Potential Market Size Research Articles

Modeling the distributed energy resource aggregator services in a macroeconomic framework: The application to Japan

Distributed energy resources (DER) are highly interconnected with public and private entities in one economy, thus often modeled in the long-term decarbonization transition pathways. However, at the initial stage of the DER integration scaling-up, barriers such as consumer behavior and market dynamics can impede progress, which has not yet been thoroughly considered and accurately represented even in models. Therefore, we proposed an approach to integrated DER aggregator services in the macroeconomic framework. It can reveal how industrial and household DER providers participate in demand response requests, as well as how thermal power can be substituted by distributed renewables. We applied the framework to the benchmark year in Japan. The results show that the DER aggregator services at a full scale may have occupied 33.2 % of all grid aggregator services in electricity transmission and distribution. Faster-pace implementation of policy supports related to DER aggregator services is required to match such a potential market size.

Understanding after-market service channel selection for complex product-services supply chains: A game-theoretical approach

Today, cooperation between an OEM (Original Equipment Manufacturer) of Complex Products and Systems (CoPS) and her multiple Key Component Suppliers (KCSs) is characterized by a strategic partnership where long-term benefits are sought for both parties. Since CoPS after-market service can be provided by the KCS, the OEM, or an MRO (Maintenance, Repair, and Overhaul) party, different after-market service channels can be established. In this paper, we model each of these channels using game theory, compare their main features, and discuss the selection of the optimal after-market service channel. We show that the duration of the after-market service is not influenced by the service channel if the service cost remains constant. If the after-market service costs are equal for all parties, each party would prefer the other to perform the service. In the case of different costs, both the cost of the service and potential market size have the same effect on the OEM’s preference for the after-market service channel as on the CoPS ordered quantities. Furthermore, OEM and KCS after-market service channel preferences depend on market size, and “win-win” situations are discussed for the different channels, along with their impact on the long-term stability of the strategic partnership between KCS and OEM. Finally, a sensitivity analysis is carried out to examine the impact of several key parameters. The results presented in the paper serve to deepen the understanding of complex product-service systems and offer a number of managerial insights to select an appropriate after-market service channel for KCSs.

A sustainable inventory model for a two-echelon cold chain with green technology investments and stock-dependent demand under carbon emissions tax regulation

Cold chains are specialised supply chains that make use of refrigerated storage facilities and distribution nodes. Products that have to be stored and distributed via cold chains are temperature-sensitive items such as perishable food or vaccines. If these products are not maintained at the correct temperatures, their safety and quality may be comprised with dire consequences for end-users. Operating refrigerated storage units consumes a lot of energy and the majority of transportation trucks used for distribution are powered by fossil fuels and therefore, cold chains are a major source of carbon emissions. With this in mind, this paper proposes a sustainable inventory model for a two-echelon cold chain with stock-dependent demand and green technology investments under a carbon emissions tax regulation. The carbon tax is imposed by policy makers to encourage the cold chain to reduce its emissions whereas, the green technology investment is a voluntary measure taken by the cold chain to reduce its carbon emissions. Based on the results, a carbon tax regulation is about 3% more effective than a green technology investment in terms of profit maximisation potential. Moreover, when it comes to investing in green technologies, there is an optimal investment amount above which increasing the investment results in decreased profits and increased emissions. Other avenues that the cold chain can explore in effort to improve profitability include increasing the potential market size, displaying higher volumes of stocks, using larger capacity transportation trucks and filling the trucks to capacity.

Hybrid financing in a dual‐channel supply chain with asymmetric demand information

AbstractThis study delves into the interaction between hybrid financing and asymmetric demand information within a dual‐channel supply chain. In this setup, the supplier directly sells to customers and also through a capital‐constrained retailer. We investigate a unique financing approach involving a blend of bank loans and supplier equity investment to support the retailer's operational (procurement and marketing) activities. Analyzing the equilibrium strategies under both symmetric and asymmetric information settings yields intriguing insights. In the case of symmetric information, we find that the retailer's equilibrium order quantity decreases with the potential market size under hybrid financing, contrary to traditional notions. When asymmetric information is present, a higher acceptance of supplier equity investment by the retailer tends to lead to order quantity distortion downward, increasing signaling costs. Furthermore, a greater proportion of supplier equity investment prompts the retailer to order more products, ultimately boosting profits for both the retailer and supplier. This suggests that supplier equity investment can enhance supply chain efficiency and alleviate the double marginalization effect.

Service provision decisions of competitive manufacturers: From service spillover perspective

This paper investigates competing manufacturers’ strategic choice of service provision in a two-level supply chain composed two manufacturers and one common retailer. Our results indicate that the strategy that two competing manufacturers provide services is always the dominant choice, and two competing manufacturers could have the highest profit in that case. But when only one of them provides services, the result is related to the potential market size, the unit service cost coefficient and the service spillover intensity. Finally, through the cost sharing and quantity competition extensions, we find the Pareto regions of cost sharing under the equilibrium strategy, and there will be multiple Nash equilibrium regions under the quantity competition.

Platform financing versus bank financing: “When to choose which” for green production systems

With the widespread implementation of the carbon trading system, carbon permits are used as pledged assets for manufacturers to obtain extra financing due to the asset attributes of carbon permits. We consider a supply chain where a manufacturer with limited capital sells goods via a platform employing the agency mode. The manufacturer obtains finance either from a bank or the platform. Facing a carbon trading system, remanufacturing or green technology is used by the manufacturer to cut down carbon emissions. We analytically derive the following research conclusions via conducting a Stackelberg game analysis: First, the optimal interest rates with remanufacturing and green technology in two financing modes decrease with the correlation coefficient between the potential market size and the price of carbon permits (CMC), and the initial emissions intensity. Second, with remanufacturing, the manufacturer adopts bank financing if CMC is polarized (i.e., low or high); otherwise, it adopts platform financing. However, with green technology, the manufacturer should adopt platform (bank) financing if CMC is low (high). Third, in the platform financing mode, the manufacturer should switch to remanufacturing (green technology) if the green consciousness is low (high). In the bank financing mode, the manufacturer should turn to remanufacturing (green technology) if CMC is high (low). In addition, we explore the scenario where the collection rate is endogenous. This paper reveals the role played by many critical factors such as CMC in affecting the optimal financing model in green manufacturing.

In search of key performance indicators of regional competitiveness in the European Union

AbstractThis study investigates key performance indicators (KPIs) affecting regional competitiveness in the European Union (EU) and compares its performance across two groups of EU regions identified by their development phase based on the path dependence argument. Utilizing 40 indicators from the Regional Competitiveness Index (RCI) across 268 NUTS2 regions, it identifies five critical KPIs: Knowledge workers, Employment rate, Labor productivity, Potential market size, and not in education, employment, or training. The classification and regression tree decision tree reveals the labor market efficiency pillar as crucial for RCI classification. Offering unique insights into RCI indicators and their impact, this research provides a policy‐oriented perspective and suggests avenues for further comparative research.

Technological Advances and Market Developments of Solid-State Batteries: A Review.

Batteries are essential in modern society as they can power a wide range of devices, from small household appliances to large-scale energy storage systems. Safety concerns with traditional lithium-ion batteries prompted the emergence of new battery technologies, among them solid-state batteries (SSBs), offering enhanced safety, energy density, and lifespan. This paper reviews current state-of-the-art SSB electrolyte and electrode materials, as well as global SSB market trends and key industry players. Solid-state electrolytes used in SSBs include inorganic solid electrolytes, organic solid polymer electrolytes, and solid composite electrolytes. Inorganic options like lithium aluminum titanium phosphate excel in ionic conductivity and thermal stability but exhibit mechanical fragility. Organic alternatives such as polyethylene oxide and polyvinylidene fluoride offer flexibility but possess lower ionic conductivity. Solid composite electrolytes combine the advantages of inorganic and organic materials, enhancing mechanical strength and ionic conductivity. While significant advances have been made for composite electrolytes, challenges remain for synthesis intricacies and material stability. Nuanced selection of these electrolytes is crucial for advancing resilient and high-performance SSBs. Furthermore, while global SSB production capacity is currently below 2 GWh, it is projected to grow with a >118% compound annual growth rate by 2035, when the potential SSB market size will likely exceed 42 billion euros.

Strategic investment in electric vehicle charging service: Fast charging or battery swapping

With the increasing adoption of electric vehicles (EVs), there is a growing need for public charging infrastructure. As a result, significant investments have been made in charging services, particularly, fast-charging (FC) and battery-swapping (BS) services. This paper examines the impact of technical and operational factors, as well as market conditions, on the pricing and profitability of each service to explore whether and how EV charging service providers should invest in these emerging charging services. The analysis with benchmark to private-use slow-charging (SC) services reveals that if the valley electricity price is high and the potential market size is small, lowering service costs does not make BS services a viable option. When the valley electricity price is low, reducing battery loss will not give FC services an advantage. However, in such scenarios, BS services can gain an edge by decreasing service costs. Interestingly, even if both SC and BS services are negatively affected by higher valley electricity prices, the impact on the profitability of BS services is more severe. Our results provide implications for the development of public EV charging service infrastructure. We recommend that implementing energy storage solutions can help alleviate the negative consequences of escalating valley electricity prices and wider peak–valley electricity price differences on BS services and FC services, respectively.

Customizing customization in a 3D printing-enabled hybrid manufacturing supply chain

At-scale manufacture of customized products often requires both traditional processes and 3D Printing (3DP)-enabled additive manufacturing. Such hybrid manufacturing supports varying degrees of product customization achieved through variance in the mix of traditional and 3DP processes. Further, it supports the customization of the configuration of the 3DP-enabled supply chain. Our research investigates decision-making by 3DP manufacturers to obtain optimal profits based on the degree of customization. A two-echelon manufacturer-retailer supply chain that distributes customized products online and offline based on customers' channel preferences is considered. The Stackelberg Game model was used to study decision-making between the leader (manufacturer) and the follower (retailer). We analyzed two models: the centralized manufacturer-customized model and the decentralized retailer-customized model. The key findings of our study are as follows: Firstly, when the unit production cost is relatively small, it is optimal for the 3DP provider to offer consumers fully 3DP customized products. Secondly, with both the manufacturer-customized and the retailer-customized model, an increase in consumers' offline channel preference, will reduce the overall profits. Thirdly, in the retailer-customized model, the optimal selling price and profits are not affected by the ratio of the manufacturer's unit production cost and the total unit production cost. Finally, when the unit production cost increases with the customization degree, the optimal customization degree is relatively insensitive to potential market size changes. Our findings have practical relevance for firms seeking to gain a competitive advantage by deciding on the degree of customization and supply chain configuration strategies for 3DP manufacturing.

Selection of Sales Mode for E-Commerce Platform Considering Corporate Social Responsibility

From the perspective of corporate social responsibility (CSR) of the e-commerce platform, this paper investigates the choice of e-commerce platform for wholesale sales, agency sales, and hybrid sales modes when the manufacturer has both an offline retail channel and an e-commerce platform channel. Taking the e-commerce platform as the dominant player and considering factors such as the potential market size of the e-commerce platform, consumers’ sensitivity to CSR input level, and the CSR input cost coefficient, we constructed a Stackelberg game model under the wholesale sales, agency sales, and hybrid sales modes. We explored the impact of the e-commerce platform’s CSR behavior on the choice of its sales modes as well as on the members of the supply chain. The findings indicate that, irrespective of the consumers’ sensitivity to CSR level and CSR input cost coefficient, the e-commerce platform tends to adopt the hybrid sales mode when its potential market size is smaller. Moreover, when the potential market size is larger, the wholesale sales mode is preferred; only when the potential market size is moderate, and consumers are less sensitive to CSR input level or CSR input cost coefficient is higher, the e-commerce platform will choose the agency sales mode. The increase in the potential market size of the e-commerce platform and the consumers’ sensitivity to CSR input level is conducive to the rise in the profits of the e-commerce platform, and the increase in the CSR input cost coefficient makes the profits of the e-commerce platform decrease. At the same time, the demand for the e-commerce platform increases as consumers become more sensitive to CSR input level or as the potential market size of the e-commerce platform increases. In contrast, the reduction in the CSR input cost coefficient negatively affects the demand for the e-commerce platform.

PENERAPAN MODEL ECM: ANALISIS FAKTOR YANG MEMPENGARUHI PRODUKSI KARET JAMBI PERIODE 2000-2021

Rubber is a type of plantation commodity that is part of the leading export commodity and generates a lot of profit for Indonesia's foreign exchange. One of the largest rubber producing centers in Indonesia is Jambi. However, the production of rubber in Jambi has fluctuated. Meanwhile, the potential size of the rubber trade market is very high. So it is feared that rubber production cannot keep up with the fulfillment of the domestic market and the international level. Then the purpose of this study is to analyze the factors that affect both the long term and the short term on rubber production in Jambi as a determinant of a more appropriate policy to enable an increase in its production. The method used in this research is Error Correction Mechanism (ECM) with the research period starting from 2000 to 2021. Based on the results of the research conducted, in the long term the variable of planting area and the number of superior seeds has a significant effect on rubber production in Jambi while the variable number of rubber farmers is not significant in influencing rubber production. Meanwhile, in the short term, only the variable number of rubber farmers has a significant effect on rubber production, while the variables of planting area and number of seeds are not significant in influencing rubber production.

Optimization of a Two-Echelon Supply Chain Considering Consumer Low-Carbon Preference

This paper considers a fresh food supply chain with a supplier who takes responsibility for the cold chain and a retailer who needs to reprocess the fresh food. Carbon emissions will be produced in the processes of production, transportation, processing, etc. We consider the four-stage game, obtain the function expressions of optimal market prices with respect to carbon emission reduction level (CERL), analyze the best responses of the supplier and the retailer regarding their CERLs, and obtain the 25 optimal CERLs under competitive equilibrium. In 24 of the 25 equilibrium cases, the supplier or the retailer either do nothing to reduce carbon emissions, or make the most effort to reduce carbon emissions. Excluding these special cases, we focused on a non-trivial case where the increasing consumer preferences for low-carbon products will encourage the supplier and the retailer to reduce carbon emissions. Interestingly, we find that when the consumer preference for low-carbon products is low, the retailer’s and supplier’s equilibrium carbon reduction levels are low, so that the potential market size is small such that the competition for two kinds of customers is fierce. Then, an increase in the sale cost will reduce the retail price. However, when the consumer preference for low-carbon products is high, the potential market size is large such that the competition is not fierce. Then, an increase in the sale cost will advance the retail price.

Cooperation strategies with third‐party platform: E‐tailer and manufacturer perspectives

AbstractWith the rapid development of e‐commerce, both e‐tailers and manufacturers have actively cooperated with third‐party platforms to expand distribution channels and enhance competitiveness. There are three typical choices for firms to cooperate with a third‐party platform: (i) non‐cooperation, (ii) agency selling cooperation mode, and (iii) reselling cooperation mode. We consider a three‐tier supply chain and establish a stylized theoretical model to explore whether and how the e‐tailer or the manufacturer cooperates with a third‐party platform. We investigate the optimal channel cooperation choices from both the e‐tailer's and the manufacturer's perspectives under various channel structures and cooperation modes, revealing their different roles in cooperating with third‐party platforms. Our results indicate that large potential market size of the third‐party platform motivates the e‐tailer to cooperate with the third‐party platform. On this basis, agency selling cooperation mode is preferred by the e‐tailer at mild channel competition and reasonable commission rate, while reselling cooperation mode dominates at high channel competition or when the commission rate exceeds a threshold. Interestingly, we find that the manufacturer has generally similar mode preference with the e‐tailer, and they have opposite preferences under the condition of low commission rate and moderate channel competition intensity. More importantly, our results reveal that direct channel cooperation between the manufacturer and third‐party platform harms the e‐tailer's interests, whereas the channel cooperation between the e‐tailer and third‐party platform may increase profits for all supply chain participants. Our study provides valuable insights for e‐tailers, manufacturers and third‐party platforms to make better channel cooperation decisions and achieve successful partnership in online retailing.

Thermally stable transparent polymer films for flexible electronics: Properties and applications

This article describes the properties of the thermostable transparent polymer films (TSTPFs), their potential use in display and electronic applications, as well as the potential market size. The property targets for different types of applications including free standing and supported films then are discussed. The development focus in TSTPFs, especially colorless polyimides (CPIs) for organic light emitting diodes (OLEDs), is emphasized. Some thermally stable transparent polymers that have been developed by our company are discussed.

The factors limiting the venison market in the Czech Republic and options for limiting their impact on the Forestry

This article focuses on the development possibilities of the venison market in the Czech Republic. The main factors affecting the primary game market were investigated, both production limitations on the side of the hunters and on the side of the game production purchase prices. These factors were analysed in the context of the consumer prices of general meat production and the purchase prices of common meat (beef, pork). Furthermore, the size of the total game market was estimated, taking into account the export and import of this commodity. The potential venison market size for the Czech Republic was also established in the study. The gap between the development of the market consumer prices and purchase prices of the venison was analysed. The conducted research further revealed that the respondents do not perceive a relationship between the production of venison and the protection of forest ecosystems. With few exceptions, they do not realise that by buying and consuming venison, they can contribute to the support of forestry. Furthermore, the perception of the role of the forest environment in relation to game meat by the public does not correspond to the need to regulate the game density to limit damage to forest stands. The results of this research are recommendations which mainly consist in expanding the offer of the primary production to products significantly closer to the consumer market (moving from a producer market to a consumer market), and the implementation of activation campaigns (tastings, presentations of opinion makers). At the same time, our work revealed the need for further development, and by increasing the value for the customer who, with the appropriate marketing strategy, can perceive this product as a premium organic food through which they contribute to sustainable forest management.

Evaluation of end-of-life vehicle recycling system in India in responding to the sustainability paradigm: an explorative study

The growing number of end-of-life vehicles (ELVs) engenders a genuine concern for achieving sustainable development. Properly recycling ELV is paramount to checking pollution, reducing landfills, and conserving natural resources. The present study evaluates the sustainability of India's ELV recycling system from techno-socio-economic and environmental aspects as an instrumental step for assessing performance and progress. This investigation has performed the Strength-Weakness-Opportunity-Threat (SWOT) analysis to evaluate ELV recycling in the long-term viability and examine the critical factors and potential. This research makes practical recommendations for effectively encountering persistent challenges in the ELV recycling system based on Indian values. This research adopts an explorative and Integrated bottom-up mixed approach; it interfaces qualitative and quantitative data and secondary research. This study reveals that the social, economic, technological, and environmental aspects of the sustainability of India's ELV recycling system are comparatively limited. The SWOT analysis demonstrates that potential market size and resource recovery are more significant strengths, whereas lack of an appropriate framework and limited technology are major challenges in the recycling of ELVs in India. Sustainable development and economic viability have emerged as great opportunities, while informality and environmental impact have surfaced as primary potential threats to ELV recycling in India. This paper offers insights and yields critical real-world data that may assist in rational decision-making and developing and implementing any subsequent framework.

Word-of-Mouth on Action: Analysis of Optimal Shipment Policy When Customers are Resentful

Word-of-Mouth (WoM) communication via online reviews plays a vital role in customers’ purchasing decisions. As such, retailers must consider the impact of WoM to manage customer perceptions and future demand. This paper considers an online shopping system with premium and regular customers. Building on the behavioral and operations management literature, we model customer preferences based on the perceived service quality indicated by WoM and integrate this into the retailer’s operational problem to determine a shipment policy regarding the timing of consolidated shipments and the treatment of regular demand. First, we study the e-tailer’s problem when they have no knowledge of WoM and only react to the changes in demand. We analyze the long-term behavior of customer demand and show that potential market size and customer sensitivity are the key parameters determining this behavior. Then, we build a model to integrate the knowledge of WoM into operational decision-making and partially characterize the optimal solution. We show that (i) underpromise-and-overdeliver can be a hurtful strategy since it creates a false sense of fast delivery for the regular service, (ii) relaxations in operational constraints may hurt profitability due to the associated difficulties of managing perceptions, and (iii) seeking a stationary policy can lead to suboptimal solutions; therefore, cyclic policies should also be considered when appropriate.

Optimal extended warranty strategy for a two-sided platform under agency selling

Platforms are realizing that providing extended warranties not only achieves high profitability but also improves consumer satisfaction. In the current marketplace, extended warranties are often sold along with the products and can be provided by platforms, manufacturers, or both. How platforms and manufacturers develop efficient extended warranty strategies and the interaction between extended warranty strategies are critical questions for decision-makers. This paper proposes a three-stage Stackelberg game model to analyze the decision procedure from the perspective of a platform. Results show that the platform benefits from providing extended warranties in scenarios of large market size, or a moderate market size and a high commission rate; otherwise, the platform should not provide extended warranties. Furthermore, providing extended warranties surprisingly does not always increase product demand in a monopoly market, despite the extended warranty having the market expansion effect. Finally, the platform and the manufacturer achieve a win-win outcome by simultaneously providing extended warranties only when the potential market size is sufficiently large; when the potential market size is quite small, neither the platform nor the manufacturer provides extended warranties; otherwise, only one of the two warrantors provides extended warranties. These results give platforms and manufacturers suggestions for extended warranty strategies design and pricing decisions.

Carbon Fibers: From PAN to Asphaltene Precursors; A State-of-Art Review

Due to their outstanding material properties, carbon fibers are widely used in various industrial applications as functional or structural materials. This paper reviews the material properties and use of carbon fiber in various applications and industries and compares it with other existing fillers and reinforcing fibers. The review also examines the processing of carbon fibers and the main challenges in their fabrication. At present, two main precursors are primarily utilized to produce carbon fibers, i.e., polyacrylonitrile (PAN) and petroleum pitch. Each of these precursors makes carbon fibers with different properties. However, due to the costly and energy-intensive processes of carbon fiber production based on the existing precursors, there is an increasingly growing need to introduce cheaper precursors to compete with other fibers on the market. A special focus will be given to the most recent development of manufacturing more sustainable and cost-effective carbon fibers derived from petroleum asphaltenes. This review paper demonstrates that low-cost asphaltene-based carbon fibers can be a substitute for costly PAN/pitch-based carbon fibers at least for functional applications. The value proposition, performance/cost advantages, potential market, and market size as well as processing challenges and methods for overcoming these will be discussed.