A leading test, evaluation and equipment-qualification services firm, traditionally operating in the aerospace-defense industry, was seeking to broaden its business in the growing nuclear power market.

Due to recent plant safety problems, this industry appeared poised for tighter qualification testing. Although this varied by reactor design, key changes were anticipated in multiple safety-related electrical and mechanical systems and components used in plants, and testing involved thermal and radiation aging, seismic and vibration simulation, cyclic aging, steam event simulations, electromagnetic radio frequency interference, and multiple other qualification tests.

Prior to investing in this new business expansion, STS client was interested in a detailed market assessment of this opportunity including a review of industry trends, leading competitors, changing requirements, and business potential.

A company with unique capabilities in predictive modeling software and scientific research was interested in diversifying its business in the U.S. Energy Market with a particular emphasis on Renewable Energy. One area was Wind Power where this company felt it had advanced capabilities in Wind Power Forecasting which could be attractive to multiple customer groups including generation companies, wind power producers, utilities, market analysts and traders, and power system and electricity market operators.

Wind power was expected to become increasingly important to the overall power grid through 2030 as significantly more wind turbines and wind farms were installed. It also appeared there was growing interest in improved forecasting (especially minimizing forecasting error) on the part of many segments of the Wind Power market. 

A company with advanced capabilities in weather and climate monitoring was interested in diversifying and expanding its market focus in high-potential renewable energy market segments. One key area of interest was Solar Power where accurate forecasting was critical but where existing solutions appeared lacking.

This, in addition to increasing demand for electricity and environmental concerns which was likely to encourage many countries to increase focus on renewable energy appeared to be promoting growth of solar power capacity worldwide.

STS Client already felt it had several solutions which offered a major advantage over competitors, but nonetheless required an independent market research assessment validating the attractiveness of this new market opportunity prior to committing a major investment.    

In preparing this customized analysis, STS Research developed a relevant market description, identification and description of current suppliers, analysis of market drivers and constraints, a calculation of market size and forecasted growth (CAGR) over the next five years, and a list of initial relevant new business opportunities and programs.

STS also provided an initial independent assessment of this diversification opportunity and recommendation on actions client should pursue.

A top aerospace-defense company was seeking to better understand emerging opportunities for its capabilities in the Energy Market, in particular for Green House Gas (GHG) monitoring solutions.  This company had a unique portfolio of advanced imaging, sensors, systems and software for ground based, airborne, and space-borne platforms, and was interested in diversifying its business in new, high growth markets.

This Energy Market segment appeared attractive for a number of reasons. U.S. government policy and compliance regulations for stationary source emissions from refineries, chemical facilities, cement plants, landfills, and other industries were likely be strengthened in the future. Also, emerging economies such as China with significant Green House Gas (GHG) emissions could become major areas of opportunity for monitoring solutions as global accords and regulations were implemented. All this suggested the overall market for GHG measurement and monitoring technology for civil and commercial applications could be poised for significant growth.

Although this company possessed a number of exciting technologies which could provide substantial advantages to this energy segment, its corporate strategy group determined they needed an independent, high-level assessment prior to committing additional internal resources in technology and market development as part of their business diversification initiatives.

STS Research Group, operating independently but in close coordination with Client, developed a detailed, customized analysis of this market opportunity. This included a relevant market description, analysis of market drivers and constraints, a list of initial relevant new business opportunities and programs, identification and description of current suppliers, and a calculation of market size and forecasted growth (CAGR) over the next five years.

STS also provided an initial independent assessment of this diversification opportunity and recommendation on actions client should pursue.

As a result of STS custom research approach which was tailored to precisely this client’s particular capabilities and relevant interests, this company was able to greatly accelerate its strategic business planning and diversification timetable in a key Energy Market segment. 

A leading US DOD and DOE government contractor had developed a unique meteorological and environmental monitoring system it felt could have significant business potential in commercial energy markets.

Key features of this analysis and display system were its ability to ingest, process, fuse, and display high-resolution meteorological and environmental data for emissions monitoring. These included criteria pollutants, visibility/fine particulates, and toxics, and further covered carbon monoxide, lead, nitrogen oxides, particulate matter (dust, smoke, soot, and ash), and sulfur dioxide. This system also had the ability to remotely monitor equipment performance with high-speed connectivity and specialized performance software for equipment optimization.

Federal regulations were expanding with regard to tracking pollution and safeguarding public health. In addition it appeared clean energy was receiving increased focus as a way to create new jobs to provide an immediate boost to the U.S. economy.

Before further investing and adapting this system’s capabilities to address the needs of new commercial energy markets, STS client needed to validate potential market size, competition, customer decision making, regulatory timetable, pricing, and expected sales cycle.

A leading US communications company was seeking business diversification and expansion in the global government and energy market for its key technologies and integrated services which it felt could significantly improve emerging countries’ public infrastructure systems. Potential customer segments included airports, public works, electric utilities, and various government agencies with a need to enhance communication and logistics efficiency.

STS Client had a number of objectives: 1) evaluate and project business potential in the broader global market for its offerings, 2) identify and rank in order of attractiveness those specific countries with the greatest expected demand for client integrated solutions, 3) define key requirements, most important features of interest, and initial price models, 4) develop and clearly substantiate a projected worldwide revenue and growth curve, 5) identify and qualify strategic partners in each selected country as vehicles to accelerate market entry, and 6) determine key competitors, expected competitive response, and major risks.

This assignment was a challenge for many reasons: a large number of potential candidate countries, multiple factors influenced evaluation and ranking of emerging countries’ attractiveness, and multiple customer segments (airports, public works, electric utilities, etc.).

STS approached this custom research assignment on a step by step basis, initially utilizing select secondary data to screen and rank attractiveness of various countries, followed by direct interviews with market experts and key decision makers.

At a first level, STS identified key filters to score attractiveness of an starter group of 45 potential countries. These filters included: population, forecasted GDP growth, state of technology (Internet, mobile telephony), planned government infrastructure expenditures, and other factors. This yielded an initial down select of 20 target countries which were then further filtered for political stability and availability of government incentives. This yielded a “final list” of 15 candidates within which STS conducted in-depth research and analyses. Summary profiles were prepared with additional background information on each country selected.

STS in-depth interview (primary research) methodology involved preparing a descriptive web link clearly illustrating STS client business concepts, a questionnaire to probe interest and reaction, identification of 250 qualified respondents across the 15 candidate countries, pilot testing the questionnaire, and completion of 50 in-depth surveys.

Final report deliverables included an addressable market opportunity size and growth calculation, custom revenue and pricing models, a summary of key findings, conclusions regarding the extent to which successful capture this market was achievable, and recommendations on market entry. This was presented to the client project team, and with minor changes moved forward to top management who provided approval to proceed with this global business initiative.

This independent market study served as critical input to the ultimate successful launch of this new business venture, directly fed creation of client’s corporate financing plan, formed the basis to approach potential partners and customers, and also served as a key tool to market the business opportunity to potential equity investors.

This report also helped identify immediate customer opportunities, provided critical input on design of final solutions, helped client avoid a number of serious pitfalls, and accelerated client time to market by over 18 months, leading to creation of a highly successful, new global business.