Nel: A Norwegian leader, Nel specializes in electrolyzers for green hydrogen production.
ITM Power: A UK firm, ITM Power focuses on scalable hydrogen solutions for mobility and industry.
Nikola: A U.S. company, Nikola develops hydrogen-powered trucks and refueling networks.
HNO International: A U.S.-based player, HNO advances green hydrogen technologies.
NEOM Green Hydrogen Company: A Saudi venture, NEOM targets large-scale renewable hydrogen production.
Air Products: A U.S. multinational, Air Products invests in hydrogen projects globally.
Plug Power: A U.S. firm, Plug Power emphasizes hydrogen fuel cells for mobility and power.
BP: A UK energy giant, BP integrates green hydrogen into its decarbonization strategy.
Linde: A German company, Linde provides hydrogen production and distribution expertise.
Lhyfe: A French firm, Lhyfe focuses on offshore green hydrogen production.
First Hydrogen: A Canadian player, First Hydrogen targets hydrogen mobility solutions.
AMEA Power: A UAE company, AMEA explores green hydrogen in emerging markets.
Shell: A Dutch-British multinational, Shell invests in hydrogen for energy and transport.
Sinopec: A Chinese giant, Sinopec aligns green hydrogen with national energy goals.
Reliance Industries: An Indian conglomerate, Reliance scales up hydrogen initiatives.
Messer Group: A German firm, Messer supports industrial hydrogen applications.
H2Pro: An Israeli company, H2Pro innovates in cost-effective electrolysis.
Porter’s Five Forces Analysis
●Threat of New Entrants: Moderate. High capital costs and technical expertise create barriers, though government subsidies encourage startups.
●Threat of Substitutes: Moderate to High. Grey hydrogen and battery storage compete, but green hydrogen’s carbon neutrality sustains its edge.
●Bargaining Power of Buyers: Moderate. Early adopters in mobility and industry have limited options, though cost sensitivity pressures pricing.
●Bargaining Power of Suppliers: High. Renewable energy and electrolyzer providers hold leverage due to specialized inputs.
●Competitive Rivalry: High. Established energy firms and innovators vie for market share through scale and cost leadership.
Market Opportunities and Challenges
Opportunities
●Policy Support: Initiatives like CBAM and South Korea’s hydrogen law drive adoption.
●Cost Declines: IEA forecasts green hydrogen costs dropping to USD 2-9/kg by 2030, enhancing competitiveness.
●Renewable Integration: High solar and wind regions like MEA offer production potential.
●Industrial Decarbonization: Chemical and steel sectors provide growth avenues.
●Global Trade: Export hubs like NEOM position green hydrogen as a commodity.
Challenges
●Infrastructure Lag: Limited refueling and storage networks hinder mobility growth.
●High Initial Costs: Current production costs (USD 2-9/kg) exceed grey hydrogen (USD 1.5-8/kg).
●Scale-Up Risks: Achieving 49 million tonnes by 2030 requires massive investment.
●Energy Intensity: Electrolysis demands significant renewable capacity.
●Market Maturity: Green hydrogen’s marginal role (under 1% of 2023 demand) delays widespread adoption.
Chapter 1 Executive Summary
Chapter 2 Abbreviation and Acronyms
Chapter 3 Preface
3.1 Research Scope
3.2 Research Sources
3.2.1 Data Sources
3.2.2 Assumptions
3.3 Research Method
Chapter 4 Market Landscape
4.1 Market Overview
4.2 Classification/Types
4.3 Application/End Users
Chapter 5 Market Trend Analysis
5.1 Introduction
5.2 Drivers
5.3 Restraints
5.4 Opportunities
5.5 Threats
Chapter 6 Industry Chain Analysis
6.1 Upstream/Suppliers Analysis
6.2 Green Hydrogen Analysis
6.2.1 Technology Analysis
6.2.2 Cost Analysis
6.2.3 Market Channel Analysis
6.3 Downstream Buyers/End Users
Chapter 7 Latest Market Dynamics
7.1 Latest News
7.2 Merger and Acquisition
7.3 Planned/Future Project
7.4 Policy Dynamics
Chapter 8 Trading Analysis
8.1 Export of Green Hydrogen by Region
8.2 Import of Green Hydrogen by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Green Hydrogen Market in North America (2020-2030)
9.1 Green Hydrogen Market Size
9.2 Green Hydrogen Demand by End Use
9.3 Competition by Players/Suppliers
9.4 Type Segmentation and Price
9.5 Key Countries Analysis
9.5.1 United States
9.5.2 Canada
9.5.3 Mexico
Chapter 10 Historical and Forecast Green Hydrogen Market in South America (2020-2030)
10.1 Green Hydrogen Market Size
10.2 Green Hydrogen Demand by End Use
10.3 Competition by Players/Suppliers
10.4 Type Segmentation and Price
10.5 Key Countries Analysis
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Chile
10.5.4 Peru
Chapter 11 Historical and Forecast Green Hydrogen Market in Asia & Pacific (2020-2030)
11.1 Green Hydrogen Market Size
11.2 Green Hydrogen Demand by End Use
11.3 Competition by Players/Suppliers
11.4 Type Segmentation and Price
11.5 Key Countries Analysis
11.5.1 China
11.5.2 India
11.5.3 Japan
11.5.4 South Korea
11.5.5 Asean
11.5.6 Australia
Chapter 12 Historical and Forecast Green Hydrogen Market in Europe (2020-2030)
12.1 Green Hydrogen Market Size
12.2 Green Hydrogen Demand by End Use
12.3 Competition by Players/Suppliers
12.4 Type Segmentation and Price
12.5 Key Countries Analysis
12.5.1 Germany
12.5.2 France
12.5.3 United Kingdom
12.5.4 Italy
12.5.5 Spain
12.5.6 Belgium
12.5.7 Netherlands
12.5.8 Austria
12.5.9 Poland
12.5.10 Russia
Chapter 13 Historical and Forecast Green Hydrogen Market in MEA (2020-2030)
13.1 Green Hydrogen Market Size
13.2 Green Hydrogen Demand by End Use
13.3 Competition by Players/Suppliers
13.4 Type Segmentation and Price
13.5 Key Countries Analysis
13.5.1 Egypt
13.5.2 Israel
13.5.3 South Africa
13.5.4 Gulf Cooperation Council Countries
13.5.5 Turkey
Chapter 14 Summary For Global Green Hydrogen Market (2020-2030)
14.1 Green Hydrogen Market Size
14.2 Green Hydrogen Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Green Hydrogen Market Forecast (2021-2026)
15.1 Green Hydrogen Market Size Forecast
15.2 Green Hydrogen Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Nel
15.1.1 Company Profile
15.1.2 Main Business and Green Hydrogen Information
15.1.3 SWOT Analysis of Nel
15.1.4 Nel Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 ITM Power
15.2.1 Company Profile
15.2.2 Main Business and Green Hydrogen Information
15.2.3 SWOT Analysis of ITM Power
15.2.4 ITM Power Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Nikola
15.3.1 Company Profile
15.3.2 Main Business and Green Hydrogen Information
15.3.3 SWOT Analysis of Nikola
15.3.4 Nikola Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 HNO International
15.4.1 Company Profile
15.4.2 Main Business and Green Hydrogen Information
15.4.3 SWOT Analysis of HNO International
15.4.4 HNO International Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 NEOM Green Hydrogen Company
15.5.1 Company Profile
15.5.2 Main Business and Green Hydrogen Information
15.5.3 SWOT Analysis of NEOM Green Hydrogen Company
15.5.4 NEOM Green Hydrogen Company Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Air Products
15.6.1 Company Profile
15.6.2 Main Business and Green Hydrogen Information
15.6.3 SWOT Analysis of Air Products
15.6.4 Air Products Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.7 Plug Power
15.7.1 Company Profile
15.7.2 Main Business and Green Hydrogen Information
15.7.3 SWOT Analysis of Plug Power
15.7.4 Plug Power Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.8 BP
15.8.1 Company Profile
15.8.2 Main Business and Green Hydrogen Information
15.8.3 SWOT Analysis of BP
15.8.4 BP Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.9 Linde
15.9.1 Company Profile
15.9.2 Main Business and Green Hydrogen Information
15.9.3 SWOT Analysis of Linde
15.9.4 Linde Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
15.10 Lhyfe
15.10.1 Company Profile
15.10.2 Main Business and Green Hydrogen Information
15.10.3 SWOT Analysis of Lhyfe
15.10.4 Lhyfe Green Hydrogen Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope Of Green Hydrogen Report
Table Data Sources Of Green Hydrogen Report
Table Major Assumptions Of Green Hydrogen Report
Table Green Hydrogen Classification
Table Green Hydrogen Applications List
Table Drivers Of Green Hydrogen Market
Table Restraints Of Green Hydrogen Market
Table Opportunities Of Green Hydrogen Market
Table Threats Of Green Hydrogen Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Green Hydrogen
Table Cost Structure Analysis Of Green Hydrogen
Table Key End Users List
Table Latest News Of Green Hydrogen Market
Table Merger And Acquisition List
Table Planned/Future Project Of Green Hydrogen Market
Table Policy Of Green Hydrogen Market
Table 2020-2030 Regional Export Of Green Hydrogen
Table 2020-2030 Regional Import Of Green Hydrogen
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Green Hydrogen Market Size And Market Volume List
Table 2020-2030 North America Green Hydrogen Demand List By Application
Table 2020-2025 North America Green Hydrogen Key Players Sales List
Table 2020-2025 North America Green Hydrogen Key Players Market Share List
Table 2020-2030 North America Green Hydrogen Demand List By Type
Table 2020-2025 North America Green Hydrogen Price List By Type
Table 2020-2030 United States Green Hydrogen Market Size And Market Volume List
Table 2020-2030 United States Green Hydrogen Import & Export List
Table 2020-2030 Canada Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Canada Green Hydrogen Import & Export List
Table 2020-2030 Mexico Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Mexico Green Hydrogen Import & Export List
Table 2020-2030 South America Green Hydrogen Market Size And Market Volume List
Table 2020-2030 South America Green Hydrogen Demand List By Application
Table 2020-2025 South America Green Hydrogen Key Players Sales List
Table 2020-2025 South America Green Hydrogen Key Players Market Share List
Table 2020-2030 South America Green Hydrogen Demand List By Type
Table 2020-2025 South America Green Hydrogen Price List By Type
Table 2020-2030 Brazil Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Brazil Green Hydrogen Import & Export List
Table 2020-2030 Argentina Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Argentina Green Hydrogen Import & Export List
Table 2020-2030 Chile Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Chile Green Hydrogen Import & Export List
Table 2020-2030 Peru Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Peru Green Hydrogen Import & Export List
Table 2020-2030 Asia & Pacific Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Green Hydrogen Demand List By Application
Table 2020-2025 Asia & Pacific Green Hydrogen Key Players Sales List
Table 2020-2025 Asia & Pacific Green Hydrogen Key Players Market Share List
Table 2020-2030 Asia & Pacific Green Hydrogen Demand List By Type
Table 2020-2025 Asia & Pacific Green Hydrogen Price List By Type
Table 2020-2030 China Green Hydrogen Market Size And Market Volume List
Table 2020-2030 China Green Hydrogen Import & Export List
Table 2020-2030 India Green Hydrogen Market Size And Market Volume List
Table 2020-2030 India Green Hydrogen Import & Export List
Table 2020-2030 Japan Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Japan Green Hydrogen Import & Export List
Table 2020-2030 South Korea Green Hydrogen Market Size And Market Volume List
Table 2020-2030 South Korea Green Hydrogen Import & Export List
Table 2020-2030 Southeast Asia Green Hydrogen Market Size List
Table 2020-2030 Southeast Asia Green Hydrogen Market Volume List
Table 2020-2030 Southeast Asia Green Hydrogen Import List
Table 2020-2030 Southeast Asia Green Hydrogen Export List
Table 2020-2030 Australia Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Australia Green Hydrogen Import & Export List
Table 2020-2030 Europe Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Europe Green Hydrogen Demand List By Application
Table 2020-2025 Europe Green Hydrogen Key Players Sales List
Table 2020-2025 Europe Green Hydrogen Key Players Market Share List
Table 2020-2030 Europe Green Hydrogen Demand List By Type
Table 2020-2025 Europe Green Hydrogen Price List By Type
Table 2020-2030 Germany Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Germany Green Hydrogen Import & Export List
Table 2020-2030 France Green Hydrogen Market Size And Market Volume List
Table 2020-2030 France Green Hydrogen Import & Export List
Table 2020-2030 United Kingdom Green Hydrogen Market Size And Market Volume List
Table 2020-2030 United Kingdom Green Hydrogen Import & Export List
Table 2020-2030 Italy Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Italy Green Hydrogen Import & Export List
Table 2020-2030 Spain Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Spain Green Hydrogen Import & Export List
Table 2020-2030 Belgium Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Belgium Green Hydrogen Import & Export List
Table 2020-2030 Netherlands Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Netherlands Green Hydrogen Import & Export List
Table 2020-2030 Austria Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Austria Green Hydrogen Import & Export List
Table 2020-2030 Poland Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Poland Green Hydrogen Import & Export List
Table 2020-2030 Russia Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Russia Green Hydrogen Import & Export List
Table 2020-2030 Mea Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Mea Green Hydrogen Demand List By Application
Table 2020-2025 Mea Green Hydrogen Key Players Sales List
Table 2020-2025 Mea Green Hydrogen Key Players Market Share List
Table 2020-2030 Mea Green Hydrogen Demand List By Type
Table 2020-2025 Mea Green Hydrogen Price List By Type
Table 2020-2030 Egypt Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Egypt Green Hydrogen Import & Export List
Table 2020-2030 Israel Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Israel Green Hydrogen Import & Export List
Table 2020-2030 South Africa Green Hydrogen Market Size And Market Volume List
Table 2020-2030 South Africa Green Hydrogen Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Green Hydrogen Import & Export List
Table 2020-2030 Turkey Green Hydrogen Market Size And Market Volume List
Table 2020-2030 Turkey Green Hydrogen Import & Export List
Table 2020-2025 Global Green Hydrogen Market Size List By Region
Table 2020-2025 Global Green Hydrogen Market Size Share List By Region
Table 2020-2025 Global Green Hydrogen Market Volume List By Region
Table 2020-2025 Global Green Hydrogen Market Volume Share List By Region
Table 2020-2025 Global Green Hydrogen Demand List By Application
Table 2020-2025 Global Green Hydrogen Demand Market Share List By Application
Table 2020-2025 Global Green Hydrogen Capacity List
Table 2020-2025 Global Green Hydrogen Key Vendors Capacity Share List
Table 2020-2025 Global Green Hydrogen Key Vendors Production List
Table 2020-2025 Global Green Hydrogen Key Vendors Production Share List
Table 2020-2025 Global Green Hydrogen Key Vendors Production Value List
Table 2020-2025 Global Green Hydrogen Key Vendors Production Value Share List
Table 2020-2025 Global Green Hydrogen Demand List By Type
Table 2020-2025 Global Green Hydrogen Demand Market Share List By Type
Table 2020-2025 Regional Green Hydrogen Price List
Table 2025-2030 Global Green Hydrogen Market Size List By Region
Table 2025-2030 Global Green Hydrogen Market Size Share List By Region
Table 2025-2030 Global Green Hydrogen Market Volume List By Region
Table 2025-2030 Global Green Hydrogen Market Volume Share List By Region
Table 2025-2030 Global Green Hydrogen Demand List By Application
Table 2025-2030 Global Green Hydrogen Demand Market Share List By Application
Table 2025-2030 Global Green Hydrogen Capacity List
Table 2025-2030 Global Green Hydrogen Key Vendors Capacity Share List
Table 2025-2030 Global Green Hydrogen Key Vendors Production List
Table 2025-2030 Global Green Hydrogen Key Vendors Production Share List
Table 2025-2030 Global Green Hydrogen Key Vendors Production Value List
Table 2025-2030 Global Green Hydrogen Key Vendors Production Value Share List
Table 2025-2030 Global Green Hydrogen Demand List By Type
Table 2025-2030 Global Green Hydrogen Demand Market Share List By Type
Table 2025-2030 Green Hydrogen Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Green Hydrogen Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Green Hydrogen Market Size And Cagr
Figure 2020-2030 North America Green Hydrogen Market Volume And Cagr
Figure 2020-2030 South America Green Hydrogen Market Size And Cagr
Figure 2020-2030 South America Green Hydrogen Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Green Hydrogen Market Size And Cagr
Figure 2020-2030 Asia & Pacific Green Hydrogen Market Volume And Cagr
Figure 2020-2030 Europe Green Hydrogen Market Size And Cagr
Figure 2020-2030 Europe Green Hydrogen Market Volume And Cagr
Figure 2020-2030 Mea Green Hydrogen Market Size And Cagr
Figure 2020-2030 Mea Green Hydrogen Market Volume And Cagr
Figure 2020-2025 Global Green Hydrogen Capacity Production And Growth Rate
Figure 2020-2025 Global Green Hydrogen Production Value And Growth Rate
Figure 2025-2030 Global Green Hydrogen Capacity Production And Growth Rate
Figure 2025-2030 Global Green Hydrogen Production Value And Growth Rate
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1)Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2)Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1)PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2)Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3)Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4)SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
Primary Sources | Secondary Sources |
---|---|
Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |