Liquid Air Energy Storage (LAES) Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application
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Introduction
Liquid Air Energy Storage (LAES) systems store energy by liquefying air and releasing it to generate electricity, used for renewables integration, network reinforcement deferral, and energy shifting. The industry is characterized by its role in supporting renewable energy grids, offering long-duration storage with low environmental impact. Key trends include advancements in cryogenic technology, integration with renewable energy sources, and scalability for grid applications. The market is propelled by global decarbonization efforts, particularly in Europe and Asia Pacific, and increasing demand for sustainable energy storage solutions to address grid instability.
Market Size and Growth Forecast
The global LAES market was valued at USD 0.7–1.3 billion in 2024, with an estimated CAGR of 6.0%–8.0% from 2025 to 2030, driven by renewable energy integration.
Regional Analysis
North America is projected to grow at a CAGR of 5.5%–7.5%, with the U.S. leading due to its renewable energy investments, focusing on grid-scale storage.
Europe is expected to achieve a CAGR of 6.0%–8.0%, with the UK driving demand through its emphasis on decarbonization and grid stability.
Asia Pacific is anticipated to record the highest growth at 6.5%–8.5%, led by China and Japan, where renewable energy projects fuel demand, with trends toward large-scale LAES systems.
Rest of the World, particularly Australia, is expected to grow at 5.3%–7.3%, with trends toward energy shifting applications.
Application Analysis
Renewables integration applications are estimated to grow at a CAGR of 6.5%–8.5%, driven by wind and solar grid integration, with trends toward large-scale storage.
Network reinforcement deferral applications are projected to grow at 5.8%–7.8%, supported by grid stability needs, with innovations in modular systems.
Energy shifting applications are expected to grow at 6.0%–8.0%, with trends toward flexible energy dispatch solutions.
Key Market Players
MAN, headquartered in Munich, Germany, develops LAES systems for grid applications, known for its advanced cryogenic technologies.
Sumitomo Heavy Industries, based in Tokyo, Japan, offers LAES solutions for renewable integration, emphasizing scalable designs.
Highview Power, headquartered in London, UK, provides LAES systems for energy shifting, known for its innovative storage solutions.
Porter’s Five Forces Analysis
● The threat of new entrants is moderate; high R&D costs create barriers, but growing renewable demand attracts innovators.
● The threat of substitutes is high; battery storage and pumped hydro compete, challenging LAES adoption.
● Buyer power is moderate; utilities negotiate pricing, but specialized technology limits leverage.
● Supplier power is low; cryogenic components are available from multiple sources, reducing influence.
● Competitive rivalry is moderate; few players dominate, but differentiation through scalability and efficiency is key.
Market Opportunities and Challenges
Opportunities
● Global decarbonization drives demand for LAES systems.
● Integration with renewable energy enhances market potential.
● Emerging markets in Asia Pacific offer growth due to grid modernization.
Challenges
● High initial costs for LAES systems limit adoption.
● Competition from battery storage poses market share risks.
● Technical complexity requires skilled expertise for deployment.
Growth Trend Analysis
The LAES market is emerging rapidly, driven by renewable energy demands. On July 10, 2024, Sumitomo SHI FW and Siemens Energy signed an MoU to collaborate on LAES solutions for global markets. On October 15, 2024, Highview Power announced the development of the world’s largest LAES facility in Ayrshire, Scotland, to support renewable energy integration. On January 10, 2025, Statera acquired a 1360 MWh battery project in the UK, indicating competitive pressure from alternative storage solutions. These developments align with a projected CAGR of 6.0%–8.0% through 2030, reflecting the industry’s focus on sustainable energy storage.
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 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) by Region
8.2 Import of Liquid Air Energy Storage (Laes) by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Liquid Air Energy Storage (Laes) Market in North America (2020-2030)
9.1 Liquid Air Energy Storage (Laes) Market Size
9.2 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) Market in South America (2020-2030)
10.1 Liquid Air Energy Storage (Laes) Market Size
10.2 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) Market in Asia & Pacific (2020-2030)
11.1 Liquid Air Energy Storage (Laes) Market Size
11.2 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) Market in Europe (2020-2030)
12.1 Liquid Air Energy Storage (Laes) Market Size
12.2 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) Market in MEA (2020-2030)
13.1 Liquid Air Energy Storage (Laes) Market Size
13.2 Liquid Air Energy Storage (Laes) 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 Liquid Air Energy Storage (Laes) Market (2020-2030)
14.1 Liquid Air Energy Storage (Laes) Market Size
14.2 Liquid Air Energy Storage (Laes) Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Liquid Air Energy Storage (Laes) Market Forecast (2021-2026)
15.1 Liquid Air Energy Storage (Laes) Market Size Forecast
15.2 Liquid Air Energy Storage (Laes) Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 MAN
15.1.1 Company Profile
15.1.2 Main Business and Liquid Air Energy Storage (LAES) Information
15.1.3 SWOT Analysis of MAN
15.1.4 MAN Liquid Air Energy Storage (LAES) Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Sumitomo Heavy Industries
15.2.1 Company Profile
15.2.2 Main Business and Liquid Air Energy Storage (LAES) Information
15.2.3 SWOT Analysis of Sumitomo Heavy Industries
15.2.4 Sumitomo Heavy Industries Liquid Air Energy Storage (LAES) Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Highview Power
15.3.1 Company Profile
15.3.2 Main Business and Liquid Air Energy Storage (LAES) Information
15.3.3 SWOT Analysis of Highview Power
15.3.4 Highview Power Liquid Air Energy Storage (LAES) Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope Of Liquid Air Energy Storage (Laes) Report
Table Data Sources Of Liquid Air Energy Storage (Laes) Report
Table Major Assumptions Of Liquid Air Energy Storage (Laes) Report
Table Liquid Air Energy Storage (Laes) Classification
Table Liquid Air Energy Storage (Laes) Applications List
Table Drivers Of Liquid Air Energy Storage (Laes) Market
Table Restraints Of Liquid Air Energy Storage (Laes) Market
Table Opportunities Of Liquid Air Energy Storage (Laes) Market
Table Threats Of Liquid Air Energy Storage (Laes) Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Liquid Air Energy Storage (Laes)
Table Cost Structure Analysis Of Liquid Air Energy Storage (Laes)
Table Key End Users List
Table Latest News Of Liquid Air Energy Storage (Laes) Market
Table Merger And Acquisition List
Table Planned/Future Project Of Liquid Air Energy Storage (Laes) Market
Table Policy Of Liquid Air Energy Storage (Laes) Market
Table 2020-2030 Regional Export Of Liquid Air Energy Storage (Laes)
Table 2020-2030 Regional Import Of Liquid Air Energy Storage (Laes)
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 North America Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 North America Liquid Air Energy Storage (Laes) Key Players Sales List
Table 2020-2025 North America Liquid Air Energy Storage (Laes) Key Players Market Share List
Table 2020-2030 North America Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 North America Liquid Air Energy Storage (Laes) Price List By Type
Table 2020-2030 United States Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 United States Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Canada Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Canada Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Mexico Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Mexico Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 South America Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 South America Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 South America Liquid Air Energy Storage (Laes) Key Players Sales List
Table 2020-2025 South America Liquid Air Energy Storage (Laes) Key Players Market Share List
Table 2020-2030 South America Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 South America Liquid Air Energy Storage (Laes) Price List By Type
Table 2020-2030 Brazil Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Brazil Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Argentina Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Argentina Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Chile Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Chile Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Peru Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Peru Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Asia & Pacific Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 Asia & Pacific Liquid Air Energy Storage (Laes) Key Players Sales List
Table 2020-2025 Asia & Pacific Liquid Air Energy Storage (Laes) Key Players Market Share List
Table 2020-2030 Asia & Pacific Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 Asia & Pacific Liquid Air Energy Storage (Laes) Price List By Type
Table 2020-2030 China Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 China Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 India Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 India Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Japan Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Japan Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 South Korea Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 South Korea Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Southeast Asia Liquid Air Energy Storage (Laes) Market Size List
Table 2020-2030 Southeast Asia Liquid Air Energy Storage (Laes) Market Volume List
Table 2020-2030 Southeast Asia Liquid Air Energy Storage (Laes) Import List
Table 2020-2030 Southeast Asia Liquid Air Energy Storage (Laes) Export List
Table 2020-2030 Australia Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Australia Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Europe Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Europe Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 Europe Liquid Air Energy Storage (Laes) Key Players Sales List
Table 2020-2025 Europe Liquid Air Energy Storage (Laes) Key Players Market Share List
Table 2020-2030 Europe Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 Europe Liquid Air Energy Storage (Laes) Price List By Type
Table 2020-2030 Germany Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Germany Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 France Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 France Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 United Kingdom Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 United Kingdom Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Italy Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Italy Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Spain Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Spain Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Belgium Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Belgium Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Netherlands Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Netherlands Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Austria Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Austria Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Poland Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Poland Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Russia Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Russia Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Mea Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Mea Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 Mea Liquid Air Energy Storage (Laes) Key Players Sales List
Table 2020-2025 Mea Liquid Air Energy Storage (Laes) Key Players Market Share List
Table 2020-2030 Mea Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 Mea Liquid Air Energy Storage (Laes) Price List By Type
Table 2020-2030 Egypt Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Egypt Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Israel Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Israel Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 South Africa Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 South Africa Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2030 Turkey Liquid Air Energy Storage (Laes) Market Size And Market Volume List
Table 2020-2030 Turkey Liquid Air Energy Storage (Laes) Import & Export List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Market Size List By Region
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Market Size Share List By Region
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Market Volume List By Region
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Market Volume Share List By Region
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Demand List By Application
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Demand Market Share List By Application
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Capacity List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Key Vendors Capacity Share List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Key Vendors Production List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Key Vendors Production Share List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Key Vendors Production Value List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Key Vendors Production Value Share List
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Demand List By Type
Table 2020-2025 Global Liquid Air Energy Storage (Laes) Demand Market Share List By Type
Table 2020-2025 Regional Liquid Air Energy Storage (Laes) Price List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Market Size List By Region
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Market Size Share List By Region
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Market Volume List By Region
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Market Volume Share List By Region
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Demand List By Application
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Demand Market Share List By Application
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Capacity List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Key Vendors Capacity Share List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Key Vendors Production List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Key Vendors Production Share List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Key Vendors Production Value List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Key Vendors Production Value Share List
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Demand List By Type
Table 2025-2030 Global Liquid Air Energy Storage (Laes) Demand Market Share List By Type
Table 2025-2030 Liquid Air Energy Storage (Laes) Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Liquid Air Energy Storage (Laes) Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Liquid Air Energy Storage (Laes) Market Size And Cagr
Figure 2020-2030 North America Liquid Air Energy Storage (Laes) Market Volume And Cagr
Figure 2020-2030 South America Liquid Air Energy Storage (Laes) Market Size And Cagr
Figure 2020-2030 South America Liquid Air Energy Storage (Laes) Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Liquid Air Energy Storage (Laes) Market Size And Cagr
Figure 2020-2030 Asia & Pacific Liquid Air Energy Storage (Laes) Market Volume And Cagr
Figure 2020-2030 Europe Liquid Air Energy Storage (Laes) Market Size And Cagr
Figure 2020-2030 Europe Liquid Air Energy Storage (Laes) Market Volume And Cagr
Figure 2020-2030 Mea Liquid Air Energy Storage (Laes) Market Size And Cagr
Figure 2020-2030 Mea Liquid Air Energy Storage (Laes) Market Volume And Cagr
Figure 2020-2025 Global Liquid Air Energy Storage (Laes) Capacity Production And Growth Rate
Figure 2020-2025 Global Liquid Air Energy Storage (Laes) Production Value And Growth Rate
Figure 2025-2030 Global Liquid Air Energy Storage (Laes) Capacity Production And Growth Rate
Figure 2025-2030 Global Liquid Air Energy Storage (Laes) 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 |